New Risk • Jun 20
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: KSh1.26b (US$9.77m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Negative equity (-KSh13b). Shareholders have been substantially diluted in the past year (201% increase in shares outstanding). Market cap is less than US$10m (KSh1.26b market cap, or US$9.77m). Reported Earnings • May 31
Full year 2024 earnings released: EPS: KSh0.53 (vs KSh2.73 loss in FY 2023) Full year 2024 results: EPS: KSh0.53 (up from KSh2.73 loss in FY 2023). Revenue: KSh6.70b (up 1.9% from FY 2023). Net income: KSh601.8m (up KSh3.68b from FY 2023). Profit margin: 9.0% (up from net loss in FY 2023). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. New Risk • Mar 24
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 201% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Negative equity (-KSh15b). Shareholders have been substantially diluted in the past year (201% increase in shares outstanding). Minor Risk Market cap is less than US$100m (KSh1.42b market cap, or US$11.0m). Buy Or Sell Opportunity • Jan 31
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 265% to KSh1.35. The fair value is estimated to be KSh1.10, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.7% over the last 3 years. Earnings per share has grown by 19%. New Risk • Jan 21
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Kenyan stocks, typically moving 12% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Share price has been highly volatile over the past 3 months (12% average weekly change). Market cap is less than US$10m (KSh270.1m market cap, or US$2.09m). New Risk • Dec 30
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Market cap is less than US$10m (KSh142.6m market cap, or US$1.10m). New Risk • Dec 17
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (KSh150.1m market cap, or US$1.16m). Minor Risks Negative equity (-KSh13b). Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Announcement • Jun 06
TransCentury PLC, Annual General Meeting, Jun 28, 2024 TransCentury PLC, Annual General Meeting, Jun 28, 2024, at 11:00 E. Africa Standard Time. New Risk • Jul 01
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Share price has been highly volatile over the past 3 months (10% average weekly change). Market cap is less than US$10m (KSh247.6m market cap, or US$1.76m). Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Wanjuki Muchemi was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Jul 30
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Wanjuki Muchemi was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Jul 31
TransCentury Puts Off Special Meeting Meant to Discuss Delisting Plan TransCentury PLC has cancelled an extraordinary general meeting to consider its proposal to delist from the Nairobi Securities Exchange and which was to be held on July 30, 2020. The company did not give the specific reasons for the decision which will extend its trading days on the Nairobi bourse. TransCentury said it needs to exit the NSE to access new capital from private equity funds that will only invest in it as a non-listed business. “Notice is hereby given that the virtual extraordinary general meeting (EGM) of TransCentury Plc scheduled for, July 30, 2020 at 10:00 am has been cancelled," the company said in a notice to shareholders. “This is due to circumstances beyond the control of TransCentury and in view of this the board had found it necessary to reschedule the EGM and will be issuing a new notice after consulting with all relevant stakeholders". Announcement • Jul 10
TransCentury May Delist from NSE TransCentury PLC is seeking to delist from the Nairobi Securities Exchange (NSE), saying it needs to meet a precondition for accessing new capital from private equity funds. The proposal to take the company private will be put to a shareholder vote at an extraordinary general meeting to be held via electronic means on July 30, 2020. “The focus now remains attracting funding that is aligned to the group strategy to be able to realise full value from opportunities at hand,” TransCentury said in a statement. “A significant source of such capital, however, remains unavailable to the business while it remains listed, including the fast-growing pools of sector-specific capital targeting private/non listed businesses.” The company did not say how much of new capital it is seeking to raise and the identity of investors willing to provide the cash once it goes private. The prospective investors, however, want to fund TransCentury as a private firm to avoid reporting and regulatory requirements that apply to listed companies. The resolution to take the company private will need the approval of most of the company’s shareholders to succeed. Kenya’s securities law says that a delisting resolution can be passed by a simple majority at a meeting where shareholders with a combined stake of at least 75% are represented in person or through proxies. Such a resolution can nonetheless be nullified if investors with a 10% equity or more vote against it. TransCentury’s delisting plan has the backing of its controlling shareholder, private equity firm Kuramo Capital, which acquired its 24.9% stake in April 2017 for $20 million. 