| Third-quarter revenue of SAR 247.8 million grew by 42.5% year-on-year, and at SAR 698.7 million for the nine-month period improved by 16.2% from 2018.
Gross profit of SAR 49.1 million in Q3 improved by 79.7% year-on-year. The Group’s Q3 net loss of SAR 6.7 million narrowed by 85.7% year-on-year, with an operating loss of SAR 6.2 million decreasing by 80.3%.
The nine-month net loss for 2019 was SAR 46.3 million, narrowing by 55.1% year-on-year.
The accumulated losses to capital ratio increased to 22% from 21% in the previous quarter, mainly driven by liquidation of stock and impairment losses on receivables as per IFRS requirements. In this instance, the CMA’s rules and regulations for listed companies with total accumulated losses of 20% or more of capital will be applied. It should be noted that the Company’s statutory reserves are greater than the accumulated losses. Therefore, total equity is in excess of paid up capital by SAR 2.5 million.
Breakthrough Program and Growth Opportunities:
Management accredits the robust increase in revenues, and a significant reduction in net and operating losses, to the success of its Breakthrough Program, which focuses on strengthening and broadening revenue streams while rationalizing costs and improving operating efficiencies.
Growth avenues include the Saudi Energy Efficiency Center’s (SEEC) high-efficiency AC units initiative in order to support the private sector, with a positive impact on the company revenues, which is achieving a boost in sales and a competitive share of the program. Further opportunity is provided by the development of the Saudi housing strategy, and private sector support initiatives adopted by the government, which will reflect positively on marketing opportunities.
The Group is exploiting its market share of the Multi V product range to bid for projects throughout the year, in light of the real estate strategy adopted by the Saudi government, in addition to private sector projects that are expected to achieve a recovery bolstered by government spending. An attractive opportunity is presented by Tarshid, the Saudi government’s National Energy Services Company, which is tasked with retrofitting assets owned by public or government entities – among them 2 million street lights, 110,000 government buildings, 35,000 schools, 100,000 mosques and 2,500 hospitals and clinics. Shaker Group is bidding for a healthy portion of these projects.