Dubai – Mubasher: Gulf General Investment Company reported an increase in losses by 297% in the first half (H1) of 2021 to AED 65.9 million, compared with AED 16.6 million in H1-20.
The increase in losses is due to the lower profit margin of 15%, down from 37.4% in the same period last year, due to the 71% higher direct costs, according to the company’s disclosure to the Dubai Financial Market (DFM) on Sunday.
In addition, the company saw a reevaluation deficit of AED 11.2 million and a loss on disposal of equity interest in an associate at about AED 32.9 million.
The company also disclosed an analysis of accumulated losses at AED 1.74 billion, representing 97.2% of the capital, as of May 11, because of the impairment of assets due to the challenging market situation, and the finance cost incurred in previous years.
Accordingly, the board of Gulf General Investment has proceeded with the procedures of capital restructuring and exit from some joint investments.
