March 7, 2023 webincorp

Aamal Company Q.P.S.C. (“Aamal”)

 Results of the Annual Ordinary General Assembly Meeting

AGM approved distributing cash dividends equaling 5% of the nominal value of each share

7 March, 2023, Doha – Qatar: “Aamal Company Q.P.S.C.” (Aamal), one of the region’s most diversified companies, held its Annual Ordinary General Assembly Meeting, after the quorum was achieved on Tuesday, 7 March 2023 at Marriott Marquis City Center Doha, at Al Areen Ballroom. 

After the quorum was achieved, H.E. Sheikh Faisal Bin Qassim Al Thani – Chairman of Aamal Company – welcomed the attendees saying:

“On behalf of the members of the Board of Directors, I am delighted to welcome you to the Ordinary General Assembly Meeting of Aamal Company.

It is with great pleasure that I welcome you to Aamal Company’s Ordinary General Assembly Meeting today.  Aamal was able to achieve outstanding results during the year 2022 and in all sectors in which we operate. A number of factors have contributed to this success, including our diversification strategy, the strength of the Company’s financial position, and the ability to further develop its activities. However, one of the most important factors is the resilience and strength of the Qatari economy, and the keenness of our wise government to create a distinctive and safe environment for investment under the leadership of H.H. the Amir Sheikh Tamim bin Hamad Al Thani.

We will continue to achieve more success, and I would like to thank our shareholders for their confidence in the company, and to thank our Board Members and executive management for their guidance and efforts in managing the Company and enabling it to achieve growth during 2022.

Thank you for being with us today.”

The Assembly proceeded to discuss the items on the agenda of the Ordinary General Assembly meeting as follows:

  1. To hear and approve Chairman’s report on the Company’s activities and the financial position for the financial year ended 31 December 2022, and hearing the Company’s future business plan.

Sheikh Mohammed Bin Faisal Al Thani, Vice Chairman of the board and Managing Director, delivered the Chairman’s report as follows:

“In the name of God, the Most Gracious, the Most Merciful, honorable shareholders, representatives of the Companies Affairs Department and representatives of the esteemed auditors:

Thank you for your attendance today at the Ordinary General Assembly Meeting of Aamal Company. On behalf of the Board of Directors, I am delighted to present Aamal Company’s 2022 Annual Report.

For Aamal, 2022 was a year of growth and recovery and the Board is pleased to report a strong set of financial results with attributable net profit growth of 14% to reach QAR QAR 347.8 million, and revenue growth by 29% to reach QAR 2,058.9 million.

Aamal’s subsidiaries are always seeking to capitalise on new opportunities and maintain their market leading positions by enhancing and expanding their offerings. This reflects our commitment to creating long-term shareholder value through the continued profitable operation and expansion of our diversified business platform.

Looking at the performance of Aamal’s four sectors, the Trading and Distribution sector has seen remarkable performance, with revenues growth of 23.5%, and net profit growth of 4.8%. Of particular note this year has been Aamal’s further expansion into healthcare and health IT, with major contracts being won to support development, maintenance and equipment installation across the Qatari healthcare sector, including the provision of digital solutions to the e-health portal project.

Our Industrial Manufacturing sector has seen revenues and net profit growth of 19.9% and 16.6% respectively. This sector has also played major role in supplying products to several key national projects. This included work in relation to all eight of the 2022 FIFA World Cup stadiums, the North Field East LNG Facilities (NFE) and the Kharsaah Solar plant, which aims to fulfil local energy supply needs as well as Qatar Energy’s long-term sustainability goals.

The Property sector maintained its leading position, maximizing occupancy rates across its portfolio, which has seen revenues and net profit growth of 14.7% and 13.4% respectively. The sector is benefiting from record levels of footfall at City Center Doha, which proved to be a major attraction for many FIFA World Cup visitors due to its central location and easy accessibility. This World Cup boost was also felt by our Managed Services sector which won contracts related to supplying transport logistics and saw increased demand for its entertainment services, to achieve significant revenues and net profit growth og 74.1% and 196.5% respectively year-on-year.

At a corporate level we have increased our foreign ownership limit to 100%. This will enhance the Company’s attractiveness to foreign investors and should increase the volume of share trading, benefiting Aamal, its shareholders and the market in general. We have also welcomed a new CEO on board, Mr. Rashid bin Ali Al Mansouri, who brings with him extensive experience and a highly impressive record of successful business leadership. This decision aligns with Aamal’s ongoing commitment to best practice and the highest professional standards, as demonstrated by our transparency and application of the Corporate Governance Code. This appointment is also in accordance with the Board’s continuity plan to ensure the implementation of our strategic objectives, which have guided Aamal since our establishment. We aim to achieve these objectives under the leadership of our talented senior management team. Corporate social responsibility remains a core value to which we are highly committed, as demonstrated by our support of the Olympic Committee National Team “Al Adam”, Qatar Cancer Society, Ebn Sina Medical scholarship program with Qatar University and several other initiatives outlined in the CSR section of our annual report. Aamal’s Board of Directors is pleased to recommend a 2022 cash dividend of 5% (QAR 0.05 a share), subject to approval at Aamal’s Annual General Assembly Meeting which will take place on 7th March 2023.

I would also like to take this opportunity to thank our shareholders and partners for their continued support, and to extend my gratitude and appreciation to all our employees whom we greatly value and who are so important to Aamal’s continued success.

We are blessed to be operating in Qatar, a country that is blessed with a wealth of natural resources, stability and security while being so effectively led by the government and HH The Emir Sheikh Tamim bin Hamad Al Thani, ruler of Qatar. I am proud of the contribution that Aamal has made over the years to the sustained development of the Qatari economy and I am excited by the opportunities for growth as we look to 2023 and beyond. The unprecedented success of the FIFA World Cup in Qatar provided a significant economic boost to the country and raised Qatar’s international profile and investor confidence. We expect this to create many business opportunities which, alongside all the opportunities generated by the Qatar National Vision 2030, we look forward to maximising as we strive to deliver sustainable growth and profitability, and value for all our stakeholders.”

The General Assembly approved the Chairman’s report on the Company’s activities and the financial position for the financial year ended 31 December 2022, and the Company’s future business plan.

  1. To hear and approve the External Auditor’s report on the Company’s Consolidated Financial Statements for the financial year ended 31 December 2022.

The General Assembly approved the External Auditor’s report on the Company’s Consolidated Financial Statements for the financial year ended 31 December 2022.

  1. To discuss and approve the Company’s Consolidated financial statements for the financial year ended 31 December 2022.

The General Assembly approved the Company’s Consolidated financial statements for the financial year ended 31 December 2022.

Financial highlights:

  • Total revenue up 29.2% to QAR 2,058.9m (2021: QAR 1,594.1m)
  • Gross profit up 13.9% to QAR 484.7m (2021: QAR 425.5m)
  • Net profit attributable to Aamal equity holders up 14.1% to QAR 347.8m (2021: QAR 304.9m)
  • Reported earnings per share increased 14.1% to QAR 0.06 (2021: QAR 0.05)
  • Net capital expenditure down 27.5% to QAR 48.3m (2021: QAR 66.6m)
  • Gearing was even lower at 2.04% (2021: 4.54%)
  1. To discuss and approve the proposal of the Board of Directors to distribute dividends to the current shareholders at a sum of 5% of the nominal value of each share of the Company that they own (i.e. QR 0.05 per share).

The General Assembly approved the proposal of the Board of Directors to distribute dividends to the current shareholders at a sum of 5% of the nominal value of each share of the Company that they own (i.e. QR 0.05 per share).

  1. To discuss and approve the Company’s Corporate Governance Report for the year ended 31 December 2022.

The General Assembly approved the Company’s Corporate Governance Report for the year ended 31 December 2022

  1. To discuss and approve the Company’s Internal Control over Financial Reporting (ICOFR) Report for the year ended 31 December 2022.

The General Assembly approved the Company’s Internal Controls over Financial Reporting (ICOFR) Report for the year ended 31 December 2022.

  1. To discharge Members of the Board of Directors from their liability for the year ended 31 December 2022  and to decide their remuneration and bonuses.

The General Assembly approved discharging Members of the Board of Directors from their liability for the year ended 31 December 2022, and the Assembly approved not to distribute bonuses to the members of the Board of Directors for the year, in compliance with the laws of QFMA and the Ministry of Commerce and Industry.

  1. To appoint the External Auditor for the Financial Year of 2023 and fix their fees.

The General Assembly approved appointing KPMG as the Company’s External Auditor for the Financial Year of 2023 and set their fees.