AKD Hospitality Reports Higher Annual Profit of Rs 1.68 Million for FY2026, Declares No Dividend

KARACHI: AKD Hospitality Limited has reported an increase in annual profit for the financial year ended June 30, 2026, while deciding not to distribute a dividend to ordinary shareholders.

According to the financial results submitted to the Pakistan Stock Exchange (PSX), the company posted a profit after taxation of Rs 1.68 million for FY2026, compared with Rs 1.27 million in the previous financial year. Earnings per share (EPS) also improved to Rs 0.67 from Rs 0.51 in FY2025.

The company’s revenue from contracts with customers stood at Rs 5.40 million during the year under review, down from Rs 6 million recorded in the preceding financial year. Administrative and general expenses increased to Rs 4.40 million from Rs 4.24 million, while the allowance for expected credit losses declined to Rs 191,818 from Rs 340,119.

Despite lower revenue, AKD Hospitality benefited from other income of Rs 1.70 million, compared with no other income reported in the previous year. Consequently, profit before taxation and levy increased to Rs 2.46 million from Rs 1.39 million in FY2025.

The company’s total comprehensive income reached Rs 18.41 million, up from Rs 13.73 million a year earlier. This improvement was largely supported by an unrealised gain of Rs 18.04 million arising from the remeasurement of investments classified at fair value through other comprehensive income. After a deferred tax adjustment, the gain contributed Rs 16.73 million to other comprehensive income.

Investments and Financial Position

AKD Hospitality’s financial position showed growth in total assets, which increased to Rs 52.43 million as of June 30, 2026, from Rs 45.04 million a year earlier.

Long-term investments rose substantially to Rs 44.89 million from Rs 27.19 million, becoming the company’s largest reported asset category. Trade debts also increased to Rs 3.91 million from Rs 2.69 million.

However, cash and bank balances declined to Rs 2.77 million from Rs 14.12 million at the end of FY2025. The reduction was reflected in the company’s cash flow statement, which showed a net decrease of Rs 11.35 million in cash and cash equivalents during the year.

Net cash generated from operating activities amounted to Rs 243,279, compared with Rs 293,890 in the previous financial year. Investing activities generated net cash of Rs 408,418, while financing activities recorded a cash outflow of Rs 12 million following the repayment of capital contribution to the sponsor.

Total equity increased to Rs 43.43 million from Rs 37.02 million, while total liabilities rose to Rs 9 million from Rs 8.02 million.

No Dividend Announced

The company’s board of directors, in a meeting held on October 2, 2026, recommended no final cash dividend for the year ended June 30, 2026. The company also announced no bonus shares, right shares or other corporate entitlements.

The decision means shareholders will not receive a new dividend distribution for FY2026, despite the increase in reported annual profit.

Annual General Meeting Scheduled for October 27

AKD Hospitality has scheduled its Annual General Meeting (AGM) for October 27, 2026, at 11:00 am. The meeting will take place at the company’s office, located at Office 514, Fifth Floor, Continental Trade Centre, Clifton, Karachi.

The company’s share transfer books will remain closed from October 21 to October 27, 2026, both days inclusive. Transfers received by the company’s share registrar by the close of business on October 20, 2026, will be treated as timely for the relevant purposes.

The company stated that its annual report for the year ended June 30, 2026, would be transmitted separately through the Pakistan Unified Corporate Actions Reporting System (PUCARS) within the specified period.

Outlook

AKD Hospitality’s FY2026 results present a mixed financial picture. Higher annual profit, improved earnings per share and growth in total comprehensive income indicate progress in reported earnings and investment valuation. However, lower revenue, reduced cash balances and relatively modest operating cash generation remain important factors for shareholders to monitor.

The company’s future financial performance will depend on its ability to strengthen operating income, manage expenses, maintain liquidity and generate sustainable cash flows from its business and investments.