East African Cables Plc has cut its earnings forecast for the financial year ending 31 December 2020.
“This is primarily due to the one-off writeback that was recorded as other income in the financial year ended 31st December 2019,” said the Board through Virginia Ndunge, the Company Secretary.
The Group projects its revenues to grow by 10 percent year on year.
However, “The impact of Covid-19 on the economy reduced the chances for a more aggressive top-line growth to match prior year performance.”
From its audited financial results for the year ended December 31, 2019, EAC posted 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.