Doha: Mekdam Holding Group (Mekdam) has reported a net profit of QR28.6m for the period ended December 31, 2021, an increase of 21.1 percent compared to QR23.6m in the same period in 2020. The Group’s Board of Directors chaired by Sheikh Mohammed bin Nawaf bin Nasser bin Khalid Al Thani (pictured) approved the financial statements during a session held recently.
The growth in net profit is mainly attributable to the growth in business volume. The easing of coronavirus restrictions has also accelerated the pace of business implementation and recovery from the previous decline in project execution and profitability.
Earnings per share (EPS) stood at QR0.571 for 2021 compared to EPS of QR0.472 in 2020. The Group’s revenue also rose by 94.3 percent to QR284.3m for the period ended December 31, 2021, from QR146.3m in 2020.
The Board has also recommended the distribution of dividends to shareholders at the rate of 75 percent of the company’s capital. Cash dividends are distributed to shareholders at 35 percent of the company’s capital, and free shares are distributed to shareholders at a rate of 40 percent.
Mekdam’s CEO Ehab Naser indicated that during 2021, the Group was able to sign new contracts worth QR625m, exceeding its annual target. Contracts being implemented are valued at QR1.170bn, while the value of the remaining works stood at QR730m.
Regarding sales proposals, the total offers submitted and being negotiated with customers amounted to about QR2.900bn. According to historical indicators, the expected success rate ranges from 20 percent to 30 percent, and customer retention rate was 90 percent. The Board of Directors stressed the importance of these indicators, noting that they are key factors in building revenue expectations, net future profits and enhancing the value of shareholders’ equity.
Mekdam’s financial position grew by 95.0 percent by the end of December 31, 2021, compared to December 31, 2020, because of the steady expansion of the Group’s business volume. The Group has maintained its liquidity levels of 77.4 percent of its current assets, which are current assets and maintained low levels of indebtedness, with net indebtedness (bank loans minus cash and cash balances) amounting to QR12.1m.
Mekdam Holding Group signed over 160 contracts with major international companies in the field of information technology. The Group was classified Grade (A) by the Government Procurement Regularity Department at the Ministry of Finance, and was classified as Grade (A) 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 BBB-, placing the Group in the list of 25 best private companies in the Middle East and North Africa (Mena).
Mekdam’s record of achievements was further strengthened by meeting the requirements of the Communications Department at 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 customer connections.
There has also been an increase in the qualification of professional cadres, which was enhanced through continuous training due to the steady growth in the number of employees which exceeded over 910. Majority of the staff were highly trained professional cadres who have obtained professional degrees in their respective fields.
Furthermore, the Group 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, which is witnessing a steady growth in the current era. In addition to the start of providing comprehensive maintenance services for gas recycling plants.
The Board has reviewed the results of Mekdam’s listing on the Qatar Stock Exchange’s (QSE) Venture Market, which 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 270 shareholders, about 82 percent of which are Qataris. The Group aims to increase its shareholder base to about 500 shareholders and float 25 percent of the capital.
The Board also reviewed the Group’s performance compared to the performance of the financial market on the Qatar Stock Exchange.
The Group’s annual rate of return to market cap stood at 8.2 percent, exceeding the QSE’s annual rate of return to market cap of 5.9 percent as of December 31, 2021. The Board considered this percentage to be a catalyst for investment in Mekdam Holding Group, and stressed the need to maintain this ratio and exploit the Group’s technological activities to add to the Company’s growth rate and enhance shareholders’ value.
