| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
-
|
0.44
|
-
|
-
|
-
|
| Gross profit (loss) |
3.58
|
21.89
|
-
|
14.98
|
-
|
| Operational profit (loss) |
-
|
7.43
|
-
|
-
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) |
-
|
4.3
|
- |
| Gross profit (loss) |
18.56
|
52.92
|
- |
| Operational profit (loss) |
-
|
18.41
|
- |
| Earning or loss per share, Riyals |
-
|
0.07
|
- |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The reason for recording net loss during the current quarter comparing to net profit for the same quarter of last year is mainly due to: 1- Decrease in sales volume and gross margins during the current quarter. 2- Decrease in expenses during the same quarter of last year due to the reversal of doubtful debt provision after receiving the collection from a customer. |
| Reasons of increase (decrease) for period compared with same period last year | The reason for recording net loss during the first six month of current year comparing to net profit for the same period of last year is mainly due to: 1- Decrease in sales volume and gross margins during the current period. 2- Decrease in expenses during the same period of last year due to the reversal of doubtful debt provision after receiving the collection from a customer. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The reason for increase in net loss during the current quarter comparing to the last quarter is mainly due to the decrease in sales volume and gross margins during the current quarter. |
| External auditor's report containing reservation | Emphasis of Matter We draw attention to note (1) of the interim condensed consolidated financial statements which describes that the extra ordinary General Assembly of the subsidiary in Jordan “MESC for Medium and High Voltage Cables Company” decided in their Meeting dated on 11 October 2017 to liquidate the company and appointed a liquidator to complete the necessary government procedures. As a result of that, Middle East Specialized Cables Company (MESC KSA) lost control over this investment. Consequently, MESC KSA stopped consolidating MESC for Medium and High Voltage Cables Company from 11 October 2017 and considered as discontinued operations (note 12). Our conclusion is not modified in respect of this matter. |
| Reclassifications in quarterly financial results | Some of prior period numbers have been re-presented as a result of implementing discontinued operation standard on one of the subsidiary's numbers due to liquidation decision |
| Other notes | A- Sales during the current quarter amounts to SR 149.6 million versus SR 170.9 million for the same quarter of last year. a decrease of 12.5%. B- Total comprehensive loss attributable to the owners of the company during the current quarter amounts to SR 25.3 million versus total comprehensive income attributable to the owners of the company SR 0.03 million for the same quarter of last year. And versus a loss of SR 9.3 million for the previous quarter, an increase of 171% C- Sales during the current period amounts to SR 313.4 million versus SR 358.9 million for the same period of last year, a decrease of 12.7%. D- Total comprehensive loss attributable to the owners of the company during the current period amounts to SR 34.7 million versus total comprehensive income attributable to the owners of the company SR 3.1 million for the same period of last year. E-Equity attributable to shareholders (after the elimination of Minority Interest) as of 30/06/2018 amounts to SR 428.6 million versus SR 460.9 million as of 30/06/2017, a decrease of 7% F- Accumulated Losses as of 30/06/2018 amounts to SR 200.4 million which is 33.4% of share capital G- Type of External Auditor report: Emphasis of Matter H- As required by IFRS as endorsed in Saudi Arabia, the company has adopted for the first time IFRS 15 (Revenue from Contracts with Customers) and IFRS 9 (Financial Instruments) effective from 01/01/2018 I- The company conducted a review for the useful life of its machineries. As a result, the useful life of the machineries changed effective from 1st April 2018, from 14.3 years to, up to 20 years. This change is considered as change in estimate under IFRS as endorsed in the Kingdom of Saudi Arabia. Therefore, changes would be accounted for prospectively. |
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