Saudi Cable Co. announces the interim financial results for the period ending on 31-12-2015 (Twelve Months)

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss)	11.6	-	-	-	-
Gross profit (loss)	-	-	93.52	16.37	-
Operational profit (loss)	-	-	21.36	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element	Current period	Similar period for previous year	% Change
Net profit (loss)	1.69	-	-
Gross profit (loss)	68.41	6.66	927.18
Operational profit (loss)	-	-	49.34
Earning or loss per share, Riyals	0.02	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year	higher margins and reversal of finance cost relating to the borrowings obtained under Islamic principles and is for the period subsequent to maturity of the loans.
Reasons of increase (decrease) for period compared with same period last year	1.Higher volume and higher margin. 2.Adjustment to over provision of financing costs made in prior periods as disclosed in the financial statements. 3.Recovery of doubtful debts which where provided for in prior periods as disclosed in the financial statements. 4.Lower operating expenses
Reasons of increase (decrease) for quarter compared with previous quarter	adjustment of over provision of finance cost relating to the borrowings as disclosed in the financial statements.
External auditor's report containing reservation	Observations resulting in qualified review conclusion 1.During the year ended December 31, 2015, the Group net profit amounted to SR 1.69 million (December 31, 2014: net loss of SR 201.68 million). However, as at the balance sheet date, it current liabilities exceeded current assets by SR 693.39 million (December 31, 2014: SR 845.99 million) and accumulated losses have reached to SR 365.64 million (December 31, 2014: SR 367.33 million), representing 48.11% (December 31, 2014: 48.33%) of the parent Company share capital. These circumstances indicate the existence of material uncertainties that may cast doubt about the Group ability to continue as a going concern. Nevertheless, based on a comprehensive plan, management believes the operations shall continue and be profitable, in the foreseeable future, subject to the successful restructuring of part of the Group total debt amounting to approximately SR 1.10 billion and certain changes in business operations.In view of management intentions of restructuring the debt obligations; on April 7, 2015 the Company has been able to secure agreement on the Indicative Restructuring Terms with a consortium of three banks, for debt amounting to SR 640 million. The conclusion of this restructuring will provide joint lenders, certain additional securities and rights on some of the Group assets and will permit the Company to extend term of the loan up to eight years. As at December 31, 2015, the relevant agreements are being formulated and reviewed by the lenders' legal counsel. The Company is also progressing towards restructuring another overdue loan amounting to SR 77 million from an independent bank and a SR 112.96 million from a DFI, that have respectively agreed to revise their terms, and tenure in line with the consortium restructuring. The Company is in the process of fulfilling revised restructuring requirements with the consortium of banks and other financiers and expects the legal agreement to be signed by January 31, 2016.The Company is in the process of fulfilling revised restructuring requirements with the consortium of banks and expects the restructuring agreement to be signed, along with the legal documentation for restructuring arrangement with an independent bank and DFI, by January 31, 2016.As mentioned in the preceding paragraphs, whilst the Company has been able to secure initial restructuring terms with some of the financiers, the outcome of the restructuring is still uncertain and dependent on fulfilling additional requirements and reaching to formal loan agreements. The validity of going concern assumption for these interim condensed consolidated financial statements depends on successful restructuring of the business and said debt obligations. Consequently management forecasts and the operational plans do not include any adjustments that might result from a failure to finalize the implementation of above negotiations with banks and financial institutions. Accordingly, the notes to interim condensed consolidated financial statements do not sufficiently disclose the details of above restructuring plan and its potential implications on Group financial position. 2.We were unable to obtain sufficient evidence in respect of: a.the recoverability of unbilled revenues of SR 45.26 million (December 31, 2014: 50.40 million) that is overdue for more than one year. b.the reversal of financial charges accrued in the current and prior periods of SR 62 million (December 31, 2014: NIL) based on an understanding with the lenders, which will formally be made part of restructuring agreement. c.the basis of reversal of provision for doubtful receivables amounting to SR 40 million (2014: SR Nil) and d.the commercial and financial feasibility of development cost amounting to SR 65.7 million (December 31, 2014: SR 67.3 million), which has been included under intangible assets. Consequently, we were unable to determine whether any adjustment to these balances is necessary which may impact the assets and equity and net loss for the period included in the interim consolidated balance sheet and interim consolidated statement of income, respectively. Qualified review conclusion Based on our review, except for the effects of matters described in the paragraphs mentioned above, we are not aware of any material modifications that should be made to the interim consolidated financial statements for them to be in conformity with accounting standards generally accepted in the Kingdom of Saudi Arabia.
Reclassifications in quarterly financial results	Certain comparative amounts have been reclassified to conform with the current period presentation.
Other notes	Transactions carried out with related parties during the twelve months of the year 2015 are as follows: a)Contract with Xeca, an associate company, amounting to SR 4.10 million for the IT services and SAP implementation. b)Purchase contract for aluminum from an associate company, Midal Cables, amounting to SR 26.84 million. c)Shared Expenses at cost, paid to Xenel, amounting to SR 2.38 million, which are expenses incurred by Xenel on behalf of Saudi Cable Company, pertaining to fees for consultants/advisors and other business expenses.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.