Saudi Cable Co. announces its Annual Financial results for the period ending on 2025-12-31

A significant portion of the growth is attributed to the commencement of high-voltage turnkey projects in Bahrain.

The company has recorded net profit from continuing operations amounting to SAR 204,253 million resulting from its share of profit from an associate. Also, the company incurred losses mainly from discontinued activities amounting to SAR (2.3) million resulting from its Turkish subsidiary. Both resulted to a net profit to SAR 201,925 million.

We draw attention to note 1 of the consolidated financial statements which indicates that for the year ended December 31, 2025, the Group incurred a net profit of SAR 202 million (2024: net profit of SAR 49 million), and the Group’s accumulated losses have reached SAR 275 million (2024: SAR 477 million), representing 411% (2024: 714%) of the Group’s share capital. Further, the Group current liabilities exceeded its current assets by SAR 670 million as at December 31, 2025 (2024: SAR 907 million). These conditions, along with other matters, cast significant doubt about the Group’s ability to continue as a going concern and its ability to meet its obligations when it becomes due.

In this regard, management has prepared forecasts for 2026 that indicate net profit and positive cash flows. The plan includes certain assumptions related to cash injections through the issuance of rights issue instruments, as well as revenue growth based on future orders and tenders, in addition to the parent company’s ability to exit financial restructuring proceedings. These elements represent future events and therefore involve material uncertainty regarding their outcome. Our opinion has not been modified in respect of this matter.

Emphasis of Matter

We draw your attention to note 14 to the consolidated financial statements where it shows that the Group has a court in Turkey issued a verdict in favor of Mass Kablo Yatırım ve Tic. A.Ş for a case filed by the minority shareholders of its subsidiary. An appeal against the verdict has been presented by said minority shareholders. However, based on a legal opinion obtained from an independent counsel which is of view that the decision of Court of Appeal will not be different from the original decision issued by court of first instance.

In this respect the Board of Directors of the Group decided on 22 Shabaan 1445H, corresponding to March 3, 2024, to exit of its investments in Turkey, by disposing of them by sale or in any other way as permitted by Turkish law. As these companies did not achieve the desired returns and continued to achieve losses during the past years despite the solutions and treatments carried out by successive administrations to no avail and strengthening the opinion of local and international legal advisors to support the exiting decision. The Group has recognized provisions for the full value of the investments in the investee company. Our opinion has not been modified in respect of this matter.