The Board of Directors of Meqdam Holding Group, headed by Sheikh Mohammed bin Nawaf bin Nasser bin Khaled Al Thani, held a meeting to discuss and approve the financial statements for the period ending on 31-03-2023.
The Chairman of the Board confirmed that the Meqdam Holding Group has achieved growth in operating profits, as operating profits before bank interest amounted to 11.9 million riyals for the period ending on March 31, 2023, compared to 9.6 million for the same period of the previous year, with a growth rate of 24.6%.
The Board decided to recommend to the Extraordinary General Assembly to increase the group’s capital by 40% (from 75 million riyals to 105 million riyals) by offering 30 million ordinary shares for subscription at a preferential price to the shareholders of the Meqdam Holding Group of 2.51 riyals, so that the shareholder has the right to subscribe at ( 2) Two shares for every (5) five shares held as “subscription rights”.
The improvement in operating profits came as a result of the company’s ability to maintain revenue levels that amounted to 127.5 million riyals, and to reduce operating costs. The Meqdam Holding Group achieved a net profit of 9.7 million riyals for the period ending on March 31, 2023, compared to 9.5 million riyals in the corresponding period of 2022, with a growth rate of 2.1%, as the sharp rise in interest rates curbed the growth in net profits.
Earnings per share amounted to 0.129 riyals for the period ending on March 31, 2023, compared to 0.126 riyals per share for the corresponding period in 2022.
The CEO, Mr. Ihab Nasr, indicated that the Meqdam Holding Group was able, during the year 2023, to sign new contracts with a total value of 81.1 million riyals. About 1,380 million riyals.
As for the offers submitted and being negotiated with clients, they amounted to about 2,437 million riyals, and the expected award rate, according to historical indicators, ranges from 20% to 30%. The customer retention rate is around 90%.
The Board of Directors stressed to the executive management the importance of these indicators, as these indicators are the main factor in building future revenue and net profit expectations and enhancing the value of shareholders’ equity.
As for the financial position of the Meqdam Holding Group, the group maintained its liquidity levels as of March 31, 2023, as the ratio of its current assets reached about 82.0%, while the trading ratio (current assets to current liabilities) amounted to 1.3 times.