4170 · 19/08/2021 15:42:43 · Announcement #64647 · View on Saudi Exchange

Tourism Enterprise Co. announces its Interim Financial Results for the Period Ending on 2021-06-30 ( Six Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 4,773,1762,134,937123.5743,205,83548.89
Gross Profit (Loss) 1,509,403-352,778-499,757202.027
Operational Profit (Loss) -12,397,163-1,825,744579.019-791,4411,466.403
Net Profit (Loss) after Zakat and Tax -13,193,919-1,975,744567.794-941,4411,301.459
Total Comprehensive Income -13,207,591-2,003,036559.378-955,1131,282.83
All figures are in (Actual) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 7,979,0113,867,426106.313
Gross Profit (Loss) 2,009,160-1,303,703-
Operational Profit (Loss) -13,188,604-4,400,045199.737
Net Profit (Loss) after Zakat and Tax -14,135,360-4,667,197202.866
Total Comprehensive Income -14,162,704-4,721,781199.944
Total Share Holders Equity (after Deducting Minority Equity) 55,480,04773,171,037-24.177
Profit (Loss) per Share -1.4-0.47
All figures are in (Actual) Saudi Arabia, Riyals
Accumulated LossesCapitalPercentage %
-48,933,074101,500,00048.2
All figures are in (Actual) Saudi Arabia, Riyals
Element ListExplanation
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 increase in loss for Current Quarter compared to same period of last year was due to allocation of legal provisions of SAR 9.4 M and doubtful provision were not exposed earlier in the same period of last year. Q2 2021 witnessed an increase of Zakat claim due to receiving Zakat adjustments for Year 2019 and 2020.
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 increase in loss for Current Quarter compared to last Quarter was due to allocation of legal provisions of SAR 9.4 M were not exposed earlier in the same period of last year despite the improvement of the revenue generated by Palm Beach
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 increase in loss for current period compared to same period of last year was due to allocation of legal provisions of SAR 9.4 M and increase in general and administrative expenses were not exposed earlier in the same period of last year. The period witnessed an increase of Zakat claim due to receiving Zakat adjustments for Year 2019 and 2020.
Statement of the type of external auditor's report Emphasis of matter
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion We Draw attention to note (3) to the condensed financial statements which describe there is indicators related to going concern. The accumulated losses 48,933,074 SR which represent 48.20% of the company share capital as of 30 June 2021.and this indicates the possibility of Material Uncertainty Related to Going Concern. Our opinion is not qualified in respect of this matter. Accordingly, and as corrective procedures, based on the meeting of the company's board of directors on Ramadan 3, 1442 H, corresponding to April 15, 2021, the extraordinary general assembly recommended that on the next meeting the company should reduce the capital by 34% then increase the company's capital by initial public offering of its shares for the requirements of the business interest and in support of its future investment plans.
Reclassification of Comparison Items Some of the prior year figures have been reclassified to conform to the current year presentation
Additional Information The main reasons for accumulated loss refer to the increase of provisions that should be allocated over previous periods before launching the round of new elected Board of Directors. The provisions included provision for Bad debt and provisions for legal cases judged earlier and announced then in Tadawul (Labor Cases and Hemaya Company) with total exposure of SAR10,262,301 by 30-06-2021.

The company is committed with the procedures and instructions for companies posted a loss of 35% and more.

The procedure considered by the company against the accumulated loss:

The new Board of Directors started in 28-05-2021 and since then the board has been keen to study the operational performance and financial performance in order for the development of the company and improve the performance and increase the occupancy level and diversify the revenue. This plan requires serious efforts for maintenance of the facilities related to the infrastructure that left without continues maintenance caused suspension of a many operational licenses which are subject to the renewal now.

The new Board of Director is looking for restructure Palm Beach resort and placing it in top of the Tourism sector through the development of Villas and kabana and maintain the entrainment facilities.

The board of director is working on extinguishing the accumulated loss which recorded 48.20% of the paid in capital and free the company of each financial obligations which improve the shareholders equity. The company will announce any development promptly.

The company is committed to IFRS 9 and 15 since 1-1-2018 and IFRS 16 since 1-1-2019 whereby the disclosure of the impact of abovementioned IFRS included in the financial statement.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.