BOOK NOW

Media

INVESTOR RELATIONS

Jabal Omar Development Co. announces its Interim Financial Results for the Period Ending on 2022-09-30 ( Nine Months )

09-11-2022 07:52:41

ELEMENT LISTCURRENT QUARTERSIMILAR QUARTER FOR PREVIOUS YEAR%CHANGEPREVIOUS QUARTER%CHANGE
Sales/Revenue218.6343.12407.03281.65-22.38
Gross Profit (Loss)7.98-64.86-97.25-91.79
Operational Profit (Loss)-92.86-57.9960.1341.11-
Net Profit (Loss) after Zakat and Tax153.11-270.04--128.62-
Total Comprehensive Income153.11-270.04--128.62-
All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT LISTCURRENT PERIODSIMILAR PERIOD FOR PREVIOUS YEAR%CHANGE
Sales/Revenue 609.92141.98329.58
Gross Profit (Loss)79.49-200.06-
Operational Profit (Loss)-123.98-422.96-70.69
Net Profit (Loss) after Zakat and Tax-157.98-344.77-54.18
Total Comprehensive Income -157.98-344.77-54.18
Total Share Holders Equity (after Deducting Minority Equity)13,582.766,643.58104.45
Profit (Loss) per Share-0.17-0.37
All figures are in (Millions) Saudi Arabia, Riyals

ACCUMULATED LOSSESCAPITALPERCENTAGE %
1,39311,54512
All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT LISTEXPLANATION
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The reason for achieving net profit of SR 153 million in current quarter compared to net loss of SR 270 million in the same quarter of the last year is mainly attributed to following:
-Increase in revenue as a result of the strong improvement in hotel occupancy rates due to the lifting of precautionary restrictions imposed to limit the spread of the Corona virus, which in turn led to a strong return of activity and demand to the hospitality market in Makkah.

- Reduction in financial charges by SR 113 million as a result completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.

- Recording a gain of SR 260 million from the completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is The reason for achieving net profit of SR 153 million in the current quarter compared to net loss of 129 million in the previous quarter of current year is mainly attributed to following:
- Reduction in financial charges by SR 113 million as a result completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.

- Recording a gain of SR 260 million from the completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The reason for decrease in net loss in current period by 54% compared to the same period of the last year is mainly attributed to following:
1. Increase in revenue as a result of the strong improvement in hotel occupancy rates due to the lifting of precautionary restrictions imposed on travelling to the Kingdom and deactivating social distance requirements in the Grand Mosque, which in turn led to a strong return of activity and demand to the hospitality market in Makkah. This increase is despite following.

- Lifting the above mentioned precautionary restrictions after the months of January and February from the beginning of 2022 AD.

- Continuing to impose restrictions and precautionary measures in some countries of the world

- Controls and precautionary measures imposed during the Hajj season for the year 1443 AH.

2. Reduction in general and admin expenses

3. Reduction in financial charges by SR 338 million as a result completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.

4. Recording a gain of SR 260 million from the completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.
Statement of the type of external auditor's reportQualified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion As of 30 September 2022, the Group’s total assets include Property, Plant and Equipment and Investment Property (collectively referred to as the ‘properties’) amounting to SR 20,064 million and SR 5,032 million respectively (31 December 2021: SR 19,370 million and SR 5,024 million respectively).
Management carried out an impairment exercise in prior periods to compare the carrying amounts with the recoverable amounts (being the higher of fair value or value in use) in respect of these properties. As described in the other matter paragraph, the conclusion expressed by the predecessor auditor on the financial statements of the Group for the prior period ended 30 September 2021 was a qualified conclusion due to inability to determine whether any impairment provision was required in respect of the properties. Further the opinion expressed by the predecessor auditor on the financial statements of the Group for the year ended 31 December 2021 and conclusions expressed on the financial statements of the Group for the periods ended 31 March 2022 and 30 June 2022 were also qualified opinion / conclusion since the predecessor auditor assessed the valuation approach to be inappropriate and certain significant assumptions to be not reasonable. Our report for the current period is qualified due to the effects of these matters on the comparability of the current period’s figures and the corresponding figures as well as their impact on the current period amounts included in the condensed consolidated interim financial statements as at and for the nine months period ended 30 September 2022.

While carrying out the impairment exercise for the nine months period ended 30 September 2022, management has updated the assessment of the recoverable amount using the acceptable approaches set out under IFRS. The foregoing assessment of recoverable amounts includes various elements such as consideration of highest and best use from market participant perspective as well as the use of appropriate assumptions and application of judgments. Pursuant to our review procedures carried out in respect of management’s determination of recoverable amounts, which included review of the valuation methodology and approach used by the valuation expert engaged by management, we were not able to assess certain significant assumptions and judgments (such as growth rate of future operating and disposal cashflows) used by management in the determination of recoverable amounts of certain properties are reasonable. Due to the high degree of judgment, it was impracticable for us to quantify the financial effects of adjustments to the amounts included in the condensed consolidated interim financial statements which would have resulted from using appropriate assumptions and judgments.

We draw attention to note 1 to the condensed consolidated interim financial statements, which indicates that the Group incurred a loss for the period of SR 158 million and negative operating cash flows amounting to SR 319 million during the nine-month period ended 30 September 2022. In addition, the Group's current liabilities exceeded its current assets by SR 612 million and the Group had accumulated losses amounting to SR 1,393 million as at 30 September 2022. These conditions, along with other matters set forth in note 1, indicate the existence of a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
Reclassification of Comparison ItemsNot applicable
Additional Information The percentage of accumulated losses improved as at 30 September 2022 amounted to SR 1,393 million (equivalent to 12% of the Company's capital) compared to accumulated losses of SR 1,179 million as at 31 December 2021 (equivalent to 13% of the Company's capital) and accumulated losses of SR 1,491 million as at 30 June 2022 (equivalent to 16% of the Company's capital).

Share

Other Disclosures

Jabal Omar Development Company Announces the Submission of the Application for the Increase of the Company’s Share Capital by Way of Debt Conversion to the Capital Market Authority
06-04-2024 18:57:48
Introduction Further to the announcement of Jabal Omar Development Company (the “Company”) published on the website of the Saudi Stock Exchange (Tadawul) on 07/06/1445H corresponding to 20/12/2023G in relation to the recommendation of the Company’s board to increase its share capital by way of converting the outstanding debts owed to each of Central District Cooling […]

Correction announcement from Jabal Omar Co. in regard to its Annual consolidated financial results for the period ending on 2023-12-31.
27-03-2024 08:58:20
ELEMENT LISTExplanation Date of Publishing the Previous Announcement Sought to be Corrected on Saudi Exchange’s Website - Hyperlink to the Previous Announcement Click Here Incorrect statements in the previous announcement Net profit (Loss) for the year ended 31 December 2023, reported as SAR 35.82 Correct Statement Net profit (Loss) for the year ended 31 December […]

Jabal Omar Development Co. announces its Annual consolidated financial results for the period ending on 2023-12-31
27-03-2024 08:41:53
Element ListCurrent YearPrevious Year%Change Sales/Revenue1,326.72849.556.18 Gross Profit (Loss)401.0529.471,261.01 Operational Profit (Loss)623.44-175.66- Net Profit (Loss)35.82-352.43- Total Comprehensive Income35.82-352.43- Total Share Holders Equity (after Deducting Minority Equity)12,721.2612,685.150.28 Profit (Loss) per Share0.03-0.35- All figures are in (Millions) Saudi Arabia, Riyals ELEMENT LISTAmountPercentage Of The Capital (%) Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value -- […]

Jabal Omar Development Company announces the opening of nominations for membership in the company’s Board of Directors for its sixth session
21-03-2024 02:40:08
Introduction Jabal Omar Development Company announces the opening of nominations for membership in the company’s Board of Directors for the next session, which begins on June 30, 2024, and for a period of four years ending on June 29, 2028. For individuals interested in nomination for the Board of Directors provided they meet the membership […]
Open form