Companies

TransCentury turnover falls 12.5pc

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Transcentury CEO Gachao Kiuna. Photo/FILE

A 12.5 per cent drop in turnover saw investment firm TransCentury record lower profits for 2013, a situation it blamed on project delays.

The listed investment firm announced a net profit of Sh626 million for the year ended December 2013, compared to net earnings of Sh740 million in 2012.

The turnover fell to Sh11.8 billion, from Sh13.5 billion in 2012, with the company saying in a statement that poor performance in the first half of the year was due to jitters surrounding the general election. Dividend payout remains unchanged at 40 cents per share.

On the recent sale of its 34 per cent stake in Rift Valley Railways, the company said the disposal was due to the delayed turnaround of RVR, with the investment failing to meet the returns target set by the company.

“The group realised $43.7 million (Sh3.8 billion) from the sale, which saw it recover its entire cash investment in RVR. But the sale proceeds were below the historical fair value of the investment.

The cash realised from the disposal of RVR will be redeployed towards other higher return investment opportunities,” said TransCentury in NSE filing.

The company says it will increase its focus on the oil and gas sector and will also increase its regional diversification to power the business.

TransCentury is in the infrastructure sector through its subsidiary Civicon in which it owns a 60 per cent share. The subsidiary has been servicing the oil, gas and mining sector by constructing access roads and other infrastructure.