× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Trans-Century in search for fresh capital to revive fortunes

NEWS
By Patrick Alushula | Jun 23rd 2018 | 2 min read
By Patrick Alushula | June 23rd 2018
NEWS
TransCentury Chief Executive Officer Ng'ang'a Njiinu speaks with Saturday Standard at his office in Nairobi. [Elvis Ogina, Standard]

Infrastructure development firm TransCentury is looking for fresh capital after four consecutive years in losses left it in negative position.

Chief Executive Officer Ng’ang’a Njiinu says the firm is addressing the capital allocation decisions to ensure that when the fresh funds come in, their concentration will be on projects that can give a return to the business.

However, with a loss of Sh4.33 billion and current liabilities outstripping current assets by Sh8.5 billion, auditors are casting doubts on ability of the firm to continue being in business.  

“We are looking at doing the fundraising at some point this year. We have some of the debts that still need to be re-tenured and we have had a bit of success by restructuring some of them,” Mr Njiinu told Saturday Standard.

A big chunk of the Sh14.3 billion current liabilities is Sh6.77 billion in trade payables and Sh5.3 billion of long-term loan that is maturing in the next 12 months, as well as a Sh1.2 billion portion of bond.  

Fundraising

The CEO says the company is at the tail-end of restructuring the remaining debt to make it match the expected cash flows so as to save it from working capital constraints. “Once we do that, we want to raise money from shareholders or the market and put it in the orders as opposed to paying debt,” he said.

He explained that the company is counting on huge order book to the tune of Sh26 billion that requires capital to be unlocked and is confident of immediate impact if the fundraising succeeds.

Mr Njiinu said that the previous debt profile was complicated since it had short maturity period that exposed the company to high finance cost.

In early 2016, TransCentury had a Sh8 billion bond that was maturing and there was a view in the market that it was going to struggle in honouring it.

“We eventually resolved it but during that period, we lost a significant chunk of our credit lines for working capital. That slowed down our execution as well as cash flow and revenues,” he said.  

Share this story
Stamps firm distances itself from fakes reports
An Indian firm awarded a tender to supply secure standardisation mark stickers and stamps has denied reports that it is doing shoddy work leading to
China rejected Kenya's request for Sh32.8b debt moratorium
China is Kenya’s largest bilateral lender with an outstanding debt of Sh692 billion.
.
RECOMMENDED NEWS
Feedback