Kibaki-era infrastructure firm TransCentury has emerged from loss-making and reported a Sh580 million profit after tax in the year to December 2024, from a loss of Sh3.2 billion in 2023.
It is the first time that the firm has reported a full-year profit since 2013, when it reported a Sh2.28 billion loss.
The Nairobi Securities Exchange (NSE)-listed firm attributed the turnaround to sustained revenue growth momentum, margin expansion, cost containment, balance sheet clean-up, and prudent foreign currency exposure management.
TransCentury Group Chairman Shaka Kariuki said last year marked a defining chapter in the company’s turnaround journey, adding that the company had taken decisive actions that have since yielded fruits.
“Our stakeholders have been supportive and patient in our turnaround journey, and we assure them that we are actively working to resolve outstanding debt issues with our main lender amicably positioning the business for sustainable growth,” said Mr Kariuki.
TransCentury’s return to profitability comes after a period of significant challenges, including financial difficulties, operational setbacks and adverse market conditions such as a slump in infrastructure sectors that it had been eyeing to steer its growth, leading to a prolonged loss-making period.
In 2024, the firm reported a revenue of Sh6.69 billion, up from Sh6.57 billion in 2023. TransCentury said its revenue growth continues to be driven by strong brand positioning, steady demand across our core business segments, and capital allocation prioritisation to demand fulfilment as well as market deepening initiatives.
According to TransCentury Group CEO Ng’ang’a Njiinu, the return to profitability was despite a tough operating environment.
“Our teams have delivered this remarkable turnaround in an incredibly challenging environment and significant headwinds in the past few years,” he said.
“The return to profitability is not just a financial milestone but also a testament to the resilience of our people and business, the robustness of our strategy and our unwavering commitment to sustainable value creation.”
“Our next steps are focused on capitalising on the significant growth opportunities we have created to scale up, capital structure optimisation and continued balance sheet improvement.”
The group’s gross profit increased by 27 per cent as a result of gross margin improvement driven by a focus on high-margin products, improved procurement and efficient project management.
Other factors at play, the firm said, included successful implementation of the company’s initiatives around disciplined execution, currency management and credit management.
Kibaki-era infrastructure firm
TransCentury
has emerged from loss-making and reported a Sh580 million profit after tax in the year to December 2024, from a loss of Sh3.2 billion in 2023.
It is the first time that the firm has reported a full-year profit since 2013, when it reported a Sh2.28 billion loss.
The Nairobi Securities Exchange (NSE)-listed firm attributed the turnaround to sustained revenue growth momentum, margin expansion, cost containment, balance sheet clean-up, and prudent foreign currency exposure management.
TransCentury Group Chairman Shaka Kariuki said last year marked a defining chapter in the company’s turnaround journey, adding that the company had taken decisive actions that have since yielded fruits.
“Our stakeholders have been supportive and patient in our turnaround journey, and we assure them that we are actively working to resolve outstanding debt issues with our main lender amicably positioning the business for sustainable growth,” said Mr Kariuki.
TransCentury’s return to profitability comes after a period of significant challenges, including financial difficulties, operational setbacks and adverse market conditions such as a slump in infrastructure sectors that it had been eyeing to steer its growth, leading to a prolonged loss-making period.
In 2024, the firm reported a revenue of Sh6.69 billion, up from Sh6.57 billion in 2023. TransCentury said its revenue growth continues to be driven by strong brand positioning, steady demand across our core business segments, and capital allocation prioritisation to demand fulfilment as well as market deepening initiatives.
According to TransCentury Group CEO Ng’ang’a Njiinu, the return to profitability was despite a tough operating environment.
“Our teams have delivered this remarkable turnaround in an incredibly challenging environment and significant headwinds in the past few years,” he said.
“The return to profitability is not just a financial milestone but also a testament to the resilience of our people and business, the robustness of our strategy and our unwavering commitment to sustainable value creation.”
“Our next steps are focused on capitalising on the significant growth opportunities we have created to scale up, capital structure optimisation and continued balance sheet improvement.”
The group’s gross profit increased by 27 per cent as a result of gross margin improvement driven by a focus on high-margin products, improved procurement and efficient project management.
Other factors at play, the firm said, included successful implementation of the company’s initiatives around disciplined execution, currency management and credit management.
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By Macharia Kamau