Mekdam Holding Group recorded a net profit of QR10.4mn in the first quarter of 2024, a 7.6% year-on-year (y-o-y) growth from QR9.7mn.

Earnings per share (EPS) amounted to QR0.078 for the same period compared to QR0.100 for 2023, said Mekdam Holding Group chairman Sheikh Mohamed bin Nawaf bin Nasser bin Khalid al-Thani.

Sheikh Mohamed said Mekdam's revenue stood at QR144.9mn in Q1 2024, reflecting a 13.7% y-o-y growth from QR127.5mn. Providing comprehensive maintenance services for gas recycling plants enhanced the earning level, he noted.

Chief executive officer Ehab Naser said Mekdam was able to sign new contracts this year with a total value of QR119.3mn. The board was also briefed on the total value of the contracts being implemented, which amounted to about QR1.86bn, while the value of the remaining works amounted to about QR120bn.

With respect to sales proposals, the total offers submitted and being negotiated with customers amounted to about QR2.52bn. The expected success rate, according to historical indicators, ranges from 20-30%. The customer retention rate was around 90%. The board emphasised 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.

Mekdam has maintained its liquidity levels of 80.4% of its assets, which are current assets. The current ratio (current assets to current liabilities) is 1.79 times.

The group also reduced bank financing from QR63.9mn as of December 31, 2023, to QR57.9mn as of March 31, 2024, reflecting a decrease of 9.4%. Bank financing is granted to the company in the form of projects financing that ends with the implementation of these projects and their delivery to customers.

The board reviewed the results of the credit rating, where Standard & Poor’s confirmed the rating of Mekdam Holding Group at (gcBB). The board reviewed the implementation of the general assembly’s resolutions, as the extraordinary general assembly approved an increase in the capital on March 31, 2024, where the capital was increased by QR30mn, bringing the company’s capital to QR135mn. The board emphasised that the timing of the capital increase was appropriate to support the company’s ongoing growth operations, especially in light of the sharp rise in bank financing interest rates.

The board also reviewed the performance of the stock on the Qatar Stock Exchange, where the Mekdam was able to increase the shareholder base to approximately 670 shareholders. The founders, through the listing, offered about 34.0% of the group’s capital.