Al Moammar Information Systems Co. — Earnings Release 2021

Feb 21, 2021

Al Moammar Information Systems Co. announces its Annual Financial Results for the Period Ending on 2020-12-31

7200 · 21/02/2021 15:22:11 · Announcement #61975 · View on Saudi Exchange

Al Moammar Information Systems Co. announces its Annual Financial Results for the Period Ending on 2020-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	1,016.665	997.515	1.919
Gross Profit (Loss)	180.327	163.821	10.075
Operational Profit (Loss)	107.398	100.199	7.184
Net Profit (Loss) after Zakat and Tax	90.376	75.979	18.948
Total Comprehensive Income	90.233	73.529	22.717
Total Share Holders Equity (after Deducting Minority Equity)	308.351	254.117	21.342
Profit (Loss) per Share	4.52	3.8
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current year compared to the last year is	Al Moammar Information Systems Co. (MIS) remained on track to achieve the strategic objective to record consistent revenue growth and higher gross margins, which was the main driver for net income growth during year 2020. Following is a brief explanation:

Revenue from Contracts:

MIS registered 2% growth in revenue from contracts for the year 2020 (SAR 1,016.66M) compared to the previous year 2019 (SAR 997.52M). Despite the changes in our business environment, especially due to the COVID-19 pandemic, the company has still been able to post consistent revenue due to highly efficient conversion of our backlog and new orders.

Gross Profit:

Gross profit for year 2020 amounted to SAR 180.32M in comparison to SAR 163.82M, growth of 10.08%, mainly attributed to the continuous improvement in gross margins and increase in in-house service revenues.

Income from Operations:

MIS recorded 7.18% growth in the year 2020 from operational income in comparison to year 2019, mainly attributed to consistent top line and increase in gross margin, however despite the increase in selling & marketing expenses and general & administration expenses. Such an increase is mainly attributed to the continuous investment in skill resources and payment of performance link bonuses to employees.

The company has followed prudent policies in recording provision for doubtful debts in line with IFRS9 requirements on a consistent basis, following estimated credit loss (ECL) model.

Finance Cost:

The company has recorded a significant reduction in finance costs during 2020. This has resulted in a 17% drop equivalent to SAR. 3.6M due to excellent treasury management including obtaining competitive interest rate and major reductions in bank facility fees. Statement of the type of external auditor's report Unmodified opinion Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion Not applicable Reclassification of Comparison Items Certain figures for comparative period have been reclassified to conform to the current period presentation Additional Information Net income after Zakat for the year has substantially improved registering a YoY growth of 19% representing qualitative growth in the overall health of business operation.

Shareholder's equity increased by 21% in the year by the end of year 2020 even after impacting dividend distribution of 40% on net income for the year under report.

We would like to draw the attention of our honourable shareholders to the fact that the annual financial statements for the year ending on December 31, 2020, will be available through the company's website in the "Investors", after being published on the Tadawul website.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.