Avanceon : AVN | Avanceon Limited Transmission of Quarterly Report for the period ended 31 03 2024

www.avanceon.ae

Table Of Content
Corporate Profile
Company Information	02
Interim Director's Report	. 04
Stand Alone Financial Statements
Condensed Interim Statement of Financial Position	07
Condensed Interim Statement of Profit or Loss	08
Condensed Interim Statement of Changes in Equity	09
Condensed Interim Statement of Cash Flows	10
Notes to the Condensed Interim Financial Statements	12
Consolidated Financial Statements
Condensed Interim Statement of Financial Position	16
Condensed Interim Statement of Profit or Loss Account	17
Condensed Interim Statement of Comprehensive Income	18
Condensed Interim Statement of Changes in Equity	19
Condensed Interim Statement of Cash Flows	20
Notes to the Condensed Interim Financial Statements	22

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2		Financial Statements 2024

Company Information

Directors

Khalid Hameed Wain	Director / Chairman
Bakhtiar Hameed Wain	Director / Chief Executive Officer
Tanveer Karamat	Director
Amir Waheed Wain	Director
Hanan Darwish	Director
Omer Iqbal Khan	Director
M. Shahid Mir	Director
Ahsan Khalil (ACA-FPFA)	Chief Financial Officer /
	Company Secretary
Audit Committee
M. Shahid Mir	Chairman
Amir Waheed Wain	Member
Khalid Hameed Wain	Member

Human Resource & Renumeration Committee

M. Shahid Mir	Chairman
Hanan Darwish	Member
Khalid Hameed Wain	Member

Auditors

BDO Ebrahim &Co.

Chartered Accountants

Legal Advisor

Chima & Ibrahim

Advocates & council

Web Presence

www.avanceon.ae | www.avanceon.com

www.avanceon.qa | www.octopusdtl.com

Bankers

Faysal Bank Limited, Pakistan

Habib Bank Limited, Pakistan & United Arab Emirates National Bank of Fujairah, United Arab Emirates Habib Bank AGA, Zurich, United Arab Emirates Flagstar Bank, United Stated of America

Bank of Singapore, United Arab Emirates MCB Bank Limited, Pakistan

United Bank Limited, Pakistan & United Arab Emirates National Bank of Pakistan Limited, Pakistan Standard Chartered Bank Limited, Pakistan

JS Bank Limited, Pakistan

Qatar International Islamic Bank QIIB,

Qatar Islamic Bank QIB, Qatar

Share Registrar

FAMCO Associates (Pvt) Ltd. 8-F, Next to Hotel Faran, Nursery, Block-6, P.E.C.H.S, Shahra-e-Faisal, Karachi. Phone: [phone] Fax No: [phone] www.famco.com.pk

Registered Office

The Avanceon Building

19-KM , Main Multan Road, Lahore 54660, Punjab, Pakistan Phone: [phone] Fax No: [phone] Email: [e-mail]

www.avanceon.ae

Regional Headquarters - South Asia

Lahore, Punjab, Pakistan

The Avanceon Building

19-KM , Main Multan Road, Lahore,

54660 Punjab, Pakistan Phone: [phone] Email: [e-mail] Karachi, Sindh, Pakistan

MA Tabba Foundation Building,

First Floor, Gizri Road Block 9,

Clifton Karachi, Sindh 75600

Phone: [phone]

Email: [e-mail]

Islamabad, Pakistan

Manzoor Plaza (The Hive Building), First Floor, Plot 14-EFazal-e-Haq Road, G-6/2, Blue Area, Islamabad 44000 Phone: [phone]

Email: [e-mail]

Phone: [phone]

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3

Regional Headquarters -

Middle East

Avanceon FZE - Dubai, UAE

FZS1 BD04 JAFZA P.O. Box 18590

Dubai, United Arab Emirates

Phone: [phone]

Email: [e-mail]

Abu Dhabi, UAE

In Partnership with Ali & Sons

Ali &Sons Bldg., Zayed 2nd Street

P.O. Box 915

Abu Dhabi, U.A.E.

Phone: [phone]

Email: [e-mail]

Doha, Qatar

Avanceon Automation Control WLL

Office No. 12, M Floor, Al-Jaber Engg.

HO Building, P.O. Box 15976, Fox Hills,

Lusail, Doha, Qatar.

Phone: [phone]

Email: [e-mail]

Jeddah, Saudia Arabia

Jeddah, Saudia Arabia

Kuwait St. Faisaliyah District

P.O. Box 1298

Jeddah, KSA.

Phone: [phone] x 127

Email: [e-mail]

Riyadh, Saudia Arabia

Avanceon Saudi for Energy Company 3141 Anas Ibn Malik-Al Malqa Dist. Unit no. 718, Riyadh 13521 - 8292 Kingdom of Saudi Arabia

Phone: [phone]

Email: [e-mail]

4		Financial Statements 2024

Interim Director's Report

Directors of Avanceon Limited (the "Company") are pleased to present the Directors' Report for the three

months ended March 31, 2024.
	For the quarter ended
	March 31,	March 31,
	2024	2023
	----- (Rupees in '000) -----
OPERATING RESULTS (CONSOLIDATED)		Restated
Revenues	1,973,544	1,198,290
Profit before tax	39,431	416,543
Provision for taxa�on	(28,859)	(47,529)
Profit a�er taxa�on	10,571	369,015
OPERATING RESULTS (STANDALONE)
Revenues	532,516	323,791
Profit before tax	88,306	851,372
Provision for taxa�on	(17,908)	(28,316)
Profit a�er taxa�on	70,398	823,057

EARNINGS PER SHARE (CONSOLIDATED) FOR THE QUARTER ENDED March 31, 2024

The basic earnings per share after tax is Rs. -0.05 (2023: Rs. 0.85 - restated)

EARNINGS PER SHARE (STANDALONE) FOR THE QUARTER ENDED March 31, 2024

The basic earnings per share after tax is Rs. 0.19 (2023: Rs. 2.19 - restated)

The group revenue for the 1st Quarter 2024 showed an increase of 65% in comparison with 1st Quarter 2023, plus the gross margins improved considerably from 21% to 35% due to the facts of on-going projects closed at higher margin. However, the fixed cost inclusive of finance cost remained on the upper side almost at 25% in comparison to last year.

Moreover, the Profit After Tax (PAT) for the first quarter of 2024 was lower compared to the first quarter of 2023. This decrease in PAT was primarily due to the stability of the US dollar exchange rate during this period. As a result, the group did not recognize any unrealized exchange gains, which had previously contributed to higher profitability.

Our growth trajectory for the current year in terms of Purchase Order (PO) generation is exceptionally promising. We commenced the year with a substantial opening backlog valued at USD 70 million. As we progress through 2024, we are highly confident that our strategic corporate plan, known as the "Road to 100 Plan," which aims to achieve PO generation worth USD 100 million, is firmly on track. This plan is meticulously

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5

structured, reflecting our commitment to substantial and sustainable growth. We anticipate that the successful execution of the "Road to 100 Plan" will be clearly reflected in our revenue conversion throughout the year. As POs are fulfilled and converted into completed projects, this will translate into significant revenue growth, bolstering our financial performance for 2024.

COMMUNICATION

Communication with the shareholders is given a high priority. Financial reports are shared with shareholders within time specified in the current Companies Ordinance. The Company also has a website, www.avanceon.ae, which contains up to date information on Company's activities and financial reports.

for and on behalf of the BOARD OF DIRECTORS BAKHTIAR HAMEED WAIN

April 30, 2024Chief Executive Officer Lahore, Pakistan

TANVEER KARAMAT

Director

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6	Financial Statements 2024

Avanceon

Condensed Standalone

Interim Financial Statements

for the first quarter ended March 31, 2024

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									7
AVANCEON LIMITED
CONDENCED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31, 2024
				Un-audited		Audited		Un-audited		Audited
				Mar. 31, 2024		Dec 31, 2023		Mar. 31, 2024		Dec 31, 2023
				(Rupees		in '000)		(Rupees		in '000)

Note

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES	ASSETS
Authorised capital	NON CURRENT ASSETS
500,000,000 (2023: 500,000,000)

ordinary shares of Rs 10 each
ISSUED, SUBSCRIBED AND PAID UP CAPITAL
376,297,850 (2023: 376,297,850)
ordinary shares of Rs 10 each	5
CAPITAL RESERVES
Share Premium
Employees' share compensation reserve	6
Surplus on revaluation of property, plant & equipment	7
REVENUE RESERVES
Un-appropriated profit
NON CURRENT LIABILITIES
Long term diminishing musharaka	9
Deferred Tax

5,000,000

3,762,978

451,420

168,683

330,243

950,346

3,184,436

7,897,760

109,806

5,000,000	Property and equipment	13
	Intangible Assets
	Long term investments	14
	Deposit for Long term investments
3,762,978	Long term loans and deposits	15
451,420
168,683
330,636
950,739
3,113,645
7,827,362
123,841

637,705

1,351,795

4,301,800

5,802

6,297,102

668,857

1,351,795

4,301,800

5,652

6,328,104

CURRENT LIABILITIES
Current portion of long term diminishing musharaka	9
Current portion of long term loan	8
Current portion of Deferred Grant
Finances under mark up arrangements
and other credit facilities - secured	10
Contract Liabilities
Unclaimed / Unpaid Dividend
Creditors, accrued and other liabilities	11
CONTINGENCIES AND COMMITMENTS	7

109,806

60,997

297,682

164,572

152,826

1,723,795

2,399,871

123,841

	CURRENT ASSETS
	Stock in trade	17
60,997
	Trade debts	18
	Advances, deposits, prepayments
	and other receivables	19
294,466	Contract Assets
249,434	Short term Investments
152,835	Cash and bank balances	21

1,841,749

2,599,481

109,537

2,642,154

796,924

469,564

2

92,154

4,110,335

85,282

2,605,932

772,474

674,306

84,586

4,222,580

10,407,437 10,550,683

The annexed notes from 1 to 9 form an integral part of these condensed financial statements.

10,407,437

10,550,683

Chief Executive Officer	Chief Financial Officer	Director
Bakhtiar Hameed Wain	Ahsan Khalil	Tanveer Karamat

8

AVANCEON LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR

THE FIRST QUARTER ENDED MARCH 31, 2024

for the quarter ended

	Note	Mar. 31, 2024		Mar. 31, 2023
		(Rupees		in '000)
Revenues		532,516	323,791
Cost of revenue		(290,307)	(204,426)
Gross profit / (Loss)
	242,208	119,365
Administrative and selling expenses
	(90,027)	(68,472)
Other charges	5	(30,140)		(1,655)
Other income	6	731		837,086
		(119,437)	766,960
Profit / (Loss) from operations
	122,772	886,324
Finance costs		(34,466)	(34,952)
Profit / (Loss) before tax
	88,306	851,372
Taxation		(17,908)	(28,316)
Profit / (Loss) for the period		70,398	823,057
				Restated
Earnings/(Loss) per share - basic		0.19	2.19
Earnings/(Loss) per share - diluted		0.18	2.16

The annexed notes from 1 to 9 form an integral part of these condensed financial statements.

Chief Executive Officer	Chief Financial Officer	Director
Bakhtiar Hameed Wain	Ahsan Khalil	Tanveer Karamat

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9		Financial Statements 2024

AVANCEON LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR

THE FIRST QUARTER ENDED MARCH 31, 2024

CAPITAL RESERVES

	Share	Employees'	Surplus on
Share Capital	Share	Revaluation of
Premium	Compensation	Property &
		Reserve	Equipment

REVENUE

Un-

appropriated profit / (loss)

TOTAL

(Rupees in '000)

Balance as on January 01, 2023	3,247,006
Profit for the period
Other comprehensive income
Issuance of shares against ESOS	25,149
Employee share option reserve
15% bonus share issue for the period ended December 31, 2022	490,823
	515,972
Balance as on December 31, 2023
3,762,978
Profit for the period
Transfer from revaluation surplus on account of incremental dep.
Balance as on March 31, 2024
3,762,978

The annexed notes from 1 to 9 form an integral part of these condensed financial statements.

314,512 155,662

136,908 (124,072)

137,094

136,90813,021

451,420 168,683

451,420 168,683

332,208

(1,572)

(1,572)

330,636

(393)

(393)

330,243

1,977,814

1,625,082

1,572

1,626,654

(490,823)

(490,823)

3,113,645

70,398

393

70,791

3,184,436

6,027,203

1,625,082

1,625,082

37,984

137,094

175,077

7,827,362

70,398

70,398

7,897,760

Chief Executive Officer	Chief Financial Officer	Director
Bakhtiar Hameed Wain	Ahsan Khalil	Tanveer Karamat

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