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Red Sea Housing Services Co. announces the interim financial results for the period ending on 31-12-2016 (Twelve Months)

Element Current quarter Similar quarter for previous year % Change current Previous quarter % Change previous
Net profit (loss) 11.7 27.1 -56.83 12.7 -7.87
Gross profit (loss) 54.7 80.1 -31.71 60.6 -9.74
Operational profit (loss) 15.2 33.6 -54.76 22.4 -32.14
All figures are in (Millions) Saudi Arabia, Riyals
Element Current period Similar period for previous year % Change
Net profit (loss) 88 76.1 15.64
Gross profit (loss) 260.6 256.8 1.48
Operational profit (loss) 116.1 96.4 20.44
Earning or loss per share, Riyals 1.5 1.3 -
All figures are in (Millions) Saudi Arabia, Riyals
Element EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year The decrease in Net Profit compared to the same quarter last year is primarily due to decrease in gross profit margin from 27.9% in fourth quarter of previous year to 22.8% in current quarter which has resulted from decrease in rental revenues by 31.6% and building revenues by 6.8%. However the financial performance of the Company during the quarter has improved due to the decrease in total operating expenditure (i.e. Selling, Marketing, General & Administrative expenses) by 15.1% as a result of the decrease in marketing expenses, employee cost and recruitment expenses, in addition to the decrease in Zakat and foreign tax expenses by 164.6%.
Reasons of increase (decrease) for period compared with same period last year Net Profit for the twelve months period ending has increased against the same period of the previous year due to the increase in gross profit margin from 25% in same period last year to 25.3% in the current period which has resulted from the increase in revenues from building sales by 3.3% and paint revenues by 45.1%. Net profit has further improved due to the decrease in total operating expenditure (i.e. Selling, Marketing, General & Administrative expenses) by 9.9% mainly due to the decrease in marketing expenses, employee cost and recruitment expenses. Also there was a decrease in Zakat and foreign tax expenses by 6.7%.
Reasons of increase (decrease) for quarter compared with previous quarter Net Profit in the current quarter has decreased against the previous quarter due to the decrease in gross profit margin from 24.1% in previous quarter to 22.8% in current quarter, which has resulted from the decrease in overall revenues by 4.5%. Net profit has further declined due to increase in total operating expenditure (i.e. Selling, Marketing, General & Administrative expenses) by 3.6% mainly due to increase in professional fees. However the financial performance of the Company during the quarter has improved due to the decrease in Zakat and foreign tax expenses by 131%.
Reclassifications in quarterly financial results Certain figures of the prior period have been reclassified to confirm with the presentation of the current period.
Other notes The sales revenue for the current quarter amounted to SR 240.1 million as compared to SR 286.9 million during same quarter of last year, which represents a decrease of 16.3%.
The sales revenue for the 12 months period ended December 31, 2016 is SR 1,030.4 million as compared to SR 1,027.9 million during same period of last year, which represents an increase of 0.2%.
The Net Shareholders' Equity (excluding minority interest) as at December 31, 2016 is SR 1,005.5 million as compared to SR 969.1 million as at December 31, 2015, which represents an increase of 3.8%.

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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