Jabal Omar Development Co. announces its Interim Financial Results for the Period Ending on 2022-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 218.63 | 43.12 | 407.03 | 281.65 | -22.38 |
| Gross Profit (Loss) | 7.98 | -64.86 | - | 97.25 | -91.79 |
| Operational Profit (Loss) | -92.86 | -57.99 | 60.13 | 41.11 | - |
| Net Profit (Loss) after Zakat and Tax | 153.11 | -270.04 | - | -128.62 | - |
| Total Comprehensive Income | 153.11 | -270.04 | - | -128.62 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 609.92 | 141.98 | 329.58 |
| Gross Profit (Loss) | 79.49 | -200.06 | - |
| Operational Profit (Loss) | -123.98 | -422.96 | -70.69 |
| Net Profit (Loss) after Zakat and Tax | -157.98 | -344.77 | -54.18 |
| Total Comprehensive Income | -157.98 | -344.77 | -54.18 |
| Total Share Holders Equity (after Deducting Minority Equity) | 13,582.76 | 6,643.58 | 104.45 |
| Profit (Loss) per Share | -0.17 | -0.37 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 1,393 | 11,545 | 12 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The reason for achieving net profit of SR 153 million in current quarter compared to net loss of SR 270 million in the same quarter of the last year is mainly attributed to following: |
-Increase in revenue as a result of the strong improvement in hotel occupancy rates due to the lifting of precautionary restrictions imposed to limit the spread of the Corona virus, which in turn led to a strong return of activity and demand to the hospitality market in Makkah.
- Reduction in financial charges by SR 113 million as a result completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.
- Recording a gain of SR 260 million from the completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.
- Reduction in financial charges by SR 113 million as a result completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.
- Recording a gain of SR 260 million from the completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.
1. Increase in revenue as a result of the strong improvement in hotel occupancy rates due to the lifting of precautionary restrictions imposed on travelling to the Kingdom and deactivating social distance requirements in the Grand Mosque, which in turn led to a strong return of activity and demand to the hospitality market in Makkah. This increase is despite following.
- Lifting the above mentioned precautionary restrictions after the months of January and February from the beginning of 2022 AD.
- Continuing to impose restrictions and precautionary measures in some countries of the world
- Controls and precautionary measures imposed during the Hajj season for the year 1443 AH.
2. Reduction in general and admin expenses
3. Reduction in financial charges by SR 338 million as a result completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.
4. Recording a gain of SR 260 million from the completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.
Management carried out an impairment exercise in prior periods to compare the carrying amounts with the recoverable amounts (being the higher of fair value or value in use) in respect of these properties. As described in the other matter paragraph, the conclusion expressed by the predecessor auditor on the financial statements of the Group for the prior period ended 30 September 2021 was a qualified conclusion due to inability to determine whether any impairment provision was required in respect of the properties. Further the opinion expressed by the predecessor auditor on the financial statements of the Group for the year ended 31 December 2021 and conclusions expressed on the financial statements of the Group for the periods ended 31 March 2022 and 30 June 2022 were also qualified opinion / conclusion since the predecessor auditor assessed the valuation approach to be inappropriate and certain significant assumptions to be not reasonable. Our report for the current period is qualified due to the effects of these matters on the comparability of the current period’s figures and the corresponding figures as well as their impact on the current period amounts included in the condensed consolidated interim financial statements as at and for the nine months period ended 30 September 2022.
While carrying out the impairment exercise for the nine months period ended 30 September 2022, management has updated the assessment of the recoverable amount using the acceptable approaches set out under IFRS. The foregoing assessment of recoverable amounts includes various elements such as consideration of highest and best use from market participant perspective as well as the use of appropriate assumptions and application of judgments. Pursuant to our review procedures carried out in respect of management’s determination of recoverable amounts, which included review of the valuation methodology and approach used by the valuation expert engaged by management, we were not able to assess certain significant assumptions and judgments (such as growth rate of future operating and disposal cashflows) used by management in the determination of recoverable amounts of certain properties are reasonable. Due to the high degree of judgment, it was impracticable for us to quantify the financial effects of adjustments to the amounts included in the condensed consolidated interim financial statements which would have resulted from using appropriate assumptions and judgments.
We draw attention to note 1 to the condensed consolidated interim financial statements, which indicates that the Group incurred a loss for the period of SR 158 million and negative operating cash flows amounting to SR 319 million during the nine-month period ended 30 September 2022. In addition, the Group's current liabilities exceeded its current assets by SR 612 million and the Group had accumulated losses amounting to SR 1,393 million as at 30 September 2022. These conditions, along with other matters set forth in note 1, indicate the existence of a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
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