Maharah Human Resources Co. — Earnings Release 2019

Mar 16, 2020

Maharah Human Resources Co. announces its Annual Financial Results for the Period Ending on 2019-12-31

1831 · 16/03/2020 08:27:55 · Announcement #57885 · View on Saudi Exchange

Maharah Human Resources Co. announces its Annual Financial Results for the Period Ending on 2019-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	1,512.3	1,351.92	11.863
Gross Profit (Loss)	379.81	298.38	27.29
Operational Profit (Loss)	282.54	216.45	30.533
Net Profit (Loss) after Zakat and Tax	272.09	222.25	22.425
Total Comprehensive Income	260.18	225.26	15.502
Total Share Holders Equity (after Deducting Minority Equity)	590.57	430.51	37.179
Profit (Loss) per Share	7.26	5.93
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
Increase (Decrease) in Net Profit for Current Year Compared to Last Year is Attributed to	The consolidated net income attributable to the shareholders of the company increased by 22% compared with the previous year, mainly due to:

• Increase in revenue by 12% due to the growth in corporate sector revenues by 14% and the individual sector by 7%, supported by the growth of Khidmah program (Hourly Services) compared to the previous year.

• Gross profit increased by 27% compared to the previous year, led by the increase in revenue and the increase in utilization of deployed resources.

Also the decrease in recruitment and visa cost by SR 19 million due to capitalization of these items and a reversal of non-recurring cost item compared with the previous year.

• Despite an increase in the general and administrative expenses by SR 2.7 million due to filling the administrative vacancies in the company organization structure.

Also, the increase in provision for doubtful debts expense by SR 9.7 million as per ECL model and the company reserve related to the customers due balances.

• The increase in zakat expense by SR 14.6 Million compared with previous year, which include adjustment for prior years due to receiving the final assessment of Zakat for the years since inception till 2017. Basis of the External Auditor's Opinion Unmodified opinion Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion N/A Reclassification of Comparison Items Certain amounts in the prior period have been reclassified in order to conform to the presentation for the current year. Additional Information • The Company has adopted IFRS 16 from its mandatory adoption date 1 January 2019, the impact of the adoption presented in the financial statement - note 4.

• The company amended the employment contract which allowed capitalization of visa and recruitment cost affected from July 1, 2019.

• A conference call with analysts and investors will be held on Thursday 26 march 2020 from 2:00PM to 3:30PM KSA. Details of the conference call will be available on Mahara's website at the following link :

https://www.maharah.com/investors

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