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Red Sea Housing Services Co. announces the interim financial results for the period ending on 30-06-2016 (Six Months)

Element Current quarter Similar quarter for previous year % Change current Previous quarter % Change previous
Net profit (loss) 31.5 17 85.29 32.1 -1.87
Gross profit (loss) 70.2 58.8 19.39 75.1 -6.52
Operational profit (loss) 39.1 22.5 73.78 39.3 -0.51
All figures are in (Millions) Saudi Arabia, Riyals
Element Current period Similar period for previous year % Change
Net profit (loss) 63.6 47.1 35.03
Gross profit (loss) 145.3 126 15.32
Operational profit (loss) 78.4 57.7 35.88
Earning or loss per share, Riyals 1.1 0.8 -
All figures are in (Millions) Saudi Arabia, Riyals
Element EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year The increase in Net Profit compared to the same quarter of last year is due to the increase in gross profit margins from 24.8% in second quarter of previous year to 26.3% in current quarter which has resulted from the increase in building, rental and paint revenues and lower cost of sales for rentals. Net profit has further improved due to decrease in total operating expenditure (i.e. Selling, Marketing, General and Administrative expenses) by 14.4% which is mainly attributed to the decrease in provisions for doubtful receivables, employee cost and recruitment expenses.
Reasons of increase (decrease) for period compared with same period last year Net Profit in the six months period ending June 2016 has increased against the same period of last year due to a increase in gross profit margin from 24.6% in same period last year to 27.0% in the current period which has resulted from increase in rental and paint revenues and lower cost of sales for rentals. Net profit has further improved due to the decrease in General and Administrative costs by 7.8% compared to same period of last year, however due to increased efforts on selling there was an increase in selling and marketing expenses by 10.0% compared to same period last year.
Reasons of increase (decrease) for quarter compared with previous quarter Net Profit in the current quarter has marginally decreased against the previous quarter due to the decrease in gross profit margins from 27.6% in previous quarter to 26.3% in the current quarter resulted from the decrease in rental and building sales and higher cost of sales for building sales. However Selling, Marketing, General and Administrative expenses have decreased by 13.3% mainly due to the decrease in employee costs thus improving the overall net profit.
Reclassifications in quarterly financial results Certain comparison figures for prior period have been reclassified to conform with the presentation of the current period.

The Capital Market Authority and the Saudi Stock 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.

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