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Seera Group Holding announces its interim Financial results for the period ending on 2019-03-31 ( Three Months )

SEERA 1810 0.11% 17.58 0.02
Element List Current Quarter Similar quarter for previous year %Change Previous Quarter % Change
Sales/Revenue 466 482 -3.319 444 4.954
Total Profit (Loss) 302 355 -14.929 310 -2.58
Profit (Loss) Operational 65 136 -52.205 136 -52.205
Net Profit (Loss) after Zakat and Tax 49 82 -40.243 17 188.235
Total Comprehensive Income 55 91 -39.56 10 450
All figures are in (Millions) Saudi Arabia, Riyals
Element List Current Period Similar period for previous year %Change
Total Share Holders Equity (after deducting minority equity) 5,712 6,005 -4.879
Profit (Loss) per Share 0.23 0.41
All figures are in (Millions) Saudi Arabia, Riyals
Element List Explanation
Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year The Company revenues (as classified according to International Financial Reporting Standards) decreased by 3% during the current quarter as compared with the same quarter of previous year mainly due to decline in the average commission/revenue of the traditional travel sector. It should be noted here that the Group's online booking through its online platform have increased by 30% as compared with last year (from SR 370 million to SR 481 million). This sector enjoyed rapid growth from the Group's strategy to focus on online sector. Also revenue from car rental business has shown a growth of 60% as compared to last year. This was offset by decline in revenue from our core government business due to expiry of one of the major client along with change in terms of other key clients.

The net profit for the current quarter is SR 47 million as compared to net profit of SR 86 million during the same quarter of previous year showing a decrease of 45% due to the following reasons:

- More competitive pricing for some services in order to protect and increase the market share which affected our margins

- Change in terms with major government clients

- A change in product mix and margin due to high share of online sales and travel services in United Kingdom that have lower margin as compared to other segments within the Group.

- An increase in Selling and Administrative expense (10% higher) as compared to same quarter of previous year due to expansion in Group online business.

Excluding the impact of bellow exceptional items, the company would have generated and net profit of SR 49 million during the quarter with a decrease of 50% as compared to previous year

- Impairment loss on trade receivables amounting to SR 7 million (2018: SR 11 million)

- Gain on disposal of subsidiaries amounting to SR 17 million (2018: SR NIL)

- Recognized foreign currency loss on disposal of subsidiaries amounting to SR 11 million (2018: SR NIL).

Reason for increase (decrease) in net profit for current quarter compared to the previous quarter Revenue of the company (as classified according to International Financial Reporting Standards) during the current quarter as compared to previous quarter has increased by 5% mainly due to seasonality difference.

The net profit for the current quarter has increased by 168% as compared to previous quarter.

Excluding the impact of impairment loss and other one off items recorded during previous quarter the net profit of the company for the current quarter would have decreased by 39% as compared to previous quarter.

Type of the external auditor's opinion Unmodified opinion
Reclassifications in quarter financial result Certain comparative figures are reclassified to conform current period classification.
Additional Information 1. The revenue for the current quarter is SAR 466 million as compared to SAR 482 million during the same quarter of previous year showing a decrease of 3%.

2. The gross profit for the current quarter is SAR 302 million as compared to SAR 355 million during same quarter of previous year with a decrease of 15%.

3. The operating profit for the current quarter is SAR 65 million as compared to SAR 136 million during the same quarter for previous year with a decline of 52%.

4. The net profit after zakat and tax for the current quarter is SAR 49 million as compared to SAR 82 million during the same quarter of previous year showing a decrease of 40%.

The net profit after non controlling interest for the current quarter is SAR 47 million as compared to SAR 86 million for the same quarter of previous year with a decrease of 45%.

5 .The total comprehensive income for the current quarter before non controlling interests is SAR 55 million as compared to SAR 91 million for the same quarter of previous year decreased by 40%. The total comprehensive income after non controlling interest for the current quarter is SAR 53 million as compared to SAR 94 million for the same quarter of previous year showing a decrease of 43%.

6.Earnings per share for the current quarter is SR 0.23 as compared to earnings per share of SR 0.41 for the same quarter of previous year.

7 .The shareholders equity (without non controlling interest) as of end of current quarter is SAR 5712 million as compared to SAR 6005 million in previous year (without minority interest) decreased by 5%.

Items, elements and notes of the comparatives Consolidated Interim Financial Statements have been redisplayed, regrouped and reclassified to meet with the applied accounting policies for the current period which have been prepared according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia. For more information, please see the note 6 in the condensed consolidated interim financial statements for the three months period ended in 31 March 2019.

Subsequent to the period ended 31 March 2019, shareholders during the Annual General Meeting (“AGM”), on 14 April 2019 corresponding to 9 Shaban 1440, approved to increase the Company’s share capital by 83.86 million shares, through issue of bonus shares of two ordinary shares for every five ordinary shares held by the shareholders. Additionally, the AGM approved to allocate 6.49 million shares to Company’s employees under share based payment scheme. The increase in share capital is funded through share premium reserve of SR 707.35 million and SR 196.15 million through statutory reserves. This has resulted in Company’s share capital increasing from SR 2.097 billion to SR 3 billion consisting 300 million ordinary shares of SR 10 each. See also Note 1 for details of a subsequent event regarding the name of the Company.

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