AICTEC board approves plan to remedy accumulated losses

Board recommendation will be subject to shareholders vote.

Advance International Company for Communication and Information Technology (AICTEC) said its board of directors approved a plan to address the accumulated losses by gradually improving financial performance and reducing losses over the coming period.

The plan includes controlling operating costs and expenses, improving operational efficiency, accelerating the collection of receivables and outstanding dues, enhancing project management and execution, and improving profit margins, according to a statement to Tadawul today, Oct. 26.

The plan also involves tightening purchasing and procurement policies and negotiating with suppliers to reduce procurement costs, as well as improving working capital and cash flow management.

It also focuses on prioritizing projects and opportunities with higher profit margins and exploring promising overseas investment and acquisition opportunities.

The board also recommended that shareholders at the extraordinary general assembly (EGM) approve the continuation of the company’s operations despite accumulated losses exceeding half of its share capital, in accordance with Article 132 of the Companies Law.

The recommendation is based on the expected improvements from implementing the plan in 2026 and 2027.

The company said it would take the necessary steps to submit the recommendation to the next EGM for a vote, noting that the recommendation is subject to shareholder approval.

The company will announce any further developments in due course.

AICTEC is currently completing the regulatory requirements for the assembly’s agenda and will announce the meeting once these requirements have been fulfilled.

According to data available with Argaam, AICTEC’s accumulated losses stood at 52.38% of its share capital, based on its interim financial statements for the six-month period ended June 30, 2026.

This was attributed to higher costs associated with executing several projects, as well as increased financing costs.