Tihama announces the consolidated financial statements results

27/05/2013 10:07 AST

Tihama Advertising, Public Relation and Marketing Company announces the consolidated financial statements results for the year ended in 31 March 2013

1) The consolidated net income amounted to SR 1 million, a decrease of 94% compared to last year of SR 17 Million.

2) Earnings per share (EPS) is SR 0.06, compared to SR 1.14 for last year.

3) Gross profit amounted to SR 27 million, a decrease of 46% compared to last year of SR 50 million.

4) (Loss) from operations amounted to SR 0.3 million, compared to last year operating income of SR 10 million.

5) Decrease in net profit compared to last year is due to charging an amount of SR 10.5 million as a cost for the new contract with municipality of Riyadh for rent of 120 location of outdoor advertising,the company did not complete manufacturing and foundation of the advertising poles accordingly no revenues were recognized against the rent expense, decrease in Ad Art Median " a subsidiary" revenues of SR 5 million, in addition to charging the year with an amount of SR 3 million against the advisory and Consultancy fees for Bookstores company .

The company managed to decrease its operating losses through increasing the companys share from the associated companies by SR 6 million.

During last year the company realized other income representing profits from disposal of securities portfolio, property and equipment of SR 5 million and SR 6.5 million respectively.

6) The auditor's Report draws the attention to the note (21 - J) to the consolidated financial statements where the Company filed a lawsuit against Kind Fahd Causeway Authority requesting the cancellation of the contract signed with the Authority in connection with lease and advertising services along the causeway effective of March 16, 2011 as a result of breach of certain terms of the contract by the Authority casing a physical damage to the Company. The Company's management did not charge the rent expense for the year ended March 31, 2013 to the consolidated statement of income amounting to SR 3.9 million, based on the Company's legal advisor's opinion.

7) the comparative figure was reclassified in order to match the classification of this year .

Tadawul