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Saudi Cable Co. announces its Interim Financial Results for the Period Ending on 2021-06-30 ( Six Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 41,349145,184-71.51963,855-35.245
Gross Profit (Loss) -20,965-6,738211.145-17,25721.486
Operational Profit (Loss) -31,504-25,14025.314-36,832-14.465
Net Profit (Loss) after Zakat and Tax -19,186-16,58215.703-35,882-46.53
Total Comprehensive Income -26,551-4,423500.293-36,867-27.981
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 105,204204,716-48.609
Gross Profit (Loss) -38,222-24,04358.973
Operational Profit (Loss) -68,336-63,0878.32
Net Profit (Loss) after Zakat and Tax -55,068-59,779-7.88
Total Comprehensive Income -63,418-51,47723.196
Total Share Holders Equity (after Deducting Minority Equity) 222,724290,290-23.275
Profit (Loss) per Share -1.53-1.26
All figures are in (Thousands) Saudi Arabia, Riyals
Accumulated LossesCapitalPercentage %
-117,489360,614-32.58
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 19.2 million in current quarter as compared to the net loss of SR 16.6 million in the same quarter of the previous year and the change in net losses of the current quarter compared with net loss 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 previous year.

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

• Increased share of profit from associates in current quarter as compared to net profit in 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 19.2 million in current quarter as compared to the net loss of SR 35.9 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 and finance cost in current quarter as compared to previous quarter.

• Increased other income 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 55.1 million in current period as compared to the net loss of SR 59.8 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.

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 consolidated financial statements include investment in an associate (50% ownership) with a carrying value of SR 317 million and share of results of SR 13.1million as at and for the six-month period ended June 30, 2021 (SR 319.12 million and SR 1.52 million as of and for the year ended December 31, 2020). The associate had trade receivables amounting to SR 48 million, out of which the Group’s share is SR 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 June 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 SR 199.8 million (December 31, 2020: SR 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 June 30, 2021.

Material Uncertainty Related to Going Concern

We draw attention to Note 2.5 in the interim condensed consolidated financial statements which states that the Group incurred a net loss of SR 54.5 million during the six-month period ended June 30, 2021 and, as of that date, the Group’s current liabilities exceeded its current assets by SR 113.32 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 opinion is not modified in respect of this matter.

Other Matter

The interim condensed consolidated financial statements of the Group for the six-month period ended June 30, 2020 were reviewed by another auditor who expressed an unmodified review conclusion on those financial statements on August 25, 2020.

Qualified Conclusion

Except for the adjustments to the interim condensed consolidated financial information that we might have become aware of had it not been for the situation described above, based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information does not present fairly, in all material respects, the financial position of the Group as at June 30, 2021, and of its financial performance and its cash flows for the six-month period then ended in accordance with IAS 34, as endorsed 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 June 2021 and 30 June 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 June 30, 2021 reached SR 117.5 million (SR 62,4 million as at December 31, 2020) whereby amounting to 32.6% of it's share capital as at period ended June 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.

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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