OVERVIEW OF 2014 PERFORMANCE
TransCentury Limited (“TCL” or the “Group”) is pleased to announce its results for the year ended 31 December 2014.The Group recorded a revenue of KES 10.2bn and a net loss of KES 2.3bn.The financial performance was adversely affected by a 36% drop in the revenue of the Engineering Division due to a number of delayed projects which have since commenced in Q1 2015.Despite anotable reduction of 12% in the London Metal Exchange (LME) prices, the Power Division recorded a 7% growth in revenue attributed to increased volumes driven by new markets.
The sale of the stake in Rift Valley Railways (RVR) significantly contributed to the loss in 2014. The Group through its wholly owned subsidiary, Safari Rail Company Limited (“Safari Rail”), disposed of its entire 34% shareholding inKU Railways Holdings Limited (“KURH”) on 31st March 2014 by exercising a PUT Option as this investment failed to meet return targets set by the Group.The Group realised USD 43.7m (KES 3.8bn) from the sale, which saw it recover its entire cash investment ?? in RVR. The funds have been redeployed towards debt reduction andgrowth capital in our existing Power and Engineering Divisions.
OUTLOOK
The Group continues to focus on growing its Operating Divisions and developing
selective infrastructure projects which are synergistic to its operations. The
business outlook is positive with growth prospects in both domestic and regional markets including major infrastructure projects both ongoing and planned across the region. The Company has secured a strong pipeline of Infrastructure projects and together with an improved cost base forecasts a return to profitability in 2015. The key areas of opportunity include:
• Power Infrastructure: Significant growth is expected from on-going
programs by utilities throughout the region to rehabilitate existing grids,
increase new connections and augmentpower generation. The enforcement
of the Government’s policy on local sourcing of key products in the power
sector from local manufacturers remains key. Our expanded and modernized
plant in Kenya will be fully commissioned by Q2 of 2015 and will provide
additional capacity and flexibility to offer a wide product range to cover
the Eastern and Central African region. The development of additional
power generation capacity is a significant opportunity as the Group looks to
develop new power plants in 2015 (e.g. Menengai Geothermal Power Plant).
• Transport Infrastructure: The increasing level of Government and
private participation in infrastructure projects to support growth in the
transportation sector such as the 10,000 km annuity financed road project
in Kenya, where the Group was recently shortlisted as the preferred bidder
for lot 1 of the annuity roads program is a major opportunity for the Group.
• Oil and Gas Infrastructure: The discovery of natural resources such as onshore oil in Northern Kenya and the large gas deposits in Southern Tanzania is creating significant opportunities as the Group continues to serve its oil and gas clients on their infrastructure needs.
• Mining Infrastructure: The development of the nascent mining sector
leading to new mine builds in East, Central and Southern Africa region
continues to be an area of growth for the Group, particularly in DR Congo
and Kenya.
Lastly, to minimize execution risk, the Group continues to focus on building
strategic relationship with key technical partners, who have a strong track
record for delivering similar infrastructure projects internationally.
By Order of the Board
Virginia Ndunge, Company Secretary
23rd April 2015

let the slaughter begin