On 2026-08-10 08:08:54 (Saudi Time), Alkhaleej Training and Education Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue declined 9.417% YoY to SAR 53.86 million (538,580,974 ÷ 1,000,000) from SAR 59.46 million (594,574,470 ÷ 1,000,000), primarily driven by a SAR 57.4 million drop in the Call Centres and Information Technology segment due to the non-renewal of a major contract, a SAR 9.0 million decline in the Training segment reflecting lower activity at Franklin and Fast Lane UAE amid regional conditions, and a SAR 3.8 million decrease in the University segment, partially offset by a SAR 14 million revenue increase in the Schools segment on the back of higher student enrollment and improved utilization rates. Net profit attributable to shareholders fell 38.608% YoY to SAR 1.15 million (11,461,107 ÷ 1,000,000) from SAR 1.87 million (18,668,825 ÷ 1,000,000), as the revenue decline compressed gross profit, while a SAR 5.4 million increase in expected credit loss provisions, SAR 3.5 million higher finance costs on borrowings and lease contracts, and SAR 3.9 million higher Zakat and income tax expense further weighed on profitability, with only partial mitigation from a SAR 3.2 million reduction in general and administrative expenses, SAR 2.8 million higher finance income, and SAR 2.2 million growth in other operating income.

Quarter-on-Quarter Performance Drivers

QoQ revenue was nearly flat at SAR 269.06 million (down just 0.169%), as growth in the Training segment (+SAR 5.2 million from recovery in business activity) and Schools segment (+SAR 1.2 million from higher enrollment) largely offset a SAR 7.3 million decline in the Call Centres and IT segment due to the continued impact of a major contract expiry. Net profit surged 382% QoQ to SAR 9.49 million (vs. SAR 1.97 million in the prior quarter), primarily driven by a SAR 10 million improvement in gross profit reflecting higher utilization rates and cost efficiencies, an SAR 8.0 million increase in Training segment net profit following recovery from regional headwinds, and lower finance costs (down SAR 1.2 million) and Zakat/tax provisions (down SAR 2.0 million). These gains were partially offset by a SAR 3.0 million seasonal decline in Schools segment net profit and a SAR 3.6 million rise in general and administrative expenses tied to technology and advisory initiatives.

Other Items

The external auditor issued an unmodified conclusion with no additional comments or reservations noted. Accumulated losses stood at SAR 9,574,168, representing 1.47% of capital. Total shareholders' equity attributable to the parent company as of 30 June 2026 amounted to SAR 525 million, compared with SAR 510 million as of 31 December 2025, and total comprehensive income attributable to the Company's shareholders for the period amounted to SAR 14,623,764. Earnings per share for the current six-month period were SAR 0.18, compared with SAR 0.29 for the same period of the prior year. The Group reclassified the operations of Al Khaleej Training and Information Technology Company from other administrative projects to the training sector, with comparative figures amended accordingly. Additionally, the Group reassessed its revenue recognition method for educational service revenues so that revenues are now recognized over the duration of the academic year rather than the financial year, in accordance with guidance issued by the Saudi Organization for Chartered and Professional Accountants ("SOCPA"), resulting in a restatement of comparative figures. During the period, management completed the purchase price allocation for an acquisition, which resulted in an amendment to the fair value of intangible assets, an impairment of previously recognized temporary goodwill, an adjustment to non-controlling interest value, and a revision to the depreciation expense of intangible assets.

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