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The auditing company Deloitte has warned that the current liabilities of the publicly-owned Mozambican airports company, ADM, greatly exceed its current assets, reports Monday’s issue of the independent newssheet “Carta de Mocambique”.
In an audit report referring to the 2018 financial year, Deloitte stated that ADM’s financial situation was so poor as to call into question its ability to keep operating.
As of 31 December, the total liabilities of ADM amounted to 5.7 billion meticais (about 95 million US dollars, at current exchange rates). The company’s assets were valued at 1.8 billion meticais.
This is considerably worse than the situation at the end of 2017, when ADM’s liabilities stood at 6.02 billion meticais and its assets at 3.04 billion meticais.
Deloitte said that ADM can only continue functioning if it undertakes profitable operations in the future. The company’s own Supervisory Board shared Deloitte’s opinion.
The ADM Board of Directors, however, claims that the company’s economic and financial performance in 2018 was influenced significantly by the large scale investment the company has been making in Mozambican airports in recent years. ADM argues that it has been modernising the airports and bringing them up to international standards.
ADM claimed that it has also been hit by the depreciation of the national currency, the metical, against the main reference currencies such as the US dollar and the South African rand.Source: AIM