East African Cables posted a Net Loss of KSh 753.2 Million at the end of the financial year ended 31st December 2020. This is compared to a Net Profit of KSh 630.9 Million over a similar period in 2019.
The listed firm also sunk into a Pre-tax loss of KSh 555.1 Million in 2020 compared to a Pre-tax profit of KSh 658.7 Million in 2019.
East African Cables is on the list of firms that had sought more time from the Capital Markets Authority(CMA) to publish their 2020 end year results after the expiry of the June 2021 deadline. It also sought for extensions to publish its half-year 2021 results.
The Balance Sheet Size of the cable manufacturer shrunk from KSh 6.3 Billion in 2019 to KSh 5.9 Billion in 2020 while basic earnings per share, which measures the profitability of a firm declined from KSh 2.68 to negative KSh 2.15.
The firm made a Total comprehensive loss of KSh 753.2 Million in 2020 from a Total comprehensive income of KSh 628.2 Million in 2019.
Directors of the firm have not recommended payment of any dividends for the financial year ended 31st December 2020.
Notice has been issued to shareholders of East African Cables that it will hold its 56th Annual General Meeting via electronic platforms, on 2nd November 2021. Registration for this shareholders meeting opens on 18th October 2021 and closes on November 1st 2021.
Directors of East African Cables said despite the impact of COVID-19 pandemic disruptions to its distribution channels and supply chain, the business recorded a 14% growth in revenue in 2020 from KSh 1.6 Billion in 2019 to KSh 1.8 Billion in 2020.
This was due to concerted commercial efforts targeting key markets as well as the introduction of new products and market channels.
During the first half of 2020, East African Cables completed the debt restructure phase of the turn-around strategy by signing long term debt repayment plans with its lenders. Other phases of this strategy are still ongoing.
The firm said its Tanzania business faced challenges in raising funding for working capital required to deliver its order book and this affected the business for the better part of last year.
Innovative funding structures have seen the business regain its footing and post improved growth in revenue post-year-end.
In its unaudited interim half-year financial results for the period ended 30th June 2021, East African Cables cut its net loss from KSh 228.3 Million in H1, 2020 compared to a net loss of KSh 244.5 Million in H1, 2020.
Directors of East African Cables said the firm recorded an 11% growth in Turnover to KSh 837.2 Million in H1, 2021 from KSh 755.9 Million in H1, 2020.
In the months of January to September 2021, a total of KSh 316 Million has been collected from long outstanding receivables and other internal sources, subsequently reducing working capital pressure. The inflows have provided a boost in raw material availability, especially in its Tanzanian operations, resulting in improved volume and revenue.
East African Cables is relying on its unmatched installed capacity, strong brand and additional funding to grow its top line.
The firm also plans to cut costs and grow its bottom line as well as streamline supply chains to mitigate the global impact of the COVID-19 pandemic.