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Tihama Advertising and Public Relations Co. announces the interim financial results for the period ending on 30-06-2018 (Three Months)

TAPRCO 4070 1.74% 17.50 0.30
Element Current quarter Similar quarter for previous year % Change current Previous quarter % Change previous
Net profit (loss) 0.97 1.6 -39.38 -1.56 -
Gross profit (loss) 7.8 4.2 85.71 5.2 50
Operational profit (loss) -0.3 -4.4 93.18 -0.2 -50
Earning or loss per share, Riyals 0.13 0.21 - - -
All figures are in (Millions) Saudi Arabia, Riyals
Element EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year The decrease in profits during the current quarter compared to the same quarter of last year arose in recognition of other revenues in the same quarter of last year of around SAR 6.7 million as a result of the decrease in Company's obligations towards advertising sites lease contracts after receiving the final settlement from Makkah Municipality. This decrease was partially offset by the impact of an increase in Advertising sector gross profit by around SAR 3.6 million as a result of decrease in cost of sales, a decrease in General and Selling expenses by nearly SAR 0.5 million and recording other revenues from the settlement of advertising contract commitments amounting to SAR 1.9 million.
Reasons of increase (decrease) for quarter compared with previous quarter The profits during the current quarter compared to loss in the last quarter arose from an increase in Advertising sector gross profit by around SAR 3.3 million as a result of increase in sector revenues, in addition general and selling expenses decreased by approximately SAR 3.4 million. These gains were partially offset by the impact of decrease of share of profit from associates of nearly SAR 2.5 million, a decrease in Distribution sector gross profit by nearly SAR 0.65 million due to the change in delivery season, along with a decrease of other advertising activities revenues of around SAR 1.3 million.
External auditor's report containing reservation The Auditor 's Report includes the following qualifications: As disclosed in note (5) We have not been able to determine the impact of the non-issuance of the financial statements of the associates. Accordingly, we have relied on the management accounts prepared by the Company's management of the associates, and the Group did not recognize any profits or losses on investment in United Advertising Limited Company for the years ended 2017, 2016 and 2015 and the period ended 30 June 2018, and we were unable to obtain adequate and appropriate audit evidence directly or through alternative audit procedures to determine the Company's share of the change in net assets of the entity invested in. Accordingly, we are unable to determine whether any changes to the condensed consolidated financial statements are necessary. As disclosed in note (2/4) The condensed consolidated financial statements were prepared under the Going Concern concept of the Group, but the delay in the company renting some Advertising sites and the incurred losses of some of its subsidiaries has led to a deficit in its operational results and of the statement of cash flows for certain subsidiaries such as Tihama Modern Bookstores, the Group provided to us it's future plans with respect to the collection of its debts and settlements with creditors and revitalization of operational activities. As disclosed in note (2/4) The Company's current liabilities exceed its current assets by SAR 8,706,295 as at 30 June 2018, this is an indicator of the Group's inability to continue as a going concern as disclosed in the above mentioned note, The Management plan is to address these losses and capital deficiency. As disclosed in note (3/1/5) The consolidated financial statements include an investment in a subsidiary company, International Advertising Services Limited, whose financial statements have not been consolidated as its financial statements has not been issued since the year 2012 due to seizure of the company's operations as of 16 November 2011. We have not been able to obtain sufficient and appropriate audit evidence directly or through alternative audit procedures to determine the validity of the disclosed condensed consolidated financial statements. Accordingly, we are unable to determine whether any changes to the consolidated financial statements are necessary. The Auditor 's Report draws the attention to the following: We draw the attention to note (11) to the condensed consolidated financial statements which refers to the fact that Tihama Modern Bookstores Company and Tihama International Advertising Company have not submitted Zakat declarations since inception, in addition Tihama Holding for Commercial Investment and Istidama International Real Estate Company have not submitted its Zakat declarations for the years since 2013, also Tihama Distribution Company has not submitted its Zakat declarations for the years since 2015. The management of the subsidiaries has made provisions for Zakat annually, our opinion has not been modified accordingly.
Other notes Revenues for the quarter ended 30 June 2018 amounted to SAR 14 million compared to SAR 13.9 million for the same quarter of last year an increase of 0.7%. The total shareholders' equity (after excluding the minority interest) as at 30 June 2018 amounted to SAR 58.6 million compared to SAR 52.3 million as at the same period of last year, an increase of 12%. Accumulated losses as of 30 June 2018 amounted to SAR 16.4 million representing 21.8% of the Company's Capital on the same date amounted to SAR 75,000,000. Total comprehensive income for the quarter ended 30 June 2018 was SAR 0.97 million, compared to the total comprehensive income for the same quarter last year which reached SAR 1.6 million, a decrease of 39.3%, compared to total comprehensive loss for the last quarter of SAR 1.7 million. Earnings per share for the current period were calculated on the net profit attributable to equity holders of the parent company of SAR 0.99 million based on the weighted average number of shares issued as of 30 June 2018 of 7,500,000 shares, the earnings per share for the comparative period of last year was calculated on the net profit attributable to equity holders of the parent company of SAR 1.8 million based on the weighted average number of shares issued as of 30 June 2019 of 8,583,333 shares, on 13 April 2017 the share capital was reduced by canceling 7,500,000 shares, the number of shares issued after the reduction was 7,500,000 shares. The external auditors have reviewed the interim consolidated financial statement and issued a qualified report and draw attention to a fact.

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