Keir board approves strategic plan to address accumulated losses

Keir says the strategic plan aims to lower capital to offset accumulated losses

Keir International Co.’s board approved a strategic plan to address the company's accumulated losses through a capital restructuring.

In a statement to Tadawul, the company said the board authorized management to take all necessary procedures to evaluate and implement the most appropriate regulatory options.

These include reducing the company's capital to offset accumulated losses, followed by a capital increase, or pursuing any other legally permissible alternative that achieves the same objective.

The move aims to serve the best interests of the company and its shareholders, while ensuring compliance with applicable regulations and obtaining all required approvals, the statement said.

The company is in the process of appointing a financial advisor licensed by the Capital Market Authority (CMA) to evaluate the available options for addressing accumulated losses and restructuring its capital.

The executive management will coordinate with the appointed financial advisor, legal advisor, and external auditor to prepare a detailed restructuring plan and the required studies for submission to the board and to make the final recommendation to the extraordinary general meeting (EGM).

The board also approved transferring the statutory reserve balance of SAR 13.57 million, as reported in the 2025 financial statements, to the accumulated losses account to offset part of the company's accumulated losses.

In addition, it transferred the entire share premium balance of SAR 41.77 million, as of Dec. 31, 2025, to the accumulated losses account for the same purpose.

The board further recommended that the EGM approve the company's continuation.

Any material developments will be announced in due course, the statement said.

Keir is currently unable to determine the financial impact of these measures. Any financial effects or material developments will be disclosed once the financial advisor completes the required studies, secures board approval and obtains relevant regulatory approvals.

The EGM had previously approved transferring the statutory reserve and share premium balances to accumulated losses. The impact will be reflected in the company's interim financial statements for the six months ended June 30, 2026.

The company said the board's resolutions are preliminary and do not constitute a final recommendation to reduce or increase capital. Any material developments will be announced in due course.

According to data available with Argaam, Keir swung to a net loss of SAR 45.8 million in 2025 from a net profit of SAR 459,400 a year earlier.

Accumulated losses reached SAR 148.43 million, or 123.7% of capital, by the end of 2025.