Secure Logistics - Trax Group Limited (herenafter referred to as 'SLG-Trax' or the 'Company') obtained a listed status on the Pakistan Stock Exchange (PSX) on April22, 2024. Prior to this, SLG-Trax was named as Secure Logistics Group and operated as a Private Limited Company (previously known as Asia Capital Partners (Pvt) Limited) which was established in 2013. SLG-Trax (the Holding Company) owns and operates the logistic assets (third party transportation). The Company has four subsidires having different Business Lines; (1) Trax Online Pvt. Ltd. - operating e-commerce and warehousing (2) LogiServe (Pvt) Ltd – asset tracking and NBFC operation, (3)  FIST Security (Pvt) Limited – provides full range of security services and (4) Sky Guard (Pvt) Ltd – also engaged in security services.

Over the past years,  the Company has evolved from a security services provider to adding asset tracking, third-party logistics and lately e-commerce and warehousing. During this journey, the Company’s shareholders and management has demonstrated an acumen for organic growth through M&A activities. Simultaneously, the Company has raised substantial equity and debt capital.

SLG-Trax operates a robust, scalable logistics platform integrating delivery fulfillment, fleet management, asset tracking, and financial services. The Company provides logistics and fleet management services to leading corporates, banks, insurance, and leasing firms. Leveraging advanced IT systems, Company optimizes route planning, real-time tracking, and order processing for high efficiency and reliability. Its proactive fleet monitoring enhances security and minimizes downtime, while embedded financial technology streamlines cash flow through COD repayments and credit facilitation. Strong collaboration with merchants, corporates, and institutional partners enables effective management of complex supply chains and diverse cargo. This framework ensures consistent service quality and scalable growth to meet increasing market demands.

Sponsoring family cumulatively owns ~38% shareholding, Other shareholders comprise Trax ~28%, KBP Limited Pakistan ~11%, Karandaaz Pakistan ~ 8%, and the general public owning about 15%.

SLG-Trax exhibits a high degree of institutional and operational stability, underpinned by its diversified service portfolio, long-term client relationships, and integrated business model. By operating across multiple verticals—logistics, asset monitoring, vehicle tracking, and embedded financial services—the Company reduces its reliance on any single revenue stream and builds resilience against market fluctuations. Its ability to generate consistent order volumes and maintain strong partnerships with corporates, financial institutions, and insurers further reinforces business continuity. Additionally, Company's data-centric approach enables better forecasting, risk mitigation, and informed decision-making. These factors collectively contribute to a stable foundation for long-term performance, scalable growth, and sustained stakeholder confidence.

SLG-Trax demonstrates strong business acumen through its strategic ability to identify market gaps, integrate cross-functional services, and adapt to evolving industry trends. The Company has effectively combined logistics, asset tracking, and financial technology to create a vertically integrated platform that delivers operational efficiency and value-added services. This reflects a deep understanding of both customer needs and broader market dynamics. Company’s data-driven approach enables informed decision-making, particularly in areas such as credit enablement, risk management, and delivery optimization. Its leadership has shown foresight in aligning with key institutional partners, securing long-term engagements, and investing in scalable infrastructure. This combination of strategic insight, operational execution, and innovation positions SLG-Trax as a forward-looking enterprise with a clear roadmap for sustainable growth and competitive advantage.

SLG-Trax demonstrates solid financial strength, supported by a diversified revenue model, steady cash flows, and prudent financial management. The Company’s integrated operations across logistics, asset tracking, and financial services create multiple, complementary income streams that enhance financial resilience and reduce dependency on any single line of business. Company's ability to leverage real-time delivery and payment data to facilitate embedded financial services further strengthens monetization potential and capital efficiency. The organization maintains a disciplined approach to cost control, capital deployment, and risk management, positioning it well to navigate economic volatility while sustaining long-term profitability and growth.

The SLG-Trax board comprises nine members, consisting of two executive directors, four non-executive directors, and three independent directors.

The Board of Directors (BoD) of SLG-Trax consists of a highly experienced team with a diverse blend of skills, backgrounds, and leadership across multiple industries. Mr. Pervaiz Khan, Executive Director, brings over ~40 years of wide-ranging experience in both the public and private sectors, with a strong focus on investment banking and the energy sector. He has served as the Chief Executive Officer of Uch Power I and II (Private) Limited. Additionally, he represented Pakistan as the Country Delegate for GDF Suez (the Group Holding Company) and was a member of International Power's Asia  Executive Committee. Mr. Khan has also served on the boards of several key institutions, including the Privatization Commission, Pakistan State Oil (PSO), Government Power Holdings (Private) Limited, and the Ambassador Program for Pakistan at Columbia Business School. Following the merger with Trax Online (Private) Limited, SLG-Trax welcomed two new members to its Board of Directors_ Mr. Asad Abdulla holds a Bachelor of Arts in Economics from the University of Rochester and a Certificate in Management Information Systems from the Simon School of Business, New York. He has over ~20 years of leadership experience, including senior roles at Genesis Holdings and various executive positions at the IBL Group since 2002. He is a Certified Director from the Institute of Chartered Accountants of Pakistan (ICAP) and has served on the boards of International Brands Limited, United Distributors, FMC United, IBL Operations, The Searle Company, and Trax (Private) Limited. Mr. Ayaz Abdulla, the brother of Mr. Asad Abdulla, holds both a Bachelor of Science and a Master of Science in Mechanical Engineering from the University of Rochester, New York. He also has more than ~20 years of experience, particularly in corporate finance, strategy, and operations. Mr. Ayaz Abdulla has served as Chief Financial Officer, Chief Strategy & E-Commerce Officer at Khaadi, and as Group CFO at IBL, where he led major organizational transformation initiatives. He has also held the position of CEO at International Franchises (QSR) and served on the boards and audit committees of several publicly listed companies. He is a Certified Director from ICAP. Mr. Gulraiz Khan has been managing the operations of the Company since its inception. He holds a Master’s degree in Defense Management Studies from the National Defence University (NDU), Pakistan; a Master’s degree in Strategy from the Command and General Staff College, Fort Leavenworth, USA; and an MBA from the London Business School.

The effectiveness of the Board of Directors at SLG-Trax is rooted in its diverse composition, strategic oversight, and commitment to strong corporate governance. The Board brings together a wealth of experience across key sectors including investment banking, energy, logistics, technology, and consumer goods, enabling well-rounded and informed decision-making. Board members actively contribute to strategic planning, risk management, and performance monitoring, while ensuring compliance with regulatory and ethical standards. With several members holding internationally recognized certifications in directorship and governance, the Board fosters transparency, accountability, and long-term value creation. The addition of new directors following the merger has further strengthened the Board’s capacity to guide SLG-Trax through continued growth and transformation.

Current auditors RSM Avais Hyder Liaqat Nauman Chartered Accountants have expressed an unqualified audit report on Company's' financial statements as of CY24. The Company has also established internal audit function.

The organizational structure of SLG-Trax is built around two core pillars: Business Lines and Support Functions, ensuring operational efficiency and strategic alignment across the Company. All operational activities, including day-to-day execution, service delivery, and business development, are overseen by Mr. Gulraiz Khan, who plays a central role in driving business performance and managing client-focused operations. The Support Functions are under the leadership of Mr. Pervaiz Khan, who is responsible for overseeing key corporate functions including Accounts & Finance, Human Resources, Administration & Procurement, Legal & Contracts, and Information Technology. His role ensures that all support departments operate in alignment with the Company's strategic goals, providing the necessary infrastructure, governance, and compliance frameworks to enable seamless operations.

The management team at SLG-Trax is a cornerstone of the Company’s success, comprising a diverse group of professionals with extensive expertise and a proven track record in logistics, finance, operations, and corporate governance. At the helm is Mr. Gulraiz Khan, the Chief Executive Officer, who is responsible for steering the Company’s overall operational strategy, business development, and day-to-day management. His leadership ensures that SLG-Trax remains agile, competitive, and focused on delivering exceptional value to its clients. Supporting him is Mr. Pervaiz Khan, the Executive Director overseeing Support Functions such as Finance, Human Resources, Administration, Legal, and Information Technology. Mr. Khan’s stewardship of these critical areas guarantees robust corporate governance, efficient resource management, and seamless organizational support, which are essential for sustaining growth and operational stability.  The management structure is organized into three hierarchical levels: senior, middle, and junior management. This tiered framework facilitates clear lines of communication, accountability, and decision-making across the Company. Senior managers focus on strategic planning and major business initiatives, middle managers translate these strategies into operational plans, and junior managers oversee day-to-day activities and frontline supervision. Collectively, the management team combines deep industry knowledge with a strong commitment to excellence and innovation. Their collaborative approach fosters a culture of continuous improvement, employee engagement, and customer-centricity. This synergy has enabled SLG-Trax to adapt to market challenges, optimize operational efficiencies, and consistently achieve its growth objectives, thereby reinforcing its position as a leading player in the logistics sector.

SLG-Trax has established a comprehensive and robust internal control environment to ensure operational efficiency, financial accuracy, and compliance with regulatory standards. This framework is built on several key pillars, including detailed Standard Operating Procedures (SOPs), a structured financial approvals matrix, Management Information System (MIS) reporting packages, and clearly defined policies across all core business functions such as Human Resources, Administration, Procurement, and Information Technology. Together, these elements provide a strong foundation for governance, risk management, and accountability within the organization. The SOPs play a crucial role in guiding day-to-day operations by clearly documenting processes, responsibilities, and control mechanisms. They help maintain consistency in operations, minimize errors, and promote efficiency across departments. The financial approvals matrix further strengthens this environment by specifying authorization levels required for different types of financial transactions. This ensures proper oversight and segregation of duties, reducing the risk of errors or misuse of Company resources. In addition, the Company uses structured MIS reporting packages that provide accurate, timely, and relevant data to management. These reports support informed decision-making, allow for effective performance monitoring, and help identify risks and opportunities for improvement across the business. Supporting these systems are comprehensive policy documents that govern all key operational functions, ensuring compliance with internal standards and legal requirements. Furthermore, all of the Company’s critical assets are insured, ensuring protection against unexpected losses and contributing to overall business continuity planning.  Recognizing the importance of continuous improvement in governance and controls, SLG-Trax is actively working to further enhance its internal control environment. In addition to the ERP implementation, SLG-Trax is appointing independent internal auditors. Their role will be to conduct objective assessments of the Company’s internal controls, identify any weaknesses, and recommend improvements to ensure robust governance and regulatory compliance. Moreover, the Company is currently updating all existing operational and functional manuals to reflect current practices and align them with the new ERP workflows. These updates are aimed at ensuring clarity, efficiency, and consistency in the execution of all business processes. Through these ongoing efforts, SLG-Trax demonstrates its strong commitment to maintaining high standards of corporate governance, operational excellence, and risk management, thereby positioning the Company for sustainable growth and long-term success.

The Company has implemented a comprehensive Management Information System (MIS) reporting framework, with reports prepared and presented on a weekly, bi-monthly, monthly, and quarterly basis by all business units and support functions. This structured reporting approach enables effective performance monitoring, timely decision-making, and organizational alignment. Furthermore, the ongoing implementation of the ERP system (SAP Business One) is expected to significantly enhance the accuracy, consistency, and timeliness of MIS reporting, contributing to improved operational efficiency and strategic planning.  Following the recent merger and Secure Logistics group’s transformation from a traditional logistics operator into a technology-enabled logistics and FinTech platform, the merged entity is well-positioned to command higher valuation multiples. This transformation reflects several key drivers of value creation. Firstly, there has been a fundamental platform shift, as the Company transitions from traditional operations to a technology-led 3PL/4PL model. This positions the business within a more dynamic and higher-growth segment of the logistics industry. Secondly, the Company has achieved full-stack ecosystem ownership through vertical integration. By controlling the entire value chain—from logistics and technology to financial services—it can capture greater value and operate with enhanced efficiency.  Thirdly, the integration of data and digital capabilities has unlocked a new layer of technological value. These capabilities not only support smarter decision-making and operational agility but also align the Company with tech-based valuation metrics. Fourthly, the business has introduced a diversified margin stack through its supply chain lending offering, creating additional revenue streams and improving overall profitability. Finally, this strategic transformation allows for a repositioning of the Company within a new peer group consisting of tech-enabled logistics and FinTech players. As a result, the Company stands to benefit from a potential rerating in line with its new positioning and the value it brings to shareholders.

SLG-Trax has implemented a comprehensive and effective internal control system designed to ensure operational efficiency, financial accuracy, and compliance with regulatory requirements. At the core of this system are clearly defined lines of responsibility and authorization, which provide a structured framework for decision-making and accountability across all departments. Each functional area operates with established authority levels, ensuring that critical processes are subject to appropriate oversight and control. This governance structure is further reinforced by a strong technological infrastructure that supports both the Company’s manufacturing operations and its various support functions. The use of advanced systems and digital tools enables real-time monitoring, process automation, and data integrity, thereby minimizing risks related to manual errors, fraud, or inefficiencies. These systems are integrated across departments, allowing for seamless communication, efficient resource allocation, and centralized reporting. By combining clear organizational accountability with robust technological capabilities, SLG-Trax ensures that its internal control environment remains resilient, adaptive, and aligned with the Company’s strategic objectives. This integrated approach not only supports operational excellence but also strengthens stakeholder confidence in the Company’s governance and risk management practices.

The logistics sector in Pakistan is undergoing a critical phase of transformation driven by strategic partnerships, regulatory reforms, and increasing adoption of technology. Collaborations such as the joint venture between the National Logistics Cell (NLC) and DP World aim to modernize freight logistics and enhance trade competitiveness. However, the sector continues to face significant challenges, including substantial losses from reliance on offline trade practices and an imbalance in container movement that highlights inefficiencies.  Although the anticipated benefits from the China-Pakistan Economic Corridor (CPEC) have not yet fully materialized, the completion of key infrastructure projects such as the Sukkur-Hyderabad motorway and Industrial Parks/Special Economic Zones (SEZs) is expected to catalyze exponential growth in Pakistan’s logistics industry. Despite these advancements, the sector must address digitalization gaps and trade imbalances to fully realize its growth potential and strengthen Pakistan’s position in global supply chains. Technological advancements are transforming logistics operations as well. The integration of Artificial Intelligence (AI) and the Internet of Things (IoT) is improving productivity, environmental sustainability, and safety, particularly through AI-based smart port logistics systems. Research shows that optimizing distribution hubs with GIS-based algorithms can reduce average delivery distances by up to ~16%, thereby improving efficiency and reducing the environmental footprint. Despite current challenges, ongoing infrastructure development, regulatory enhancements, and technological adoption present a clear path to modernizing Pakistan’s logistics sector. Addressing inefficiencies and embracing digital transformation will be essential to unlocking the sector’s full potential and enhancing Pakistan’s role in global supply chains.

SLG-Trax is currently the only Company listed on the Pakistan Stock Exchange (PSX) that operates within the organized segment of the logistics, vehicle fleet management, asset tracking, and security services industry. The Company is undergoing a strategic transformation, moving from traditional logistics practices toward a technology-driven, digitally enabled operating model. This transition has been significantly accelerated by the merger of Secure Logistics Group (SLG) with Trax Online Private Limited, a tech-led logistics and e-commerce solutions provider. The merger combines SLG’s strong legacy in secure transportation and logistics with Trax’s technology capabilities, last-mile delivery infrastructure, and digital ecosystem. Together, the merged entity offers a vertically integrated, full-stack logistics and FinTech platform, uniquely positioned to capitalize on emerging opportunities in the organized sector. The broader logistics sector in Pakistan remains highly fragmented, with approximately ~80% of operations falling within the unorganized sector and only around ~20% in the organized space. This organized segment is dominated by a few key players, including National Logistics Cell (NLC), Bashir Siddiq Logistics (BSL), Allied Logistics Services, DHL, and TCS. These companies distinguish themselves through scale, operational discipline, and the use of formal systems and compliance frameworks. Within this competitive landscape, SLG-Trax has firmly established its position, particularly in the dry containerized and bulk cargo segments. Its diverse and high-profile client portfolio reflects the Company’s reliability, infrastructure capabilities, and reputation for delivering secure and efficient logistics solutions. As a merged entity with Trax, SLG-Trax is now uniquely equipped to offer end-to-end logistics services—from line-haul and fleet management to last-mile delivery and supply chain financing—enabling it to address a wider market and unlock new growth avenues through technology integration and service innovation.

During IHCY25, the Company recorded revenue of  PKR 1,457mln. While revenue of PKR 2,518mln reported during the CY24,  the revenue performance for the period demonstrates improvement driven by a more effective pricing strategy and a focus on higher-margin contracts. The Company continues to benefit from long-term service agreements with leading corporate clients operating in key industrial sectors, including food and beverages, cement, steel, and packaging. These established relationships provide a stable and recurring revenue base, supporting business sustainability and positioning the Company for consistent growth as market demand recovers and strategic initiatives—such as technology integration and operational efficiencies—begin to take full effect.

The Company’s financial performance showed notable improvement in the IHCY25, particularly in terms of profitability. Gross margins increased significantly to ~55%, up from around ~43% in CY24, reflecting the impact of a more effective pricing strategy, better cost control, and operational efficiencies. Operating margins also improved, reaching to ~17% in IHCY25, highlighting enhanced productivity and optimized resource utilization across the business. Similarly, the net profit margin rose to ~30%, compared to ~24% in CY24, demonstrating the Company’s ability to convert a greater share of its revenue into bottom-line earnings. After consolidating the financial performance of its subsidiaries, the Company reported a net profit of PKR ~439mln for IHCY25. While net profit of PKR ~601mln reported in CY24, it reflects a strong half-year performance, positioning the Company well for sustained profitability in the second half of the year.

SLG-Trax is undertaking a strategic transformation to become a technology-driven logistics and financial services provider. The Company plans to shift from traditional operations to a tech-led 4PL model, which will improve efficiency and scalability. It aims to achieve full-stack ecosystem ownership through vertical integration, capturing greater value across the supply chain and unlocking premium margins. SLG-Trax also intends to leverage data and digital technologies to enhance analytics and automation, unlocking technology-driven growth opportunities. Additionally, the Company plans to diversify its revenue streams by expanding into supply chain lending, which will strengthen its margin profile.  As part of this strategy, SLG-Trax is preparing to acquire Finova Technologies (Pvt) Ltd, a Singapore-based supply chain finance Company. The Board of Directors has approved entering good-faith negotiations to acquire Finova’s FinTech intellectual property, with the possibility of assuming operational control of the Company. The FinTech platform will be deployed across SLG-Trax’s extensive network, which includes around ~9,000 retail clients and ~300 corporate e-commerce clients. This integration will enable the development of a merchant-centric digital platform for deliveries, embedded with lending and financial processing solutions, further enhancing Company’s digital capabilities.

As of IHCY25, the Company demonstrated a notable improvement in its net working capital cycle, with net working capital days reduced to ~38 days, compared to ~47 days in CY24. This reduction indicates more efficient use of working capital and reflects enhanced management practices across key areas — including receivables collection, inventory turnover, and payables management. Such improvements contribute to stronger cash flow efficiency, reduce reliance on external funding, and enhance overall operational agility. The Company also continues to exhibit a robust liquidity position, as evidenced by a current ratio of ~3.5x. This healthy ratio indicates that the Company possesses sufficient short-term assets to comfortably cover its short-term liabilities, providing a strong cushion against liquidity risks. In addition to internal cash generation, the Company maintains access to running finance facilities from some of the leading commercial banks in the country. These facilities provide flexibility to manage day-to-day working capital needs and serve as a strategic financial buffer. This access to banking lines not only supports the Company’s current operational requirements but also positions it well to pursue future growth opportunities without facing immediate liquidity constraints.

Free Cash Flow from Operations (FCFO) amounted to PKR 570mln in IHCY25. The Company demonstrated a notable improvement in full-year FCFO, increasing to PKR ~1,073mln in CY24 from PKR ~827mln in CY23 — reflecting enhanced operational efficiency and cash generation. In line with stronger financial performance, the interest coverage ratio improved significantly, reaching ~4.3x in IHCY25 compared to ~2.6x in CY24, indicating a strengthened ability to meet financial obligations.

As of IHCY25, the Company’s debt portfolio primarily consists of short-term borrowings amounting to  PKR ~346mln. These borrowings have been utilized to support the Company’s working capital requirements. During IHCY25, the Company’s gearing ratio stood at ~10%, reflecting prudent financial management. Notably, the gearing ratio of the SLG-Trax improved significantly, declining to around ~11% in CY24 from ~33% in CY23 — a substantial improvement in the group’s financial leverage position.