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Aslak profits surge 211% in 2019; board recommends capital cut

Aslak profits surge 211% in 2019; board recommends capital cut
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Riyadh – Mubasher: United Wire Factories Company (Aslak) reported a 211.27% year-on-year (YoY) growth in net profits after Zakat and tax during 2019, as shown by the company’s annual estimated financial results for last year.

Profits amounted to SAR 22.1 million by the end of December 2019, compared with SAR 7.1 million for 2018, according to the company’s statement to the Saudi Stock Exchange (Tadawul).

This means that during the fourth quarter (Q4) of 2019, profits amounted to SAR 4.9 million, versus losses of SAR 8.4 million in Q4-18.

Aslak attributed the surge in profits to increased sales and lower selling and distribution costs, as well as a decrease in general and administrative costs.

Meanwhile, the company’s board of directors has recommended reducing the company’s capital by 20% from SAR 438.75 million to SAR 351 million.

The recommendation comes as the board the capital is surplus to company needs, expecting a positive financial impact from the move, according to a sperate bourse filing on Tuesday.