News & Announcements

SAUDI CABLE

19 May, 2024 09:01

Saudi Cable Co. announces its Interim Financial results for the Period Ending on 2024-03-31 ( Three Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	12,572	11,715	7.315	11,618	8.211
Gross Profit (Loss)	-10,600	-18,080	-41.371	-17,132	-38.127
Operational Profit (Loss)	-36,641	4,317	-	-25,658	42.805
Net profit (Loss)	-4,845	40,895	-	3,030	-
Total Comprehensive Income	3,598	39,999	-91.004	-116	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Share Holders Equity (After Deducting the Minority Equity)	-460,980	-456,485	0.984
Profit (Loss) per Share	-0.73	6.13
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	-766.7	-511,610
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 increase in revenue for the period can be attributed to the partial resumption of operations by the company following the submission of the Financial Restructuring Plan (FRP) to the court. Upon receiving approval or making progress in the FRP process, the company likely resumed its normal business activities, resulting in an uptick in sales and revenue generation. Understanding this increase allows stakeholders to assess the company's ability to rebound from financial challenges and regain momentum in its business activities. It also underscores the importance of strategic planning and effective execution of restructuring initiatives in achieving sustainable growth and financial recovery.
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 company's loss is due to the operational loss that did not reach the production capacity that covers fixed costs, in addition to the high costs of financial and legal advisors during the period of preparing the FRP file. It is important to note that last year there was a reduction in zakat (through “Haircut” of the amount of 41 million riyals) and it was one of the factors that most affected net profit in the same quarter of last year.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The increase in revenue for the period can be attributed to the partial resumption of operations by the company following the submission of the Financial Restructuring Plan (FRP) to the court. Upon receiving approval or making progress in the FRP process, the company likely resumed its normal business activities, resulting in an uptick in sales and revenue generation. Understanding this increase allows stakeholders to assess the company's ability to rebound from financial challenges and regain momentum in its business activities. It also underscores the importance of strategic planning and effective execution of restructuring initiatives in achieving sustainable growth and financial recovery.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	During current quarter, the company reached the break-even point from continuing activities before Zakat due to the share of result from an associate, while it incurred a net loss from non-continuing activities in the amount of (2,296) million riyals resulting from the subsidiary’s business in Turkey, bringing the net loss to (4,845) million riyals. While net profits increased in the previous quarter as a result of fair value gains resulting from the reclassification of some usufruct assets into assets held for sale.
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 511.6 million, representing 767% of the share capital as of March 31, 2024, (as of December 31, 2023: SAR 506.8 million, representing 759%). Further, the Group current liabilities exceeded its current assets by SAR 866 million as of March 31, 2024, (as of December 31, 2023: SAR 845 million). 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 June 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 (1) 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. In this respect the Board of Directors of the Group decided on 22 Shabaan 1445H, corresponding to March 3, 2024, to exit of its investments in Turkey, by disposing of them by sale or in any other way as permitted by Turkish law. As these companies did not achieve the desired returns and continued to achieve losses during the past years despite the solutions and treatments carried out by successive administrations to no avail and strengthening the opinion of local and international legal advisors to support the exiting decision. 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	-

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