Middle East Healthcare Co. announces its Interim Financial Results for the Period Ending on 2019-06-30 ( Six Months )

7 August 2019

Introduction
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to	1- There is only marginal increase in revenue due to the minimal increase of patient traffic. 2- Increase in cost of caregivers salaries due to the new hiring of caregivers and key management professionals to enhance the revenue and improve the operational efficiency. The increased governmental labour cost also resulted in increase of staff cost. 3- Increase in the depreciation expenses due to the renovation of hospitals and addition to medical equipments to improve patient experience. 4- Increase in finance charges due to the additional borrowings.
Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to	1- There is marginal increase in revenue due to the improved patient experience and caregivers performance. 2- The increase in caregivers salaries due to the new appointments and increment effect.
Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to	1- The revenue is decreased due to the reduction in patient traffic, due to the renovation in some of the group hospitals affecting the patient flow. 2- Increase in cost of caregivers salaries due to the new hiring of caregivers and key management professionals to improve the operational efficiency. The increased governmental labour cost also resulted in increase of staff cost. 3- Increase in the depreciation expenses due to the renovation of hospitals and addition to medical equipments to improve patient experience. 4- Increase in finance charges due to the additional borrowings.
Basis of the External Auditor's Opinion	Unmodified opinion
Reclassification of Comparison Items	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 12Adoption of new standards of Condensed Consolidated Interim Financial Statements for the period ended 30-06-2019.
Additional Information	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.