Abdullah A. M. Al-Khodari Sons Company announces the interim financial results for the period ending on 30-09-2017 (Nine Months)
|Element||Current quarter||Similar quarter for previous year||% Change current||Previous quarter||% Change previous|
|Net profit (loss)||-22,883,516||-53,222,612||57||-25,022,895||8.55|
|Gross profit (loss)||3,625,184||-35,204,652||-||-20,368,492||-|
|Operational profit (loss)||-4,493,335||-35,659,780||87.4||-14,268,702||68.51|
|All figures are in Saudi Arabia, Riyals|
|Element||Current period||Similar period for previous year||% Change|
|Net profit (loss)||-65,664,842||-107,258,817||38.78|
|Gross profit (loss)||-28,163,888||-44,680,393||36.97|
|Operational profit (loss)||-17,168,054||-46,380,488||62.98|
|Earning or loss per share, Riyals||-1.18||-1.92||-|
|All figures are in Saudi Arabia, Riyals|
|Reasons of increase (decrease) for quarter compared with same quarter last year||The reason for the decrease in net loss is due to: 1-Direct costs declined by 52% (SAR 117.2 million) mainly due to slow progress on ongoing construction projects. 2-Reduction in direct cost resulted in Gross profit of SAR 3.62 million in the third quarter 2017, as compared to Gross loss of SAR 35.2 million in the same quarter of 2016. 3-General and Administration Expenses down by 33% (SAR 3.7 million) driven by cost control and operational efficiencies. 4- Selling & marketing expenses reduced by 37% (SAR 0.64 million). 5-Zakat expenses declined by 44% (SAR 0.2 million). The above were adversely counteracted by: 1-Decline in revenue by 41% to SAR 111.77 million during the third quarter 2017, compared to SAR 190.2 million in the same quarter of 2016, mainly due to slow progress on ongoing construction projects, decline in new project awards, significant liquidity challenges facing the contracting industry due to delay in payments, reprioritizing of projects by the government and extended slowdown in the construction sector. 2- Other income decreased by 95% (SAR 10.8 million) mainly due to decrease in the partial refund receipts of the government compensation for the 2400 expat levy during the current quarter as compared to the same quarter last year. 3-Net finance costs increased by 6% (SAR 1.03 million).|
|Reasons of increase (decrease) for period compared with same period last year||The reason for the decrease in the net loss is due to: 1-Direct costs declined by 48% (SAR 418.3 million) mainly due to slow progress on the ongoing projects. 2-Gross loss decreased by 37% (SAR 16.5 million) mainly due to decline in direct cost. 3-SG&A expenses declined by 29% (SAR 11.6 million). 4-Other income increased by 6% (SAR 2.25 million) mainly due to the increase in the partial refund receipts of the government compensation for the 2400 expat levy during the current period as compared to the same period last year. 5-Decrease in net financial charges by 18% (SAR 10.6 million). 6-Decrease in zakat expenses by 59% (SAR 1.8 million). The above were adversely counteracted by: 1-Decrease in revenue by 48% (SAR 401.8 million).|
|Reasons of increase (decrease) for quarter compared with previous quarter||The reason for decrease in the net loss is due to: 1-Direct costs declined by 27% (SAR 39.6 million) 2-Selling & marketing expenses decreased by 21% (SAR 0.3million). 3-General and administrative expenses declined by 9% (SAR 0.74 million). 4-Decrease in zakat expense by SAR 0.75 million. The above were adversely counteracted by: 1-Decrease in revenue by 12% (SAR 15.6 million). 2-Decrease in other income by 96% (SAR 15.3 million) mainly due to the absence of auction sale of used excess equipment during the current quarter as compared to the previous quarter. 3-Increase in financial charges by 86% (SAR 8.4 million).|
|Reclassifications in quarterly financial results||The company has adopted the International Financial Reporting Standards (IFRS) effective January 1, 2017. Accordingly, some changes in the condensed consolidated financial statements have been made in a number of items in the measurement, recognition, presentation and disclosure method for the current and comparative periods in accordance with the accounting policies adopted in accordance with IFRS and other standards endorsed by the Saudi Organization for Certified Public Accountants. For further details, refer to Note 15 (First time adoption of IFRS) in the notes attached to the interim condensed consolidated financial statements for the Nine months period ended 30 September 2017.|
|Other notes||1-Revenue for the third quarter of 2017 is SAR 111.77 million, compared to SAR 190.16 million in the same quarter of 2016 decreased by 41%.
2-Revenue for the current period of 2017 is SAR 433.18 million, as compared to SAR 834.97 million in the same period of 2016 decreased by 48%.
3-the total comprehensive loss for the current quarter is SAR 22.8 million as compared to the total comprehensive loss of SAR 54.4 million for the similar quarter of the previous year with a decrease of 58%. The total comprehensive loss for the current period is SAR 65.6 million, as compared to the total comprehensive loss of SAR 108.5 million for the similar period of the previous year with a decrease of 40%.
4-the total comprehensive loss for the current quarter is SAR 22.8 million as compared to the total comprehensive loss of SAR 24.98 million for the previous quarter with decrease of 8%.
5-Total Equity Attributable to Shareholders as at 30 September 2017 amounted to SAR 660.06 million as compared to SAR 738.24 million as at 30 September 2016, with a decrease of 10.6%. Total non-controlling interests as at 30 September 2017 amounted to SAR 0.547 million as compared to SAR 0.579 million as at 30 September 2016, with a decrease of 5.5%.
6-New awards for the third quarter of 2017 were SAR 9.1 million compared to SAR 78.4 million during the same quarter last year. The contract backlog is SAR 2,635.7 million at the end of third quarter of 2017 compared to SAR 3,008.4 million for the same quarter of the previous year.
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