Doha: The Board of Directors of Mekdam Holding Group, led by its Chairman Sheikh Mohammed bin Nawaf bin Nasser bin Khalid Al Thani has approved the company’s financial statements for the period ended June 30, 2021 and reported a revenue of QR99.2m for the first half of the year, an increase of 25.6 percent compared to QR73.8m during the same period of the previous year.
The easing of coronavirus restrictions has accelerated the group’s pace of business implementation and recovery of the previous decline in the project execution and profitability.
Mekdam reported a net profit of QR13.3m for the first half of 2021, with a growth rate of 7.4 percent compared to QR12.4m in the corresponding period of 2020. This growth in net profit is mainly attributable to the growth in business volume. Earnings per share (EPS) stood at QR0.266 for the first half of the year compared to QR0.247 during the same period last year.
CEO of Mekdam Ehab Naser indicated that during the first half of 2021, the company was able to sign new contracts with a total value of QR336.1m exceeding the annual target for 2021. The Board was also briefed on the total value of the contracts being implemented, which amounted to about QR970m, while the value of the remaining works amounted to about QR625m. On sales proposals, Mekdam’s total offers submitted including those under negotiation with customers reached QR1,805 million.
Mekdam Holding Group’s financial position grew by 20.3 percent by the end of June 30, compared to December 31, 2020, because of the steady expansion of the group’s business volume. During the first half of 2021, Mekdam has maintained its liquidity levels of 72.8 percent of its assets (current assets) with the current ratio (current assets to current liabilities) at 2.5-times. The group also maintained low levels of indebtedness, with bank loans minus cash and cash balances amounting to QR14.5m.
During the financial period, Mekdam signed over 160 contracts with major international companies in the field of information technology. Mekdam was also classified Grade (A) by the Government Procurement Regularity Department of the Ministry of Finance and by Kahramaa, in addition to being awarded the title of the ‘Great place to work’. Mekdam also obtained from S&P Global Ratings a credit rating of gcBBB-, which placed the Group in the list of 25 best private companies in the Middle East and North Africa (Mena).
The record of achievements has been strengthened by meeting the requirements of the Communications Department of the Ministry of Interior through the development of the patented early warning system, which is registered under the Group’s name. The system has attracted more than 4,000 customers connections. There has been increase in the qualification of professional cadres that has been enhanced through continuous training due to the steady growth in the number of employees which exceeded over 700.
Mekdam Holding Group also addressed the provision of new services such as the distance education system in Qatar, which was recently developed for the Ministry of Education and Higher Education. Mekdam also extended its business lines in the field of cybersecurity.
The Board also reviewed the results of the listing on the venture market held recently. The listing of Mekdam Holding Group on the Qatar Stock Exchange was welcomed by investors. This reflected in an increase in the market value of the shares from the initial price, and the Group was able to increase its shareholder base to about 280 shareholders, about 87 percent of which are Qataris. By the end of 2021, the Group aims to increase its shareholder base to about 500 shareholders and float 25 percent of the capital.
The Board reviewed the Group’s performance compared to the performance of the financial market on the Qatar Stock Exchange, in which the annual rate of return to market cap of the Group stood at 7.3 percent, exceeding the annual rate of return to market cap on the Qatar Stock Exchange which was at 5.4 percent as of June 30, 2021. The Board considered this percentage to be a catalyst for investment in the Group and stressed the need to maintain this ratio and exploit the technological activities of Mekdam Holding Group.
