DAAR Communications’ loss widens to N2.35bn, survival threatened

DAAR Communications Plc, owner of the African Independent Television and Raypower FM, saw its loss after tax for the financial year 2020 widen to N2.35 billion from N1.38 billion in the previous year.

The company’s loss before tax deepened to N2.55 billion last year from N1.69 billion, according to its audited financial statements.

Its revenue fell by 31 percent to N3.55 billion from N5.15 billion.

The broadcast company’s current assets increased to N2.61 billion from N2.53 billion while current liabilities rose to N11.30 billion from N10.14 billion.

“The financial state of the company as of Dec. 31, 2020, raises the issue of the ability of the company to continue in business in the nearest future.” It said in the annual report.

“There is significant uncertainty whether the company will continue as a going concern and, therefore, whether it will realise its assets and settle its liabilities and commitments in the normal course of business and at the amounts stated in the financial statements.”