Saudi Research & Marketing Group (SRMG)’s net profits rose by 40 percent to SR366 million ($97.73m) in 2007.

The sale of 30 percent shares of Saudi Printing & Packaging Company (SPPC) in an initial public offering last year contributed to increasing the group’s net profits, the company said in a statement.

“This resulted in increasing the profitability of SRMG shares by 40 percent, reaching SR4.58 per share against SR3.27 last year,” it added.

The group’s board of directors decided to distribute SR240 million or SR3 per share in dividends to its shareholders registered with the stock deposit center on the day when its general assembly was held. The decision to distribute dividends reflects the group’s strong financial position.

The board meeting said the company would take measures to increase returns for its shareholders. It also disclosed its intent to distribute dividends every year and carry out new investment projects in publishing, printing and other areas.

“The SPPC IPO affirmed the group’s success in printing activities and strengthened its financial position,” the statement said, adding that it also enabled the group to seek viable investment opportunities for the benefit of shareholders.

SRMG achieved a net operating profit (revenue from main operations) of SR230 million in the past year, compared to SR254 million in 2006, a difference of 9.5 per cent.

The statement attributed the difference in profits to exceptional contracts received by the group in 2006 and expansion in its investment projects in 2007.

“The new investments will diversify the group’s revenue in the coming years,” the statement said.

The new investments were mainly in the development of photography and television studios, roadside advertising, new publications, specialized publishing, electronic publishing industry and making use of the group’s editorial resources.

The 2007 results reflected not only the group’s strong financial position, but also its liquidity and improvement in profitability indicators and financial performance.

“This will enhance the group’s capability in distributing dividends to its shareholders and realise their hopes and aspirations as a pioneering media group at national and Arab levels,” the statement said. – TradeArabia News Service