Saudi Cable losses narrow as it faces extra tax bill

Saudi Cable losses narrow as it faces extra tax bill
Saudi Cable posted a net loss of SR35.9 million for the first three months of the 2021. (Supplied)
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Updated 23 May 2021

Saudi Cable losses narrow as it faces extra tax bill

Saudi Cable losses narrow as it faces extra tax bill
  • Cable maker faces extra zakat liabilities
  • Company has submitted request to raise capital

RIYADH: Saudi Cable Co. said first-quarter losses narrowed as its auditor revealed a claim from extra zakat liabilities of almost SR200 million ($53 million).
The provider of energy and telecoms cables posted a net loss of SR35.9 million for the first three months of the 2021, down from SR43.2 million a year earlier and SR46.6 million in the previous quarter, it said in a Tadawul filing.
Revenue increased 7.2 percent year on year to SR63.9 million, but was down 10.6 percent from the fourth quarter of 2020.
The General Authority for Zakat and Tax (GAZT) has made a claim of SR199.8 million for additional zakat from previous years, which Saudi Cable is disputing and has not included any provision for in its financial results, its auditor said in the filing.
Saudi Cable also has SR24 million of receivables through a joint venture that are outstanding for more than a year, and against which it has not made any provision for losses, the auditor said.
Saudi Cable said on April 8 it had submitted a request to increase capital as it seeks to raise funds to invest in production.
The company has extended the maturity of some of its short-term debt and it has no issues with solvency, Chairman Meyassar Nowailati said at the time. While its debts rose as high as SR1.7 billion in the past, they had since fallen to SR250 million, he said.
Saudi Cable posted a net loss of SR55 million in 2020, compared to a net loss of SR61.8 million in the previous year. Revenue decreased by more than 3 percent last year to SR368 million.
On May 5, it said it had acquired SR200 million of new cars on credit from Al-Nawasi Gulf Trading Company with the aim of selling them to finance the working capital of the company.