Al Firdous Holdings

1. Company Overview & Earnings Context

Al Firdous Holdings (P.J.S.C.) is a Dubai-based public joint stock company established in 1998. Historically, the Group operated businesses related to hotels, restaurants and Hajj and Umrah services. Its former hotel subsidiary and Islamic financing and investing assets were sold in 2009, while management decided in 2019 to close its restaurant business operations to stop further losses.

Unlike most companies reporting June results on a calendar-year basis, Al Firdous has a 31 March financial year-end. Therefore, the financial statements cover the three months ended 30 June 2026, effectively Q1 FY27 rather than H1 2026.

2. Financial Performance Snapshot

• Total Revenue: AED 0, vs. AED 647 in Q1 FY26

• General, Administrative & Selling Expenses: AED 55,475, down 39.6% YoY

• Loss Before Tax: AED 55,475, vs. AED 91,165 loss

• Net Loss: AED 55,475, vs. AED 91,165 loss

• Total Comprehensive Loss: AED 55,475, vs. AED 91,165 loss

• Loss Per Share: AED 0.00009, vs. AED 0.00015

The Group therefore remained loss-making but reduced its quarterly loss by approximately 39.2% YoY, primarily because of lower administrative and selling expenses.

3. Operating Performance

Al Firdous recorded no revenue during the three months ended 30 June 2026, compared with only AED 647 of other income in the corresponding period last year. This reflects the Group's limited current operating activity following the closure of its restaurant operations.

General, administrative and selling expenses declined to AED 55,475 from AED 91,812. Salaries and related benefits remained at AED 10,631, while other expenses declined significantly to AED 43,870 from AED 80,797.

With no operating revenue, the Group reported a net loss of AED 55,475, although this was narrower than the AED 91,165 loss recorded in Q1 FY26.

4. Key Financial Position & Receivables

Al Firdous' balance sheet is dominated by two large long-standing receivable balances. The first is AED 326.79 million due from Islamic Arab Insurance Co., Labuan relating to the sale of the Group's former investment portfolio. The amount was originally due for settlement years ago but remained outstanding as of the reporting date. Management has not recognised a provision because it expects the amount to be recovered.

The second major balance is AED 295.72 million due from related parties, including AED 289.94 million advanced for the purchase of property and AED 5.78 million due from Bin Zayed Group. No impairment was recorded against these amounts during the quarter.

Together, these balances account for the overwhelming majority of Al Firdous' reported assets, making their eventual recoverability particularly important to the Group's financial position.

5. Balance Sheet, Equity & Cash Flow

Al Firdous ended June 2026 with:

• Total Assets: AED 622.58 Million

• Total Equity: AED 565.09 Million

• Total Liabilities: AED 57.49 Million

• Share Capital: AED 600.00 Million

• Accumulated Losses: AED 40.01 Million

• Receivable on Sale of Investment Portfolio: AED 326.79 Million

• Due From Related Parties: AED 295.72 Million

• Due To Related Parties: AED 45.39 Million

The balance sheet was largely unchanged from 31 March 2026. Total equity declined slightly from AED 565.14 million to AED 565.09 million, reflecting the quarterly loss, while accumulated losses increased to AED 40.01 million.

The Group reported no net cash generated from operating activities and no cash or cash equivalents at the end of the period.

6. Investor Takeaway

Al Firdous' Q1 FY27 results show a company with minimal current operating activity. The Group generated no revenue during the quarter and remained loss-making, although its net loss narrowed approximately 39% YoY to AED 55,475 as administrative and selling expenses declined.

The most important issue is the quality and recoverability of the Group's reported assets. Approximately AED 326.79 million remains receivable from the historic sale of its investment portfolio, while another AED 289.94 million relates to an advance made for the purchase of land in Dubai. Both balances have remained unresolved, and no impairment provision has been recognised.

The independent reviewer issued a Disclaimer of Conclusion, meaning it was unable to express a conclusion on the interim financial information. The reviewer stated that it did not have sufficient appropriate evidence to support the recoverability of the AED 326.79 million investment-portfolio receivable or the AED 289.94 million property advance.

The reviewer also highlighted the Group's going-concern position. Al Firdous had accumulated losses of AED 40.01 million and remains financially supported by a shareholder. Management believes future operations and this shareholder support will allow the Group to continue meeting its obligations. Key areas to monitor are therefore recovery of the major receivables, future operating activity, revenue generation, accumulated losses and continued shareholder financial support.