Saudi Catering’s accumulated losses decrease to 28.8% of capital

Saudi Airlines Catering Co.’s (SACC) accumulated losses decreased to SAR 236.41 million, accounting for 28.8% of its capital, the firm said in a statement to Tadawul.

The reason for the decrease in accumulated losses is due to the transfer of the company's statutory reserve surplus, amounting to SAR 107.84 million, based on the approval of SACC’s board of directors during the meeting held on May 4, 2021.

The procedures and instructions of listed companies in the Saudi stock market, whose accumulated losses amounted to 20% or more of their capital, will continue to be applied.

In May, SACC’s board of directors approved the transfer of company’s surplus statutory reserve, which exceeded 30% of the reserve amounting to SAR 107.84 million, to the accumulated losses account, Argaam reported.

According to data compiled by Argaam, the company recorded losses of SAR 30 million in Q1 2021, compared to a profit of SAR 15.6 million in a year-ago period.

The company's accumulated losses at the end of March 2021 amounted to SAR 343.8 million, representing 41.9% of capital.