Mufeed Co. Announces Its Interim Financial Results For The Period Ending On 2026-06-30( Six Months )
| Element List | Current Period | Similar period for previous year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 26,569 | 78,080 | -65.972 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -27,311 | 16,321 | - | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 127,894 | 155,206 | -17.597 | ||
| Profit (Loss) per Share | -4.14 | 2.47 | |||
| All figures are in (Thousands) 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 (Thousands) Saudi Arabia, Riyals | |||
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is: Revenue for the six-month period ended 30 June 2026 decreased by SAR 51,511,835, or 66.0%, to SAR 26,568,570, compared with SAR 78,080,405 for the corresponding period of the prior year.
This decrease is principally attributable to the nature and cyclicality of project work for events and exhibitions, and to the lower volume of tenders issued and projects awarded during the period. It arose primarily from the event management activity, which declined by SAR 39,135,644, and the production and manufacturing contracting activity, which declined by SAR 9,811,910, in addition to a decline of SAR 2,564,281 across the remaining activities.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is: The Company recorded a net loss of SAR 27,311,454 for the six-month period ended 30 June 2026, compared with a net profit of SAR 16,321,108 for the same period of 2025, a decrease of SAR 43,632,562.
The change is mainly attributable to:
(i) the decrease in revenue of SAR 51,511,835, which was only partly offset by a decrease in cost of revenues of SAR 19,149,255, resulting in a gross loss of SAR 737,402 against a gross profit of SAR 31,625,178, as a significant portion of operating costs is fixed in nature.
(ii) the recognition of SAR 14,197,783 of direct costs incurred on uncertified works under the disputed Aseer project within "Other expenses", as management concluded that sufficient evidence was not available to recognise these costs as an asset (Note 22).
(iii) an increase in finance cost of SAR 565,809.
(iv)an increase in zakat expense of SAR 527,776
These were partly offset by a decrease in general and administrative expenses of SAR 1,150,424, a reversal of impairment loss on accounts receivable of SAR 258,545 compared with a charge of SAR 1,742,414 in the prior period, and an increase in other income of SAR 870,003 arising from income earned on Murabaha deposits.
Statement of the type of external auditor's report: Notice
Reclassification of Comparison Items: NA
Additional Information: •During the period ended 30 June 2026, the Company filed lawsuits before the Administrative Court against a governmental entity, seeking the annulment of that entity's decisions to deduct a percentage of the Company's entitlements in respect of completed works. These lawsuits remain pending before the Administrative Court, and no judgment had been rendered in respect of them as at the date of issuance of the financial statements. These lawsuits and the uncertainty surrounding them had an adverse effect on the Company's performance during the first half of 2026, as the Company incurred costs relating to the works in dispute which were recognized as expenses during the period, while the corresponding revenue in respect of those works was not recognized during the period as a result of the continuing uncertainty, resulting in an increase in other expenses to SAR 14,197,783. For further details, please refer to the Emphasis of Matter paragraph included in the independent auditor's report and to Notes (22) and (23) to the financial statements for the six-month period ended 30 June 2026.
• The Company confirms that it monitors developments in these lawsuits on an ongoing basis in coordination with its legal counsel and periodically assesses its legal position. Should the uncertainty surrounding the matter be resolved, whether through a judgment issued in the Company's favour or the approval by the disputing entity of the works performed, the recognition of the related revenue will be assessed in accordance with the applicable accounting standards.
• We wish to clarify that, notwithstanding the losses recorded for the period ended 30 June 2026, the Company generated net cash flows available from operating activities, together with a strong liquidity position supported by balances of cash and cash equivalents and trade receivable balances expected to be collected during the coming period.
• The Company continues to implement its strategic plans aimed at supporting growth and enhancing operational efficiency, with a focus on improving the efficiency of operating and administrative cost management. The Company is also working to diversify its business model and its revenue sources over the medium and long term, thereby strengthening its ability to achieve sustainable growth and supporting its financial and competitive position.