Aseer turns to SR10.2 mln profits in 1Q

Aseer Trading, Tourism and Manufacturing Co. announced that it recorded profits after zakat and tax at SR 10.2 million in the first quarter of 2022 compared to losses of SR 1.4 million during the same period of 2021.

This came after Aseer announcement on Monday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The company’s operational profit rose 62% to SR 30 million in the 1^st quarter of the current year from SR 18.5 million in the same period of the previous year.

Aseer recorded gross profit rise of 15.4% to SR 148.3 million in the first quarter of this year from SR 128.5 million a year ago, while the company recorded profit per share at SR 0.08 from loss per share at SR 0.01.

The reason behind achieving Net Income during the current quarter compared with Net Loss for the same quarter last year is mainly due to the increase in Gross Profit generated from Sales and Investments, reduction in Financing Cost as well as increase in Other Income.

The reason behind achieving Net Income during the current quarter compared with Net Loss for the last quarter is mainly due to the increase in Gross Profit and Operating Profit versus an Operating Loss during the last quarter, which resulted mainly from the increase in Gross Profit generated from Sales and achievement of Gross Profit from Investments versus Investment Losses during the past quarter. Also, the reduction in General and Administrative expenses and Financing Cost, in addition to the reduction of Zakat & Income Tax expense.

Emphasis of Matter:

We draw the attention to note number (9) of the consolidated condensed financial statements, which states that on December 15, the Company filed two lawsuits at the Public Court in Riyadh against the seller of the land located north of Riyadh, Al Khair District, and against the broker of the purchase deal requesting to compel both the land seller and purchase broker (claimers) to return the amount paid to them amounted to SR 207,239 million of the land value. During November 2020, a final ruling was issued in favor of the Company to revoke the sale contract between the Company and the seller of the land and bind the seller of the land to pay an amount of SR 202 million to the Company.

On April 01 2021, the Company received a letter from its legal counsel stating the following:

That the defendant (land’s seller) filed a petition to the court on March 18 2021, to revoke the verdict and dismiss the case after the expiry of the formal objection period and petition was accepted, and according to that:

The Court dismissed the previous ruling and dismiss the case for lack of jurisdiction because the case is one of the big cases with amounts of more than 100 million Saudi Riyals.

The Company has objected the ruling as it was not valid, as the Company’s legal advisor considers that the ruling violates the law and the rules of procedures in the courts.

On 03 February 2022, the General Department for large cases of the General Court has issued a preliminary ruling in the favor of the Group as follow:

First: To terminate the sale’s contract pertaining to north Riyadh land between the Company and the seller and what’s entitled to it.

Second: Obligate the land seller to repay an amount of SR 202 million in favor of the Company.

During the subsequent period, on 24 April 2022, the Court of Appeal issued its ruling confirming the ruling issued by the General Department for large cases.