East African Cables #ticker:CABL has jumped back to profits despite a 19 percent decline in turnover, posting net earnings of Sh634 million in the six months to June from a loss of Sh303 million last year.
Turnover or the money the business generated from daily activities came at Sh698 million from Sh872 million in a similar period last year.
The company that recently managed to restructure a huge impending debt saw interest expenses halve from Sh279 million to Sh109 million.
“The group continues to achieve its turn-around milestones including the just concluded debt restructure and efficiency optimisation,” Company Secretary Virginia Ndunge said in a notice.
The business, through its owners TransCentury #ticker:TCL who hold a 68.38 percent stake, completed restructuring the debt to 10 years including a moratorium of two and a half years. This resulted in reduction of the debt by Sh1.65 billion, representing 44 percent of total debt.
After restructuring, current liabilities whittled down by Sh2.1 billion although the company was still insolvent by Sh542 million.