East African Cables Plc has published its audited financial results for the year ended December 31, 2019, posting KSh630.9 million in net earnings.
In 2018, the Group and Company recorded a loss of KShs 568.38 million and KShs 399.70 million respectively compared to a loss of KShs 663 million and KShs 454 million recorded in 2017.
The improved financial performance has been attributed to the completion of a debt restructuring process that strengthened its balance sheet.
The debt restructuring exercise which commenced end of 2017 came to conclusion in H1 of 2019 that resulted in huge savings on interest expense and discount on debt.
“This restructure was aimed at refinancing the existing debt over a longer tenor to allow plough-back of cashflows into the business and reduce monthly principal loan repayments. The benefits of the restructure will accrue to the business in 2019 going forward,” said the company in its 2018 full-year report.
Its Turnover declined marginally to KSh1.6 billion in 2019 from KSh1.5 billion; Total Comprehensive Income rose to KSh628.2 million from a loss of KSh264.9 million in 2018.
Total Equity increased from KSh1.5 billion to KSh2.1 billion in 2019. However, the balance sheet size shrank from KSh6.6 billion to KSh6.2 billion at the end of 31st December 2019.
The premier cable manufacturer, with a footprint that spreads across East and Central Africa, has four manufacturing facilities; two in Nairobi, Kenya, one in Dar es Salaam Tanzania and one in Eastern DRC.
In addition, EAC is present in Uganda, Rwanda, Burundi, Southern Sudan and Ethiopia, through a distribution network.
No dividend was declared for its shareholders.