Mekdam Holding Group has announced net profit of QR9.5m for the quarter ended on March 31, 2022 compared to net profit of QR9m for the same period of the previous year. Earnings per Share (EPS) amounted to QR0.139 for the period ended March 31, 2022, compared to an EPS of QR0.132 for the same period of the previous year. Net profit does not include minority right, said the company.
The Board of Directors of Mekdam Holding Group, chaired by Sheikh Mohammed bin Nawaf bin Nasser bin Khalid Al Thani, held a session on April 20 to discuss and approve the financial statements for the period ended March 31,2022.
The Chairman of the Board of Directors indicated that Mekdam Holding Group’s revenue reached QR125.1m for the period ended March 31, 2022, compared to QR49.3m for the same period of the previous year with a growth rate of 153.8 percent.
Providing new services in the distance education system and providing comprehensive maintenance services for gas recycling plants enhanced the earning level. Mekdam Holding Group achieved a net profit of QR9.5m for the period ended on March 31, 2022, compared to QR9m in the corresponding period of 2021 with a growth rate of 5.4 percent. This growth in net profit is mainly attributable to the growth in business volume.
The CEO, Ehab Naser, indicated that during 2022, Mekdam Holding Group was able to sign new contracts with a total value of QR820m exceeding the annual target for 2022. The Board was also briefed on the total value of the contracts being implemented, which amounted to about QR1,840m, while the value of the remaining works amounted to about QR1,400m.
With respect to the sales proposals, the total offers submitted and being negotiated with customers amounted to about QR2,485m. The expected success rate, according to historical indicators, ranges from 20 percent to 30 percent. The customer retention rate was around 90 percent. The Board of Directors emphasized the importance of these indicators to the executive management, as these indicators are the key factor in building revenue expectations, net future profits and enhancing the value of shareholders’ equity.
As for the financial position of Mekdam Holding Group, it grew by 35.7 percent by end of March 31, 2022, compared to December 31, 2021, because of the steady expansion of the group’s business volume. Mekdam Holding Group was able to finance the bulk of this increase through suppliers. As of March 31, 2022, Mekdam Holding Group has maintained its liquidity levels of 82.7 percent of its assets, which are current assets. The current ratio (current assets to current liabilities) is 1.2 times. The group also maintained low levels of indebtedness, with net indebtedness (bank loans minus cash and cash balances) amounting to QR40.7m.
The Board reviewed the results of the credit rating, where Standard & Poor’s confirmed the credit rating of Mekdam Holding Group at (gcBBB-), this rating placed the group in the list of the top 25 private companies in the Middle East and North Africa.
The board also reviewed the stock’s performance in the venture market, where the results of the year 2021 and dividends were welcomed by traders in the Qatar Stock Exchange. This was reflected in the increase in the market value and the increase in the liquidity of the stock. The group was also able to increase the shareholder base to approximately 440 shareholders. The founders, through the listing, offered about 23.8 percent of the group’s capital. The group aims to increase the shareholder base to about 1,000 shareholders and float 50 percent of the capital by end of year 2022.
