Riyadh - Mubasher: Tihama Advertising, PR, and Marketing Holding Co. announced that its accumulated losses reached SAR 82.4 million, representing 54.9% of its capital, according to a statement to the Saudi Stock Exchange (Tadawul) on Monday.
The reasons for this were incurring consecutive losses which included the significant delays in starting some major projects, and the company's decision in July 2014, to stop marketing and sales on one advertising contract, leading to the company incurring rental costs worth SAR 8 million without any revenue to offset the cost.
Among other reasons, was the delay in addressing the operating loss in the bookstores sector, with losses totalling nearly SAR 32 million, added to the impact of the loss of a lawsuit filed against the General Authority for King Fahd Causeway, which forced the company to repay SAR 13.9 million to the authority.
The total cost of these items amounted to SAR 125.5 million.
Tihama stated that losses were incurred in the previous board’s term which ended on 26 September 2015.
The company said that the current board is in the process of applying to the judicial authorities and the supervisory bodies to take all statutory and legal actions in order to preserve the rights of the company and its shareholders.
