Red Sea Housing Services Reports Record Nine Month Year to Date Results
Net Profits set new Nine-Month Records, rising 96% over same period last year
Red Sea Housing Services, (Tadawul: 4230), a leading manufacturer of remote site housing solutions, today announced its revenues for the nine months ending 30 September 2008.
Highlights for the period included record revenue of SAR 857 million up from SAR 543 million for the same period last year, with net profits of 173 million up from 88 million last year - corresponding to a 96 percent profit increase.
Dr. Majid Kassabi, chairman, commented “We are pleased to inform our shareholders that the company has delivered a truly outstanding performance in the first nine months of 2008, complemented by a strong third quarter. The company has delivered record revenues and net income results all meeting or surpassing our projected budget. Over the last twelve months return on equity stands at 31%.” Dr Majid Al Kassabi also stated, “This strong demand from the marketplace has resulted in our highest ever sales figures of SAR 857 million for a nine-month period. In this nine month period alone we have greatly surpassed our previous best annual sales record, which was SAR 690 million achieved for the entire 12 months of 2007.”
The increase in revenue is due in part to the company’s largest ever orders for remote site housing solutions inclusive of water-treatment plants and power plants, and is also due to the company’s rental income which grew 108% for the first nine months of 2008 over the same period of 2007– mostly from the company’s new income producing assets built last year. Don Sumner, Managing Director, commented; “These exceptional financial results were supported by our ability to execute our strategic projects while further strengthening our global client delivery services. The strength of our core suite of products has helped us drive close to a triple-digit rise in net income.”
“In order to remain a leader in this dynamic global marketplace, our company will be mostly concentrating on increasing capacity,” added Sumner. “Over the near term, we are continuing to expand our delivery capabilities in North Africa to satisfy customer demand for quality accommodation, as they continue to increase their presence in this and other remote areas around the globe” he concluded.
