Saudi Cable Co. announces the annual financial results for the period ending on 31-12-2017
|Element||Current year||Previous year||% Change|
|Net profit (loss)||-80.31||-235.39||65.88|
|Earning or loss per share, Riyals||-1.45||-3.1||-|
|Gross profit (loss)||51.92||39.35||31.94|
|Operational profit (loss)||-74.15||-141.73||47.68|
|All figures are in (Millions) Saudi Arabia, Riyals|
|Reasons of annual financial results||The reasons for decrease in net loss of current period compared with the net loss of similar period of last year, are mainly due to the following items included in the statement of comprehensive income: a.A waive off of loans totaling SR 77 million from one of the restructuring banks as detailed below. b.Reduction in operating expenses and improved margins. c.Absence of provision against development cost and impairment of Goodwill as compared to year 2016. d.Share of loss from associates as compared to a profit in year ended 2016.|
|External auditor's report containing reservation||As provided below.|
|Reclassifications in annual financial results||Certain figures for 2016 have been reclassified to conform to the presentation in the current year.|
|Other notes||Earnings per share for the current period were calculated based on the average of 55.5 million shares compared to 76.0 million shares for the same period last year. In line with IAS 33 Earnings per share, Basic EPS is calculated by dividing profit or loss attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the period. As there was a capital reduction that took place as approved on June 4, 2017, the weighted average structure changed since then, impacting weighted average number of ordinary shares of twelve month period ended December 31, 2017. The old number of shares prior to capital reduction was 76.0 million where as the number of shares post capital reduction was 40.4 million. For the twelve month period, the new reduced number of shares was for 210 days (June 4, 2017 to December 31, 2017) out of the total 365 days in the year (155 days from January 1, 2017 with old number of shares). Weighted average number of shares outstanding during the twelve month period calculates to 55.5 million. Total loss in comprehensive income attributable to the owners of the company during twelve months amounts to SR 89.78 million against a loss of SR 221.81 million for the same period of last year, a decrease of 59.52%
On May 1, 2017, the Board of Directors recommended to reduce the share capital of the Company by absorption of accumulated losses of the Company up to SR 355.89 million. The Capital Market Authority (CMA) has authorized such reduction on May 8, 2017, which was approved by the shareholders in their extra ordinary general meeting held on June 4, 2017.
The company reached a debt reduction agreement with one of those lenders to whom a loan of SR141.99 million was outstanding. Under this agreement, the company made an immediate payment of SR 51 million including SR 11 million as a refundable Guarantee against an outstanding loan and an issued letter of guarantee. Subsequently, the lender waived off an amount of SR77 million from the outstanding loan.Revenue and Equity variances are as follows:
A.Total revenue during the twelve months amounts to SR 1,342.48 million as against total revenue of SR 1,564.55 million for the same period of last year, a decrease of 14.19%
B.Equity attributable to shareholders (Before Non-controlling Interest) reached SAR 209.85 million as at December, 31st 2017 compared to 299.63 million as at December, 31st 2016, which represents a decrease of 29.96%.
C.Accumulated losses have reached to SR 175.54 million as at December, 31st 2017 which is 43.44% of the share capital, as at December 31, 2016: SR 451.11 million, which is 59.36% of the share capital.
Transactions carried out with related parties during the twelve months of the year 2017 are as follows:
A.Contract with Xeca, an associate company, amounting to SR 0.25 million for the cost to cover legal expenses.
B.Purchase contract for aluminum from an associate company, Midal Cables, amounting to SR 9.01 million.
C.Shared Expenses at cost, which are incurred by Xenel on behalf of Saudi Cable Company, amounting to SR 2.69 million, pertain to fees for business expenses
The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.