Middle East Specialized Cables Co. — Earnings Release 2017

Mar 26, 2018

Middle East Specialized Cables Co. announces the annual financial results of the period ending on 31-12-2017

2370 · 26/03/2018 15:31:42 · Announcement #49846 · View on Saudi Exchange

Middle East Specialized Cables Co. announces the annual financial results of the period ending on 31-12-2017

Element	Current year	Previous year	% Change
Net profit (loss)	12.5	79.94	-84.36
Earning or loss per share, Riyals	0.21	1.33	-
Gross profit (loss)	89.75	122.18	-26.55
Operational profit (loss)	32.5	108.75	-70.11

*All figures are in (Millions) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The reason for the decrease in net profit during current year comparing to the last year is mainly due to : 1. Decrease in sales volume during the current year. 2. Releasing the provision for losses over the investment value for MESC Jordan, resulting from 29.1% share sale during the last year. The effect of the above was reduced by the reduction in overall expenses and releasing the doubtful debt provision of some customers due to the collection of overdue receivables during the current period
External auditor's report containing reservation	Emphasis of Matter We draw attention to note (1-b) of the consolidated financial statements which describes that the extra ordinary General Assembly of the subsidiary in Jordan “MESC for Medium and High Voltage Cables Company” decided in their Meeting dated on October 11, 2017 to liquidate the company and appointed a liquidator to complete the necessary government procedures. As a result of that, Middle East Specialized Cables Company (MESC KSA) lost control over this investment. Consequently, MESC KSA stopped consolidating MESC for Medium and High Voltage Cables Company from October 11, 2017 and considered as discontinued operations (note 33). Our opinion is not modified in respect of this matter.
Reclassifications in annual financial results	Prior period numbers have been restated as a result of the conversion to IFRS from 01-01-2017 and implementing discontinued operation standand on one of the subsidiary's numbers due to liquidation decision
Other notes	A- Sales during the current year amounts to SR 675.1 million versus SR 759.4 million for the last year. a decrease of 11.1%. B- Total comprehensive income attributable to the owners of the company during the current year amounts to SR 7.5 million versus SR 85.2 million for the last year. a decrease of 91.2%. C-Equity attributable to shareholders (after the elimination of Minority Interest) as of 31/12/2017 amounts to SR 465.3 million versus SR 457.8 million as of 31/12/2016. An increase of 1.6% D- Accumulated Losses as of 31/12/2017 amounts to SR 163.7 million which is 27.3% of share capital

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