Osool and Bakheet Investment Co. releases its annual financial results for the year ending December 31, 2024.

April 1, 2025 - The company reported a 29% decrease in revenue from operations, totaling SAR 42.996 million in 2024, compared to SAR 60.377 million in 2023, a decline of SAR 17.381 million. This reduction was primarily due to a SAR 22.895 million decrease in the fair value of investments measured at fair value through profit or loss, partly offset by a SAR 5.514 million increase in income from the company's investment services.

The company also recorded a 22% decline in net profit, amounting to SAR 19.853 million in 2024, compared to SAR 25.497 million in 2023, a decrease of SAR 5.643 million. This decline was driven by the following factors:

- Decrease in total revenues: Total revenues fell by 24%, amounting to SAR 47.230 million in 2024, compared to SAR 62.060 million in 2023, a decrease of SAR 14.830 million.

- Reduction in expenses: Total expenses decreased by 31%, amounting to SAR 23.142 million in 2024, compared to SAR 33.326 million in 2023, a decrease of SAR 10.183 million.

- Decrease in financing costs: Financing costs were reduced by 55%, totaling SAR 359K in 2024, compared to SAR 790K in 2023, a reduction of SAR 431K.

- Increase in other income: Other income grew by 152%, reaching SAR 4.234 million in 2024, compared to SAR 1.683 million in 2023, an increase of SAR 2.550 million.

- Increase in zakat expenses: Zakat expenses increased by 58%, amounting to SAR 3.876 million in 2024, compared to SAR 2.447 million in 2023, an increase of SAR 1.429 million.

The statement of financial position includes an investment in Creative Future Digital Brokerage Company, valued at SAR 66 million as of December 31, 2024, measured at fair value through profit or loss. The fair value was determined by management with the help of an external expert, recognizing unrealized gains of SAR 8.7 million for the year. However, due to insufficient audit evidence regarding the assumptions used by management to determine the fair value, the accuracy and reasonableness of the valuation could not be confirmed, leaving potential adjustments undetermined.

Some comparative year figures have been reclassified to align with the current year's presentation.

The company appointed a new external expert (independent valuer accredited by Taqeem) to replace the previous valuer. According to the new valuation report, the total fair value of Creative Future Digital Brokerage Company was SAR 110.6 million, with the company's share valued at SAR 65.98 million, or 59.66% of the total value. In November 2024, the company sold 65,925 shares of its stake (representing 6.59% of its total holdings) to four investors at SAR 135 per share, reducing its ownership to 59.66% (596,575 shares). The implied fair value of the investment after this transaction was SAR 135 million, with the company’s share valued at SAR 80.54 million.

It is important to note that the external expert did not base the valuation on the transaction price, but instead used the discounted cash flow (DCF) methodology, resulting in the lower fair value being recognized in the financial statements. The company provided all available supporting data and information to the expert and external auditor as requested.