Shams Profits Soar to SR93 thousand

Shams, the touristic projects company, posted a post zakat and tax profit of SR93.67 thousand, in 3^rd quarter, 2021 compared to SR1.52 million losses, in same period, in 2020.

This came after the consolidated preliminary financial results for the period ending September 30, 2021, were released (9-month).

During Q3, the operating profit was SR113.9 thousand, compared to losses of SR1.22 million, in the same quarter, the previous year.

Total profit for the third quarter was SR606 thousand, a decrease of 81.24% from SR3.23 million, in the same quarter, the previous year.

The last period’s net loss after zakat and tax was SR14 million, compared to a loss of SR6.19 million, in the previous year’s parallel period, a 126.87% rise.

Q3 has witnessed also a loss of SR1.39 per share, compared to a loss of SR0.61, the prior year.

The recently ended quarter’s net profit was achieved, thanks to lower general and administrative expenses, as well as lower claims and zakat payment, in addition to inclusion of provisions for debit balances of the same quarter of the previous year.

Such a decrease in general and administrative expenses, as well as the inclusion of the previous quarter’s legal provisions and provisions for debit balances, are the reasons for the current quarter’s net profit compared to the previous quarter’s net losses.

Meanwhile, the increase in losses for the last period was due to the formation of judicial and debit balances provisions, in the second quarter of the last period, resulted in an increase in the net loss, despite the last period’s revenues, being higher than the same period last year.

It was noted that: We draw attention to Note No. 3 of the interim consolidated financial statements, revealing the presence of indicators relating to the concept of continuity, whereas the total accumulated losses amounted to SR48,853,075, or 48% of the company’s capital as of September 30, 2021.

This shows that there is significant doubt about the company’s capacity to continue as a viable concern.

As a result, the company’s board of directors recommended that the extraordinary general assembly, held on August 24, 2021, that the company’s capital shall be reduced by 48.2% and then increased by offering rights-based shares, due to the requirements of the interest work and to support its future investment plans.

Certain former period numbers have been reclassified to match the last period’s presentation.