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Jabal Omar Development Co. announces its Interim Financial Results for the Period Ending on 2023-09-30 ( Nine Months )

12-11-2023 11:57:55

ELEMENT LISTCURRENT QUARTERSIMILAR QUARTER FOR PREVIOUS YEAR%CHANGEPREVIOUS QUARTER%CHANGE
Sales/Revenue234.62218.637.31454.46-48.37
Gross Profit (Loss)47.527.98495.49236.68-79.92
Operational Profit (Loss)20.71-92.86-213.38-90.29
Net Profit (Loss) after Zakat and Tax305.46153.1199.5-79.84-
Total Comprehensive Income305.46153.1199.5-79.84-
All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT LISTCURRENT PERIODSIMILAR PERIOD FOR PREVIOUS YEAR%CHANGE
Sales/Revenue 1,006.17609.9264.97
Gross Profit (Loss)406.4679.49411.33
Operational Profit (Loss)336.22-123.98-
Net Profit (Loss) after Zakat and Tax237.55-157.98-
Total Comprehensive Income237.55-157.98-
Total Share Holders Equity (after Deducting Minority Equity)12,922.9812,882.76 0.31
Profit (Loss) per Share0.21-0.17-
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 the increase in net profit in the current quarter compared to similar quarter of the last year is mainly attributed to following:
-Growth in revenue by 7%, compared to comparative quarter, due to improvement in hotel occupancy and average room rates.

-Recognition of gain of SR 391 million on sale of land in Jabal Omar project in the current quarter.

- Reduction in operating expenses by 73% mainly due to reversal of the provision for credit losses and decreasing in professional fees related to financial restructuring.
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 the achieving net profit in the current quarter compared to the net loss in the previous quarter is mainly attributed to following:
-Recognition of gain of SR 391 million on sale of land in Jabal Omar project in the current quarter

-Recording a provision for zakat by 7 million compared to 194 million recorded in the previous quarter.
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 achieving net profit in the current period compared to the net loss in the previous period is mainly attributed to following:
- Growth in revenue by 65% compared to the same period of last year as a result of the strong improvement in hotel occupancy and average room rates, in addition to growth in the commercial centers revenue.

- Reversal provision for doubtful debts by SR 42m in current period due to Improved collections of receivables compared to similar period of last year.

-Recognition of gain of SR 391 million on sale of land in Jabal Omar project in the current period
Statement of the type of external auditor's report Qualified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion As of 30 September 2023, the Group’s total assets include Property, Plant and Equipment and Investment Properties (collectively referred to as the ‘Properties’) amounting to SR 21,425 million and SR 3,491 million respectively (31 December 2022: SR 19,502 million and SR 5,048 million respectively).
As disclosed in note 5, due to the presence of impairment indicators identified in the current and previous financial periods, management performed an impairment exercise in those respective periods. Pursuant to managements’ impairment assessment carried out during the nine-month period ended 30 September 2023 which included a retrospective review of recoverable amount of the Properties in prior periods, management identified that certain properties required an impairment adjustment of SR 0.7 billion as at 1 January 2022. Accordingly, management recognized the adjustment by restating the corresponding balances of Property, Plant and Equipment and Accumulated Losses as of that date. The effect of the restatement is disclosed in note 20. In management’s view, the estimates of recoverable amount used in carrying out the foregoing impairment assessment and the resulting restatement are based on assumptions and judgments existing as of the date of such restatement i.e., 1 January 2022. However, due to the elapse of time and significant changes in market conditions since the date of restatement, we are unable to conclude whether those assumptions and judgments were reasonable as at 1 January 2022 and unaffected by the events, circumstances and information arising subsequent to the restatement date and therefore do not incorporate any hindsight. Accordingly, we were unable to conclude whether any adjustment is required to the reported amounts of the Properties and Accumulated Losses as of 1 January 2022 as well as to the amount of expenses reported in the statement of profit or loss and other comprehensive income for the comparative three-month and nine-month periods ended 30 September 2022. Our conclusion on these condensed consolidated interim financial statements is modified because of the possible effect of this matter on the comparability of the current period’s figures and the corresponding figures.

Based on our review, except for the possible effects on the corresponding figures for the three-month and nine-month periods ended 30 September 2022 of the matter described in the basis for qualified conclusion section of our report, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements of Jabal Omar Development Company and its subsidiaries are not prepared, in all material respects, in accordance with IAS 34, ‘Interim Financial Reporting’ as endorsed in the Kingdom of Saudi Arabia.

We draw attention to note 2.4 of the condensed consolidated interim financial statements, which indicates that as at the nine-month period ended 30 September 2023, the Group's current liabilities exceed its current assets by SR 564 million and the Group’s forecasted cash flows net positive cashflow position for the next twelve months, from the reporting date, are significantly dependent upon debt financing and the Group’s ability to sale of certain land parcels classified under Assets Held for Sale in the condensed consolidated statement of financial position as at 30 September 2023. As stated in note 2.4, these events and conditions along with other matters set forth therein, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
Reclassification of Comparison Items Not applicable
Additional Information Not applicable
All figures are in (Millions) Saudi Arabia, Riyals

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