Karachi: Leather Up Limited has reported a substantial decrease in its financial performance for the fiscal year ending June 30, 2025, as detailed in their recently released financial statements. The company’s total assets diminished from 28.47 million rupees in 2024 to 21.93 million rupees in 2025, a decline attributed to both non-current and current assets.

The company’s non-current assets, particularly property, plant, and equipment, decreased to 2.43 million rupees from the previous year’s 2.57 million rupees. Current assets saw a notable reduction, with stock-in-trade falling significantly to 10.34 million rupees from 17.84 million rupees. Meanwhile, trade debts were not reported, and advances, deposits, and other receivables increased to 4.90 million rupees from 4.41 million rupees.

On the financial performance front, Leather Up Limited experienced a sharp decline in sales revenue, dropping to 12.09 million rupees from 27.53 million rupees in 2024. This substantial decrease in sales revenue marked a very large or significant move. The cost of sales also decreased to 10.89 million rupees from 21.25 million rupees, resulting in a gross loss of 1.20 million rupees, contrasting with the previous year’s gross profit of 6.28 million rupees.

Operating loss expanded notably from 90,821 rupees in 2024 to 4.99 million rupees in 2025. This was due to administrative expenses rising to 5.79 million rupees, while distribution expenses decreased to 398,905 rupees. The company’s profit before taxation turned negative at 4.51 million rupees, contrasting with a positive 321,682 rupees the previous year.

According to information available from the Pakistan Stock Exchange (PSX), Leather Up Limited’s financial distress is underscored by a reported loss after taxation of 4.51 million rupees, a stark contrast to the profit of 321,682 rupees in the preceding year. The company’s comprehensive income also reflected a loss of 4.38 million rupees compared to a profit of 466,281 rupees in 2024.

In terms of equity and liabilities, the company’s share capital remained unchanged at 60.00 million rupees. However, accumulated losses widened to 48.98 million rupees from 44.47 million rupees, further impacting its revenue reserves, which stood at a negative 44.13 million rupees.

Leather Up Limited’s liabilities saw changes, with staff retirement benefits increasing to 693,111 rupees from 470,382 rupees, and trade and other payables reducing to 3.70 million rupees from 6.02 million rupees. Loans from directors decreased to 33,600 rupees from 88,600 rupees.

The company reported a modest net cash generation from operating activities of 561,350 rupees, a recovery from a negative cash flow of 1.43 million rupees in 2024. However, net cash used in financing activities was recorded at 55,000 rupees.

Overall, the financial statements reveal a challenging year for Leather Up Limited, marked by significant declines in key financial metrics, impacting its position in the market.