Mubasher: First Investment Company turned to losses worth KWD 47.6 million ($153.15 million) during the fiscal year (FY) ended on 31 December 2019, against profits of KWD 239,499 ($770.370) in the previous year.
The 2019 results are attributed to a loss realized from potential selling of an associate by KWD 1.6 million, as well as higher net impairment losses, expected credit losses and provisions by KWD 22.6 million, according to a bourse disclosure on Wednesday.
In addition, the company saw a rise in a lawsuits provision by KWD 22.1 million and a drop in the net change in the fair value (FV) of investment properties by KWD 1.1 million.
It also registered a lower share of results from associates by KWD 1.6 million.
By the end of the fourth quarter (Q4), the investment firm’s losses widened to stand KWD 45.9 million, compared to KWD 539,427 in the same quarter in 2018.
During its meeting, the board recommended to cut the company's capital by 31.25% or KWD 20.35 million to amortise the remaining sum of accumulated losses worth KWD 42.91 million, after deducting share premium, compulsory reserve, and stock option reserve that total KWD 20.3 million, subject to the approval of the Capital Markets Authority (CMA), other regulatory authorities, and the general assembly.
The new capital will amount to KWD 44.7 million, according to the statement.
It is noteworthy that during the first nine months of 2019, the company achieved losses of KWD 1.65 million, against profits of KWD 778,930 for the same period in 2018.
