Middle East Specialized Cables Co. announces the interim financial results for the period ending on 31-03-2018 (Three Months)
| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) | -9.35 | 3.86 | - | 8.03 | - |
| Gross profit (loss) | 14.98 | 31.03 | -51.72 | 14.44 | 3.76 |
| Operational profit (loss) | -5.07 | 10.98 | - | 7.67 | - |
| Earning or loss per share, Riyals | -0.16 | 0.06 | - | - | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The reason for recording net loss during the current quarter comparing to net profit for the same quarter of last year is mainly due to the decrease in sales volume as a result of the decrease in market demand due to slow down in projects and reduction in profit margins resulted from high competition. In addition to that the company has started to adopt IFRS9 related to impairment loss of receivables and other financial assets during the current quarter |
| Reasons of increase (decrease) for quarter compared with previous quarter | The reason for recording net loss during the current quarter comparing to net profit for the previous quarter is mainly due to : 1. Releasing the doubtful debt provision of some customers due to the collection of overdue receivables during the last quarter. 2. Releasing the provision for losses over the investment value for MESC for Medium and High Voltage Cables Company, resulting from the decision of the Extra Ordinary General Assembly of the subsidiary to liquidate the Company during the last quarter after recording the required provisions for amounts due from that subsidiary. |
| External auditor's report containing reservation | Emphasis of Matter We draw attention to note (1) of the interim condensed consolidated financial statements which describes that the extra ordinary General Assembly of the subsidiary in Jordan “MESC for Medium and High Voltage Cables Company” decided in their Meeting dated on October 11, 2017 to liquidate the company and appointed a liquidator to complete the necessary government procedures. As a result of that, Middle East Specialized Cables Company (MESC KSA) lost control over this investment. Consequently, MESC KSA stopped consolidating MESC for Medium and High Voltage Cables Company from October 11, 2017 and considered as discontinued operations (note 12). Our conclusion is not modified in respect of this matter. |
| Reclassifications in quarterly financial results | Some of prior period numbers have been re-presented as a result of implementing discontinued operation standard on one of the subsidiary's numbers due to liquidation decision |
| Other notes | A- Sales during the current quarter amounts to SR 163.9 million versus SR 188.0 million for the same quarter of last year. a decrease of 12.8%. B- Total comprehensive loss attributable to the owners of the company during the current quarter amounts to SR 9.35 million versus total comprehensive income attributable to the owners of the company SR 3.04 million for the same quarter of last year. And versus an income of SR 3.81 million for the previous quarter. C-Equity attributable to shareholders (after the elimination of Minority Interest) as of 31/03/2018 amounts to SR 454.0 million versus SR 460.9 million as of 31/03/2017. An decrease of 1.5% D- Accumulated Losses as of 31/03/2018 amounts to SR 175.0 million which is 29.2% of share capital E- As required by IFRS as endorsed in Saudi Arabia, the company has adopted for the first time IFRS 15 (Revenue from Contracts with Customers) and IFRS 9 (Financial Instruments) effective from 01/01/2018 |
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