AMMAN: Accumulated losses eroded 90 per cent of Midpharma’s capital by the end of the first quarter of this year, prompting shareholders to grab the issuance premium for a lifeline.
Arab Professionals, the auditor which is a member of Grant Thornton, indicated in the interim consolidated financial statements, that the accumulated losses of Middle East Pharmaceutical and Chemical Industries and Medical Supplies Company at the end of March 2015 totalled JD8.8 million, or 90 per cent of JD9.9 million paid-up capital.
Shareholders agreed during a recent extraordinary meeting of the general assembly to lower the accumulated losses by tapping the full JD2 million issuance premium. According to the auditor’s report, the loss during the first three months of this year amounted to JD1.4 million compared to JD1.1 million loss during the same period of 2014.
The profit and loss statement showed that net sales during the January-March period of 2015 fell sharply to JD0.1 million from JD0.8 million in the first quarter of last year. The balance sheet at the end of March 2015 showed Midpharma’s debts to banks amounted to JD8.6 million. Assets totalled JD19.7 million, of which JD10 million were fixed, JD3.5 million of inventory and JD3.5 million in receivables.