Dr. Waheeb A. Linjawi, Saudi Cable Company (SCC) Group President & Managing Director, announced that the Company has today received Capital Market Authority (CMA) letter No.560/RH dated 5/11/1426 H corresponding to 1/12/2005 G, comprising of CMAs approval of the SCC Board of Directors recommendation to increase the Companys capital from SR 640 million to SR 850 million. The Board of Directors have accordingly approved the following:
1. That the Company seek consent of the Ministry of Commerce & Industry for holding Extraordinary General Assembly of the Shareholders on 5/12/1426 H corresponding to 5/1/2005 G to approve the capital increase.
2. That, in line with the Companys policy and plans, the Management be advised to make provision, at the end of the financial year, for an additional amount of SR 35 million against trade receivables and inventory in order to improve and strengthen the Companys balance sheet. Mr. Mohamed Al Attas, Chief Financial Officer, confirmed that these provisions will not affect the Companys cash flow; and went on to say that the Companys performance continues to be positive and it will record a profit at the end of the year. He also added that based on the purchase orders received for the coming year, the Company is expected to set a new record of performance and profitability in the coming year.
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