Advanced e-Technologies (AeTech) Publishes Delayed Financial Statements for First Half of 2024
After a delay of nearly 7 months, Advanced e-Technologies (AeTech) has finally published its financial statements for the first half of 2024. The first six months of the year were marked by a loss of 0.514 MTND, compared to -0.814 MTND for the same period in 2023.
Revenue and Expenses
The company's revenue stood at 0.369 MTND, a 21.1% decrease year-over-year. Operating expenses decreased by 17.7% to 0.739 MTND, mainly due to a 31.7% reduction in personnel expenses to 0.332 MTND. AeTech also paid 0.143 MTND in financial charges.
Debt and Financing
As of June 30, 2024, the company's debt stood at 3.406 MTND, primarily composed of short-term bank loans. AeTech finances itself through treasury bills (1.400 MTND) and bank overdrafts (0.613 MTND).
Activity Indicators
AeTech did not publish its activity indicators for the last quarter of 2024. However, up to the end of September, the company's Solutions revenue stood at 0.535 MTND, a 33.2% decrease.
Tax Audit and Recapitalization
In 2024, AeTech underwent an in-depth tax audit for the periods 2020, 2021, 2022, and 2023. The company received a first tax notice on December 24, 2024, and responded to the tax authorities within the deadline. AeTech is awaiting the tax authorities' response to estimate the risk. We believe that the company may be able to reach an agreement with the tax authorities under the 2025 amnesty.
Recapitalization Needed
AeTech urgently needs recapitalization, with its equity standing at -4.494 MTND. Without a significant capital injection, it is difficult to see how the company can recover solely through its business activities.
