Tihama Advertising and Public Relations Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Six Months )

A4070 TAPRCO0.25 (0.66 %)
1443/04/06 Thu Nov 11, 2021 15:24:44

Tihama Advertising and Public Relations Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Six Months )

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Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	35	21.4	63.551	16.3	114.723
Gross Profit (Loss)	11	3.5	214.285	3.8	189.473
Operational Profit (Loss)	-7.7	-8.4	-8.333	-12.8	-39.843
Net Profit (Loss) after Zakat and Tax	-8.2	-16	-48.75	-11.5	-28.695
Total Comprehensive Income	-8.2	-16.1	-49.068	-11.6	-29.31
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	51.3	43	19.302
Gross Profit (Loss)	14.7	8.4	74.999
Operational Profit (Loss)	-20.5	-13.8	48.55
Net Profit (Loss) after Zakat and Tax	-19.7	-20.6	-4.368
Total Comprehensive Income	-19.8	-20.7	-4.347
Total Share Holders Equity (after Deducting Minority Equity)	33.5	118.5	-71.729
Profit (Loss) per Share	-1.12	-1.46
All figures are in (Millions) Saudi Arabia, Riyals

Accumulated Losses	Capital	Percentage %
135.6	175	77.5
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The reason for the decrease in losses during the current quarter compared to the same quarter of the previous year is mainly due to an increase in gross profit of approximately SAR 7.5 million. The gross profit of the Distribution sector increased by approximately SAR 2.7 million as a result of the change in supply season to schools versus the previous year. The Retail sector gross profit increased by around SAR 2.5 million following opening of the new travel branches in airports, in addition to the fact that the same quarter of the previous year included the closure of branches as part of the precautionary measures to combat the spread of the Covid 19 virus. The gross profit of the Advertising sector increased by nearly SAR 1 million and the Production sector by approximately SAR 1.3 million, the same quarter of the previous year was affected by a reduction in advertising spending and media production by customers following the Covid 19 outbreak. The Company's share of associate companies' results increased by approximately SAR 3.3 million. The same quarter of the previous year included the expenses for the Capital raise of approximately SAR 2.7 million, as the raise was approved and completed during the same quarter of the previous year. Zakat provisions decreased by approximately SAR 0.9 million. This decrease was partially offset by an increase in selling and administrative expenses by approximately SAR 6.8 million mainly due to the expansion of the retail sector operations and also the same quarter of the previous year included the impact of cost measures taken to reduce the impact of the Covid-19 virus pandemic on the Company's operations.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is	The reason for the decrease in losses during the current quarter compared to the previous quarter is mainly due to the increase in gross profit of approximately SAR 7.2 million. The gross profit of the Distribution sector increased by approximately SAR 6.3 million as a result of the start of the season for supplying educational content to schools and the gross profit of the Retail sector increased by around SAR 1.4 million after opening new travel branches at airports. This increase in gross profit was partially offset by an increase in selling and administrative expenses of approximately SAR 2.1 million mainly as a result of the expansion of the retail sector operations. Other income decreased by around SAR 1.4 million as the previous quarter included other income from settlement of accounts payable of around SAR 0.9 million and SAR 0.4 million as rent relief.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The reason for the decrease in losses in the current period compared to the same period of the previous year is mainly due to the increase in gross profit of approximately SAR 6.4 million. The gross profit of the Retail sector increased by approximately SAR 4.7 million after opening of new travel stores at the airports, in addition the comparative period of last year included the impact of closure of branches as part of the precautionary measures to combat the spread of the Covid-19 virus. The gross profit of the advertising sector increased by around SAR 2.3 million and Production sector by approximately SAR 1.3 million as the same period of the previous year saw a reduction in advertising spending and media production from customers during the period due to the outbreak of the Corona virus, whilst the Distribution sector gross profit dropped by nearly SAR 2 million. The company's share of associates' results increased by approximately SAR 3.7 million. The same period of previous year included the expenses for the capital increase by around SAR 2.8 million as the approval and completion of the capital increase took place during the same period of the previous year. Zakat provisions decreased by approximately SAR 0.5 million and finance expenses decreased by around SAR 0.8 million. This decrease was partially offset by an increase in selling and administrative expenses by approximately SAR 13 million, mainly as a result of the expansion in the operations of the retail sector and that in same period of last year a number of plans to cut expenses to reduce the impact of the Covid-19 virus pandemic on the company's operations were put in place. A provision for credit losses of approximately SAR 1.1 million was booked during the current period.
Statement of the type of external auditor's report	Qualified conclusion
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), investments in associate companies in the attached interim condensed consolidated financial statements, which indicates that the group's investment in United Advertising Company Limited and J. Walter Thompson MENA, which are associate companies acquired in the years the previous one, and it is accounted for using the equity method, amounting to SAR 4,965,017 and SAR 29,347,921, respectively, in the group's interim condensed consolidated statement of financial position as on September 30, 2021, and the group's share of the income of the two companies above is included in the interim condensed consolidated comprehensive profit or loss based on financial statements prepared by the management of the two companies, amounting to SAR 1,259,738 and SAR 1,481,625 respectively. We were not able to obtain sufficient audit evidence directly or through alternative audit procedures regarding the investment balances of the group in the above two companies as on September 30, 2021 and as well as the Group's share in the comprehensive net profit of the above companies for the same period and accordingly we were not able to determine whether It is necessary to make any adjustments to these amounts. Material uncertainty relating to going concern. We draw attention to note (2/4) to the interim condensed consolidated financial statements, which indicates that the group's accumulated losses amounted to approximately 135.6 million Saudi riyals as on September 30, 2021, which exceeded half of the company's capital. The Group's current liabilities exceeded its current assets by approximately SR 21.32 million as at the same date. These circumstances indicate a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion has not been modified in respect of this matter.
Reclassification of Comparison Items	During the period ending on September 30, 2020, the interim condensed statements of Tihama Distribution Company were consolidated on the basis of the Interim financial statements for the period ending on September 30, which were consolidated in the comparative financial periods on the basis of the Interim financial statements for the period ending on June 30, Accordingly, the comparative information has been amended for the interim condensed consolidated statement of profit or loss for the three-month period ending on September 30, 2020. The group has also reclassified some comparative information to conform to the presentation for the current period.
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 19.6 million based on the weighted average number of shares issued during the period of 17,500,000 shares, the losses per share for the comparative 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 during the comparative period of 11,653,005 shares. Accumulated losses reached SAR 135.6 million, representing 77.5% of the capital of SAR 175,000,000 as on 30 September 2021. 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.

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