Saudi Cable Co. announces its Interim Financial Results for the Period Ending on 2022-03-31 (Three Months)
| ELEMENT LIST | CURRENT QUARTER | SIMILAR QUARTER FOR PREVIOUS YEAR | %CHANGE | PREVIOUS QUARTER | % CHANGE |
|---|---|---|---|---|---|
| Sales/Revenue | 35,357 | 63,855 | -44.629 | 31,848 | 11.017 |
| Gross Profit (Loss) | -26,737 | -17,257 | 54.934 | -14,179 | 88.567 |
| Operational Profit (Loss) | -42,071 | -36,832 | 14.224 | -32,644 | 28.878 |
| Net Profit (Loss) after Zakat and Tax | -37,155 | -35,882 | 3.547 | -92,682 | -59.911 |
| Total Comprehensive Income | -18,531 | -36,867 | -49.735 | -92,581 | -79.984 |
| All figures are in (Thousands) Saudi Arabia, Riyals |
| ELEMENT LIST | CURRENT PERIOD | SIMILAR PERIOD FOR PREVIOUS YEAR | %CHANGE |
|---|---|---|---|
| Total Share Holders Equity (after Deducting Minority Equity) | 62,575 | 249,271 | -74.896 |
| Profit (Loss) per Share | -1.17 | -1 | |
| All figures are in (Thousands) Saudi Arabia, Riyals |
| ACCUMULATED LOSSES | CAPITAL | PERCENTAGE % | |
|---|---|---|---|
| -195,582 | 262,311 | -74.56 | |
| All figures are in (Thousands) Saudi Arabia, Riyals |
| ELEMENT LIST | EXPLANATION |
|---|---|
| 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 37.2 million in current quarter as compared to the net loss of SR 35.9 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. • Decreased share of profit from associates in current quarter as compared to same quarter of the previous year. • Increased 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 37.2 million in current quarter as compared to the net loss of SR 92.7 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 further impacted by the product mix affected gross margins to decline. • Decreased expenses in current quarter as compared to previous quarter. • Increased share of profit from associates in current quarter as compared to share of losses in previous quarter. • Increased other income in current quarter as compared to same quarter of the previous year. • Certain one-off adjustments relating to zakat & tax expenses affected the previous quarter as compared to current quarter.” |
| Statement of the type of external auditor’s report | Disclaimer of conclusion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | “Basis for Disclaimer of Conclusion • The Group incurred a net loss of SAR 37.6 million for the three-month period ended March 31, 2022, and as of that date, the Group’s accumulated losses have reached SAR 195.6 million, representing 74.56% of the share capital as at March 31, 2022. Further, the Group current liabilities exceeded its current assets by SAR 487 million as at March 31, 2022 (as at December 31, 2021: SAR 476.4 million). These events or conditions, along with other matters, indicate a significant doubt about Group’s ability to continue as a going concern and its ability to meet its obligations when it becomes due. The Group has been and still in the process of restructuring its liabilities to its creditors and plan to reduce its payables with future cash flows from its current projects. The Group’s management is aware of the risks related to going concern but has prepared the interim condensed consolidated financial statements under going concern basis. We have also disclaimed our audit opinion for the year ended December 31, 2021 in respect of this matter. • As stated in note 17, the Group received assessments from the Zakat, Tax and Customs Authority (ZATCA), claiming additional Zakat liabilities of SAR 235.9 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 ZATCA, that the outcome of the appeals is uncertain at this stage and, therefore, it is not possible to determine the potential Zakat liability. No provision has been made in these interim condensed consolidated financial statements for the items under appeal and for any potential exposure relating to open years not yet assessed by ZATCA. We have not been provided details or basis of certain appeals the assessments, including details of zakat computation and appeals in respect of certain open years for the Company and of certain subsidiaries. We were, therefore, unable to determine whether any adjustments are necessary to the Group’s current or prior years’ / periods’ zakat charges. • The Group has property, plant and equipment amounted of SAR 269.9 million as at March 31, 2022 and there are some indicators that the recoverable value of them is less than its book value, we were unable to obtain sufficient evidence regarding the recoverable amount of them as the Group’s management hasn’t provided us with sufficient data related to the recoverable amount of the property, plant and equipment and the extent to recognize any impairment losses the book value of property, plant and equipment as at March 31, 2022. The Group’s management will prepare a future studies to determine the recoverable value subsequently after approval date of the interim condensed consolidated financial statements of the Group. • As stated in note 6, the interim condensed consolidated financial statements include investment in an associate (50% ownership) with a carrying value of SAR 302.49 million and share of results of SAR 5 million as at and for the three-month period ended March 31, 2022. The associate had trade receivables amounting to SAR 54.4 million, out of which the Group’s share is SAR 27.2 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 appropriate support to ensure the possibility of recoverability of those trade receivables balances. Consequently, we were unable to determine whether any adjustments to the Group’s share of results of an associate and the carrying value of the investment in an associate were necessary as of and for the three-month period ended March 31, 2022. We have also disclaimed our audit opinion on the consolidated financial statements of the Group for the year ended December 31, 2021 in respect of these matters. Disclaimer of Conclusion We do not express a conclusion on the accompanying interim condensed consolidated financial statements of the Group. Because of the significance of the matters described in the Basis for Disclaimer of Conclusion section above, we have not been able to carry out sufficient procedures to provide a basis for a review conclusion on these interim condensed consolidated financial statements. Other Matter The interim condensed consolidated financial statements for the three-month period ended March 31, 2021 were reviewed by another Auditor who expressed a modified review conclusion on May 23, 2021. |
| 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 | “The loss per share during first quarter amounts to SR 1.17 against loss per share of SR 1.00 for the same quarter of last year.Loss per share for the current quarter was calculated based on the average of 31,802 thousand shares compared to 36,061 thousand shares for the same quarter 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 in the Extraordinary General Assembly by the shareholders, on February 20, 2022, the weighted average structure changed since then, affecting weighted average number of ordinary shares of three-month period ended March 31, 2022. The number of shares prior to capital reduction was 36,061 thousand where as the number of shares post capital reduction is 26,231 thousand. “ |
