Equipment House had SAR 2.3 bln projects by 2022-end: CEO

Scientific and Medical Equipment House Co.’s (Equipment House) projects are valued at SAR 3.3 billion as of Feb. 13, 2023, an increase of SAR 1 billion compared to a year earlier, CEO and Managing Director Barakat Al Arifi told Argaam.

Some of these projects are ongoing, while others are still expected after award announcements.

These projects are set to be gradually delivered this year, he said, adding the expected deliveries will likely have a positive impact on the company on a quarterly basis.

Equipment House has a stable financial position, as total debts do not exceed SAR 300 million.

Giving details on the balance sheet, Al Arifi said the company’s capital stands at SAR 200 million, with nearly SAR 500 million shareholders’ equity. This includes retained earnings and statutory reserve at almost 1.5x of total capital, namely SAR 300 million.

The company’s SAR 3.3 billion projects are split into deliveries expected in the second and third quarters of 2023 at a total value of over SAR 1 billion, and ongoing investments worth SAR 2.3 billion.

Equipment House’s disclosed assets exceed SAR 1 billion, including capital investments and working capital investments, which are allocated to projects. Most of these are government projects across various sectors, such as operating, medical, catering, etc. which gives the company a better edge for diversification.

He added that variance in the performance of companies is not significant. The non-medical operating sector accounts for the largest share in assets and working capital with robust profit margins. The company’s other sectors contribute reasonable profit margins in line with market competition.

Most of the company’s profits are reinvested to drive Equipment House growth and stability, and allow it to maintain shareholders’ dividends and meet the demand for new projects, Al Arifi concluded.