East African Cables has posted a loss of Ksh. 753.2 Million at the end of the financial year ended 31st December, 2020. This is a sizable loss compared to a Net Profit of Ksh. 630.9 Million recorded during a similar period in 2019.
The company 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.
The listed firm, among other companies, 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 further 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.
The company has issued a notice to shareholders, informing them of its 56th Annual General Meeting via electronic platforms, on 2nd November, 2021. Registration for this shareholders meeting will open on 18th October, 2021 and close on 1st November, 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 year, however, 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, the company 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 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. These inflows have provided a boost in raw material availability, especially in its Tanzanian operations, resulting in improved volume and revenue.