IssuerAnnouncementDetailsV2Portlet
Red Sea International Co. announces its Interim Financial results for the Period Ending on 2025-03-31 ( Three Months )
Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
---|---|---|---|---|---|
Sales/Revenue | 700,663 | 659,214 | 6.287 | 867,566 | -19.238 |
Gross Profit (Loss) | 92,491 | 67,150 | 37.737 | 100,932 | -8.363 |
Operational Profit (Loss) | 19,115 | 3,263 | 485.81 | 17,863 | 7.008 |
Net profit (Loss) | -4,525 | -11,982 | -62.235 | 6,249 | - |
Total Comprehensive Income | -4,525 | -11,982 | -62.235 | 6,031 | - |
All figures are in (Thousands) Saudi Arabia, Riyals |
Element List | Current Period | Similar period for previous year | %Change |
---|---|---|---|
Total Shareholders Equity (after Deducting Minority Equity) | -3,956 | 51,906 | - |
Profit (Loss) per Share | -0.37 | -0.63 | |
All figures are in (Thousands) Saudi Arabia, Riyals |
Element List | Amount | Percentage of the capital (%) | |
---|---|---|---|
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
Accumulated Losses | -294,521 | 97.4 | |
All figures are in (Thousands) Saudi Arabia, Riyals |
Element List | Explanation |
---|---|
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | Increase in revenue is primarily due to the satisfaction of performance obligations and percentage of completion achieved to recognize the revenue. |
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Due to the increase in revenues and enhancement of efficiencies |
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | Decrease of revenue is due to the timing of revenue recognition based on satisfaction of performance obligations and percentage of completion achieved. |
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | Decrease in net profit during Q1FY25 as compared to Q4FY24 is primarily due to the reason mentioned above for the decrease in revenues. |
Statement of the type of external auditor's report | Conservation |
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | Basis for Qualified Conclusion: As referred to the note 17 of the interim condensed consolidated financial statements, the Parent Company entered into a shareholders’ agreement (SHA) on 1 October 2023 to acquire a 51% stake in a subsidiary. The SHA includes put and call options in relation to the non-controlling interest in the subsidiary exercisable subject to certain terms and conditions to be met over a period of time. As per IFRS, the Group is required to account for such options from the date of the acquisition of the subsidiary based on appropriate valuation. However, these options were not recognized in these interim condensed consolidated financial statements, which constitute a departure from IFRS as endorsed in the Kingdom of Saudi Arabia. The effects on the interim condensed consolidated financial statements of the above has not been determined, as the Company has not performed the valuation exercise for the above options. As disclosed in note 20, events after reporting date of the interim condensed consolidated financial statements, the Parent Company and the minority shareholders of First Fix entered into an agreement on 9 April 2025, that terminated the put and call options. Qualified Conclusion Except for the adjustments to the interim condensed consolidated financial statements that we might have become aware of had it not been for the situation as described above, based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 as endorsed in the Kingdom of Saudi Arabia. Material uncertainty related to going concern We draw attention to Note 2.1 in the interim condensed consolidated financial statements, which indicates that, as of 31 March 2025, the accumulated losses of the Company amounted to SR 294.5 million which represent 97.4% of the Company’s capital (31 December 2024: SR 283.3 million representing 93.7% of the capital). Further, at 31 March 2025, the Group’s current liabilities exceeded its current assets by SR 149.2 million (31 December 2024: SR 250.7 million). As stated in Note 2.1, these events or conditions, along with other matters as set forth in Note 2.1, 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 further modified in respect of this matter. |
Reclassification of Comparison Items | Certain of the prior period amounts were reclassified and restated to conform with the presentation in the current period and to correct certain prior period errors. For details please refer note 19 to the Interim Condensed Consolidated Financial Statements for the period ended 31 March 2025. |
Additional Information | • The Group generated revenues amounting to SR 700 million in Q1 FY25, compared to SR 659 million in Q1 FY24, which represents an increase of 6%. The breakdown is as follows: - Revenue from general construction increased by 2 %, from SR 591 million in Q1 FY 24 to SR 600 in Q1 FY 25. - Revenue from sale of buildings witnessed a staggering increase of 126%, from SR 26 million in Q1 FY24 to reach SR 60 million in Q1 FY 25. - Revenue from rental of investment properties and facilities management, witnessed a minor decrease of 2%, from SR 42 million in Q1 FY 24 to SR 41 million in Q1 FY25. • Gross profit amounted to SR 92 million in Q1 FY25, compared to a gross profit of SR 67 million in Q1 FY24, owing to cost efficiency measures adopted by the Group. This translates to a Gross margin of 13% in Q1 FY25 as compared 10 % in Q1 FY24. • Operating profit increased to SR 19 million in Q1 FY25, compared to an operating profit of SR 3 million in Q1 FY24, which is aligned to the cost efficiency measures adopted by the Group. Moreover, SG&A expenses increased by 15% in Q 1 FY25 compared to Q1 FY24, due to changes conducted in Group’s department head of operations, supply chain, factory and business development during the period. Finance costs have increased by 75% in Q1 FY 25 compared to Q1 FY24 due to an increase in borrowing facilities. • Loss per share is calculated by dividing loss attributable to equity holders of the Parent Company by number of shares of the Company. • Total accumulated losses at the end of Q1 FY25 amounted to SR 295 million, equivalent to 97.4% of its share capital as of 31 March 2025. The Company is confirming its adherence with the procedures and instructions issued by the Capital Market Authorities for the listed companies in Saudi stock market with accumulated losses of 50% or more of its capital. The figures presented in this announcement under the section of “Similar Quarter For Previous Year” are different than the previous announcement when announcing the results for the period ended 31 March 2024. This is due to the reclassification and restatement of prior period financial statements.
The following were the figures for the comparative period as per the old announcement: all figures are in (thousands) Saudi Arabia Riyals Gross profit (loss): 68,543 Operational profit (loss): 29,964 Net profit (loss): 13,326 Total Share Holders Equity (After Deducting the Minority Equity): 77,701 Profit (Loss) per Share: -0.2 The link for the previous announcement: Announcement Details Red Sea International Co. announces its Interim Financial results for the Period Ending on 2024-03-31 ( Three Months ): https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=80192&anCat=1&cs=4230&locale=en |
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