⚡ Flash Summary

LSE Financial Services Limited (LSEFSL) reported its financial results for the year ended June 30, 2025. The company’s revenue decreased to PKR 30.79 million from PKR 39.35 million in the prior year. The company reported a profit after income tax of PKR 18.19 million, significantly lower than the PKR 61.27 million reported in the previous year. The Board has announced an Entitlement Date for the distribution of shares and a book closure period in connection with a Scheme of Arrangement.

📌 Key Takeaways

• 📉 Revenue decreased to PKR 30.79 million from PKR 39.35 million YoY.
• 📉 Profit after income tax declined to PKR 18.19 million from PKR 61.27 million YoY.
• ⛔ No cash dividend or bonus shares were announced.
• 📅 Entitlement Date for share distribution set for November 5, 2025.
• 🔒 Book closure period from November 6 to November 7, 2025.
• 🗓️ Annual General Meeting scheduled for November 27, 2025.
• 🚫 Close period for AGM: November 21 to November 27, 2025.
• 💻 Annual Report to be available on the company website.
• 💰 Cash used in operating activities: PKR (47.136) million (2025) vs PKR (12.994) million (2024).
• 🌱 EPS decreased to PKR 0.51 from PKR 1.72 YoY.
• 🏦 Cash and cash equivalents decreased to PKR 10.03 million from PKR 23.44 million YoY.

🎯 Investment Thesis

Based on the declining revenue, reduced profitability, and decreased EPS, a SELL recommendation is warranted. The company’s performance is concerning, and investors should consider divesting. Given the downward trends, a price target of PKR 10 per share is set (based on market multiples for distressed financial companies), with a short-term horizon (6-12 months) to account for potential further declines.