⚡ Flash Summary

Pervez Ahmed Consultancy Services Limited reported a significant turnaround with a profit of Rs. 8.08 million for the year ended June 30, 2025, compared to a profit of Rs. 1.16 million in the previous year, primarily driven by the share of profit from an associate. However, the auditor has issued an adverse opinion regarding the going concern assumption due to accumulated losses of Rs. 1,622.17 million and current liabilities exceeding current assets by Rs. 646.08 million. The company’s operations are also affected by pending litigations and its inactive status on the Pakistan Stock Exchange. Despite these challenges, management is making efforts to resolve these issues and regularize operations, but the company’s future remains highly uncertain.

📌 Key Takeaways

• 📈 Profit surged to Rs. 8.08 million in FY25 from Rs. 1.16 million in FY24, mainly due to associate income.
• ⚠️ Auditor expresses an adverse opinion on the going concern assumption.
• 📉 Accumulated losses remain substantial at Rs. 1,622.17 million.
• 😬 Current liabilities exceed current assets by Rs. 646.08 million, indicating liquidity issues.
• 🏛️ The company faces pending litigations with a banker and a creditor.
• 🚫 No dividend declared due to negative cash flow and accumulated losses.
• 📊 Basic and diluted earnings per share increased to Rs. 0.043 from Rs. 0.006.
• 🛑 The company’s Trading Rights Entitlement Certificate is inactive due to inadequate net capital.
• 📄 Additional Registrar of Companies has filed a petition alleging unlawful conduct and requesting share buybacks.
• 🌍 Pakistan’s economy showed signs of recovery with 2.68% GDP growth in FY25.
• 🗓️ The Twentieth Annual General Meeting will be held on October 28, 2025.
• 🔒 Share transfer books will remain closed from October 24 to October 28, 2025.
• ✨ The Board comprises seven members, with five board meetings held during the year.
• 🌱 The company is committed to fostering an inclusive, equitable, and respectful workplace.
• 💼 The company’s registered office is located at 20-K, Gulberg II, Lahore.

🎯 Investment Thesis

Given the significant financial distress, adverse auditor opinion, and multiple legal challenges, a SELL recommendation is warranted. There is no clear path to sustainable profitability or resolution of legal issues. The company’s ability to continue as a going concern is questionable, and investment carries extremely high risk. Any potential price appreciation would depend on unlikely favorable legal outcomes or a complete restructuring of the company, which is not foreseeable.