Saudi Cable Co. announces its Interim Financial results for the Period Ending on 2023-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 3,873 | 25,026 | -84.524 | 11,715 | -66.939 |
| Gross Profit (Loss) | -19,634 | -18,308 | 7.242 | -25,784 | -23.852 |
| Operational Profit (Loss) | -36,166 | -36,057 | 0.302 | -4,409 | 720.276 |
| Net profit (Loss) | -5,695 | -44,797 | -87.287 | 40,282 | - |
| Total Comprehensive Income | -17,720 | -84,159 | -78.944 | 39,386 | - |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 15,588 | 60,383 | -74.184 |
| Gross Profit (Loss) | -45,418 | -45,045 | 0.828 |
| Operational Profit (Loss) | -40,559 | -78,128 | -48.086 |
| Net profit (Loss) | 34,603 | -82,417 | - |
| Total Comprehensive Income | 21,682 | -102,690 | - |
| Total Share Holders Equity (After Deducting the Minority Equity) | -474,323 | -18,119 | 2,517.821 |
| Profit (Loss) per Share | 0.87 | -2.82 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Percentage of the capital (%) | Amount | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | 762 | 508,329 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | The company was going through the FRP process and that led to a stopage in production and decline in revenue |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The net profit for the period increased due to a reduction in fixed cost and expenses and healthy profits reported by associate |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The revenue declined as some of the subdiaries had their service contracts expired |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The net profit declined due to a foreign exchange loss reported by an associate for the quarter, and VAT penalty |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | The decline is mainly attributable to the operations of the company being stopped because of the shortage to liquidity |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The reason improving the results is due to provision reversals and healthy results being reported from associate company |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | Material Uncertainty Related to Going Concern
We draw attention to note 2 of the condensed consolidated financial statements which indicates that the Group accumulated losses have reached SAR 508 million, representing 762% of the share capital as of June 30, 2023 (as of December 31, 2022: SAR 543.3 million, representing 814%). Further, the Group current liabilities exceeded its current assets by SAR 1,016 million as of June 30, 2023 (as of December 31, 2022: SAR 974.5 million). Furthermore, on May 11, 2022, The Saudi Stock Exchange “Tadawul” announced to continue suspending the trading of Saudi Cable Company share in the market as per the rules on the offer of Securities until the Company announces that the matters included in the independent auditor’s report on the consolidated financial statements for the year ended December 31, 2021, are remediated. These conditions, along with other matters, cast a significant doubt about the Group’s ability to continue as a going concern and its ability to meet its obligations when it becomes due.
In this respect the management has prepared five years forecast which exhibits net profit from year 2025, the plan includes certain assumptions in respect of cash injection via rights issue, revenue growth based on pipeline orders and quotations, creditors voting due in January 2024 to convert part of debt to equity in the process of Financial Restructuring Procedure (FRP). These elements are future events and hence contain material uncertainty as to the outcome. Our conclusion is not modified in respect of this matter.
Emphasis of Matter We draw your attention to note 19 (b) to the condensed consolidated financial statements where it shows that the Group has a court in Turkey issued a verdict in favor of Mass Kablo Yatırım ve Tic. A.Ş for a case filed by the minority shareholders of its subsidiary. An appeal against the verdict has been presented by said minority shareholders. However, based on a legal opinion obtained from an independent counsel which is of view that the decision of Court of Appeal will not be different from the original decision issued by court of first instance. In addition, the Group assessed and recorded a contingent liability amounting to SAR 52.5 million. Further the group has taken full provision on net assets of Mass Kablo Yatırım ve Tic. A.Ş. Our conclusion is not modified in respect of this matter. |
| Reclassification of Comparison Items | Certain prior period figures have been reclassified to conform to current period presentation, which are not material in nature. |
| Additional Information | Expected date for the publication of Q3 2023 financials will be 14th of March 2024 |
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