Aamal financial results for the nine months ended 30 September 2016

Aamal Company QSC (Aamal), one of the GCC’s fastest growing diversified companies, today announces its financial results for the nine months ended 30 September 2016.

Financial Highlights

• Group revenue of QAR 1.99bn (9M 2015: QAR 2.07bn)
• Gross profit up 8.2% to QAR 499.1m (9M 2015: QAR 461.4m)
• Total net profit(1) up 15.5% to QAR 423.7m (9M 2015: QAR 366.7m)
• Reported earnings per share up 9.6% to QAR 0.57 (9M 2015: QAR 0.52)
• Net capital investment expenditure of QAR 92.0m (9M 2015: QAR 108.4m)
• Financial gearing(2) remains low at 4.6% (30 June 2016: 3.9%)

(1) Net profit is stated before the deduction of non-controlling minority interests

(2) Net debt to net debt plus equity

Sheikh Faisal Bin Qassim Al Thani (pictured), Chairman of Aamal, commented: “Aamal performed strongly over the first nine months of 2016 in line with management expectations, driving net profit to QAR 423.7m, 15.5% higher than in the same period last year, demonstrating the continuing success of our strategy for sustainable profitable growth.

“Total group revenue of QAR 1.99bn in the period was marginally behind revenue at the same stage last year which benefitted from a number of large unrepeated sales contracts.  However, this was largely offset by strong growth across our other Industrial Manufacturing and Managed Services division businesses in particular. These two divisions were the main drivers of our performance in the first nine months, with Industrial Manufacturing increasing its net profit contribution by 71% on broadly flat revenues while Managed Services lifted its net profit contribution by 121% on revenues almost 50% higher which included new, first time contributions from acquired businesses during the period.  The Property division also continued to perform well, contributing positively to revenue and profit despite accommodating the temporary disruption in the period to trading at City Centre, Doha as development and improvement work continued to make progress.

“This performance clearly reflects the benefits of the Group’s approach to diversification, building a balanced and resilient portfolio of businesses across key sectors of the broadening Qatari economy, to drive profitable organic growth and margin expansion while maintaining strict control of costs and prudent levels of financial gearing.”

SUMMARY AND OUTLOOK

H.E. Sheikh Mohamed Bin Faisal Al Thani, Vice-Chairman of Aamal, commented: “In the first nine months of the year Aamal has again demonstrated the sustainability and resilience of its focus on profitable organic growth by delivering higher profits at improved margins while continuing to invest in its business and bring new revenue streams on line.  This creditable performance also reflects the increasingly strong diversification of the Group and its ability to offset the impact of slower market conditions in one business area with exposure to faster growth in others.  Looking ahead, we have a strong order pipeline and are well positioned to take advantage of further opportunities as they arise.  I am confident this will be another successful year for Aamal.”

Mr. Tarek M. El Sayed, Managing Director said: “Aamal’s nine-month results again reflect our strong focus on operational excellence and cost efficiency as we continued to translate our top-line performance into higher profits and build an ever stronger foundation for long term value creation. Our proven track record in creating and running businesses efficiently across a broad range of growth sectors continues to position the Group strongly for the opportunities we see emerging over the remainder of the year and beyond.”