⚡ Flash Summary

Pervez Ahmed Consultancy Services Limited reported a significant increase in profit after taxation for the year ended June 30, 2025, with a profit of PKR 8,084,078 compared to PKR 1,158,555 in the previous year. This substantial improvement is primarily driven by a notable increase in the share of profit from an associate. However, the auditor has expressed an adverse opinion concerning the going concern assumption and pending litigation. Despite these challenges, management is reportedly making efforts to resolve these issues and regularize the company’s operations.

📌 Key Takeaways

• ⬆️ Profit after taxation surged to PKR 8,084,078, a substantial increase from PKR 1,158,555 in 2024.
• 📈 Earning per share (basic and diluted) increased significantly to PKR 0.043 from PKR 0.006.
• 💰 Share of profit of associate contributed significantly, rising to PKR 9,357,485 from PKR 3,149,922.
• 📉 Revenue from contracts with customers slightly decreased to PKR (1,882,362) from PKR (2,069,442).
• ⚠️ Auditor expressed an adverse opinion on the going concern assumption due to pending litigations.
• 💼 Administrative & financial charges increased significantly to PKR 608,955 from PKR 78,075.
• 🏦 Cash Dividend, Bonus Shares and Right Shares were NIL
• 💸 Total Equity decreased to PKR (554,193,440) from PKR (562,277,518).
• 📜 Issued share capital remained constant at PKR 1,865,684,870.
• 🏦 Short-term borrowings remained unchanged at PKR (89,839,551).
• 🤝 Borrowings from related parties (net) resulted in cash inflows of PKR 2,851,401, compared to PKR 1,530,000 in the previous year.
• 💰 Cash and cash equivalents at the end of the year increased to PKR 919,179 from PKR 890,871.
• 🏢 The AGM is scheduled for October 28, 2025.
• 🏢 Accumulated losses decreased to PKR (1,622,169,350) from PKR (1,630,253,428).

🎯 Investment Thesis

Given the auditor’s adverse opinion and negative equity position, a HOLD recommendation is appropriate. While the profit surge is positive, the underlying financial health and operational risks are significant. A price target is not provided due to the company’s financial instability and uncertainties. The time horizon is medium-term, pending resolution of litigation and financial restructuring efforts.