Middle East Healthcare Co. announces its Annual Financial Results for the Period Ending on 2019-12-31

Decrease in net profit for the current twelve months period compared to the same period of last year is due to:

1- There is marginal increase in revenue 7.6% compare to the previous year.

2- Increase in cost of caregiver’s salaries due to the new hiring of caregivers and key management professionals to improve the operational efficiency. The increased governmental labor cost also resulted in increase of staff cost.

3- Increase in the depreciation expenses due to addition to medical equipments and renovation of hospitals to improve patient experience and satisfaction.

4- Dammam hospital incurred a pre operating cost of SR 8 million in 4th Q 2019

5- Increase in finance charges due to the additional borrowings.

Unmodified opinion
 

Certain figures of the previous year have been reclassified and regrouped to conform to the presentation for the current year presentation as per International Financial Reporting Standard 16 as endorsed in the Kingdom of Saudi Arabia applicable from 1 January 2019. For more information refer note 3 and 17 Adoption of new standards of Consolidated Financial Statements for the year ended 31-12-2019.
 

The Company has adopted IRFS 16, as of January 1, 2019 and the application of this was not material and did not required any adjustments to retained earnings as of 1 January 2019.