Sustained revenue helps Mekdam post 10% increase in second quarter net profit
Helped by buoyant business volumes, Mekdam Holding Group reported net growth of 10.1% year-over-year to QR 14.6 million for the period ended June 30, 2022.
The group’s turnover reached QR 226.3 million compared to QR 99.2 million for the same period of the previous year with a growth rate of 128.2%.
“The provision of new services in the distance education system and the provision of comprehensive maintenance services for gas recycling plants have improved the level of remuneration,” said a company spokesperson.
Earnings per share (EPS) was QR 0.215 for the period ended June 30, 2022, compared to EPS of QR 0.195 for the period ended June 30, 2021.
Mekdam Holding Group was able to sign new contracts worth a total of QR 947 million, exceeding the annual target for 2022, said Ehab Naser, its managing director.
The total value of the contracts in progress amounted to about QR 2 billion, while the value of the remaining works amounted to QR 1.38 billion.
As for business proposals, the total of offers submitted and under negotiation with customers is 3.16 billion QR. The expected success rate, according to historical indicators, ranges from 20 to 30%.
As for the financial situation, it increased by 46.5% at the end of June 30, 2022 compared to that at December 31, 2021, due to the steady expansion of the group’s business volume.
As of June 30, 2022, Mekdam Holding Group maintained its liquidity level of 82.5% of its assets, which are current assets.
The current ratio (current assets to current liabilities) is 1.3 times. The group also maintained low debt levels, with net debt (bank loans less cash and cash balances) standing at QR 51.8 million.
The founders, through the listing, had offered 23.8% of the group’s capital. The group aims to increase the shareholding to around 1,000 shareholders and to introduce 50% of the capital by the end of 2022.