Sumou Real Estate Company announced the annual financial results ending on 31-12-2020 (twelve months), as the company achieved a net profit after zakat and tax of 71 million riyals compared to 69 million riyals for the previous year, with an increase of about 2.3%.
The reason for the increase is that the increase in net profits by (2.3%) despite the decrease in the current year’s revenues compared to the previous year (46%) is due to the fact that the company had a contract for the implementation of integrated development works (management and implementation). From the completion of this contract in 2019, which was also reflected in the decrease in the costs of revenues to the same extent, and then the total profit of the company was not affected to the same extent as it decreased by only 5.1% (as is evident) in addition to the decrease in the administrative and general expenses of the company by 11% and the financing costs of the company 34% as a result of repayment of part of the existing loans and a decrease in the SIBOR price during 2020.
The Board of Directors of Sumou Real Estate Company recommended, in its meeting held today, Sunday, the distribution of bonus shares of one share for every two shares, as the Board of Directors decided to submit its recommendation to the Extraordinary General Assembly to increase the company’s capital by 125 million Saudi riyals to become 375 million Saudi riyals and increase the number of shares from 25 million shares to 37.5 million shares by transferring part of the retained earnings to the company’s capital. The Board of Directors considered that increasing the capital by transferring part of the retained earnings to capital supports the financial position of the company and meets the needs of future expansions. It is also consistent with the company’s policies, and the necessary legal procedures for increasing the capital will be completed. The company had previously distributed 50 halalas in cash for each share for the profits of the first half of 2020.