MIS CEO says Q2 results good, expects growth in coming period

The Q2 2020 financial results of Al Moammar Information Systems Co. (MIS) are “good” and in line with the company’s expansion plan, reflecting the confidence of its customers and partners in the company’s ability to cope with all circumstances, Zeyad Mortagy, CEO of MIS, told Argaam.

Mortagy expects the company’s revenue and profit to grow over the coming period, stressing the pivotal role of information technology in enabling the government and private sectors to conduct their businesses.

The CEO also clarified that all bank facilities are allocated to fulfil requirements of existing and expected projects. Cash facilities are used for purchasing equipment and programs for projects, while non-cash facilities are used to complete contracts’ requirements such as primary and final guarantees.

Mortagy further noted that the company’s financing model depends on using internal resources and making use of bank financing to maximize returns and boost return on shareholders’ equity.

He added that loans are mainly used to implement existing and future projects, affirming that the size of facilities is commensurate with the size of projects.

The CEO stressed that any loan obtained is repaid from the project receivables, and the company’s clients enjoy excellent solvency.

During the first half of 2020, MIS witnessed growth in orders exceeding SAR 550 million when compared to the same period a year ago, Mortagy said, adding that the company eyes further orders and projects in the second half of 2020.

The CEO revealed that MIS has projects under implementation worth SAR 1.5 billion, with facilities of SAR 400 million, adding that it is a reasonable and reassuring ratio.

With regards to raising capital, Mortagy pointed out that the board of directors has put out a clear plan to enhance financial position and balance its interests and shareholders.

He noted that gradual capital raise is one of the key factors to boost the company’s financial position in proportion with the expected businesses and maximize returns for the company and its shareholders. In addition, it will support the expansion plan, maintaining profit growth and distributing cash dividends, which reflects the growth in the company’s budget and its financial position.

In Q2 2020, MIS posted a net profit of SAR 24.8 million, 90% higher when compared to the same period last year, Argaam reported. While revenues levelled up 34% year-on-year (YoY) to SAR 320 million.

In June, MIS shareholders approved a SAR 40 million capital hike to SAR 200 million from SAR 160 million through capitalizing a portion of reserves and retained earnings in addition to distributing one share for every four outstanding shares.