Sodiam a net profit of US$27.1 in 2019 FY
Sodiam - National Diamond Trading Company of Angola closed the 2019 financial year with a net profit of US$27.1 million, despite the fact that the world market has entered a downward curve! During the period under review, Sodiam saw the costs of its operation decrease by 17%, maintaining the trend that started in 2018.
According to a press release sent to Angolan media, during this period, the company increased its tax contribution to about 21%. As it only traded 20% of its total production, a share conferred to it under current legislation, the net result did not perform as well as it did in 2018.
Sodiam increased its assets by around 5%, reduced medium and long-term bonds to 23% and recorded a general liquidity ratio of 2.5-the normal value for this ratio should be higher than one. This ratio shows the company's ability to meet short-term commitments.
The company's accounts also show significant improvements in the presentation of its Annual Report and Accounts, rising from 14 external auditor reserves in 2017 to four in 2018 and three in 2019. In the last two years of its work, Sodiam has eliminated 11 exceptions from the external auditor and has not recorded any additional reservations with regard to its day-to-day operations and management.
For Sodiam's management, this has been a positive economic year, ensuring good results for the company and the State shareholder, although it continues to manage the effects of the difficult business, and which has greatly influenced the reservations that still remain in the external auditor's opinion, i.e. the operation carried out in 2012 with Victoria Holding Limited".
