The employees of Mekdam Holding Group in its manufacturing unit.
Doha: Mekdam Holding Group has posted net profit of QR18.4m for the period ended on September 30, 2021, compared to QR16.8m in the corresponding period of 2020 with a growth rate of 9.4 percent. The growth in net profit is mainly attributable to the growth in business volume. Earnings per share (EPS) amounted to QR0.367 for 2021 compared to EPS of QR0.336 for 2020.
The Board of Directors of Mekdam Holding Group Q.P.S.C., chaired by Sheikh Mohammed bin Nawaf bin Nasser bin Khalid Al Thani, held a session on October 21, 2021, to discuss and approve the financial statements for the period ended September 30, 2021.
The Chairman of the Board of Directors indicated that Mekdam Holding Group’s revenue reached QR180.4m for the period ended September 30, 2021, compared to QR104.9m for the same period of the previous year with a growth rate of 71.9 percent.
The easing of Coronavirus restrictions has accelerated the pace of business implementation and recovery of the previous decline in the project execution and profitability.
Ehab Naser, CEO said that during 2021, Mekdam Holding Group was able to sign new contracts with a total value of QR560.0m exceeding the annual target for 2021. The Board was also briefed on the total value of the contracts being implemented, which amounted to about QR1,110m, while the value of the remaining works amounted to about QR767m. With respect to the sales proposals, the total offers submitted and being negotiated with customers amounted to about QR1,499m.
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 of September 30, 2021, Mekdam Holding Group has maintained its liquidity levels of 77.3 percent of its assets, which are current assets. The current ratio (current assets to current liabilities) is 1.9 times. The group also maintained low levels of indebtedness, with net indebtedness (bank loans minus cash and cash balances) amounting to QR10.4m.
The Board also reviewed the results of the listing on the venture market. The listing of Mekdam Holding Group on the Qatar Stock Exchange was welcomed by investors. This is 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. 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 (inverted P/E ratio) of the Group was about 6.6 percent, exceeding the annual rate of return to market cap on the Qatar Stock Exchange which was at 5.4 percent as of September 30, 2021. The Board considered this percentage to be a catalyst for investment in Mekdam Holding Group and stressed on executive management for the need to maintain this ratio and exploit the technological activities of Mekdam Holding Group. The plans and strategy can provide opportunities for investment and growth of the Group which in turn can add to the growth rate of the company and enhance shareholders’ value.
