TransCentury 2013 earnings decline by 30 per cent

By Reuters

TransCentury Limited posted a 30 per cent drop in its pretax profit for 2013 to Sh856.6 million ($9.9 million), it said.

The company, which runs an electricity equipments maker and an engineering services firm active in the nascent petroleum and mining sectors in Kenya, blamed a slowdown in Kenya due to a presidential election in March, after the previous poll in 2007 was marred by violence.

The election passed off peacefully.

It said the outlook for this year’s performance was positive as the energy equipment business rolls out new products and moves into new markets in Africa.

The engineering division is expected to contribute to earnings growth due to business from firms in the power, generation, oil and gas as well as mining sectors, TransCentury said.

TransCentury sold its 34 per cent stake in Rift Valley Railways to Egypt’s Citadel Capital last month, giving it access to about $40 million in cash that will fund the planned projects.

It recommended the payment of a dividend per share of 0.40 shillings, unchanged from the previous year. Earnings per share fell to Sh1.06 shillings from Sh1.66 shillings in 2012.

Meanwhile, BlackBerry said it bought a minority stake in privately held healthcare IT firm, NantHealth, a move that offers a glimpse into the type of niche markets the smartphone maker is targeting for turnaround.

Waterloo, Ontario-based firm, a pioneer in the smartphone, has fallen on hard times as its market share has waned in recent years. As the firm attempts to stem losses and remain relevant it is now focused on expanding its services segment that caters to the needs of large clients like banks.