Lahore: Bilal Fibers Limited ("BFL") announced a comprehensive financial restructuring and operational overhaul during their Board of Directors meeting on October 5, 2024, according to the audited financial statements for the fiscal year ending June 30, 2024. The firm, struggling with significant financial losses, detailed a plan to dispose of key assets and potentially change its business focus to technology and ICT.

For the fiscal year that concluded on June 30, 2024, BFL reported a net loss of $20.18 million, an improvement from the previous year's loss of $23.47 million. Administrative expenses decreased from $24.44 million in the previous year to $20.18 million, reflecting some cost-cutting measures. Notably, other income that bolstered the previous year's financials, such as the $6.00 million reported in 2023, was absent in the latest fiscal period. The company also reported a reduction in loss per share from $1.66 to $1.43.

According to information available from the Pakistan Stock Exchange (PSX), BFL's management has received Board approval to sell off the company's assets at 38 kilometers, Sheikhupura Road. This sale includes property, plant, and equipment among other assets, with proceeds earmarked for settling liabilities and funding a new business direction. This strategy comes amid the absence of dividends for shareholders, as the company focuses on stabilizing its financial footing.

The company has proposed a change in the corporate structure and branding, including altering the name and the object clause of the Memorandum of Association, pending necessary corporate and regulatory approvals. The upcoming Annual General Meeting (AGM) is scheduled for October 28, 2024, at the registered office in Lahore, with the share register to be closed from October 21 to October 28, 2024.

This series of strategic moves by BFL highlights a pivotal shift as the company seeks to navigate through its financial challenges and reinvent its business model for future viability.