All figures are in (Thousands) Saudi Arabia, Riyals
ELEMENT LIST
CURRENT PERIOD
SIMILAR PERIOD FOR PREVIOUS YEAR
%CHANGE
Total Share Holders Equity (after Deducting Minority Equity)
294,711
130,923
125.102
Profit (Loss) per Share
-1.2
-2.9
All figures are in (Thousands) Saudi Arabia, Riyals
ACCUMULATED LOSSES
CAPITAL
PERCENTAGE %
-50,606
360,614
-14.03
All figures are in (Thousands) Saudi Arabia, Riyals
ELEMENT LIST
EXPLANATION
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to
The Group made a net loss of SR 43.2 million as compared to the net loss of SR 32.1 million in the same quarter of the previous year and the change in net losses of the current quarter compared with net loss of the same quarter of the previous year are mainly due to following impacts:• Lower volumes in current quarter as compared to same quarter of previous year due to severe working capital constraints, resulting in heavy unutilized capacity and thereby unrecovered fixed costs.• Increased expenses as a result of the capital raise in current quarter as compared to same quarter of the previous year.• Increase in share of losses from associates in current quarter, which was almost breakeven in same quarter of the previous year.
Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to
The Group made a net loss of SR 43.2 million as compared to the net profit of SR 12.4 million in the previous quarter and the change in net losses of the current quarter compared with net profit of the previous quarter are mainly due to following impacts:• Lower volumes in current quarter as compared to previous quarter due to severe working capital constraints, resulting in heavy unutilized capacity and thereby unrecovered fixed costs.• Increases in operating expenses as a result of the capital raise and increased finance cost in current quarter as compared to previous quarter.• Non inclusion of one-off favorable adjustments such as zakat settlement waiver and derecognition of unclaimed liabilities.• Increase in share of losses from associates in current quarter, as compared to share of profit in the previous quarter.
Basis of the External Auditor’s Opinion
Qualified opinion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion
Emphasis of MatterWe draw attention to note in (14) to the consolidated financial statements, stating that during the year 2020, the Company has finalized it’s capital increase procedures by way of rights issue of SAR 250 million, where proceeds were deposited to the Company on February 20, 2020. After fulfilling all regulatory requirements, the Company’s share capital has increased to SAR 360,614,060 consisting of 36,061,406 shares.Other MatterAs of December 31, 2019, the Group’s current liabilities exceeded its current assets by SAR 187.1 million, which indicates that the Group is unable to meet its short-term liabilities when it becomes due. However, as of March 31, 2020, the Group’s current assets exceeded its current liabilities by SR 16.8 million.
Reclassification of Comparison Items
None
Additional Information
Earnings per share for the period ended 31 March 2020 and for the period ended 31 March 2019 were calculated by dividing the loss from operations and net loss for each period by the weighted average number of shares outstanding during the period.Subsequent to the period ended March 31, 2020, the Group signed a financial restructuring agreement with Al Rajhi Bank, it’s last commercial lender. The said agreement, dated June 1, 2020 was to further restructure outstanding debt of SR 264.18 million over 2 tranches due collectively over 7 years with early periods being grace. Rescheduled facilities were secured by signed promissory notes.
