⚡ Flash Summary

SG Allied Businesses Limited reported financial results for the year ended June 30, 2025. The company experienced a decrease in revenue but managed to reduce its net loss after taxation compared to the previous year. No cash dividend, bonus shares, or right shares were recommended by the board. The Annual General Meeting will be held on October 28, 2025.

📌 Key Takeaways

• 📉 Revenue increased substantially from PKR 57.2 million to PKR 85.2 million
• ⚠️ Operating loss significantly increased from PKR (99.9) million to PKR (112.7) million.
• 🙁 Net loss after taxation decreased slightly from PKR (16.1) million to PKR (15.2) million.
• ⛔️ No cash dividend was recommended for the year ended June 30, 2025.
• 🏢 Total assets increased marginally from PKR 1,518.5 million to PKR 1,530.7 million.
• 💰 Current assets increased significantly from PKR 42.8 million to PKR 63.9 million, driven by increases in stock in trade and loans/advances.
• liabilities increased from PKR 208.2 million to PKR 218.6 million.
• ✅ Cash outflow from operating activities improved from PKR (15.8) million to PKR (7.7) million.
• ✔️ Cash outflow from investing activities increased from PKR (1.3) million to PKR (6.9) million.
• ⬆️ Cash inflow from financing activities increased significantly from PKR 8.7 million to PKR 14.8 million due to increased loan from directors.
• ⛔️ No bonus shares or right shares were recommended for the year.
• 📅 The Annual General Meeting will be held on October 28, 2025.
• 🏢 Register of Members and Share transfer books will remain closed from October 22, 2025 to October 28, 2025.

🎯 Investment Thesis

HOLD. Given the continued losses and lack of a clear turnaround strategy, a HOLD recommendation is appropriate. The company needs to demonstrate significant improvements in profitability and cash flow before a more positive outlook can be warranted. The lack of dividends and ongoing losses make this a speculative investment. Until there is evidence of sustained profitability and positive cash flow, a HOLD rating is justified. Further, there is no price target, given the uncertainty.