East African Cables Limited published its financial results, realizing KSh630.9 million in net earnings for the period ended 31st December 2019. This is compared to a net loss of KSh568.4 million in the previous period.
Its Turnover declined marginally to KSh1.6 billion in 2019 from KSh1.5 billion the previous year while Total Comprehensive Income rose to KSh628.2 million from a loss of KSh264.9 million in 2018.
Total Equity, what owners of the firm would be paid were the firm be liquidated, increased from KSh1.5 billion to KSh2.1 billion in 2019.
However, East African Cables’ balance sheet size shrank from KSh6.6 billion to KSh6.2 billion at the end of 31st December 2019.
East African Cables attributes its improved financial performance to completion of a debt restructuring process that strengthened its balance sheet and enabled the firm to match its cash outflows to profit generated from operations.
The firm’s debt restructuring process resulted in huge savings on interest expense and discount on debt. It also rode on lower copper and aluminium prices at the London Metal Exchange(LME), allowing the business to pass on the benefit to its customers through more affordable products.
Nevertheless, directors of the firm have not declared any dividend payouts to shareholders.
Struggling East African Cables had sought an extension from Capital Markets Authority (CMA), promising to release its end-year financials before 30th July 2020. The cable manufacturer has been struggling with a huge debt load, estimated at over KSh3.55 billion, owed to various lenders.
The firm, engaged in cable manufacturing, has four manufacturing facilities: two in Nairobi, Kenya, one in Dar es Salaam Tanzania and one in Eastern Democratic Republic of the Congo (DRC).
It manufactures a range of cables for domestic and industrial lighting applications, transmission, and distribution of electricity. It also offers data, telecommunication, and fiber optic solutions with requisite accessories.