Interim financial information 30 September 2010

Interim financial information





Hotel, property and tourism development and investment
Commercial registration 1977
Board of Directors :

Qassim Mohamed Fakhroo (Chairman)
Thabia Abdulla Jasim Abdulla Al-Mannai (Vice Chairman) *
Adel Hussain Al-Maskati
Jalal Mohammed Yousuf Jalal
Othman Mohamed Sharif Al-Rayes *
Anwar Abdulla Ghuloom *
Hala Ali Yateem
Waleed Ahmed Al Khaja *
Chief Executive Officer : Abdulnabi Daylami
Offices :

Crowne Plaza, PO Box 5831, Diplomatic Area
Manama, Kingdom of Bahrain
Telephone: 17530530/17531122, Telefax: 17530867
E-Mail: bahtours@batelco.com.bh
Bankers : Ahli United Bank BSC
National Bank of Bahrain BSC
Bank of Bahrain and Kuwait BSC
Auditors : KPMG
     
    * Representatives of Social Insurance Organization







Independent auditors’ report on review of Interim Financial Information

To 10 November 2010
The Board of Directors
Bahrain Tourism Company BSC

Introduction
We have reviewed the accompanying condensed statement of financial position of Bahrain Tourism Company BSC (the “Company”) as at 30 September 2010, and the related condensed statements of comprehensive income, changes in equity and cash flows for the nine-month period then ended (interim financial information). The Board of Directors of the Company is responsible for the preparation and presentation of this interim financial information in accordance with International Financial Reporting Standard IAS 34 - Interim Financial Reporting. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting.


CONDENSED STATEMENT OF FINANCIAL POSITION
as at 30 September 2010
     

 

30 September
2010 (reviewed)

31 December 2009
(audited)

CURRENT ASSETS

 

 

Cash and bank balances

1,250,725

989,622

Short-term bank deposits

7,957,923

7,797,025

Trade receivables

532,620

676,151

Inventory

64,453

72,936

Prepayments and other receivables

361,258

317,259

Total current assets

10,166,979

9,852,993
NON-CURRENT ASSETS

Available-for-sale investments

3,547,307

3,685,101

Investment in associate company

3,851,295

3,497,614

Investment property

1,210,479

1,249,062

Property and equipment

12,408,383

11,667,737

Total non-current assets

21,017,464

20,099,514

TOTAL ASSETS

31,184,443

29,952,507
CURRENT LIABILITIES

Trade payables

504,696

430,325

Accrued expenses and other payables

785,101

901,317

Dividends payable

286,261

255,024

Total current liabilities

1,576,058

1,586,666
NON-CURRENT LIABILITIES

Provision for employees’ leaving indemnity

287,317

267,330

TOTAL LIABILITIES

1,863,375

1,853,996

TOTAL NET ASSETS

29,321,068

28,098,511

TOTAL NET ASSETS

29,321,068

28,098,511
EQUITY

Share capital

7,200,000

7,200,000

Treasury shares

(972,295)

(972,295)

Statutory reserve

3,600,000

3,600,000

Capital and development reserves

5,371,637

5,371,637

Investments fair value reserve

2,245,531

2,405,859

Retained earnings

11,876,195

10,493,310

 

 

 

TOTAL EQUITY

29,321,068

28,098,511


Qassim Mohamed Fakhroo
Chairman
Thabia Abdulla Jasim Abdulla Al-Mannai 
  Vice Chairman
Abdulnabi Daylami
Chief Executive Officer

The Board of Directors approved the interim financial information consisting of pages 2 to 9 on 10 November 2010.

CONDENSED STATEMENT OF COMPREHENSIVE INCOME
for the nine months ended 30 September 2010
         
     
Bahraini dinars
 

Three months ended 30 September

Three months ended 30 September

Nine months ended 30 September

Nine months ended 30 September
 

2010

2009

2010

2009
   

(Reviewed)

(Reviewed)

(Reviewed)

(Reviewed)

HOTEL OPERATIONS

        

Revenue

1,442,298

1,293,397

6,196,357

5,769,688

Operating costs

(1,094,217)

(989,822)

(3,782,699)

(3,409,040)

PROFIT BEFORE DEPRECIATION

348,081

303,575

2,413,658

2,360,648

Depreciation of hotel and conference center

(288,354)

(287,885)

(784,881)

(867,514)

Profit from hotel operations

59,727

15,690

1,628,777

1,493,134
INVESTMENT ACTIVITIES

Dividend income

96,428

88,291

256,557

251,893

Provision for impairment on available for sale investments

(2,320)

(1,074)

(22,146)

(124,066)

Share of profit of associate

252,367

250,773

845,028

539,328

Property income

79,473

84,681

241,576

227,714

Depreciation of investment property

(12,861)

(12,603)

(38,583)

(37,737)

Other income

11,053

7,951

28,384

20,099

Foreign exchange gain / (loss)

5,778

(4,306)

(3,149)

11,000

Interest on short-term deposits

59,883

37,208

178,379

130,555

Profit from investment activities

489,801

450,921

1,486,046

1,018,786

TOTAL INCOME

549,528

466,611

3,114,823

2,511,920

General and administrative expenses

(83,513)

(67,738)

(339,485)

(294,379)

PROFIT FOR THE PERIOD

466,015

398,873

2,775,338

2,217,541
Other comprehensive income

Fair value reserve (Available for sale investments):

        

   Net change in fair value

20,424

24,492

(171,129)

(618,358)

   Transfer to income statement

2,320

1,074

22,146

124,066

Share in fair value reserve of associate

11,631

38,969

(11,345)

221,001

Total other comprehensive income for the period

34,375

64,535

(160,328)

(273,291)
Total comprehensive income for the period 500,390 463,408 2,615,010 1,944,250

Earnings per share of 100 fils for the period

7.1 fils

6.1 fils

42.3 fils

33.6 fils


CONDENSED STATEMENT OF CHANGES IN EQUITY
for the nine months ended 30 September 2010
Bahraini dinars

2010

(reviewed)

Share capital

Treasury shares

Statutory reserve

Capital and development  reserves

Fair value reserve

Retained earnings

Total

At 1 January

7,200,000

(972,295)

3,600,000

5,371,637

2,405,859

10,493,310

28,098,511

Profit for the period

-

-

-

-

-

2,775,338

2,775,338

Other comprehensive income

Fair value reserve (Available for sale investments):

 

 

 

 

 

 

 

  Net change in fair value

-

-

-

-

(171,129)

-

(171,129)

  Net amount transferred to income statement

-

-

-

-

22,146

-

22,146

Share in fair value reserve of associate

-

-

-

-

(11,345)

-

(11,345)

Total other comprehensive income for the period

-

-

-

-

(160,328)

-

(160,328)

Total comprehensive income for the PERIOD

 

-

 

-

 

-

 

-

(160,328)

2,775,338

2,615,010

Dividend declared (2009)

-

-

-

-

-

(1,313,453)

(1,313,453)

Charity donations approved (2009)

-

-

-

-

-

(15,000)

(15,000)

Directors' remuneration declared (2009)

-

-

-

-

-

(64,000)

(64,000)

At 30 September

7,200,000

(972,295)

3,600,000

5,371,637

2,245,531

11,876,195

29,321,068

The interim financial information consists of pages 2 to 9.

 

CONDENSED STATEMENT OF CHANGES IN EQUITY
for the nine months ended 30 September 2010
Bahraini dinars

2009

(reviewed)

Share capital

Treasury shares

Statutory reserve

Capital and development  reserves

Fair value reserve

Retained earnings

Total

At 1 January

7,200,000

(844,008)

3,241,705

5,729,932

2,374,822

8,733,986

26,436,437

Profit for the period

-

-

-

-

-

2,217,541

2,217,541
Other comprehensive income

Fair value reserve (Available for sale investments):

 

 

 

 

 

 

 

  Net change in fair value

-

-

-

-

(618,358)

-

(618,358)

  Net amount transferred to income statement

-

-

-

-

124,066

-

124,066

Transfer to income statement from fair value reserve of associate

-

-

-

-

221,001

-

221,001

Total other comprehensive income for the period

 

-

-

-

-

(273,291)

-

(273,291)

Total comprehensive income for the PERIOD

-

-

-

-

(273,291)

2,217,541

1,944,250

Purchase of treasury shares

-

(112,586)

-

-

-

-

(112,586)

Dividend declared (2008)

-

-

-

-

-

(1,321,319)

(1,321,319)

Charity donations approved (2008)

-

-

-

-

-

(15,000)

(15,000)

Directors' remuneration declared (2008)

-

-

-

-

-

(64,000)

(64,000)

Transfer to statutory reserve

-

-

358,295

(358,295)

-

-

-

At 30 September

7,200,000

(956,594)

3,600,000

5,371,637

2,101,531

9,551,208

26,867,782

CONDENSED STATEMENT OF CASH FLOWS
for the nine months ended 30 September 2010
     
 
Bahraini dinars

 

30 September
2010

30 September
2009

 

(reviewed)

(reviewed)
OPERATING ACTIVITIES

Cash received from customers

6,361,803

6,155,615

Rent received

208,004

223,859

Payment to suppliers

(1,162,692)

(1,266,178)

Staff salaries and related costs

(1,168,343)

(1,037,134)

Payments for overhead expenses

(1,809,080)

(1,693,566)

Cash flows from hotel operations

2,429,692

2,382,596
INVESTING ACTIVITIES

Interest received

165,912

130,555

Dividend received

736,557

551,893

Capital expenditure on hotel and conference center

(1,547,927)

(677,502)

Purchase of available-for-sale investments

(52,540)

-

Proceeds from sale / redemption of available-for-sale investments

18,153

-

Other receipts

28,383

20,099

Cash flows from investing activities

(651,462)

25,045
FINANCING ACTIVITIES

Dividends paid

(1,282,229)

(1,309,327)

Directors’ remuneration paid

(64,000)

(64,000)

Charity paid

(10,000)

(35,000)

Purchase of treasury shares

-

(112,586)

Cash flows from financing activities

(1,356,229)

(1,520,913)

Net increase in cash and cash equivalents

422,001

886,728

CASH AND CASH EQUIVALENTS AT 1 JANUARY

8,786,647

7,341,805

CASH AND CASH EQUIVALENTS AT 30 September

9,208,648

8,228,533

CASH AND CASH EQUIVALENTS per statement of financial position:

 

 

Cash and bank balances

1,250,725

880,217

Short-term bank deposits

7,957,923

7,348,316

 

 

 

 

9,208,648

8,228,533

The interim financial information consists of pages 2 to 9.

 

NOTES

to the 30 September 2010 Interim Financial Information

Bahraini dinars
  1. The interim financial information has been prepared in accordance with International Financial Reporting Standard IAS 34 - Interim Financial Reporting, which permits the interim financial information to be in summarized form.
  2. The interim financial information has been prepared using the same accounting policies and methods of computation applied in the preparation of the latest audited financial statements of the Company for the year ended 31 December 2009. The interim financial information does not include all of the information required for full annual financial statements and should be read in conjunction with the audited financial statements of the Company for the year ended 31 December 2009.
  3. The corresponding figures for the condensed statement of financial position have been extracted from the audited financial statements for the year ended 31 December 2009. The corresponding figures for the condensed statements of comprehensive income, changes in equity and cash flows have been extracted from the reviewed financial information for the period ended 30 September 2009.
  4. The interim financial information is unaudited but has been reviewed by KPMG and their review report is set out on page 1.
  5. The interim financial results may not represent a proportionate share of the annual profits, due to the seasonal variability in room occupancy and ticket sales.
  6. The Shareholders approved the following appropriations in their Annual General Meeting held on 30 March 2010:

     

    2010

    2009

    Transfer to statutory reserve from Capital and Development reserve
    Dividends

    -
    1,313,453

    358,295
    1,321,319

    Directors remuneration

    64,000

    64,000

    Charity donations

    15,000

    15,000
  7. Segmental information for operating segments:

    8.  

    Hotel Operations

    Investments

    Unallocated

    Total

     

    2010

    2009

    2010

    2009

    2010

    2009

    2010

    2009

    Revenue from external customers

    6,196,357

    5,769,688

    511,527

    503,535

    28,384

    20,099

    6,736,268

    6,293,322

    Income from Associate

    -

    -  

    845,028

    539,328

    -

    -

    845,028

    539,328

    Interest income

    -

    -

    -

    -

    178,379

    130,555

    178,379

    130,555

    Total segment revenue

    6,196,357

    5,769,688

    1,356,555

    1,042,863

    206,763

    150,654

    7,759,675

    6,963,205

     

     

     

     

     

     

     

     

     

    Operating costs

    (3,782,699)

    (3,409,040)

    (16,544)

    (12,928)

    (339,484)

    (294,379)

    (4,138,727)

    (3,716,347)

    Depreciation

    (784,881)

    (867,514)

    (38,583)

    (37,737)

    -

    -

    (823,464)

    (905,251)

    Impairment of assets

    -

    -

    (22,146)

    (124,066)

    -

    -

    (22,146)

    (124,066)

    Total segment costs

    (4,567,580)

    (4,276,554)

    (77,273)

    (174,731)

    (339,484)

    (294,379)

    (4,984,337)

    (4,745,664)

    Segment profit/(loss)

    1,628,777

    1,493,134

    1,279,282

    868,132

    (132,721)

    (143,725)

    2,775,338

    2,217,541

     

     

     

     

     

     

     

     

     

    Segment assets

    13,174,565

    12,414,049

    9,934,811

    9,690,298

    8,075,067

    7,848,160

    31,184,443

    29,952,507

     

     

     

     

     

     

     

     

     

    Segment liabilities

    (1,175,197)

    (1,281,113)

    (688,178)

    (572,883)

    -

    -

    (1,863,375)

    (1,853,996)

     

     

     

     

     

     

     

     

     

    Capital expenditure

    (1,676,625)

    (527,332)

    -

    -

    -

    (2,450)

    (1,676,625)

    (529,782)

    The comparative figures of segmental revenues, costs and profit are presented for the period ended 30 September 2009, and the comparative figures of segmental assets and liabilities are presented as at 31 December 2009.

  8. Related party transactions
    Transactions with key management personnel
    Key management personnel of the Company comprises of the Board of Directors, the Chief Executive Officer and key members of management having authority and responsibility for planning, directing and controlling the activities of the Company. The key management personnel compensation is as follows:

     

    30 September
    2010
    (reviewed)

    30 September
    2009
    (reviewed)

    Compensation

     

     

    Directors’ remuneration

    112,000

    64,000

    Salary and other allowances to key management personnel

    209,195

    220,007

    Total compensation

    321,195

    284,007

    Entities in which directors are interested
    Transactions with entities controlled by directors, or over which they exert significant influence, are conducted on a normal commercial basis. There were capital expenditure payments made to director-controlled entities where the directors were interested. Transactions and balances with them are as follows:

     

    30 September
    2010
    (reviewed)

    30 September
    2009
    (reviewed)

    Payable to director- controlled entities

    -

    6,050

    Rental income from associate

    58,500

    26,000

    Directors’ interest in the shares of the Company was as follows:

     

    30 September
    2010
    (reviewed)

    30 September
    2009
    (reviewed)

    Total number of shares held by Directors

    876,169

    876,169

    As a percentage of the total number of shares outstanding

    1.33%

    1.33%


  9. Commitments and contingent liabilities

     

    30 September
    2010
    (reviewed)

    30 September
    2009
    (reviewed)

    Letter of guarantees

    207,588

    213,000

    The Company is in the process of construction of the new car park building, the total estimated cost for which is BD 5,077,000. Total cost incurred by the Company on the project till 30 September 2010 is BD 1,496,441 (30 September 2009: Nil)

 

 
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