On 2026-08-11 09:25:25 (Saudi Time), Arab Sea Information System 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 June 30, 2026, sales/revenue increased 24.894% YoY to SAR 27.22 million (from SAR 21.79 million), driven primarily by increased revenues from government projects. Despite the revenue growth, the company reported a net loss of SAR 1.68 million for the current period, though this represents a significant 65.323% improvement compared to the net loss of SAR 4.85 million in the same period of the prior year, attributable to the 24.89% increase in revenues. Gross profit also improved substantially by 38.545% YoY to SAR 13.46 million, and the operational loss narrowed by 73.751% to SAR 1.25 million from SAR 4.76 million, reflecting better cost management and higher revenue absorption. Notably, the auditor flagged a material uncertainty regarding the Group's ability to continue as a going concern, citing a working capital shortfall of SAR 32.5 million and accumulated losses of SAR 19,839,385 as of June 30, 2026.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 10.83% to SAR 14.31 million (SAR 14,309,047(currency not specified in original) vs. SAR 12,910,862(currency not specified in original) prior quarter), driven by increased revenue from government projects. Net profit swung to SAR 1.62 million (SAR 1,615,602(currency not specified in original)) from a net loss of SAR 3.30 million (SAR -3,298,662(currency not specified in original)) in the previous quarter, representing a 149% improvement, attributable to the 10.83% revenue growth combined with a 40% reduction in general and administrative expenses. --- **Correction applying currency rules:** The figures are stated in Saudi Arabia Riyals per the source data footer, and the auditor's note explicitly references "SAR." Therefore currency is specified. QoQ revenue rose 10.83% to SAR 14.31 million (SAR 14,309,047) from SAR 12.91 million (SAR 12,910,862) in the prior quarter, driven by increased revenues from government projects. Net profit swung to SAR 1.62 million (SAR 1,615,602) from a net loss of SAR 3.30 million (SAR -3,298,662) in the previous quarter — a 149% turnaround — attributable to the 10.83% revenue increase and a 40% decrease in general and administrative expenses.

Other Items

The external auditor issued an unmodified conclusion on the interim financial statements for the six-month period ended June 30, 2026, however, the auditor drew attention to Note (1), highlighting a material uncertainty that may cast doubt on the Group's ability to continue as a going concern, noting that the Group incurred a net comprehensive loss of SAR 1.7 million for the period and accumulated losses of SAR 19.8 million as of June 30, 2026, with current liabilities exceeding current assets resulting in a working capital shortfall of SAR 32.5 million. The auditor also drew attention to Note (18), indicating that comparative information for the three- and six-month periods ended June 30, 2025 has been restated. Accumulated losses stood at SAR 19,839,385, representing 19.84% of the company's capital of SAR 100,000,000, decreasing from SAR 21,454,987 (21.45% of capital) as of March 31, 2026, with the reduction attributed to a net profit of SAR 1,615,602 achieved in the second quarter of 2026. Total shareholders' equity (after deducting minority equity) declined 13.784% to SAR 103,565,145 from SAR 120,123,718 in the same period of the prior year, and loss per share for the current period was SAR -0.03 compared to SAR -0.05 in the prior year period. Certain comparative figures have been reclassified to conform to current period presentation, with no impact on the Group's net assets.

Original announcement:

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