The annual financial statements of Ataa Educational Company, listed on the Saudi market (Tadawul), showed a decline in the company's profits by 51.1% in the fiscal year ending on July 31, 2021.
According to the company's results for the Saudi market, today, Wednesday, the profits for the period amounted to about 37.06 million riyals, compared to the profits of the last fiscal year, which amounted to 69.6 million riyals.
The company said that the decline in profits during the comparison years is due to a 17% decrease in net activity revenues as a result of granting additional discounts due to the suspension of studies and the continuation of distance education due to the global pandemic.< /p>
And it stated that the decline in profits comes despite the decrease in operating costs by 7% compared to the same period last year.
The company indicated that other revenues decreased by 38% due to the cessation of student activities and the non-operating of canteens as a result of school closures, compared to the same period last year.
The company's board of directors recommended the distribution of annual cash dividends of 40 million riyals, distributed over 40 million shares at one riyal per share, equivalent to 10% of the nominal value of the original share. /p>
The board also recommended increasing the company's capital by 10% from 400 million to 440 million riyals, through the distribution of bonus shares. The increase comes in order to support and strengthen the capital base and future activities of the company. .
The company indicated that the increase will take place through the capitalization of an amount of 40 million riyals from the retained earnings account.
