Ataa Educational Profits Dropped to SR37 mln

The net profit of Ataa Educational Company, after zakat and tax, fell to SR37 million during 2021, compared to SR76 million last year.

It is a fall by 51%, the company said on Wednesday, after the announcement of its annual financial results ended 2021-07-31 “12 months.”

The operational profit during the current period reached SR58 million compared to SR99 million during the similar period the previous year, with a decrease of 41%.

The gross profit during the current period reached SR75 million, compared to SR116 million during the same period the previous year, with a decrease of 35%.

Profit per share during the current period reached SR 0.93, compared to SR1.89 during the same period last year.

The decrease in net profit is due to the decrease in revenue by 17% compared to last year as a result of making additional discounts due to closure of schools & online learning, although the operational cost has been decreased by 7% compared to the same period last year.

The decrease in other revenue by 38 %, due to the suspension of students’ activities, and not operating canteens as a result of school closures, compared to the same period of last year.

Reclassification of some comparison figures and clarifications on the annual financial statements for the compared periods as the following:

An increase in the payables by an amount of SR3.6 million riyals, clarification No. 9 (Orouba Complex lease contract obligations).

An increase in the amount due to related parties by an amount of SR8.9 million (obligations of the lease contract of Dr. Ahmed Al-Mutib – member of the Board of Directors).

In return for reducing the liabilities of the lease contracts by SR12.4 million and other receivables and credit balances by an amount of SR0.1 million Clarification No. 12 (Related party transactions and balances).

An increase in general and administrative expenses by SR1.8 million (bank charges) in return for reducing financing costs by the same amount.

Ataa has acquired Al Elem International School Company and Al-Awsat National School Company for Education and Training, so that the financial statements of the two companies have been unified with the financial statements of Ataa Company.