Investment firm TransCentury has returned to profit making ways by registering a Ksh. 297.6 million net profit up in the first six months of 2019 from a Ksh. 684.8 million net loss registered in a similar period in 2018.
According to the Business Daily, the firm attributed the profit jump to successful debt restructuring which saw it record a Ksh. 1.3 billion gain in the first six months of the year, nine times higher than the Ksh. 145 million it registered in the first half of 2018. Increased delivery of orders similarly contributed to the company’s revenue growing by 11 percent to Ksh. 2.53 billion.
In the first six months of the year the company also registered a 24 percent reduction in loan servicing costs. Ksh. 322 million was used to service loans during the period down from Ksh. 444 million in the first half of 2018. The firm however closed the period in negative working capital, with current liabilities being three times the current assets. The firm is however optimistic that performance in the second half of the year will be more positive.
“Overall, the main markets we operate in continue to display favourable conditions for our business model and strong growth prospects in line with our expectations,” the firm said in an official statement.
The last time TransCentury registered a full year profit was in 2013. A cash crunch at the company which affected delivery on orders has been cited by the Business Daily as the reason why the company failed to register profits in the last five years. Kuramo Capital, which owns a 25 percent stake in the investment firm, makes up some of the companies that have incurred losses as a result of the bank’s inconsistent performance in recent years.