| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
-
|
-
|
61.62
|
-
|
-
|
| Gross profit (loss) |
9.2
|
18.5
|
-
|
8.1
|
13.58
|
| Operational profit (loss) |
-
|
-
|
65.92
|
-
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) |
-
|
-
|
37.69 |
| Gross profit (loss) |
17.3
|
64.63
|
- |
| Operational profit (loss) |
-
|
-
|
33.31 |
| Earning or loss per share, Riyals |
-
|
-
|
- |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | Decrease in operating expenses and lower provisions for doubtful debts. |
| Reasons of increase (decrease) for period compared with same period last year | Decrease in operating expenses and lower provisions for doubtful debts. |
| Reasons of increase (decrease) for quarter compared with previous quarter | lower sales volume and decrease in equity share of profit from associates. |
| External auditor's report containing reservation | i)The Group incurred a net loss of SR 91.69 million for the six-month period ended June 30, 2014 and as of that date the Group current liabilities exceeded its current assets by SR 477.16 million. The management prepared forecasts that predict profitable results in 2015 financial year and onwards, which is dependent on restructuring of loans and growing the business. The restructuring of loans has not yet been finalized up to date of this review report. The accompanying unaudited interim consolidated financial statements do not include any adjustments that may arise from the possible impairment of non-current assets. ii) The Group recognized goodwill of SR 86.56 million when it acquired 79% the share capital of Elimsan Salt Cihazlarive (the Subsidiary) in 2009. Since acquisition, the Subsidiary has been incurring losses at the operating and net results level. The past performance of the Subsidiary indicates uncertainty regarding the realization of goodwill. The accompanying unaudited interim consolidated financial statements do not include any adjustments that may arise from the possible impairment of goodwill.Also draw attention to The accompanying interim consolidated financial statements have been prepared on a going concern basis. The Group incurred a net loss of SR 91.69 million for the six-month period ended June 30, 2014 and, as of that date, the Group current liabilities exceeded its current assets by SR 477.16 million, breached its loan covenants and is in the process of restructuring its bank loans. These conditions indicate the existence of an uncertainty that may cast doubt about the Group ability to continue as a going concern. The management has disclosed the facts in note 11(FINANCIAL RESTRUCTURING)The Group has engaged internationally renowned institutions of financial advisors, to restructure the financial requirements for the group. A comprehensive plan which proposes a long term feasible financial structure for the group with additional working capital financing, including a capital increase, which will help stabilize, and strengthen the on-going operations, has been presented to its lenders. The Group has worked closely with its lenders and advisors, and expects to finalize the restructuring plan during 2014. |
| Reclassifications in quarterly financial results | Reclassified certain comparative figures for the previous period to conform with the presentation in the current period. |
| Other notes | Transactions carried out with related parties during the six months of the year 2014 are as follows: A)Contract with Xeca, an associate company, amounting to SR 3.34 million for the IT services and SAP implementation. B) Purchase contract for aluminum from an associate company, Midal Cables, amounting to SR 2.88 million. C) Shared Expenses at cost, paid to Xenel, amounting to SR 0.21 million, these are expenses incurred by Xenel on behalf of Saudi Cable Company, pertaining to fees for consultants/advisors and other business expenses. |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.