Colombo, Sri Lanka – 13 August 2026 – ALPHA FIRE SERVICES PLC (CSE: FIRE), a leading provider of fire detection and protection systems, today released its interim financial statements for the quarter ended 30th June 2026. The report highlights a challenging period for the company, marked by a significant decline in revenue and a shift from a net profit to a net loss compared to the corresponding quarter of the previous financial year.
The company, incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange, specializes in the design, supply, installation, and maintenance of critical fire safety infrastructure. Its principal activities underpin essential safety standards across various sectors.
Financial Performance Overview (Q1 FY2027)
For the three months ended 30th June 2026, ALPHA FIRE SERVICES PLC recorded a revenue of Rs. 100,405,102, representing a 20% decrease from Rs. 120,054,826 reported in the same quarter of 2025. This downturn was primarily driven by a substantial reduction in projects revenue, which fell from Rs. 95,195,486 in June 2025 to Rs. 64,789,146 in June 2026, despite growth in the services segment.
Cost of sales also saw a proportional decrease of 15% to Rs. 59,590,143. However, gross profit consequently dropped to Rs. 40,814,959 from Rs. 51,788,724 in the prior year.
Operating expenses significantly impacted profitability. Administrative expenses surged by 42% to Rs. 32,416,464, while selling and distribution expenses rose by 16% to Rs. 9,082,410. These increases, combined with the lower gross profit, resulted in an operating loss of Rs. 683,915, a stark contrast to the operating profit of Rs. 25,409,795 recorded in the previous year.
Despite a notable 73% reduction in net finance expenses to Rs. 1,601,817, the operational challenges led to a profit before taxation turning into a loss of Rs. 2,285,733, compared to a profit of Rs. 22,637,364 in Q1 FY2026. Consequently, the company reported a net loss of Rs. 2,285,733 for the quarter, down from a net profit of Rs. 14,115,558 previously. Earnings per share (EPS) moved from Rs. 0.37 positive to Rs. (0.06) negative.
Statement of Financial Position Highlights
As at 30th June 2026, the company’s total assets stood at Rs. 412,326,620, an increase from Rs. 370,321,223 as at 31st March 2026. This growth was mainly supported by an increase in term deposits and trade and other receivables.
Total equity saw a slight decline to Rs. 221,489,144 from Rs. 223,876,100 at the end of March 2026. This was primarily due to the reported loss for the period affecting retained earnings.
Total liabilities rose significantly to Rs. 190,837,476 from Rs. 146,445,123. This increase was driven by higher short-term bank borrowings, trade and other payables, and deferred income, indicating an increase in operational funding needs and short-term obligations.
Cash Flow Dynamics
The company reported a net cash flow used in operating activities of Rs. (11,474,057) for the quarter, an increase from Rs. (7,603,257) in the corresponding period last year. This was primarily due to higher cash used in changes in working capital, particularly an increase in trade and other receivables.
Investing activities generated a net cash inflow of Rs. 4,890,496, largely influenced by an increase in deferred income and interest income, partially offset by an increase in investment in fixed deposits. Financing activities generated Rs. 7,353,561, mainly from short-term loan receipts.
Company Profile and Shareholder Insights
ALPHA FIRE SERVICES PLC continues its core mission of providing essential fire safety solutions across Sri Lanka. The Board of Directors, chaired by Mr. Asantha Menaka Athukorala, with Mr. Viraj Fernando serving as Managing Director, remains committed to guiding the company through its operational challenges.
As at 30th June 2026, the company had 37,950,000 ordinary shares in issue. The public holding comprised 11,746,627 shares, representing 30.95% of the total issued shares, held by 1,032 shareholders. Mr. Viraj Fernando, the Managing Director, holds 10,000 shares.
During the quarter, the share price of ALPHA FIRE SERVICES PLC experienced fluctuations, with a highest recorded price of Rs. 41.50 and a lowest of Rs. 28.70. The last traded price as of 30th June 2026 was Rs. 31.30.
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