Apex Investment

1. Company Overview & Earnings Context

Apex Investment PSC is an ADX-listed diversified investment and industrial group with operations spanning catering, facilities management, cement manufacturing, contracting, advanced energy storage systems, and strategic investments. The Group has evolved into a multi-sector business serving industrial and commercial customers across the UAE.

For H1 2026, Apex Investment delivered higher revenue and gross profit across its operating businesses. However, the Group reported a net loss for the period due to an unrealized fair value loss on its equity investment portfolio, while its core operating segments continued to generate positive operating profits.

2. Financial Performance Snapshot

• Revenue: AED 421.3 Million (+5.4% YoY)

• Gross Profit: AED 85.9 Million (+7.6% YoY)

• Operating Profit: AED 47.7 Million (-13.9% YoY)

• Finance Costs: AED 1.5 Million (+18.5% YoY)

• Fair Value Loss on FVTPL Investments: AED 71.8 Million (vs. AED 21.4 Million gain in H1 2025)

• Loss Before Tax: AED 24.0 Million (vs. Profit Before Tax of AED 76.3 Million)

• Net Loss: AED 26.8 Million (vs. Net Profit of AED 71.6 Million)

• Basic & Diluted EPS: Loss of AED 0.007 per share (vs. Earnings of AED 0.020 per share)

Compared with H1 2025:

• Revenue increased from AED 399.9 million to AED 421.3 million.

• Gross profit increased from AED 79.8 million to AED 85.9 million.

• Operating profit declined from AED 55.5 million to AED 47.7 million.

• The Group recorded a net loss of AED 26.8 million, compared with a net profit of AED 71.6 million in H1 2025, primarily due to investment portfolio revaluation losses.

3. Operational Highlights & Key Metrics

• Total Assets: AED 2.40 Billion

• Total Equity: AED 2.02 Billion

• Total Liabilities: AED 379.5 Million

• Cash & Short-Term Deposits: AED 520.7 Million

• Cash & Cash Equivalents: AED 495.7 Million

• Equity Investments Portfolio: AED 367.6 Million

• Manufacturing Revenue: AED 118.0 Million (+24.6% YoY)

• Contracting Revenue: AED 29.1 Million (+136.9% YoY)

• Catering Revenue: AED 226.6 Million (-3.9% YoY)

• Facility Management Revenue: AED 47.6 Million (-10.1% YoY)

4. Key Performance Drivers

Revenue growth was supported by strong performances in the manufacturing and contracting businesses, which offset softer contributions from the catering and facilities management segments. Despite improved gross profit, operating profit declined due to higher administrative expenses. The primary factor behind the Group's H1 2026 net loss was the AED 71.8 million unrealized fair value loss on investments classified at fair value through profit or loss. Management noted that this reflected market volatility during the first half of the year, although regional equity markets partially recovered during the second quarter. Importantly, the Group stated that its core operating businesses remained profitable throughout the period.

5. Outlook & Forward Guidance

Management believes the Group remains well positioned to continue as a going concern, supported by profitable operating subsidiaries, strong liquidity, and access to financial resources. While market volatility affected the investment portfolio during the first half, management expects sufficient liquidity and cash flows to support ongoing operations, with the core businesses continuing to generate positive operating profits.

6. Investor Takeaway

Apex Investment's underlying operating businesses continued to expand during H1 2026, delivering higher revenue and gross profit. However, unrealized losses on its investment portfolio overshadowed operating performance and resulted in a reported net loss. With a strong balance sheet, significant cash reserves, and profitable core businesses, the Group remains financially resilient despite short-term market-driven investment volatility.