April 1, 2025
- Decline in branch sales.
- Reduction in revenues from contracts and franchises.
- Decrease in overall sales.
- Lower revenues from contracts and franchises.
- Increase in selling and marketing expenses.
- Impairment expense on the right-of-use assets.
- Impairment expense on land.
- Foreign currency valuation impact.
- Losses due to impairment in investment in the associate.
We draw attention to Note No. (32) in the consolidated financial statements, which states that as of December 31, 2024, the Group’s accumulated losses amounted to SAR 77,386,141, representing 48.9% of share capital (**2023: SAR 4,377,410, representing 2.8%**). Additionally, the Group’s current liabilities exceeded current assets, leading to a working capital deficit of SAR 35,233,245 (**2023: SAR 10,226,953**).
However, the Group primarily relies on executing its business plans to generate sufficient cash flows and continue operations without significant shortfalls. The Group’s management believes that the consolidated financial statements have been prepared on a going concern basis.
These factors, along with others mentioned in Note No. (32), may indicate significant uncertainty regarding the Group’s ability to continue as a going concern. Our opinion remains unchanged.
- Certain comparative figures (items in current assets, prepayments, other receivables, cash equivalents, and current liabilities) have been reclassified in the consolidated financial position for the period ending December 31, 2023, to align with the 2024 financial statements without affecting total assets or liabilities.
- Some comparative figures in the cash flow statement have been reclassified, impacting net cash generated from operating activities and cash equivalents at year-end (SAR 108,724).
Key Financial Results:
- Sales for 2024: SAR 155,367,760, compared to SAR 177,373,734 in 2023 (**12.41% decrease**).
- Gross Profit for 2024: SAR 1,217,411, compared to SAR 9,655,452 in 2023 (**87.39% decrease**).
- Operating Loss for 2024: SAR -67,170,616, compared to SAR -23,497,442 in 2023 (**185.86% increase**).
- Net Loss (after zakat and tax) for 2024: SAR -73,105,420, compared to SAR -30,889,166 in 2023 (**136.67% increase**).
- Total Comprehensive Loss for 2024: SAR -73,079,688, compared to SAR -30,936,002 in 2023 (**136.23% increase**).
- Loss per share for 2024: SAR -4.62, compared to SAR -1.95 in 2023.
- Total shareholders' equity (after excluding minority rights) for 2024: SAR 80,978,257, compared to SAR 154,057,945 in 2023 (**47.44% decrease**).
Accumulated Losses:
- The accumulated losses at the end of 2024 stood at SAR -77,386,141, equating to 48.95% of the capital.
Reasons for the Losses:
- Decline in sales.
- Lower revenues from contracts and franchises.
- Increase in selling and marketing expenses.
- Impairment expense on the right-of-use assets.
- Impairment expense on land.
- Impact from foreign currency valuation.
- Losses due to impairment in investment in the associate.
- The company's share of the associate's losses.