The Board of Directors of Eshraq Investments has commissioned a forensic review of the valuation of the Goldilocks Fund in its financial results for the full year 2024.
On Tuesday, Eshraq Investments had released its audited financial results for the 12-month period ending 31 December 2024, in which its revenue from commercial operations dipped almost half of that in 2023 to AED16.3 million (US$4.44 million), compared to AED31.6 million (US$8.6 million).
Fourth-quarter revenue from commercial operations were at AED4.2 million (US$1.14 million), down from AED 5 million (US$1.36 million) in the corresponding quarter in 2023.
Eshraq reports a net loss of AED679.4 million ($185 million)
Finance income increased by 42.9 per cent in FY24 compared to the prior year, with Q4 2024 finance income increasing 16.1 per cent compared to 2023.
Eshraq reported a net loss of AED679.4 million (US$185 million) compared to a net loss of AED545.1 million (US$148.43 million). However, net loss in the final quarter narrowed year-on-year to AED383.6 (US$104.45 million) compared to AED463.7 million (US$126.26 million) in Q4 2023.
The net loss from investments reported for 2024 was mainly driven by asset write-downs following re-valuation of holdings within the Goldilocks Fund. As of year-end 2024, the total net investment value of the Goldilocks Fund stood at AED659 million (US$179.44 million), compared to AED1.33 billion (US$360 million) in FY2023, because of strategic exits from certain holdings and re-valuation of assets.
Eshraq Board of Directors is contending with the re-evaluation and said, “As noted in the Board of Directors’ Report for the 2024 audited financial statements, Eshraq has expressed concerns regarding the valuation of the Goldilocks Fund.
“The company is of the opinion that the Fund Manager has failed to maintain consistency in the methodology applied for the valuation of assets under management, which resulted in significant unexplainable discrepancies in the reported Net Asset Value (NAV) of the fund.
“Eshraq relies on the valuation prepared by the Fund manager and consequently reported a sharp decline in the value of the Fund for 31 December 2024 compared to the valuation carried out by the Fund Manager for 30 September 2024.
“As such, the change in valuation methodology has forced Eshraq to reflect the decline in the Fund’s value in the final quarter of its financial statements.
“In its commitment to safeguarding shareholder interests and addressing this issue with transparency and diligence, the Board has therefore commissioned a forensic review and will take all necessary corrective actions following the conclusion of the investigation.”
Total liabilities reached AED153.4 million (US$41.77 million) in FY24, a 6.4 per cent decrease compared to AED163.9 million (US$44.63 million) in FY23. The reduction in liabilities was driven by a continued reduction in bank borrowings and supported by strategic exits from holdings within the Goldilocks Fund, significantly strengthening the group’s balance sheet.
Follow us on
