| Osool and Bakheet Investment Co. announces its Annual Financial results for t …31-03-2025 |
| Osool and Bakheet Investment Co. announces its Annual Financial results for the period ending on 31-12-2024 Element List Current Year Previous Year %Change Sales/Revenue 42,996,381 60,377,685 -29% Gross Profit (Loss) 19,853,994 27,051,407 -27% Operational Profit (Loss) 23,729,631 27,944,577 -15% Net profit (Loss) 19,853,525 25,497,112 -22% Total Comprehensive Income 20,074,282 24,909,467 -19% Total Shareholders Equity (after Deducting Minority Equity) 220,180,001 200,105,719 10% Profit (Loss) per Share 2.65 4.1 -35% All figures are in (Actual) Saudi Arabia, Riyals Element List Amount Percentage Of The Capital (%) Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value – – All figures are in (Actual) Saudi Arabia, Riyals The company reported a decline of 29% in revenue from operations, reaching SAR 42.996 million in 2024, compared to SAR 60.377 million in 2023, representing a decrease of SAR 17.381 million. This decline was mainly driven by a reduction in the fair value of investments measured at fair value through profit or loss by SAR 22.895 million. Additionally, the decrease was partially offset by the increase in income generated from the company’s investment services activities, amounting to SAR 5.514 million. During the year 2024, the Company recorded a decrease of 22% in net profit, reaching SAR 19.853 million compared to SAR 25.497 million in 2023, representing a decline of SAR 5.643 million. This decline in net profit was mainly driven by the following factors: Decrease in total revenues: Total revenues declined by 24% year-on-year, amounting to SAR 47.230 million in 2024, compared to SAR 62.060 million in 2023, representing a decrease of SAR 14.830 million. Reduction in expenses: Total expenses decreased by 31% compared to the previous year, amounting to SAR 23.142 million in 2024, versus SAR 33.326 million in 2023, reflecting a decrease of SAR 10.183 million. Decrease in financing costs: Financing costs decreased significantly by 55%, amounting to SAR 359 K in 2024, compared to SAR 790 K in 2023, representing a reduction of SAR 431 K. Increase in other income: Other income grew by 152%, reaching SAR 4.234 million in 2024, compared to SAR 1.683 million in 2023, marking an increase of SAR 2.550 million. Increase in zakat expenses: Zakat rose by 58%, amounting to SAR 3.876 million in 2024, compared to SAR 2.447 million in 2023, representing an increase of SAR 1.429 million Qualified Opinion The statement of financial position includes an investment in Creative Future Digital Brokerage Company amounting to SAR 66 million as of December 31, 2024, measured at fair value through profit or loss. The fair value of this investment was determined by the Company’s management with the assistance of an external expert, resulting in the recognition of unrealized gains from fair value measurement amounting to SAR 8.7 million for the year ended December 31, 2024. However, we were unable to obtain sufficient and appropriate audit evidence regarding the accuracy and reasonableness of the assumptions used by management to determine the fair value. Furthermore, the external expert engaged did not provide evidence to support the accuracy and reasonableness of these assumptions. Accordingly, we were unable to determine whether any adjustments were required to the carrying amount of this investment as of December 31, 2024, and the corresponding impact on the unrealized gains or losses for the year then ended. Some of the comparative year figures have been reclassified to conform to the current year’s classification in the financial statements. The company has appointed a new external expert (independent valuer accredited from Taqeem), succeeding the previous valuer. According to the valuation report issued by the new external expert, the total fair value of “Creative Future Digital Brokerage Company” (subject to the aforementioned qualification) amounted to SAR 110,602,637. The company’s share, according to the valuer’s report, was valued at SAR 65,982,768, representing 59.66% of the total value of the company. Additionally, in November 2024, the company sold 65,925 shares of its stake in “Creative Future Digital Brokerage Company” (subject to the aforementioned qualification), representing 6.59% of its total shareholding, to four investors at a price of SAR 135 per share. Following this transaction, the company’s ownership percentage decreased to 59.66%, representing 596,575 shares in “Creative Future Digital Brokerage Company”. The implied fair value of the investment after the transaction amounted to SAR 135,000,000 with the company’s share valued at SAR 80,537,625. It is worth noting that the external expert did not rely on the transaction price as the basis for the valuation. Instead, the discounted cash flow (DCF) methodology was used to determine the fair value of the investment, which was recognized as the fair value in the preparation of the financial statements (being the lower value). The company also provided the external expert and the external auditor with all available information and data (supporting the reasonableness and appropriateness of the assumptions) as requested by them. |
