SSL Venture Capital Jamaica Limited (formerly C2W Music Limited) made a loss of $152.83 million for the year ended June 2020, roughly thrice the $45.6 million lost the previous year.
Revenue for the company slid by two-thirds to $116.76 million, down from $332.28 million in June 2019.
Baker Tilly, chartered accountants and auditors for SSL Ventures have expressed material uncertainty relating to the business as a going concern.
Auditors note, “The Group and the Company as at 30 June 2020 has accumulated deficit of $319.54 million (2019: $180.6 million) and $222.55 million (2019: $167.42 million) respectively.
“Further,” they note, “as at 30 June 2020, the Group’s current liabilities exceeded its current assets by $18.3 million (2019: $97.73 million) and the company’s current liabilities exceeded its current assets by $41.93 million in 2019.
They stated, “This indicates the existence of material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern.
The auditors concluded, “Until the Group and the Company are able to sustain profitable operations, they remain dependent on their ultimate parent (SSL Growth Equity Limited) for continued financial support. SSL Growth Equity Limited has indicated that it has the intent and ability to provide financial support to the Group and the Company for the foreseeable future. Our opinion is not modified in respect of this matter.”
SSL Ventures was incorporated on 24 November 2011, after the shareholders of Stocks and Securities Limited entered into a rescue plan to acquire the majority shares in C2W Music Limited in an effort to rescue the company from financial failure.
The rescue of C2W Music Limited was approved by the Jamaica Stock Exchange and the Financial Services Commission
The business model of the company was changed to specialising in investing in equity of companies that show potential through sale to private parties.
The company’s income thereafter, consisted mainly of management fees earned from its subsidiaries. Subsequently, C2W Music Limited’s name was legally changed to SSL Venture Capital Jamaica Limited with the company listed as a member of the Junior Market of the JSE.
Company subsidiaries include Bar Central Limited, a company engaged in distribution and provision of branding services.
Another was Blue Dot Data Intelligence Limited Marketing and commercial solutions which was subsequently sold.
The company also owns 51 per cent in Muse 360 Integrated Limited which once offered marketing and commercial solutions.
On the 27th of March 2020, SSL Ventures sold its 50 per cent stake in Blue Dot Data Intelligence Limited.
Muse 360 Integrated Limited ceased operational activities as of August 31, 2019.
Management said it has yet to decide on the future operation of Muse 360 Integrated Limited, as stated in notes attached to the year’s results.
In relation to the impact the pandemic has on the group’s operations for audited period, management said this is still undergoing assessment “due to the adverse effects it has on the various revenue streams for all companies.”
Notes to the financials state, “The parent company has indicated that it has the intent and ability to provide financial support to the Group and the Company for the foreseeable future. On this basis, the directors have maintained the going concern assumption in the preparation of these financial statements.”