Al Moammar Information Systems Co. — Earnings Release 2020

Jul 22, 2020

Al Moammar Information Systems Co. announces its Estimated Financial Results for the Period Ending on 2020-06-30 ( Six Months )

7200 · 22/07/2020 08:03:45 · Announcement #59786 · View on Saudi Exchange

Al Moammar Information Systems Co. announces its Estimated Financial Results for the Period Ending on 2020-06-30 ( Six Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	319.51	238.12	34.18	228.04	40.111
Gross Profit (Loss)	48.37	35.84	34.96	37.95	27.457
Operational Profit (Loss)	26.87	19.75	36.05	21.92	22.582
Net Profit (Loss) after Zakat and Tax	24.77	13.01	90.392	16.93	46.308
Total Comprehensive Income	22.51	12.15	85.267	18.01	24.986
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	547.55	449.34	21.856
Gross Profit (Loss)	86.32	66.42	29.96
Operational Profit (Loss)	48.79	38.01	28.36
Net Profit (Loss) after Zakat and Tax	41.69	24.74	68.512
Total Comprehensive Income	40.53	24.64	64.488
Total Share Holders Equity (after Deducting Minority Equity)	278.65	221.23	25.954
Profit (Loss) per Share	2.08	1.55
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to	Al Moammar Information Systems Company (MIS) has delivered good results during Q2-2020 despite the current COVID-19 situation where the Net Income reached SAR 24.77M in comparison to SAR 13.01M in the similar period during Q2-2019. Following is a brief explanation:

Revenue from Contracts: MIS has posted a quarter on quarter overall revenue growth of 34% which is attributed to a strong backlog carried forward and the continuing growth of new orders during the reporting period which brings the increase in revenues.

Gross Profit: MIS posted a gross profit of SAR 48.37M in the current quarter versus SAR 35.84M in the similar period in previous year, registering a growth of 26% YoY. This is attributed to the healthy topline in addition to the improvements in segment gross margins.

Selling & marketing expenses were SAR 2.06M in the current quarter versus SAR 2.75M in the same period of previous year, registering a decrease of 33%. Such decrease is attributed to the general slowdown of expenses related to marketing, travel and related cost.

General & administration expenses were SAR 19.44M in the current quarter versus SAR 13.34M in the same period of previous year, registering an increase of 45%. This is mainly due to the general increase in provision for doubtful debts amounting to SAR 4.8M and donations paid as part corporate social responsibility to support government initiative during the COVID-19 lock down amounting to SAR 1M.

Finance Cost amounted to SAR 2.97M in the current quarter versus SAR 5.02M in the same period of previous year, registering a drop of 41%. This is mainly attributed to the general reduction in the monthly SIBOR rates during the respective quarters despite the fact that there was a significant change in the debt outstanding position at the end of respective quarters; Q2-2020: SAR 413M, Q2-2019; SAR 286M.Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to Increase in Net Profit for current quarter compared previous quarter is attributed to :

- Sales revenue increased by 40% in the current quarter. During the current quarter the company received certain high value deals including that of providing Software licenses, Hardware Items and Implementation Services which were possible to be delivered in the same quarter thereby enabling the company to recognize sizable revenues.

The above factors which pushed higher sales revenue and gross margin during the current quarter had a direct impact on a higher resultant net profit.Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to The increase in net profit for the current period is approximately 68% in comparison to the previous period is due to increase in overall sales revenue and savings on financial cost.Basis of the External Auditor's Opinion Unmodified opinionReclassification of Comparison Items There has been reclassification in some accounts to comply with IAS 1 - Presentation of Financial Statements. Certain prior period amounts have been reclassified to conform with the presentation in the current period.

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