Riyadh – Mubasher: Saudi Cable Co. announced that its board is considering a number of solutions to fix the qualification on its financial statements for the nine-month period of 2016.
The company noted that unbilled revenues reached SAR 39.35 million in the first nine months of 2016 and development costs pertinent to qualification amounted to SAR 57.13 million.
Current accumulated losses reached SAR 355.89 million, representing 46.83% of the share capital, according to a bourse filing on Thursday.
On February 23, the company finalised the restructuring plan with its four main lenders for deferring overdue debt of SAR 789 million over the next seven years, subject to the fulfillment of various condition precedents and achieving certain performance milestones over two years.
The statement pinpointed that the cable firm’s management has internal plans to support its ability to achieve the operational goals, provide sufficient resources for continuing the business for the foreseeable future, service its debt obligations and meet its working capital requirements and financial commitments as and when they fall due.
The cash flow forecast is subject to the group fulfilling the requirements of the restructuring framework agreement, including rights issue of the company’s shares, significant repayment of debt in 2017, and maintaining financial covenants.
Saudi Cabled explained that it was unable to obtain sufficient appropriate evidence in respect of the recoverability of unbilled revenues that is overdue for more than one year.
This relates to one of the subsidiaries and represents revenue earned but not yet billed at 30 September, 2016, the statement said.
The Saudi-listed firm said it also failed to obtain sufficient appropriate evidence in respect of the recoverability of development costs, in the absence of commercial and financial feasibility of specialized cables and accessories.
Saudi Cable Co. achieved SAR 14.26 million profits in the third quarter of 2016 against SAR 2.85 million losses in Q2-15, to shrink its nine-month losses of 2016 to SAR 53.67 million.
