March 13, 2017

Al Hammadi Company for Development and Investment announces the annual financial results for the year ending on 31-12-2016

ELEMENT CURRENT YEAR PREVIOUS YEAR % CHANGE
Net profit (loss) 74.68 141.33 -47.16
Earning or loss per share, Riyals 0.62 1.18
Gross profit (loss) 241.55 240.24 0.55
Operational profit (loss) 98.09 153.37 -36.04
All figures are in (Millions) Saudi Arabia, Riyals
ELEMENT EXPLAINATION
Reasons of annual financial results Although the net revenue grew by 8% for the year 2016 compared to the same period last year. The slight increase in the gross profit and the decrease in the operating profit, and net income is mainly attributable to (i) The increase in the deprecation expenses and financial charges due to the opening of Al Hammadi Hospital – Sweidi Branch on 1 August 2016 (ii) The closure of Al Hammadi Hospital – Olaya Branch during the first and second quarters from 7 February 2016 to 6 August 2016 as a result of the electrical incident on 7 Feb 2016, the hospital reopened during the third quarter on 7 August 2016 (iii) The collection of SR 9.8 million written off receivables during the first quarter 2015 which contributed to a decrease in the general and administrative expenses for that period (iii) the increase in the doubtful debt provisions.
Reclassifications in annual financial results Certain comparative figures for the year 2015 were reclassified to conform to the overall presentation of the year 2016 figures.
Other notes The year 2016 net revenue is SR 606.2 million compared to SR 561.3 million in the year 2015 with increase of 8%. Total shareholders equity as at the end of the year 2016 is SR 1,370 million compared to SR 1,386 million as at the end of the year 2015 with decrease of 1%. Please note that there is no minority interest.