March 30, 2025 - The slight increase in revenues for the current year 2024 compared to the previous year is attributed to:
- 35% increase in revenues from the land transport sector.
- 37% increase in revenues from the smart parking sector.
- 19% increase in real estate investment revenues.
- 6% increase in revenues from maintenance and operations.
However, these gains were offset by:
- 40% decline in revenues from the security guards sector.
- 8% decrease in revenues from the cash solutions sector.
Increase in Net Loss for 2024 Compared to the Previous Year
The rise in net loss is primarily due to:
1. An exceptional impairment provision of SAR 56.7 million recorded for tangible and intangible assets in Smart City Solutions Company (a subsidiary). This follows the cancellation and suspension of smart parking contracts in the Eastern and Qassim regions by the end of February 2025.
2. A 54% increase in financing costs, which totaled SAR 27.9 million in 2024, compared to SAR 18.2 million in the previous year. The increase is attributed to:
- 56% rise in financing costs related to the Obligation under the Service Concession Agreement.
- 153% rise in interest expenses on lease liabilities.
- 4% increase in financing expenses related to bank facilities.
3. The previous year included revenues of SAR 1.8 million from the sale of investment shares.
This impact was partially offset by:
- 7% improvement in gross profit.
- 13% reduction in general and administrative expenses.
- 45% increase in unrealized gains from investments measured at fair value through profit or loss.
Certain prior period figures have been reclassified to align with the current period’s presentation. These reclassifications had no impact on the company’s results or Shareholders’ Equity.
Impact of Contract Termination on Financial Results
As a result of the sudden termination and suspension of investment contracts by:
- Eastern Province Municipality on February 25, 2025.
- Qassim Region Municipality on February 27, 2025.
These contracts, signed with Smart Cities Solutions Company (a subsidiary), covered the development, establishment, and operation of parking facilities in:
- Dammam (contract extended until 2045).
- Khobar and Dhahran (contract extended until 2044).
- Buraidah (contract extended until 2047).
The subsidiary assessed its tangible and intangible assets related to these contracts in accordance with international accounting standards. Given the potential decline in future economic benefits, a comprehensive review was conducted as of December 31, 2024.
Accordingly, an impairment provision of SAR 56.7 million was recorded, impacting the company’s financial results. The company remains committed to enhancing financial and operational performance and will take all necessary measures to ensure continued growth and stability.
Share Calculation and Financial Report
The basic and diluted earnings per share for the current and previous year were calculated by dividing net profit or loss after zakat attributable to shareholders by the weighted average number of ordinary shares outstanding. The weighted average shares were:
- 600,000,000 shares in the current year.
- 600,000,000 shares in the previous year.
This follows the Extraordinary General Assembly’s approval on June 21, 2023, to reduce the nominal value per share from SAR 10 to SAR 1. As a result, the total number of company shares increased from 60 million to 600 million.
📢 Shareholders’ Attention: A financial performance report on the company’s performance for the fiscal year 2024 has been attached.