Red Sea Housing Services Q1 profit hits SR 31.72m

Red Sea Housing Services Company has announced a net profit of SR 31.72 million for the first quarter of 2013 compared to SR 31.56 million for the same quarter last year, an increase of 0.51 percent, and compared to SR 33.07 million for the previous quarter, a decrease of 4.08 percent.
According to the company’s financial results for the three-month period ended March 31, its gross profit for the first quarter is SR 53.67 million compared to SR 51.72 million for the same quarter of last year, an increase of 3.77 percent.
Operating profit for the first quarter is SR 33.99 million compared to 36.72 million for the same quarter of last year, a decrease of 7.43 percent.
Earning per share of the three months is SR 0.79 compared to SR 0.79 for the same period of last year. Earning per share is calculated based on the number of shares resulting from the increase in share capital, which led to increase in the number of issued shares from 30 million to 40 million shares, as per the approval of the EGM that was convened on April 18, 2012.
The increase of net income for Q1 2013 compared to the same quarter of the previous year is due to the increase in gross profit margin resulting from higher rental revenues and lower project installation costs.
The decrease in net income for the current quarter compared to the previous quarter is primarily due to the reduction in gross margin resulting from the reduction in rental revenues.
Certain comparative figures have been reclassified to conform to the presentation in the current period.