| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 33,062,855 | 25,902,011 | 27.64 | ||
| Gross Profit (Loss) | -1,038,781 | 3,327,780 | - | ||
| Operational Profit (Loss) | -32,687,699 | -26,863,015 | 21.68 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -52,793,393 | -9,625,972 | 448.45 | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -52,540,448 | -9,240,452 | 468.59 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 147,799,120 | 205,269,455 | -28 | ||
| Profit (Loss) per Share | -2.31 | -0.42 | |||
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -54,737,712 | -23.88 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year | The increase in revenue during the current year compared to the previous year was primarily attributable to the recognition of revenue from the Marketing and Event Management segment, which had not commenced operations during the previous year. This increase was partially offset by lower revenues generated from the Production, Advertising, and Distribution segments compared to the previous year. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The net loss recorded during the current year, compared to the corresponding period of the previous year, was primarily attributable to the following factors: -Recognition of a loss from investments in the financial portfolio amounting to SAR 43.37 million during the current year, compared to gains of SAR 4.09 million generated from such investments in the previous year. -An increase in the provision for slow-moving inventory by approximately SAR 2.11 million compared to the corresponding period of the previous year. -A decrease in the share of results from associates by approximately SAR 4.52 million compared to the previous year. -A decline in other income by approximately SAR 5.97 million compared to the corresponding period of the previous year, mainly due to the absence of bank deposits during the current year, whereas such deposits existed in the previous year. -The current year's results were adversely affected by the recognition of Zakat assessment adjustments amounting to SAR 1.16 million at the Group level, compared to a positive impact from Zakat settlement adjustments in favor of the Company amounting to SAR 6.12 million during the previous year. |
| Statement of the type of external auditor's report | Conservation |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | Basis for Opinion 1. As disclosed in Note (6) of the consolidated financial statements: A. The investment in associates included an amount of 55,552,212 , representing investment in J. Walter Thompson MENA. The Group accounts for its investments in associates using the equity method. The consolidated statement of profit or loss of the Group for the year ended 31 March 2026 included share of results of the associate amounting to 9,740,581 . The consolidated statement of other comprehensive income for the year ended 31 March 2026 included an amount of 137,862. These amounts represent the Group's share of the overall business results and income of J. Walter Thompson MENA a. Further, note (32) includes a restatement of comparative figures related to the investment in J. Walter Thompson MENA for the year ended 31 March 2025. The Group recognized all mentioned amounts based on unaudited financial statements prepared by the management of J. Walter Thompson MENA for the year ended 31 December 2025. In addition, no audited financial statements of J. Walter Thompson MENA were available for the year ended 31 December 2024. B. The Group has other investments in associates with nil carrying amount, for which no audited financial statements were made available. Due to lack of sufficient evidence, we were unable to determine the value of investments, or whether there were any additional liabilities related to such investment in associates. Accordingly, we were unable to determine whether any material adjustments need to be recorded in the consolidated statement of financial position as at 31 March 2026, or to the consolidated statements of profit or loss and other comprehensive income or to the consolidated statement of cash flows for the year then ended. 2. As disclosed in Note (9), trade receivable and other debit balances included a balance amount of 15,000,000 as at 31 March 2026, which represents cash paid under investment in the Saudi Film Fund. Management has classified this balance as other debit balances without assessing a proper classification of this investment. Furthermore, due to unavailability of fair value of the investment, we were unable to verify its fair value as of 31 March 2026. Accordingly, we were unable to determine whether any adjustments need to be recorded in the consolidated statement of financial position as at 31 March 2026, or to the consolidated statements of profit or loss and other comprehensive income for the year then ended or to consolidated statement of cash flows for the year then ended. 3. As disclosed in Notes (28) to the notes of consolidated financial statements, the consolidated statement of profit or loss includes an amount of 12,320,753 relating to net gain from discontinued operations arising from loss of control of Tihama Education Company and its subsidiary “Aventus Global Trading Company” as a result of commencement of liquidation proceedings on 24 February 2026 , The Financial information for the aforementioned subsidiaries has been determined based on unaudited financial statements prepared by management. Accordingly, we were unable to determine whether any material adjustments need to be recorded in the consolidated statement of financial position as at 31 March 2026, or to the consolidated statements of profit or loss and other comprehensive income or to the consolidated statement of cash flows for the year then ended. We conducted our audit in accordance with International Standards on Auditing ("ISA") that are endorsed in the Kingdom of Saudi Arabia. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) that is endorsed in the Kingdom of Saudi Arabia (the “Code”) that is relevant to our audit of the consolidated financial statements, and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. Material uncertainty related to going concern We draw attention to note (2/4) to the consolidated financial statements, which indicates that the accumulated losses amounted to 54,737,712 as at 31 March 2026, The Group incurred total loss for the year of 53,094,100. Furthermore, its negative cash flows from operating activities amounted to 31,985,289 for the year ended 31 March 2026. These events and conditions, along with other matters set out in note (2/4), indicate the existence of a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Other matter The consolidated financial statements for the year ended 31 March 2025, were audited by another auditor who issued a modified opinion on those financial statements on 13 Muharram 1447 AH (corresponding to 8 July 2025). |
| Reclassification of Comparison Items | a)Restatement investment in associate - WPP: During the previous year, a total adjustment of SAR 4,081,556 was made in relation to the Group’s investment in the associate company WPP (J. Walter Thompson), the adjustment included a reallocation of SAR 3,907,148 between the Foreign Currency Translation Reserve and Retained Earnings, and a correction of SAR 435,975 related to the associate’s retained earnings, the adjustment resulted from foreign exchange fluctuations, mainly in the Egyptian pound. b)Restatement investment in associate - United Advertising Company: The investment in United Advertising Company was adjusted by SAR 194,354, resulting from the issuance of the associate’s final financial statements, to reflect its share of the associate’s profit for the comparative period. c)Reclassification – Portfolio management fees: During the period, the Company reclassified portfolio management fees amounting to SAR 210,614 from accounts payable to profits / (losses) for the same amount, this reclassification was made to present the balance in a manner that more appropriately reflects the substance of the transaction, there was no impact on net income or total shareholders’ equity as a result of this reclassification d)Reclassification of the provision for obsolete and slow-moving inventory The inventory provision was reclassified from General and Administrative Expenses to Cost of Sales to more appropriately reflect the nature of the expense, Comparative figures for the prior period have been restated to reflect this reclassification without any impact on net profit or total shareholders’ equity e)Reclassification of Tihama Education Company’s results as discontinued operations: On 18 November 2025, the Group’s Board of Directors resolved to initiate liquidation procedures for Tihama Education Company under the Bankruptcy Law, with the objective of limiting the Company’s recurring annual losses that have been adversely affecting the Group’s performance. Accordingly, the results of Tihama Education Company were reclassified in the consolidated statement of profit or loss for the comparative period as discontinued operations, in accordance with the requirements of International Financial Reporting Standard (IFRS) 5, “Non-current Assets Held for Sale and Discontinued Operations.” f)During the current year, the Group reassessed the methodology used in determining the inventory provision for Tihama Distribution Company, a subsidiary. It was identified that the provision recognized in the comparative period was not in accordance with the Group’s accounting policy for inventory valuation and provisioning. Accordingly, the inventory provision for the comparative period has been corrected, resulting in a decrease in the provision balance of SAR 1,863,549. The comparative information has been restated to reflect this correction. The adjustment resulted in a corresponding increase in inventories and equity by the same amount. |
| Additional Information | The company notes that according to Article three - Paragraph A - B - C of the procedures and instructions for companies whose shares are listed on the financial market and whose accumulated losses have reached 20% or more and related to (the company's accumulated losses have reached 20% or more and less than 35% of the company's capital. The company announces that the group's accumulated losses amounted to SAR 54,737,712 as of 31 March 2026 , representing 23.88% of the company's capital) The reason for the increase / decrease in losses to this percentage is due to what was mentioned above regarding the reason for incurring losses during the current period in this announcement above The company clarifies to the shareholders that the company is currently working on procedures to reduce losses and convert them into profits, especially since the company has sufficient liquidity to enable it to meet its obligations when due, in addition to plans to liquidate a number of subsidiaries and new investments and expand its business to generate cash flows to continue its operations. The company indicates that the procedures and instructions for companies whose shares are listed on the market and whose accumulated losses amount to 20% or more of their capital will be applied. |