TransCentury sustained its late reporting track record that started four years ago setting gaps in its financial statement exposing the Nairobi Securities Exchange (NSE) firm and its investors to serious risks.

The company posted a loss of Sh1.1 billion in the Financial Year 2020 compared to a loss of Sh3.8 billion in 2019, but warns that 2021 results will also be delayed.

TransCentury said it posted a 7 per cent decline in revenue due to “unprecedented effects of the COVID-19 pandemic which disrupted demand and global supply chains.”

Scaling down operations

“TC has undergone a significant restructuring process that was aimed at stabilising the business and returning to profitability, including debt restructure and scaling down operations,” said the company secretary Virginia Ndunge.

The firm’s fortunes have waned since 2013, when it posted a net profit of Sh626.4 million recording losses of Sh2.3 billion in 2014, Sh2.4 billion in 2015, and Sh863.9 million in 2016.

The firm then posted a net loss of Sh582.6 million in the year to December 2016, down from another loss of Sh741.2 million in 2015.

“The delay in release of FY2020 results has subsequently delayed the financial results for the year ended 31st December 2021 which will be released later than scheduled,” said the firm in a statement.

Last May, the Capital Markets Authority (CMA) approved proposed rights issue by TransCentury, whose capital had been wiped by years of losses.

“Funds raised from the rights issue will go towards reducing the group’s debt and unlocking the working capital for some of the operating businesses that have had constraints in accessing capital,” the company said yesterday.

The investment firm will raise unspecified new capital from investors by selling them additional shares, bringing back a form of corporate funding, that went out of favour among Nairobi Securities Exchange.

“The CMA has granted approval to TransCentury Plc to undertake a rights issue. The rights will be issued on the basis of five new ordinary shares for every one existing share,” the company had said.