(The Group’s Comments) Alijarah’s Net Profit Drops to QAR 4.03 Million in the First Half of 2019

July 18, 2019

Profit: Alijarah Holding’s profits dropped by 64.5% to QAR 4.03 million for the first half of 2019, compared to QR 11.35 million for the same period of 2018, while the earnings per share reached QAR 0.008 versus QAR 0.023. During the second quarter the holding recorded a loss of about QAR 943,000 compared to a profit of QAR 9.48 million for the corresponding quarter of 2018.

Gross Income & Revenues: amounted to QAR 69.1 million in this half, compared to QAR 94.2 million for the previous year’s first half, a decrease of 26.6%. This drop in revenues, and subsequently in profits, resulted from the valuation loss of the company's investments in securities, leading to an impairment loss of QAR 3.59 million, compared to a profit of QAR 18.82 million in the first half of 2018, which mean that difference in this item alone amounted to about QAR 22.4 million. Additionally, dividends from investments dropped by QR 2.7 million.

Accumulated Losses: amounted to QAR 188.5 million, accounting for 38% of the capital and about 27% of the shareholders' equity.

Assets: decreased by 10.2% or QAR 112.2 million. When reviewing the assets item, we note that the cash balances decreased by QAR 96 million, in contrast, the liabilities decreased by QAR 91 million. As for receivables and clients’ receivables, it amounted to QAR 41 million. It should be noted that the allocation for expected credit losses was increased to QAR 60 million, which means that for each one Riyal sales credit, the company expects a loss of 60 Dirhams.