The Group recorded an improvement in gross profit margins from 14 percent in 2017 to 27 percent during the first half of 2018.
“Improved performance in the first half of the year has been achieved on the back of a tough liquidity environment. We, however, continue to focus on the implementation of our turnaround plan that includes the re-profiling of debt and securing additional working capital funding,” said Nganga Njiinu, TransCentury Group CEO, and Managing Director.
Overall, the Group has recorded a 46 percent reduction in loss before tax demonstrating traction in turning around the Group’s performance.
TC continues to benefit from improved efficiencies and financial discipline reducing the Group’s operating expenses by 20 percent. This has led to the Group reporting growth in gross profit by 54 percent.
The improved gross margins in 2018 are also indicative of the existing demand from the Group’s markets and ability to allocate resources to high margin order book.
Following the completion of Company debt re-profiling in Q2, the benefits are starting to accrue with an overall 12 percent drop in finance costs.
The debt re-profiling focus has now shifted to the operating units and to date, debt in one key unit has been fully refinanced and enhanced giving access to the required additional working capital.
“TransCentury remains strongly anchored on its competitive advantage that includes; unrivaled capacity, a robust order book and an innovative and entrepreneurial team” added Mr. Njiinu.