Tihama Advertising and Public Relations Co. announces its Interim Financial Results for the Period Ending on 2020-09-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 33.4 | 40.1 | -16.708 | 9.6 | 247.916 |
| Gross Profit (Loss) | 8.2 | 13.9 | -41.007 | 0.2 | 3,999.999 |
| Operational Profit (Loss) | -2.8 | 0.4 | - | -11.1 | -74.774 |
| Net Profit (Loss) after Zakat and Tax | -9.7 | 0.04 | - | -10.9 | -11.009 |
| Total Comprehensive Income | -9.8 | 0.04 | - | -10.9 | -10.091 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 43 | 55 | -21.818 |
| Gross Profit (Loss) | 8.4 | 20.9 | -59.808 |
| Operational Profit (Loss) | -13.8 | -4.1 | 236.585 |
| Net Profit (Loss) after Zakat and Tax | -20.6 | 1.4 | - |
| Total Comprehensive Income | -20.7 | 1.4 | - |
| Total Share Holders Equity (after Deducting Minority Equity) | 118.5 | 63.1 | 87.797 |
| Profit (Loss) per Share | -1.46 | 0.15 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 56.4 | 175 | 32.2 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to | The reason for the loss during the current quarter compared to the same quarter of last year is due to a decrease in gross profit of around SAR 6.9 million, in the advertising sector gross profit dropped by around SAR 5.5 million , with the company's revenue negatively affected due to the impact of Corona virus due to the complete cut off of advertising spend by customers during the period, in addition to a drop in revenue due to the expiration of the Riyadh advertising sites contract, gross profit from the Production sector dropped by SAR 2.2 million. In return gross profit from Distribution sector increased by SAR 0.6 million.
Other income dropped by around SAR 6.6 million as the Company had recongnised in the comparative quarter of last year SAR 7.1 million as other income from settlement of advertising sites contracts. During the current quarter SAR 0.55 million was booked as other income arising from rental waivers, finance charges increased by around SAR 0.5 million.
These losses were partially offset by an overall decrease in selling and general expenses of around SAR 0.2 million, although operating expenses increased on the acquisition of a subsidiary and due to the expansion in Retail sector operations by SAR 2.9 million as well as the booking of provision for doubtful debts of SAR 0.4 million, the company's implementation of a number of plans to reduce expenses helped to counteract the impact of the Covid 19 virus pandemic and this resulted in the net overall decrease in general and selling expenses compared to the same quarter of the previous year.
The company's share of the profits of associates increased by nearly SAR 1.6 million. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | The reason for the decrease in losses during the current quarter compared to the previous quarter is mainly due to, an increase in the Distribution sector gross profit of around SAR 8.5 million after the start of schools delivery season, in addition Retail and Bookstores sector gross margins increased by nearly SAR 1.2 million after the reopening of the high street and travel stores, despite the fact that the company's revenues continued to be negatively affected by the ongoing impact of the new Corona virus including the severe restriction in international travel and massive drop in number of passengers making domestic flights. These gains were partially offset by increase in Capital Raise expenses by around SAR 2.5 million compared to last quarter, as the offering and capital increase procedures were approved and completed during the current quarter. In addition the share of profits from associates dropped by around SAR 3.2 million, of which SAR 2.9 million resulted from J Walter Thompson, as these business experienced a rapid drop in client advertising spending during the quarter. Zakat provisions increased by around SAR 1.1 million following the increase in Company's share capital. |
| Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to | The reason for the loss during the current period compared to the profits in same period of last year is mainly due to a decrease in gross profit of around SAR 12.6 million. The advertising sector gross profit dropped by around SAR 6.7 million , with the company's revenue negatively affected due to the impact of Corona virus and the drop of advertising spend by customers during the period, in addition to a drop in revenue due to the expiration of the Riyadh advertising sites contract. Gross profit from the Production sector dropped by SAR 3.7 million as a result of drop in demand in advertising production by customers during the period. Gross profit from Retail and Bookstores sector dropped by around SAR 1.6 million as the spread of Corona virus negatively impacted Company's revenues due to the suspension of domestic and international flights along with the full closure of airport and high street stores, during almost half of the period and with the closure of schools our high street business lost the key back to school sales season. An increase in Capital raise expenses by around SAR 2.3 million compared to same period of last year as the offering and capital increase procedures were approved and completed during the current period. The company's share of the profits of associates decreased by nearly SAR 0.8 million. Other income dropped by around SAR 7.3 million as the Company had recongnised in the comparative period of last year SAR 7.3 million as other income from settlement of advertising sites contracts, finance charges increase by SAR 0.4 million and Zakat provision increase by approximately SAR 1.4 million after increase in Company's share capital. These losses were partially offset by an overall decrease in selling and general expenses of around SAR 2.8 million, although operating expenses increased due to the expansion in Retail sector operations, the company's implementation of a number of plans to reduce expenses helped to counteract the impact of the Covid 19 virus pandemic and this resulted in the net overall decrease in general and selling expenses compared to the same period of the previous year. |
| Basis of the External Auditor's Opinion | Qualified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | The Auditor's Report includes the following qualifications: As disclosed in note (5/1) Investment in associates to the attached condensed consolidated interim financial statements which indicates that the Group has recorded its investment in United Advertising Limited Company and J Walter Thompson MENA Company which are associates acquired in previous years and accounted for using the equity method which amounts to SAR 4,132,919 and SAR 38,302,935 respectively in the condensed consolidated interim statement of financial position as of 30 September 2020. The group's share of the net income of the above companies was recorded based of financial statements prepared by the management amounting to SAR 814,251 and SAR (1,739,250) respectively in the condensed consolidated interim statement of comprehensive profit or loss for the period ending on that date. We were unable to obtain sufficient appropriate audit evidence regarding the book value of the group’s investment in the above-mentioned companies as on June 30, 2020, and the group’s share of the above companies ’net income for the same period because we were unable to access financial and managerial information and auditors In the companies above. Accordingly, we are unable to determine whether any changes to these balances. As disclosed in note (3/1/5) Subsidiaries and Group's share in its Capital in the attached condensed consolidated interim financial statements, the condensed consolidated interim financial statements include an investment in a subsidiary company, International Advertising Services Limited, whose financial statements have not been consolidated as its financial statements have 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 correctness of the disclosed condensed consolidated interim financial statements. Accordingly, we are unable to determine whether any changes to the condensed consolidated interim financial statements are necessary. |
| Reclassification of Comparison Items | Certain comparative amounts have been reclassified to conform to the current period presentation. During the period, the financial statements of Tihama Distribution Company were consolidated on the basis of the interim financial statements for the period ending on September 30, which in previous financial periods were being consolidated on the basis of the period ending on June 30, and on the basis of the financial statements for the year ended December 31 within the consolidated financial statements For the financial year ending on March 31, and accordingly, the effect of this change has been booked as an adjustment to the opening balance of the accumulated losses as on April 1, 2019 with the amendment of the comparative figures. |
| Additional Information | Losses per share for the current period were calculated on the net loss attributable to equity holders of the parent company of SAR 17.05 million based on the weighted average number of shares issued as of 30 September 2020 of 11,653,005 shares, the earnings per share for the comparative period were 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 September 2019 of 12,307,122 shares. The earnings per share for the comparative period has been amended to comply with International Accounting Standard No. 33 - Earnings per share, as the Extraordinary General Assembly of shareholders held on July 15, 2020 approved an increase of the company's capital by a value of SAR 100 million by issuing rights shares. The weighted average number of shares has changed affecting the weighted average number of shares outstanding since then. Accumulated losses amounted to SAR 56.4 million and 32.2%% of share capital as of 30 September 2020. The accumulated losses of the company as on September 30, 2020 decreased below 50% of the company's capital to become SAR 56,416,431, representing 32.2% of the Company's capital, which amounted to SAR 175,000,000 as on September 30, 2020. The reasons for the decrease in accumulated losses are due to an increase in Company's Capital by SAR 100,000,000 through the issue of rights shares based on the approval of the Extraordinary General Assembly held on July 15, 2020 (attached to a report from the company's auditor indicating the Company's financial position after the reduction of the accumulated losses). Procedures and Instructions Applicable on Companies Listed in Saudi Capital Market Whose Accumulated Losses Reach 20% or more out of the Capital Thereof will continue to apply. |
| Attached Documents |
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