Alargan 2013 General Assembly approves election of new board of directors for coming three years
Following the conclusion of its Annual General Meeting (AGM) held on June 1, 2014, Alargan International Real Estate Company has announced that the General Assembly has approved the distribution of a 7% cash dividend for the full year ending December 31, 2013, equivalent to 7 fils per share, as well as the election of a new board of directors for the coming three years.
Alargan International Real Estate Company reported a net profit of KD3.9m with a profitability of 15.08 fils earnings per share, compared to last year which stood at a net profit of KD4.4m and profitability of 17.09 fils earnings per share.
The decrease in net profit is mainly due to Alargan’s achieved profits during the previous year, which totaled KD2.1m from the sale of a stake in Alargan Projects – Kingdom of Saudi Arabia (an associate company). In addition, during 2013, the company also incurred taxes amounting to KD623,000 due to a restructuring in ownership of the parent company in the same associate.
During the 2013 fiscal year, the company achieved a significant increase in its operating profits across all its business segments compared to the same period in 2012, with profits from real estate projects increasing by 73%, and profits from rental proceeds improving by 37%, as well as profits from resorts increasing by 7%.
The total revenues of the group also increased by 1.6%, from KD24.9m during 2012, to KD25.3m during 2013, despite the presence of non-recurring profits from the sale of a stake in the associate company during 2012, for KD2.1m as mentioned earlier. Also Alargan’S total expenses for the twelve months ending December 31, 2013, stood at KD21.3m, compared with KD20.4m during 2012, an increase of 4.4% due to the company’s non-recurring taxes amounting to KD623,000.
Total current assets for 2013 increased by 25%, and total assets rose by 12%, while total liabilities for the year 2013 increased by 23% compared to 2012. Total equity attributable to shareholders of the parent company increased by 5.5% in 2013, taking into account the impact of the 7% cash dividends at 7 fils per share, amounting to KD1.793.890, which the company distributed for the financial year ended December 31, 2012.
Mr. Khaled Khudair Al-Mashaan, Chairman and Managing Director, said, “Throughout 2013 we witnessed several positive developments across our business lines, where the political and economic stability in the region aided the recovery of the real estate market, as well as supporting the demand for residential and commercial properties. The company has been able to achieve outstanding sales in Saudi Arabia, Oman and Bahrain, in addition to completing and delivering several projects in record time.”
Mr. Al-Mashaan added, “The Company began comprehensive restructuring operations by conducting extensive changes across all departments in line with our overall strategic direction. This is just one of several steps taken by the company in order to develop a working mechanism that matches the size of our future projects. The company is currently looking to diversify its cash flow sources from its portfolio through the promotion of income generating properties, and the development of properties built on leased land contracts, with a focus on the long term benefit of a build operates transfer (Private BOT) structure.”
Mr. Al-Mashaan concluded, “On behalf of my fellow board members and the entire team, I extend my sincere thanks and appreciation to our distinguished shareholders for their continued support and trust, which motivates us to work harder in order to achieve the company’s future goals and aspirations. I would like also to thank my fellow board members, directors, executive management and all employees for their sustained and excellent efforts in developing the company and its successes.”
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