| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 361.21 | 198.8 | 81.69 | 372.73 | -3.09 |
| Gross Profit (Loss) | 58.17 | 52.33 | 11.16 | 78.92 | -26.29 |
| Operational Profit (Loss) | -57.97 | 29.3 | - | 58.93 | - |
| Net Profit (Loss) after Zakat and Tax | -69.41 | 25.09 | - | 49.5 | - |
| Total Comprehensive Income | -69.28 | 26.57 | - | 49.93 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 1,171.42 | 476.43 | 145.87 |
| Gross Profit (Loss) | 213.53 | 129.33 | 65.1 |
| Operational Profit (Loss) | 55 | 59.7 | -7.87 |
| Net Profit (Loss) after Zakat and Tax | 26.66 | 46.53 | -42.7 |
| Total Comprehensive Income | 27.02 | 48.95 | -44.8 |
| Total Share Holders Equity (after Deducting Minority Equity) | 317.12 | 321.61 | -1.4 |
| Profit (Loss) per Share | 0.89 | 1.55 | |
| 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 company posted a sales revenue of SAR. 361.21M in the current quarter as per the draft financial in comparison to SAR. 198.80M in a similar quarter of the previous year a growth of 81.70%. The increase is attributed to continuous growth in the Revenues from all product lines, services and offerings. The growth in revenues comes from a healthy order backlog and awards of new orders received in the current year. |
The company posted a gross profit of SAR 58.17M in the current quarter versus SAR 52.33M in a similar quarter of the previous year, an increase of 11.16%, which is attributed to the increase in revenue.
The net loss for the current quarter is SAR. 69.41M in comparison to net profit of SAR. 25.09M for a similar quarter to the previous year, registering a drop of 376.64%. This drop is mainly attributed to an increase in impairment loss on contract assets and trade receivables during the current quarter.
The total comprehensive loss for the current quarter is SAR. 69.28M in comparison to total comprehensive profit of SAR. 26.57M in a similar quarter of the previous year, registering a decrease of 360.75%. The drop is attributed to an increase in impairment loss on contract assets and trade receivables during the current quarter.
1. 1. As of 30 September 2023, the Group has gross trade receivables and contract assets amounting to SR 816 million and SR 925 million (31 December 2022: SR 523 million and SR 663 million), respectively and has estimated expected credit losses (“ECL”) amounting to SR 88 million on trade receivables (31 December 2022: SR 28 million) and SR 43 million on contract assets (31 December 2022: SR 13 million). Management has provided us with a latest ECL model, with a latest model provided by management on 9 November 2023. Based on our review, we are unable to conclude that the ECL model is in accordance with International Financial Reporting Standards, as endorsed in the Kingdom of Saudi Arabia, and other standards and pronouncements that are issued by Saudi Organization for Chartered and Professional Accountants (“IFRS as endorsed in KSA”). Further, we were not provided sufficient evidence to conclude on the appropriateness of the classification and presentation of trade receivables and contract assets between current and non-current in these interim condensed consolidated financial statements. Accordingly, we are unable to obtain sufficient evidence to assess the adequacy of the ECL estimates and the carrying value and presentation of trade receivables and contract assets.
2. 2. During the three-month and nine-month periods ended 30 September 2023, the Group has recognized margin on supply of equipment and material amounting to SR 4.5 million and SR 25.6 million, respectively on a project. As the installation has not yet been completed, revenue should only be recorded to the extent of cost incurred, with no related margin. The recognition of such margin represents a departure from IFRS as endorsed in KSA and accordingly the net income would be lower by SR 4.5 million and SR 25.6 million for the three-month and nine-month periods ended 30 September 2023, respectively.
Other Matters
• The consolidated financial statements of the Group for the year ended 31 December 2022 were audited by another auditor who expressed an unmodified opinion on those consolidated financial statements on 8 Sha’ban 1444H (corresponding to 28 February 2023). Further, the interim condensed consolidated financial statements of the Group for the three-month and nine-month period ended 30 September 2022 were reviewed by another auditor who expressed an unmodified review conclusion on those interim condensed consolidated financial statements on 16 Rabi’ al-Thani 1444H (corresponding to 10 November 2022).
· On 10 July 2023, the Group declared dividends amounting to SR 45 million from retained earnings of SR 112 million as of 30 June 2023 (30 September 2023: Accumulated losses of SR 3 million). This was paid to the shareholders on 9 August 2023. The matters described in the Basis for Qualification Conclusion paragraph of our report may result in adjustments to the reported retained earnings as of 30 June 2023 and 30 September 2023.
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