Maharah Human Resources Co. announces its Annual Financial results for the period ending on 2025-12-31

An overall increase in revenue across the Group’s main sectors, driven by a 23% increase in the average workforce as at the end of 2025 compared to the previous year.

A significant increase of 50% in revenue from the Corporate Services sector, primarily driven by a 30% increase in the average workforce compared to the previous year, reflecting continued growth in demand for the sector’s services and the successful execution of strategic contracts with customers during the year. In addition, revenue from Esnad Saudis increased by 76% compared to the previous year.

Revenue from the Individual Services sector increased by 15% compared to the previous year, mainly due to an 8% increase in the average workforce compared to the previous year to meet higher demand, in addition to improved utilization rates and operating efficiency. This growth reflects improved operational performance in the sector, supporting sustainable growth in the coming periods.

Despite,

Revenue from the Facility Management sector and subsidiary companies (other sectors) decreased by 21% compared to the previous year, mainly due to the restructuring of sales contracts in the Facility Management sector and the resolution to liquidate Nabd Logistics Services Company during the second quarter of 2025, with liquidation procedures currently in progress.

An increase in the company’s revenue by 39% compared to the previous year.

The Company achieved gross profit of SAR 327 million for the current year, representing an increase of SAR 68.9 million, or 27%, compared to the previous year. This was driven by stronger performance across the Company’s main sectors, particularly the Corporate Services sector, together with improved gross margins in the Individual Services sector as a result of higher utilization rates, enhanced operating efficiency, and cost rationalization arising from the improvement initiatives implemented during the year.

A decrease of SAR 1.2 million in the provision for doubtful debts compared to the previous year, in accordance with the expected credit loss model, reflecting improved collection performance during the year.

Other income increased by SAR 7 million during the current year compared to the previous year, mainly due to gains realized from the sale of one of the Company’s unutilized operational accommodation facilities during the year, in addition to government employment support for Saudi nationals.

The Company realized a non-recurring capital gain from the sale of its stake in Care Shield Holding Company (an associate), amounting to SAR 105 million in December 2025. This was in line with the Company’s approach to managing its investment portfolio and achieving its investment objectives through generating returns on its investments and enhancing capital allocation efficiency in line with its strategic priorities.

Finance costs decreased by SAR 3 million during the year compared to the previous year, due to lower average financing balances throughout the year.

This increase in net profit for the current year was achieved despite the following:

An increase of SAR 14 million in general and administrative expenses during the current year compared to the previous year, due to investment in human capital through a range of incentive programmers, training, and recruitment initiatives.

An increase of SAR 8 million in sales and marketing expenses during the year, to support revenue growth.

An increase in impairment loss on advances to suppliers and other receivable balances amounting to SAR 9.6 million during the year, including provisions related to the liquidation of Nabd Company.

The Company’s share of profit from associate companies (Saudi Medical Systems Company “SMS” and Care Shield Holding Company) decreased by SAR 51 million compared to the previous year. This was mainly due to the non-recognition of the Company’s share of results from SMS for the second half of 2025, compared to the recognition of the full share of results for 2024, as the Company was unable to obtain the financial results of SMS. This was also affected by the decline in the share of profit from Care Shield Holding Company up to the disposal date in December 2025.

It is worth noting that net profit attributable to the Company’s shareholders, after excluding the non-recurring capital gain arising from the sale of Care Shield Holding Company and the Company’s share of results from associate companies increased by 48%, equivalent to SAR 46.5 million. This reflects a significant improvement in the Company’s core operating performance and underlying profitability.

The Group’s investment in its associate, ‘Saudi Medical Systems Company’, is stated at SAR 406,583,091 (31 December 2024: SAR 463,379,671) in the consolidated statement of financial position as at 31 December 2025. During the year ended 31 December 2025, the Group has not performed equity accounting for its investment in the associate in accordance with IAS 28 ‘Investment in associate and joint ventures’. In light of the absence of the financial information and access to the management and the auditor of ‘Saudi Medical Systems Company’, it was impracticable for us to quantify the effects of this departure on the consolidated financial statement.

As disclosed in Note (9), the Group has restated the consolidated statement of financial position as at 31 December 2024 to include the share of profit of this associate for the year ended 31 December 2024. However, we were not provided with access to the financial information, management and auditor of Saudi Medical Systems Company. Accordingly, we were unable to perform audit procedures regarding the adjustments applied to restate the carrying amount of the investment as at 31 December 2024. Consequently, we were unable to determine whether any adjustments in the comparative period consolidated financial statements are necessary.

We conducted our audit in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the consolidated Financial Statements section of our report. We are independent of the Group in accordance with International Code of Ethics for Professional Accountants (including International Independence Standards), that are endorsed in the Kingdom of Saudi Arabia, as applicable to audits of the financial statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with the Code’s requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Qualified Opinion:

We have audited the consolidated financial statements of Maharah Human Resources Company (the “Company”) and its subsidiaries (the “Group”), which comprise the consolidated statement of financial position as at 31 December 2025, the consolidated statements of profit or loss and other comprehensive income, changes in equity, and cash flows for the year then ended, and notes to the consolidated financial statements, comprising material accounting policies and other explanatory information.

In our opinion, except for the effects of the matter described in the first paragraph and the possible effects of the matter described in the second paragraph of the “Basis for Qualified Opinion” section of our report, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2025, and its consolidated financial performance and its consolidated cash flows for the year then ended, in accordance with the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (SOCPA).

• The Company was unable to recognize its share of results from Saudi Medical Systems Company for second half of 2025 due to the unavailability of the associate’s financial statements at the relevant time; and only recorded the effects of the purchase price allocation (PPA) (amortization and depreciation).

• The decision to liquidate Nabd Company (Logistics segment) was approved in Q2 2025. All operating activities ceased, and all derecognition/disposal costs were recorded, with these costs recognized within the consolidated statement of profit or loss and the consolidated statement of financial position.

• The total comprehensive income attributable to the company’s shareholders as of 31 December 2025 amounted to SAR 261 million.

• Total equity attributable to the owners of the parent amounted to SAR 876 million as of 31 December 2025 (31 December 2024: SAR 673 million)

• A conference call with analysts and investors will be announced later Details of the conference call will be available on Maharah’s website at the following link:

https://www.maharah.com/investors