Mekdam Holding Group achieved a net profit of QR9.7mn for the period that ended on March 31 compared to QR9.5mn 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.
The results were announced after a meeting of the company board of directors chaired by Sheikh Mohammed bin Nawaf bin Nasser bin Khalid al-Thani here recently.
Sheikh Mohammed said Mekdam Holding Group achieved growth in operating profits, which “before banking interest” amounted to QR11.9mn for the period that ended on March 31compared to QR9.6mn for the same period of previous year, with a growth rate of 24.6%.
This improvement in operating profits came as a result of the company's ability to maintain revenue levels of QR127.5mn and reduce operating costs.
Earnings per share (EPS) amounted to QR0.129 for the period that ended on March 31compared to EPS of QR0.126 for the same period in 2022.
Mekdam Holding Group CEO Ehab Naser noted that so far in 2023 Mekdam Holding Group was able to sign new contracts with a total value of QR81.1mn.
The board of directors was also briefed on the total value of the contracts being implemented, which amounted to about QR2,164mn, while the value of the remaining works amounted to about QR1,380mn.
With respect to the sales proposals, the total offers submitted and being negotiated with customers amounted to about QR2,437mn.
The expected success rate, according to historical indicators, ranges from 20% to 30%. The customer retention rate was around 90%.
The board of directors emphasised on 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.
The board reviewed the growth rates in previous years, as the company's revenues grew by 94.3% and 85.4% in 2021 and 2022, respectively, compared to previous years.
Earnings per share grew by 21.1% and 20% in 2021 and 2022, respectively, compared to previous years.
The board of directors “believes that the group's business is promising and there are great opportunities for steady growth.”
In order to support the continuous growth processes, the board recommended to the extraordinary general assembly to increase the group’s capital by 40% (from QR75mn to QR105mn) by offering 30mn ordinary shares for subscription at discounted price of QR2.51 to the existing shareholders of the Mekdam Holding Group, so that the shareholder is entitled to subscribe by two shares for every five shares owned.
The board also reviewed the performance of the stock on the Qatar Stock Exchange, where Mekdam Holding Group was able to transfer the listing of shares from the venture market to the main market, as of January 2 this year.
The group was also able to increase the shareholder base to approximately 600 shareholders.
The founders, through the listing, offered about 33.8% 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 2023, Mekdam Holding Group said in a statement.
