Metal and Recycling K S C Public : Financial Results 31 March 2024

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

To the Board of Directors

Metal and Recycling Company K.S.C. (Public)

State of Kuwait

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Metal and Recycling Company K.S.C. (Public) (the "Parent Company") and its subsidiaries (collectively the "Group") as of March 31, 2024, and the related interim condensed consolidated statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows for the three months period then ended. Management of the Parent Company is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard 34, 'Interim Financial Reporting'. Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim condensed consolidated financial Information Performed by the Independent Auditor of the Entity." A review of interim condensed consolidated financial information consists of making inquiries primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34.

Emphasis of matter

Without qualifying our conclusion, we draw attention to Note (10) regarding right of utilization for a land leased by the Group and held within the Associate Company.

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Report on other Legal and Regulatory Requirements

Furthermore, based on our review, the interim condensed consolidated financial information is in agreement with the books of account of the Parent Company. We further report that, to the best of our knowledge and belief, we have not become aware of any violations of the Companies Law No. 1 of 2016 and its Executive Regulations as amended, or of the Parent Company's Memorandum of Incorporation and Articles of Association as amended during the three months period ended March 31, 2024, that might have had a material effect on the Parent Company's financial position or results of its operation, except for the Group ownership of investment properties and conducting rental activities, not disclosed in the Parent Company Articles of Association.

We further report that, during the course of our review, to the best of our knowledge and belief, we have not become aware of any violations of the provisions of Law No 7 of 2010 concerning the Capital Markets Authority and its related regulations during the three months period ended March 31, 2024, that might have had a material effect on the Parent Company's financial position or results of its operations.

	Dr. Shuaib A. Shuaib
State of Kuwait	License No. 33-A
May 9, 2024	RSM Albazie & Co.

METAL AND RECYCLING COMPANY - K.S.C. (PUBLIC) AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED) AS AT MARCH 31, 2024

(All amounts are in Kuwaiti Dinars)

					December 31,
			March 31,	2023		March 31,
ASSETS	Notes	2024		(Audited)	2023
Current assets:
Cash and cash equivalents	3	811,593	1,173,339	2,498,927
Time deposits	4	3,470,442	3,959,078	3,080,359
Accounts receivable and other debit balances	5	8,191,305	7,356,191	4,740,804
Due from related parties	6	2,400	124,276	1,900
Inventories			107,713		95,477		109,626
Total current assets		12,583,453	12,708,361	10,431,616
Non-current assets:
Financial assets at fair value through profit and loss		34,972	34,972	34,972
Investment in associate		6,796,086	6,796,086	6,797,486
Investment property		1,409,000	1,409,000	1,420,000
Property, plant and equipment		8,433,023	8,267,383	5,915,067
Right of use assets		1,702,113	1,825,483	2,085,981
Goodwill			406,889		406,889		406,889
Total non-current assets			18,782,083		18,739,813		16,660,395
Total assets		31,365,536	31,448,174	27,092,011
LIABILITIES AND EQUITY
Current liabilities:
Due to banks		-	257,000	-
Ijara payables		690,000	694,058	-
Term loans	7	2,435,179	1,962,990	1,058,000
Lease liabilities		332,752	570,117	453,221
Accounts payable and other credit balances		3,660,970	3,777,845	3,000,259
Due to related parties	6		4,036,514		3,763,675		3,405,025
Total current liabilities		11,155,415	11,025,685	7,916,505
Non-current liabilities:
Term loans	7	7,200,875	7,150,875	6,339,525
Lease liabities		1,681,462	1,680,608	1,934,544
Provision for end of service indemnity			1,166,978		1,123,289		1,099,366
Total non-current liabilities			10,049,315		9,954,772		9,373,435
Total liabilities		21,204,730	20,980,457	17,289,940
Equity:
Share capital		10,000,000	10,000,000	10,000,000
Statutory reserve		1,520,581	1,520,581	1,520,581
Treasury shares	8	(1,057,640)	(1,057,640)	(1,056,623)
Effect of change in subsidiary's equity		402,450	402,450	402,450
Accumulated losses		(3,160,634)	(3,160,760)	(3,384,594)
Equity attributable to shareholders of the Parent
Company		7,704,757	7,704,631	7,481,814
Non-controlling interests			2,456,049		2,763,086		2,320,257
Total equity			10,160,806		10,467,717		9,802,071
Total liabilities and equity		31,365,536	31,448,174	27,092,011

The accompanying notes from (1) to (15) form an integral part of the interim condensed consolidated financial information.

Mosaed Ibrahim Al Houwly		Tarek Ibrahim Mohamed Al-Mousa
Chairman		Vice Chairman and Chief Executive Officer

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METAL AND RECYCLING COMPANY - K.S.C. (PUBLIC) AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

FOR THE PERIOD ENDED MARCH 31, 2024 (All amounts are in Kuwaiti Dinars)

			Three months ended
			March 31,
	Notes	2024			2023
Revenues:
Net sales			4,397			5,436
Service revenue			3,346,470			2,628,629
Rental income			393,931			425,466
			3,744,798			3,059,531
Expenses:
Cost of sales			(3,012)			(7,131)
Service costs			(2,397,806)			(1,945,908)
Rental costs			(265,957)			(249,003)
			(2,666,775)			(2,202,042)
Gross profit			1,078,023			857,489
Staff costs			(340,564)			(246,337)
General and administrative expenses			(172,319)			(146,248)
Selling and marketing expenses			(1,142)			(2,253)
Depreciation and amortization			(291,614)			(233,414)
Allowance for expected credit losses	5 - a	(88,348)			-
Bad debts written-off	5 - c	(4,150)			-
			(898,137)			(628,252)
Profit from operations			179,886			229,237
Interest income			32,902			19,376
Gain on sale of property, plant, and equipment			-			1,000
Finance cost			(151,692)			(181,495)
Other income			36,787			27,272
Profit for the period before contributions to the National Labor			97,883			95,390
Support Tax (NLST) and Zakat
NLST			(3,424)			(1,607)
Contribution to Zakat			(1,370)			(643)
Profit for the period			93,089			93,140
Other comprehensive income			-			-
Total comprehensive income for the period			93,089			93,140
Attributable to:
Shareholders of the Parent Company			126			27,373
Non-controlling interests			92,963			65,767
			93,089			93,140
			Fils	Fils
Basic and diluted earnings per share attributable to Shareholders
of the Parent Company	9		0.001			0.304

The accompanying notes from (1) to (15) form an integral part of the interim condensed consolidated financial information.

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