Mekdam reports QR13.3mn net profit in H1 2021

Mekdam Holding Group

Mekdam Holding Group achieved a net profit of QR13.3mn in the first six months of 2021, compared to QR12.4mn in the corresponding period of 2020 with a growth rate of 7.4%. This was disclosed during the group’s board of directors meeting, which was chaired by Sheikh Mohamed bin Nawaf bin Nasser bin Khalid al-Thani, where Mekdam Holding Group’s financial statements ended June 30, 2021 were discussed. Sheikh Mohamed said Mekdam Holding Group’s revenue reached QR99.2mn for H1 2021, compared to QR73.8mn for the same period last year with a growth rate of 25.6%. The easing of coronavirus restrictions has accelerated the pace of business implementation and recovery of the previous decline in the project execution and profitability, he said. He also said the growth in net profit is mainly attributable to the growth in business volume. Earnings per share (EPS) amounted to QR0.266 for the first half of 2021 compared to QR0.247 for the first half of 2020. Chief executive officer Ehab Naser said during the first half of 2021, Mekdam Holding Group was able to sign new contracts with a total value of QR336.1mn, exceeding the annual target for 2021. The board was also briefed on the total value of the contracts being implemented, which amounted to about QR970mn, while the value of the remaining works amounted to about QR625mn. On sales proposals, the total offers submitted and being negotiated with customers amounted to about QR1.80bn. The board emphasised the importance of these indicators, which are a key factor in building revenue expectations, net future profits, and enhancing the value of shareholders' equity. Mekdam Holding Group’s financial position grew by 20.3% by end of June 30, 2021, compared to December 31, 2020, because of the steady expansion of the group's business volume. As of June 30, 2021, Mekdam Holding Group has maintained its liquidity levels of 72.8% of its assets, which are current assets. The current ratio (current assets to current liabilities) is 2.5-times. The group also maintained low levels of indebtedness, with net indebtedness (bank loans minus cash and cash balances) amounting to QR14.5mn. In the first half of 2021, Mekdam Holding Group signed more than 160 contracts with major international companies in the field of information technology that requires complex prerequisites and qualification conditions. Mekdam Holding Group was classified Grade (A) by the Government Procurement Regularity Department of the Ministry of Finance. The group was also classified as Grade (A) by Kahramaa, in addition to being awarded the title of ‘Great Place to Work’. Mekdam Holding Group was distinguished by obtaining from S&P Global Ratings a credit rating (gcBBB-), and this rating placed the group in the list of 25 best private companies in the Middle East and North Africa.