Gammon Pakistan Limited (GAMON) reported loss per share of PKR 2.26 for FY25, compared to earnings per share of PKR 1.51 in FY24. The company currently has no projects in hand, and the reported revenue was generated entirely from asset sale proceeds. The Maritime Technologies Complex Project was formally closed during the period, resulting in the receipt of PKR 6.9m. The realized value of PKR 155m came in below the initial valuation reports, creating a meaningful variance.
Management attributed this to ongoing legal and administrative costs, as well as challenges arising from land-grabbing, which complicated the sale process. A total of PKR 64.5m (out of an approved PKR 90.5m) has been disbursed as a loan to the subsidiary, Gammon Pakistan Pre-Cast (Pvt.) Ltd, for construction of a shed intended to generate rental income. Upon completion, the subsidiary expects to deliver PKR 1m per month in rental income.
The company also spent PKR 55.5m on renovating the Gammon House building to enhance its commercial value and improve rental potential. Additionally, PKR 5m was utilized to settle recoveries payable to the FBR, while PKR 23.5m was paid to a local party engaged to facilitate completion of the plot sale process and help resolve local issues.
Management expects improvement driven by the Government of Pakistan’s planned investments in infrastructure, energy, education, and housing. Key risk includes working capital shortage, which could negatively impact future performance. In addition, ongoing nationwide political and economic instability poses a threat to the broader business environment.
Important Disclosures
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