TransCentury Limited (TCL), a holding company with a focus on infrastructure investment yesterday released their Half Year results for the period ending June 30th 2011.
The company moved from a pre-tax loss of Kshs. 48.6 Million, to a profit of Kshs. 165.4 Million
Profit After Tax improved to Kshs. 53.9 Million from a loss of Kshs. 167.9 Million
The company was buoyed by a rise in regional sales volumes in the Power Infrastructure decision which pushed revenues up 40% to Kshs. 4.5 Billion.
Operating margins however reduced to 8.9% from 12%
During the period in review, the Tanzanian operation returned to profitability
Net finance costs reduced marginally by Kshs. 4.2 Million to Kshs. 238.5 Million
Total Assets increased by 36% to Kshs. 15.3 Billion
Earlier this month, Rift Valley Railways (RVR), which TCL holds a 34% stake, concluded a $164 Million debt financing package aimed at upgrading rail services
RVR expects to launch its extensive capital investment of $287 Million program imminently now that loan agreements have been signed.
TCL had previously issued a press release indicating that the Company had plans to list an extra 6,912,194 ordinary shares in connection with the company’s Convertible Bond Programme. This will bring the Total Issued Shares to 273,950,284. 144,008,422 shares still remain unissued
Incorporating the extra shares to be listed, projected Earnings Per Share for the full year will be 0.39/= At the current price of 38/=, TCL trades a PE of 96.6
That definitely is too high for anyone’s liking. How the arrangers of the listing came up with a price of 50/= is beyond comprehension
The company closed with a positive cash position of Kshs. 2.5 Billion, from a negative cash of Kshs. 27.4 Million in the corresponding half year in 2010
Debt/Equity ratio reduced to 0.93 from 1.5
Management expects demand to remain strong for the rest of the year and expects production to further increase as key capacity expansion has been completed
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