Karachi: LSE Financial Services Limited has reported a substantial increase in its net profit for the year ended June 30, 2024, marking a noteworthy financial turnaround amid a series of strategic adjustments. The company's net profit surged to 61.27 million rupees, a significant rise from the previous year's 1.04 million rupees, according to its latest financial statements.

The financial report, released on June 30, 2024, highlights a series of changes in the company's financial position. Total assets increased to 544.41 million rupees from 511.16 million rupees in the previous year. This growth was primarily driven by a significant rise in non-current assets, which totaled 396.57 million rupees, up from 32.29 million rupees in the prior year.

According to information available from the Pakistan Stock Exchange (PSX), LSE Financial Services Limited saw its issued, subscribed, and paid-up share capital increase to 356.78 million rupees, a substantial increase from 100 million rupees in 2023. This increase was accompanied by a share premium of 31.36 million rupees. The company's total equity also rose to 453.74 million rupees from 100.72 million rupees.

The company's liabilities saw a reduction, with non-current liabilities decreasing to 6.78 million rupees from 3.85 million rupees. Current liabilities also saw a significant decrease, dropping to 71.91 million rupees from 392.52 million rupees. The reduction is attributed to decreased payables and other liabilities.

Operating expenses were reported at 54.49 million rupees, which was slightly lower than the previous year's 56.31 million rupees. Despite the operating loss of 15.14 million rupees, other income and a share of post-tax profits of associates, amounting to 79.51 million rupees, contributed to the profit before taxation of 61.27 million rupees.

The cash flow statement indicates a net decrease in cash and cash equivalents of 28.40 million rupees, bringing the total cash and cash equivalents at the end of FY 2024 to 23.44 million rupees as opposed to 51.84 million rupees at the start of the year. The cash flows from operating activities generated 7.04 million rupees, whereas investing activities yielded 313.73 million rupees. However, the net cash used in financing activities amounted to 349.17 million rupees.

These financial results follow a year of strategic financial restructuring, including adjustments and transfers as per a scheme of merger, which significantly impacted the company's equity and liabilities. The company's financial performance indicates a focused effort to stabilize and enhance profitability amidst ongoing restructuring efforts.