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Alhokair turns to profits in H1-FY21/22; board proposes capital cut, raise

Alhokair turns to profits in H1-FY21/22; board proposes capital cut, raise
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Riyadh – Mubasher: Fawaz Abdulaziz Alhokair Company achieved net profits after Zakat and tax worth SAR 66.6 million during the first half (H1) of fiscal year (FY) 2021/2022, against losses of SAR 633.8 million in H1-FY20/21.

The earnings per share stood at SAR 0.33 at the end of the first six months of FY that ended in September 2021, versus a loss per share standing at SAR 2.97 in the same period last year.

Revenues surged by 74.9% year-on-year (YoY) to SAR 3.06 billion in H1-FY21/22 from SAR 1.75 billion, according to the interim financial results on Thursday.

At the end of September 2021, the group’s accumulated losses reached SAR 969.2 million, accounting for 46.2% of the SAR 2.1 billion capital.

During the second quarter (Q2) of FY21/22, Alhokair also turned to profitability worth SAR 20.9 million, against losses of SAR 98.2 million.

Revenues increased by 14.8% YoY to SAR 1.36 billion in July-September 2021 from SAR 1.18 billion.

On a quarterly basis, the net profits in Q2-FY21/22 were 54% lower than SAR 45.7 million in Q1-FY21/22 that ended in June this year, and the revenues shrank by 19.9% from SAR 1.7 billion.

In a separate disclosure to Tadawul, Alhokair announced that its board gave the green light for reducing then increasing the capital.

The group plans to decrease the capital by 46.2% to SAR 1.13 billion distributed over 113.07 million shares, from SAR 2.1 billion and 210 million shares prior to the cut.

The listed group will cancel 96.92 million shares as one share for every 2.167 owned shares, aiming to restructure the capital to offset the accumulated losses.

Alhokair also plans to increase the capital, following the capital cut transaction, through a rights issue worth SAR 1 billion.