Aslak’s capital cut to enhance financial performance, returns: CEO

Nabil Alamir, CEO, Aslak

United Wires Factories Co.’s (Aslak) capital reduction matches the company’s requirements, CEO Nabil Alamir told CNBC Arabia. The board of directors decided to reduce excess capital to help Aslak become more dynamic, improve financial performance, returns and the stock’s indicators.

Aslak still has a very strong financial position and robust financial statements with zero debts. It also has many expansions, Alamir said, adding that this move will not have a negative impact on the company or its expansions.

The diversified product mix signals that Aslak can maintain its performance in the three segments, as the company has expansion plans and large production capacities of higher-margin products.

Alamir added that Aslak plans to offer new products soon, to meet the market needs in the coming period, noting that consumption patterns change due to construction requirements and the civil sector.

Foreseeable expansions will be financed from the company’s resources, Alamir affirmed, ruling out any possibility for tapping banks for loans.

Elsewhere, Alamir expected Aslak to finalize the paperwork required for the acquisition of A-1 Fence DMCC Co. by the end of H1 2023, as it has recently obtained the approval of the General Authority for Competition.

Government projects contributed to improving demand for the sector’s products. Aslak is working on some unprecedented investments and products that meet future requirements.

Alamir pointed out that products have a various market share. Some products, other than those in the building and construction sector, may hold the largest market share.

Replying to a question about a possible stock split, Alamir said Aslak’s board will reconsider this option if it proves feasible for the company and shareholders.