RIGHTS ISSUE

TransCentury cut losses by 12.4% in delayed 2019 results

The performance in both subsidiaries is underpinned by a robust order book, successful debt re-profiling

In Summary
  • It is set to commence a Rights Issue process in the upcoming shareholder meeting scheduled for June 10
  • The overall revenue grew 34 percent
A section of TransCentury's Civicon Limited workshop in Mombasa./
A section of TransCentury's Civicon Limited workshop in Mombasa./
Image: COURTESY

Listed Infrastructure company, TransCentury Plc is set to commence a Rights Issue process in the upcoming shareholder meeting scheduled for June 10 to boost its operating capital.

The loss-making firm announced this in its delayed financial results for the year ended December 31, 2019. The firm had sought permission from the Capital Market Authority (CMA).

CMA regulations require listed firms to prepare and publish their full-year financial statements in at least two newspapers of national circulation within four months after the close of the financial period. Half-year results should come after two months.

According to the firm, the Rights Issue comes from the interest expressed by the shareholders to participate in a fundraising transaction.

Proposed Rights Issue will be on the basis of five (5) new shares for every one (1) ordinary share held. Details of the Rights Issue to follow shareholder and regulatory approvals.

The firm reduced its net loss by 12.4 per cent during the financial year under review on improved revenue, driven by impressive performance especially in two of its subsidiaries.

The Group had incurred a loss of Sh3.5 billion in 2018 and Sh4.33 billion in 2017. By then, its current liabilities had exceeded current assets by Sh10.36 billion.

The overall revenue grew 34 per cent, with two subsidiaries, Tanelec Limited and AEA Limited reporting a 56.8 per cent and 89.7per cent revenue growth respectively.

The performance in both subsidiaries is underpinned by a robust order book, successful debt re-profiling freeing up operating cashflows and innovative working capital financing accelerating execution.