Mekdam Holding Group achieved a net profit of QR34.3mn in 2022 compared to QR28.6mn in 2021, which represents an increase of 20%.
The results were announced after a meeting of Mekdam Holding Group board of directors chaired by Sheikh Mohamed bin Nawaf bin Nasser bin Khalid al-Thani.
Sheikh Mohamed indicated that Mekdam's revenue reached QR527mn for the financial year that ended on December 31,2022, compared to QR284.3mn for the same period in 2021 with a growth rate of 85.4%.
“Providing new services in the distance education system, providing comprehensive maintenance services for gas recycling plants, and providing ground manpower to Qatar Airways Group enhanced the earning level,” the company said in a statement.
Earnings per share amounted to QR0.504 in 2022 compared to EPS of QR0.420 in 2021.
CEO Ehab Naser indicated that during 2022 Mekdam was able to sign new contracts with a total value of QR1,272mn exceeding the annual target for 2022.
The board of directors was also briefed on the total value of the contracts being implemented, which amounted to about QR2,065mn, while the value of the remaining works amounted to about QR1,430mn.
With respect to the sales proposals, the total offers submitted and being negotiated with customers amounted to about QR2,102mn. The expected success rate, according to historical indicators, ranges from 20% to 30%. The customer retention rate was around 90%.
The financial position of Mekdam grew by 77.3% by end-December 2022 compared to the same period in 2021, because of the steady expansion of the group's business volume.
The board reviewed the results of the credit rating, where Standard & Poor's confirmed the credit rating of Mekdam at (gcBBB-), and 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 on the 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.
As a result of the “outstanding” performance and absolute commitment to the requirements of the regulatory authorities, Mekdam was able to transfer the listing of its shares from the venture market to the main market effective January 2, 2023.
The group was also able to increase the shareholder base to approximately 450 shareholders. The founders, through the listing, offered about 23.8% of the group's capital.
The group aims to increase the shareholder base to about 1,000 shareholders and float 50% of the capital by end of year 2023.
The board of directors decided to recommend to the company’s general assembly distribution of dividends to shareholders at the rate of 45.29% of the company's capital, so that cash dividends are distributed to shareholders at 35% of the company's capital, and free shares are distributed to shareholders at a rate of seven shares for every 68 shares (i.e., approximately equivalent to 0.1029 share for each share).
