Notification
Dear website visitors,,
Based on the board resolution for restructuring UIC’s board effective 17/5/2010, Kindly note that we will be soon releasing the new chairman and CEO message Mr. Essa Al Essa. For more information concerning the new board structure, please visit the investor relation page - under news section.
Dear Shareholders
It is my pleasure to welcome you to our 31st General Meeting and, to present, on behalf of the Board of Directors, Annual Report of United Industries Company “UIC” for the financial year ended December 31st, 2009 along with the major highlights of the financial results.
The economic conditions, primarily in the local market, directly affected our company’s performance during 2008. The Year 2009 was the most challenging for the Company with the a continued impact of 2008 crisis, causing unusual challenges (put another word) to the Company earlier this year with last year’s loss amounting to KD 11.23 million due to deterioration of stock portfolios in addition to the nature and volume of UIC’s financial obligations/current liabilities.
In view of such circumstances, the Company’s Management had to adopt conservative accounting policies by making additional provisions for all investments including available-for-sale investment, leading the Company to incur loss during the current year of KD 7.36 million out of which unrealized loss is KD 3.34 million. The actual loss of the year is primarily attributable to sale of the company’s holding stake in Hempel Paints, to settle the obligations towards bonds falling due on March 28th, 2010. On the other side, the unrealized loss is due to impairment of Real Estate investments of a subsidiary -Amaken United Real Estate company, following a revaluation of such assets, plus finance charges and administrative expenses, during the year.
On the side of rescheduling our liabilities, the Company, having considered the remarks raised by the Auditors on last year’s consolidated Balance Sheet, stepped up its drive, in line with the International Accounting Standards, to reschedule loans of KD 40 million, i.e. 43.1% of the total loans as on of the last year-end, through short to medium term loans in addition to repayment of certain loans/financial obligations of the Company of KD 25 million, being 23.3% of the total loans as on of last year-end.
Moreover, the Company’s investments in subsidiaries have been reclassified to investments in associates, in accordance with the International Accounting Standards, which led to decrease of total loans/current liabilities by KD 42.5 million, i.e. 40% of the total loans reported in the Company’s Consolidated Financial Statements for the last year, where such loans related to an associate’s liabilities. The aforesaid steps, resulted in crossing out all remarks raised by the Auditors on the Company’s Consolidated Financial Statements and, thus, the Management fulfills its commitments towards the Shareholders to reschedule the Company’s liabilities within the preset timeframe, and to prove, beyond any doubt, the healthy financial position of the Company, and its outstanding ability to successfully conclude financial restructure.
We will continue our efforts to drive growth and improve financial results in the near future. On the positive side of operation, the major operating components of the Company have remarkably improved, thanks to the hike in their operating capacity and recorded positive results, as well-recognized by the performance of group entities throughout the year, chief amongst them Saudia Dairy & Foodstuff Company (“SADAFCO”) and Qurain Petrochemical Industries Company (“Al-Qurain”). Our optimism is predicted on the better results over the coming period due to resuming operations of several projects of the group companies.
Valued Shareholders,
The balanced policy adopted by the Company’s Management under these exceptional challenges shall enable us to prevail over the fluctuating economic conditions. Firmly speaking, we are intent on keeping ourselves on the track of progress backed with your continuous support and valued trust to rise from the current status, to explore all available options, in the best interest to our shareholders.
To wrap up, I would like to express my heartfelt appreciation and gratitude to my colleagues, Members of the Board of Directors, Company staff and you, our valued shareholders, for your trust, efforts and unflinching support.
We invoke the Almighty to favor us in our future plans for the prosperity of our shareholders and beloved Kuwait.
Peace & Blessings Be Upon You!
Sheikh Khalifa Abdullah Al-Jaber Al-Sabah
Chairman
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