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Saudi Cable Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Nine Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 23,50192,607-74.62241,349-43.164
Gross Profit (Loss) -24,224-13,28282.382-20,96515.544
Operational Profit (Loss) -43,243-42,7561.139-31,50437.261
Net Profit (Loss) after Zakat and Tax -46,55951,405--19,186142.671
Total Comprehensive Income -48,31748,178--26,55181.978
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 128,705297,323-56.712
Gross Profit (Loss) -62,446-37,32567.303
Operational Profit (Loss) -111,579-105,8435.419
Net Profit (Loss) after Zakat and Tax -101,627-8,3741,113.601
Total Comprehensive Income -111,735-3,2993,286.935
Total Share Holders Equity (after Deducting Minority Equity) 173,687338,466-48.684
Profit (Loss) per Share -2.82-0.18
All figures are in (Thousands) Saudi Arabia, Riyals
Accumulated LossesCapitalPercentage %
-164,048360,614-45.49
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListExplanation
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 Group made a net loss of SR 46.6 million in current quarter as compared to the net profit of SR 51.4 million in the same quarter of the previous year and the change in net losses of the current quarter compared with net profit of the same quarter of the previous year are mainly due to following impacts:

• Lower volumes in current quarter as compared to same quarter of the previous year.

• Decreased expenses in current quarter as compared to same quarter of the previous year.

• Decreased other income in current quarter as compared to same quarter of the previous year.

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is The Group made a net loss of SR 46.6 million in current quarter as compared to the net loss of SR 19.2 million in the previous quarter and the change in net losses of the current quarter compared with net loss of the previous quarter are mainly due to following impacts:

• Lower volumes in current quarter as compared to previous quarter.

• Decreased one-off expenses in current quarter as compared to previous quarter.

• Decreased other income in current quarter, as compared to previous quarter.

• Decreased share of profit from associates in current quarter as compared to previous quarter.

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 Group made a net loss of SR 101.6 million in current period as compared to the net loss of SR 8.4 million in the same period of the previous year and the change in net losses of the current period compared with net loss of the same period of the previous year are mainly due to following impacts:

• Lower volumes in current period as compared to same period of previous year.

• Decreased expenses and finance cost in current period as compared to same period of the previous year.

• Increased share of profit from associates in current period as compared to net losses in same period of the previous year.

• Decreased other income in current period as compared to same period of previous year.

Statement of the type of external auditor's report Qualified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion Basis for Qualified Conclusion

• As stated in note 6, the interim condensed consolidated financial statements include investment in an associate (50% ownership) with a carrying value of SAR 310.3 million and share of results of S AR 11.5 million as at and for the nine-month period ended September 30, 2021 (SAR 319.12 million and SAR 1.52 million as of and for the year ended December 31,2020). The associate had trade receivables amounting to SAR 48 million, out of which the Group’s share is SAR 24 million; that are overdue for more than one year, against which management has not recognized any allowance for expected credit losses. Management was unable to provide us with adequate information to ensure the recoverability of those trade receivables balances. Had we been provided adequate information, matters might have come to our attention indicating that adjustments might be necessary to the interim condensed consolidated financial information for and as of the period ended September 30, 2021.

• As stated in note 17, the Group received assessments from the Zakat, Tax and Customs Authority (the Authority), claiming additional Zakat liabilities of SAR 239.5 million (December 31, 2020: SAR 201.9 million) in respect of the assessment for prior years against which the Group has filed appeals. It is management’s assertion that they have grounds to contest against items included in the assessments raised by the Authority, that the outcome of the appeals is uncertain at this stage and, therefore, it is not possible to determine the potential Zakat provision. No provision has been made in these consolidated financial statements for the items under appeal and for any potential exposure relating to open years not yet assessed by the Authority. We have not been provided details or basis of certain appeals, including details of zakat computation in respect of certain open years for the Company and of the certain subsidiaries. Had we been able to complete our review of zakat assessments, matters might have come to our attention indicating that adjustments might be necessary to the interim condensed consolidated financial information for and as of the period ended September 30, 2021G.

Material Uncertainty Related to Going Concern

We draw attention to Note 2 in the interim condensed consolidated financial statements which states that the Group incurred a net loss of SAR 100.9 million during the nine-month period ended September 30, 2021 and, as of that date, the Group’s current liabilities exceeded its current assets by SAR 224.6 million. These events or conditions, along with other matters, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

Other Matter

The consolidated financial statements of the Group for the year ended December 31, 2020 and the interim condensed consolidated financial statements for the six month period ended June 30, 2020, nine-month period ended September 30, 2020 and the three month period ended March 31, 2021 were audited and reviewed by another Auditors who expressed a modified opinion and conclusion on April 06, 2021, August 25, 2020, November 10, 2020 and May 23, 2021.

Qualified Conclusion

Based on our review, except for the effects of the matters described in the paragraphs mentioned above, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 “Interim Financial Reporting” as 0endorsed in the Kingdom of Saudi Arabia.

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 In line with IAS 33 Earnings per share, loss per share for the periods ended 30 September 2021 and 30 September 2020 were calculated by dividing the loss from main operations and net loss for each period by weighted average number of shares outstanding during the period.

The Company's accumulated losses as at September 30, 2021 reached SR 164.0 million (SR 62,4 million as at December 31, 2020) whereby amounting to 45.5% of it's share capital as at period ended September 30, 2021 (17.31% as at year ended December 31, 2020). The Company has applied ""Procedures and instructions related to listed companies with accumulated losses reaching 20% or more of their share capital"" issued by the Capital Market Authority of the Kingdom of Saudi Arabia.

During the three-month period ended September 30, 2021, The group waived it’s right and obligations in XECA International Information Technology Company to Xenel Industries Limited Company (a related party), the carrying amount of this investment at disposal date was zero, accordingly it had no effect on the accompanying interim condensed consolidated financial statements.

The Capital Market Authority and Saudi 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.

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