The Ordinary General Assembly of Emaar Misr for Development approved the Board of Directors’ report on the company’s activities and the financial statements for the past year 2020.
And approved the balance sheet on the balance sheet and profit account for the company for the past year.
The general assembly decided not to distribute profits to shareholders, indicating that shareholders objected not to distributing annual profits despite the company achieving profits.
The general assembly decided to vacate the board of directors for the past year, approve the formation of the board for a period of 3 years headed by Jamal Majed Khalfat (non-executive), and appoint Muhammad Al-Abbar as a non-executive board member.
The profits of Emaar Misr for Development decreased by 3.5% during the past year to reach 1.68 billion pounds, compared to a net profit of 1.74 billion pounds during the previous year 2019, taking into account the rights of the minority shareholders.
The company’s revenues decreased during the past year 2020 to reach 4.68 billion pounds, compared to total sales of 5.67 billion pounds in the previous year.
Mahmoud Gad, a real estate analyst at the Arab African International Securities Brokerage, said that the company began directing liquidity to operational activities during the past year, which is a positive factor for the future of the company in the coming period.
He stressed that this was evident in the decline in financing revenues by 28%, as it achieved 1.3 billion pounds last year, compared to 1.8 billion pounds during the previous year, due to the decrease in investment in treasury bills and low interest rates at the same time.
He added that the decrease in revenues comes as a result of the decrease in the number of units that were delivered to customers last year, as the company delivered 757 units during the year 2020 compared to the delivery of 1087 units during 2019.
He pointed out that the decrease in administrative expenses was a major reason for the improvement in profit margins last year, as expenditures amounted to 539 million pounds in 2020, compared to 1.4 billion pounds in 2019.
He confirmed that the company has a strong financial position and set a fair value for the share at 4.78 pounds, compared to a market price of 2.44 pounds.
The total profit amounted to 1.72 billion pounds during the same period, compared to 2.26 billion pounds in the same period in 2019.
The cost of revenues decreased during 2020 to 2.96 billion pounds, compared to 3.42 billion pounds in 2019.
The share of the basic and diluted earnings per share was 0.34 pounds, compared to 0.35 pounds in 2019.
Earlier, the board of directors of Emaar Misr for Development agreed to donate 60 million pounds to the Long Live Egypt Fund to carry out renovation and building works for schools and homes, in addition to developing infrastructure and basic services in Sidi Abdel Rahman.
The Council approved participation in the President’s initiative to import the Corona virus vaccine, through a donation to the Long Live Egypt Fund, worth 30 million pounds.
The combined profits of Emaar Misr for Development increased by 62.5% during the first nine months of 2020, to reach 1.02 billion pounds, compared to 628.995 million pounds in the corresponding period, taking into account the rights of the minority.
Revenues decreased during the period from January to last September to 2.27 billion pounds, compared to 2.34 billion pounds in the comparative period of 2019.
The cost of revenues recorded an amount of 1.46 billion pounds during the first nine months of this year, compared to 1.39 billion pounds in the corresponding period.
The total profit declined during the same period to 788.3 million pounds, compared to 950 million pounds in the corresponding period in 2019.
The “Emaar Misr” general article acknowledges the transfer of profits and the approval of the financial statements. It was written in the Al-Borsa newspaper.