New Risk • May 13
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 307% The company is paying a dividend despite having no free cash flows. Dividend yield: 5.9% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 307% Paying a dividend despite having no free cash flows. Earnings have declined by 20% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.1% net profit margin). Reported Earnings • May 13
First quarter 2026 earnings released: د.ك0.014 loss per share (vs د.ك0.006 profit in 1Q 2025) First quarter 2026 results: د.ك0.014 loss per share (down from د.ك0.006 profit in 1Q 2025). Net loss: د.ك6.76m (down 344% from profit in 1Q 2025). Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • May 05
Kuwait Financial Centre - KPSC to Report Q1, 2026 Results on May 07, 2026 Kuwait Financial Centre - KPSC announced that they will report Q1, 2026 results on May 07, 2026 Announcement • Mar 17
Kuwait Financial Centre - KPSC, Annual General Meeting, Apr 08, 2026 Kuwait Financial Centre - KPSC, Annual General Meeting, Apr 08, 2026, at 11:00 Arab Standard Time. Location: kuwait city Kuwait Reported Earnings • Feb 12
Full year 2025 earnings released: EPS: د.ك0.022 (vs د.ك0.009 in FY 2024) Full year 2025 results: EPS: د.ك0.022 (up from د.ك0.009 in FY 2024). Revenue: د.ك28.2m (up 36% from FY 2024). Net income: د.ك10.8m (up 143% from FY 2024). Profit margin: 38% (up from 22% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • Feb 10
Kuwait Financial Centre - KPSC to Report Fiscal Year 2025 Results on Feb 10, 2026 Kuwait Financial Centre - KPSC announced that they will report fiscal year 2025 results on Feb 10, 2026 Reported Earnings • Nov 06
Third quarter 2025 earnings released: EPS: د.ك0.06 (vs د.ك0.003 in 3Q 2024) Third quarter 2025 results: EPS: د.ك0.06 (up from د.ك0.003 in 3Q 2024). Revenue: د.ك8.32m (up 38% from 3Q 2024). Net income: د.ك3.17m (up 103% from 3Q 2024). Profit margin: 38% (up from 26% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • Nov 03
Kuwait Financial Centre - KPSC to Report Nine Months, 2025 Results on Nov 04, 2025 Kuwait Financial Centre - KPSC announced that they will report nine months, 2025 results on Nov 04, 2025 Reported Earnings • Aug 07
Second quarter 2025 earnings released: EPS: د.ك0.007 (vs د.ك0.002 loss in 2Q 2024) Second quarter 2025 results: EPS: د.ك0.007 (up from د.ك0.002 loss in 2Q 2024). Revenue: د.ك7.62m (up 187% from 2Q 2024). Net income: د.ك3.63m (up د.ك4.62m from 2Q 2024). Profit margin: 48% (up from net loss in 2Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Aug 05
Kuwait Financial Centre - KPSC to Report First Half, 2025 Results on Aug 05, 2025 Kuwait Financial Centre - KPSC announced that they will report first half, 2025 results on Aug 05, 2025 New Risk • Jun 09
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (22% net profit margin). Announcement • May 07
Kuwait Financial Centre - KPSC to Report Q1, 2025 Results on May 07, 2025 Kuwait Financial Centre - KPSC announced that they will report Q1, 2025 results on May 07, 2025 Declared Dividend • Mar 19
Dividend increased to د.ك0.007 Dividend of د.ك0.007 is 17% higher than last year. Ex-date: 27th March 2025 Payment date: 8th April 2025 Dividend yield will be 4.7%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is covered by earnings (78% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 14% to shift the payout ratio to a potentially unsustainable range, which is more than the 8.1% EPS decline seen over the last 5 years. Announcement • Mar 03
Kuwait Financial Centre - KPSC, Annual General Meeting, Mar 16, 2025 Kuwait Financial Centre - KPSC, Annual General Meeting, Mar 16, 2025, at 11:00 Arab Standard Time. Location: kuwait Kuwait Reported Earnings • Feb 20
Full year 2024 earnings released: EPS: د.ك0.009 (vs د.ك0.008 in FY 2023) Full year 2024 results: EPS: د.ك0.009 (up from د.ك0.008 in FY 2023). Revenue: د.ك21.1m (up 58% from FY 2023). Net income: د.ك4.46m (up 7.5% from FY 2023). Profit margin: 21% (down from 31% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Announcement • Feb 17
Kuwait Financial Centre - KPSC to Report Fiscal Year 2024 Results on Feb 18, 2025 Kuwait Financial Centre - KPSC announced that they will report fiscal year 2024 results on Feb 18, 2025 New Risk • Nov 13
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (24% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Aug 14
Second quarter 2024 earnings released: د.ك0.002 loss per share (vs د.ك0.004 profit in 2Q 2023) Second quarter 2024 results: د.ك0.002 loss per share (down from د.ك0.004 profit in 2Q 2023). Revenue: د.ك2.66m (down 54% from 2Q 2023). Net loss: د.ك982.0k (down 153% from profit in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Announcement • Aug 07
Kuwait Financial Centre - KPSC to Report Q2, 2024 Results on Aug 07, 2024 Kuwait Financial Centre - KPSC announced that they will report Q2, 2024 results on Aug 07, 2024 Reported Earnings • May 09
First quarter 2024 earnings released: EPS: د.ك0.006 (vs د.ك0.006 loss in 1Q 2023) First quarter 2024 results: EPS: د.ك0.006 (up from د.ك0.006 loss in 1Q 2023). Revenue: د.ك6.37m (up د.ك5.95m from 1Q 2023). Net income: د.ك2.77m (up د.ك5.95m from 1Q 2023). Profit margin: 44% (up from net loss in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • May 07
Kuwait Financial Centre - KPSC to Report Q1, 2024 Results on May 07, 2024 Kuwait Financial Centre - KPSC announced that they will report Q1, 2024 results on May 07, 2024 Announcement • Feb 22
Kuwait Financial Centre - KPSC, Annual General Meeting, Mar 19, 2024 Kuwait Financial Centre - KPSC, Annual General Meeting, Mar 19, 2024, at 08:00 Coordinated Universal Time. Location: Al Murqab, Al Sour St, Alshaya Tower, 21st floor Auditorium Kuwait Agenda: To discuss and ratify the Board of Directors' report for the financial year ending December 31, 2023; to discuss and ratify the Company's External Auditors' report for the financial year ending December 31, 2023; to discuss and approve the Financial Statements for the financial year ending December 31, 2023; and to consider other matters. New Risk • Feb 20
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 418% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Feb 16
Full year 2023 earnings released: EPS: د.ك0.008 (vs د.ك0.006 in FY 2022) Full year 2023 results: EPS: د.ك0.008 (up from د.ك0.006 in FY 2022). Revenue: د.ك26.1m (up 45% from FY 2022). Net income: د.ك4.15m (up 45% from FY 2022). Profit margin: 16% (in line with FY 2022). Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Announcement • Feb 12
Kuwait Financial Centre - KPSC to Report Fiscal Year 2023 Results on Feb 14, 2024 Kuwait Financial Centre - KPSC announced that they will report fiscal year 2023 results on Feb 14, 2024 New Risk • Jan 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Kuwaiti stocks, typically moving 6.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.5% average weekly change). Large one-off items impacting financial results. Reported Earnings • Nov 15
Third quarter 2023 earnings released: EPS: د.ك0.004 (vs د.ك0.004 loss in 3Q 2022) Third quarter 2023 results: EPS: د.ك0.004 (up from د.ك0.004 loss in 3Q 2022). Revenue: د.ك7.04m (up 283% from 3Q 2022). Net income: د.ك2.02m (up د.ك3.92m from 3Q 2022). Profit margin: 29% (up from net loss in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Reported Earnings • Aug 10
Second quarter 2023 earnings released: EPS: د.ك0.003 (vs د.ك0.011 loss in 2Q 2022) Second quarter 2023 results: EPS: د.ك0.003 (up from د.ك0.011 loss in 2Q 2022). Net income: د.ك1.86m (up د.ك7.24m from 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Reported Earnings • Feb 17
Full year 2022 earnings released: EPS: د.ك0.006 (vs د.ك0.03 in FY 2021) Full year 2022 results: EPS: د.ك0.006 (down from د.ك0.03 in FY 2021). Revenue: د.ك19.2m (down 38% from FY 2021). Net income: د.ك2.86m (down 81% from FY 2021). Profit margin: 15% (down from 48% in FY 2021). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 5 non-independent directors. Independent Vice-Chairman Faisal Abdulaziz Al-Jallal was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 14
Second quarter 2022 earnings released: د.ك0.011 loss per share (vs د.ك0.013 profit in 2Q 2021) Second quarter 2022 results: د.ك0.011 loss per share (down from د.ك0.013 profit in 2Q 2021). Revenue: -د.ك1.88m (down 118% from 2Q 2021). Net loss: د.ك5.37m (down 185% from profit in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 18
First quarter 2022 earnings released: EPS: د.ك0.016 (vs د.ك0.008 in 1Q 2021) First quarter 2022 results: EPS: د.ك0.016 (up from د.ك0.008 in 1Q 2021). Revenue: د.ك12.2m (up 43% from 1Q 2021). Net income: د.ك7.81m (up 92% from 1Q 2021). Profit margin: 64% (up from 47% in 1Q 2021). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 5 non-independent directors. Independent Vice-Chairman Faisal Abdulaziz Al-Jallal was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Apr 14
Upcoming dividend of د.ك0.01 per share Eligible shareholders must have bought the stock before 21 April 2022. Payment date: 28 April 2022. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 5.3%. Within top quartile of Kuwaiti dividend payers (5.2%). Higher than average of industry peers (4.0%). Reported Earnings • Feb 18
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: د.ك0.031 (up from د.ك0.004 loss in FY 2020). Revenue: د.ك31.4m (up 184% from FY 2020). Net income: د.ك15.0m (up د.ك16.7m from FY 2020). Profit margin: 48% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS د.ك0.007 (vs د.ك0.008 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: د.ك6.32m (down 12% from 3Q 2020). Net income: د.ك3.38m (down 16% from 3Q 2020). Profit margin: 54% (down from 56% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 14
Second quarter 2021 earnings released: EPS د.ك0.013 (vs د.ك0.004 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: د.ك10.7m (up 47% from 2Q 2020). Net income: د.ك6.36m (up 222% from 2Q 2020). Profit margin: 60% (up from 27% in 2Q 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 10
Full year 2020 earnings released: د.ك0.004 loss per share (vs د.ك0.015 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: د.ك13.2m (down 41% from FY 2019). Net loss: د.ك1.72m (down 125% from profit in FY 2019). Over the last 3 years on average, earnings per share has fallen by 75% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Announcement • Oct 27
Kuwait Financial Centre - K.P.S.C Appoints Mr. Ali Hasan Khalil as the Chief Executive Officer, Effective October 30, 2020 Kuwait Financial Centre - K.P.S.C announced that Mr. Ali Hasan Khalil has been appointed as the Chief Executive Officer, effective October 30, 2020. 