This growth is attributed to the following:

Call Centers Sector: Recorded a growth of 26%, with an increase of SAR 29.9 million, due to the obtained of new contracts and the company’s acquisition of a subsidiary during the current quarter.

Schools Sector: Revenues increased by 10%, with a rise of SAR 6.6 million, as a result of an increase in student enrollment and the opening of two new schools in 2024.

Management Projects: Declined by SAR 9.1 million, due to the expiration of some customer contracts and the lack of new contract signings.

Training Sector: Achieved a growth of 23%, with an increase of SAR 7.6 million, driven by an increase in the number of trainees and new contracts for training services

• A reduction in excess zakat provision by SAR 4.5 million, which positively impacted net profit.

• An increase in gross profit by SAR 8.5 million (18%), driven by improved revenues across several operating sectors.

• A decrease in general and administrative expenses by SAR 1.9 million (7%), due to reductions in staff costs as part of the group’s efforts to enhance operational efficiency and reduce unnecessary expenses.

It is worth noting that the company recorded professional and consultancy expenses of SAR 7.8 million related to the acquisition deal for Adwaa Al-Hidaya Schools. However, the transaction was canceled following the board of directors’ decision not to proceed with it.

The company achieved an increase in revenues of SAR 7 million, representing a 2% growth, with total revenues reaching SAR 295 million, compared to SAR 288 million in the previous quarter of the current year. This increase is attributed to several factors across operating segments:

Call Centers Sector: Revenues increased by SAR 5.8 million (4% growth) due to the acquisition of new contracts that enhanced the sector’s performance during the quarter, in addition to the acquisition of a new technology company.

Training Sector: Revenues increased by SAR 5.5 million (16% growth), attributed to the seasonal nature of the sector, as well as lower revenues in the previous quarter due to its overlap with the holy month of Ramadan.

Schools Sector: Revenues decreased by SAR 2.2 million (3% decline) as a result of additional discounts granted during the current quarter to encourage early payments from parents.

This improvement is attributed to higher revenues, enhanced operational performance, and reductions in unnecessary costs, which led to:

• An increase in gross profit by SAR 1.5 million.

• A decrease in general and administrative expenses by SAR 3 million (10%).

• A reduction in excess zakat provision by SAR 5.6 million.

• A drop in expected credit loss expenses by SAR 2.4 million compared to the previous quarter.

It is worth noting that the company recorded professional and consultancy expenses of SAR 7.8 million during the current quarter, related to the acquisition deal of Adwaa Al-Hidaya Schools. However, the deal was canceled following the board of directors’ decision not to proceed.

This increase in revenue is attributed to the following:

Call Centers Sector: Revenues increased by SAR 48 million (21% growth) due to the signing of new contracts and the acquisition of a new technology company during the current period.

Schools Sector: Revenues increased by SAR 14.8 million (11% growth), driven by higher student enrollment and the opening of two new schools during the first semester of 2024.

Managed Projects Sector: Revenues declined by SAR 18.1 million due to the expiration of certain existing contracts and the lack of new projects awarded during the current period.

This decrease is attributed to several key factors, most notably:

During the same period of the previous year, the company signed a sublease agreement for an educational and residential complex, which did not recur in the current period.

The company incurred professional and advisory expenses amounting to SAR 7.8 million during the current period, related to the acquisition attempt of Adwaa Al-Hedayah Schools, which was later cancelled based on a Board decision not to proceed with the transaction.

An increase in expected credit loss provisions by SAR 7.1 million during the current period.

Despite these challenges, the Group recorded several positive indicators during the current period, including:

Revenue growth and improved operational performance, resulting in a SAR 18.5 million increase in gross profit.

Reduction in general and administrative expenses by SAR 10.5 million (a 16% decrease).

Increase in finance income by SAR 2.4 million (a 46% rise).

Reversal of zakat provision amounting to SAR 1.9 million during the current period, compared to a zakat expense of SAR 4.9 million in the same period last year.

No losses from discontinued operations were recorded in the current period, whereas losses from discontinued operations amounted to SAR 1.9 million in the corresponding period of the previous year.