Net Profit amounted to SR 4 million in FY24, improving sharply from a net loss of SR 23 million, as the positive impact of the First Fix acquisition flowed through for the full year in FY 24 compared to only the last quarter in FY 23, in addition to the improvement in revenues and operating performance.

Further, the results of the current year were negatively impacted due to the amortization charge for the intangible assets recognized on acquisition of 51% of First Fix. Such amortization was charged for the full year in FY24 in comparison to only the last quarter in 23. For further details on the acquisition accounting and recognition of the intangible assets please refer to the detailed description provided in the notes to the financial statements.

As stated in Note 2.1, these events or conditions, along with other matters as set forth in Note 2.1, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

• Revenue from general construction amounted to SAR 2,626 million in FY24, as compared SAR 869 million in FY23 as First Fix was acquired and consolidated in only the last quarter of FY23.

• Revenue from sale of buildings amounted to SAR 229 million in FY24, as compared to SAR 240 million in FY23.

• Rental revenue from investment properties amounted to SAR 130 million, as compared to SAR 151 million in FY23.

- Gross profit amounted to SAR 347 million, compared to a gross profit of SAR 110 million in FY23, owing to consolidation of First Fix and wide-ranging cost efficiency measures adopted by the Group. This translates to a Gross margin of 11.6% in FY24 as compared to 7.9% in FY23.

- Operating profit increased to SAR 70.1 million in FY24, compared to an operating profit of SAR 4 million in FY23, which is aligned to the solid growth in revenues and improvement in operational efficiencies. This growth is achieved despite the steep increase in SG&A expenses of 168% in FY24. The increase in SG&A expenses is mainly due to the consolidation of First Fix results for the full year in FY24, retrospective charge on the intangible assets recognized on the acquisition of First Fix and an increase in the provision for expected credit losses under IFRS 9.

- The Group has completed the “Purchase Price Allocation” PPA exercise for the acquisition of First Fix during the Q3’24. The acquisition was completed on 1 October 2023, the “transaction date”. As per IFRS 3- Business combinations, such acquisition requires a PPA to be undertaken, for measuring and accounting for the acquisition transaction. The accounting standard requires the acquirer “RSI” to measure the identifiable assets acquired and the liabilities assumed at their acquisition-date fair values.

The standard further states that if the measurement is not completed before the reporting period, the acquisition to be recorded at provisional values and complete the measurement within one year from the date of acquisition.

Based on the guidance of the accounting standard, RSI has accounted for the acquisition at provisional values in the consolidated financial statements for the year ended 31 December 2023 and has completed the PPA exercise with the support of a third-party expert within the measurement period of one year allowed by the standard and reflected the changes retrospectively in the results for FY24.

*For information about the Purchase price allocation exercise, please refer to Notes 15 and 38 of the Consolidated Financial Statements for the year ended 31 December 2024.

- Earnings/(Loss) Per Share: Calculated by dividing the loss attributable to equity holders of the Parent Company by the number of shares of the Company.

- Total Accumulated Losses: This amounted to SAR 283.3 million, equivalent to 93.7% of its share capital as of 31 December 2024. The Company confirms its adherence to the procedures and instructions issued by the Capital Market Authority for listed companies in the Saudi stock market with accumulated losses of 50% or more of their capital.

- The figures presented in this announcement under the section of “Prior Year” are different than the previous announcement when announcing the results for the year ended 31 December 2023. This is due to the reclassification and restatement of prior year financial statements.

- The following were the figures for the comparative period as per the old announcement:

Gross profit (loss): SAR 114.29 million,

Operational profit (loss): -SAR 36.33 million

Net profit (loss): SAR 2.14 million

Total Comprehensive Income: SAR 2.17 million

Total Share Holders Equity (After Deducting the Minority Equity): SAR 83.72 million

Profit (Loss) per Share: SAR -1.16

The link for the previous announcement:

https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=79032&anCat=1&cs=4230&locale=en