Aamal Company Q.P.S.C. (“Aamal”) Results of the Annual Ordinary and Extra Ordinary General Assembly Meeting
Aamal Company Q.P.S.C. (“Aamal”)
Results of the Annual Ordinary and Extra Ordinary General Assembly Meeting
AGM approves to distribute 6% dividends of the nominal value of each share (QR 0.6 for each share)
AGM approved voting of three candidates nominated for the Independent Directorship seats on the Board
AGM Approved amendments to the Company’s Article of Association
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“Aamal Company Q.P.S.C.” (Aamal), one of the GCC’s fastest growing diversified conglomerates, held its Annual Ordinary and Extra Ordinary General Assembly Meeting, after the quorum was achieved on Sunday, April 22nd, 2018 in Rotana City Centre Hotel Doha.
H.E. Sheikh Faisal Bin Qassim Al Thani - Chairman of Aamal Company – welcomed the attendees saying:
“In the name of Allah Most Gracious Most Merciful, my dear guests, allow me to welcome you to the Annual Ordinary and Extra Ordinary General Assembly Meeting of Aamal Company.
Aamal Company has witnessed a number of progressive developments and achievements last year, which positively affected the financial, operational and internal controls of the company. This resulted in achieving excellent financial results despite the current conditions Qatar is facing as a result of the blockade on Qatar. Further, I would like to take a moment to express my gratitude and appreciation to the Board of Directors and the Executive Management for their boundless efforts and directorship in leading the company to achieve such growth during the year 2017.
I would also like to emphasize that without the wise leadership of the Government of Qatar and its efforts to overcome and manage the challenges the country has faced and committing to providing inordinate support to the private sector, we would not have been able to achieve the results we have achieved this year.
The Vice Chairman, Sheikh Mohamed Bin Faisal Al Thani will now read to you the Chairman’s report.
Thank you for your support and trust in us, may peace and blessings of Allah be upon you.”
Then the AGM commenced according to the Agenda of the Extra Ordinary General Assembly Meeting as follows:
- To discuss and approve the new Articles of Association of the Company drafted in accordance with the requirements of the Corporate Governance Code for listed companies and legal entities issued by Qatar Financial Markets Authority’s Board directive no. (5) for the year 2016.
The General Assembly approved all amendments to the Articles of Association of the Company in accordance with the requirements of the Corporate Governance Code for listed companies and legal entities issued by Qatar Financial Markets Authority’s Board directive no. (5) for the year 2016.
- Referencing the above mentioned point (1) to authorize the Chairman of the Board, Faisal Bin Qassim Al Thani, to sign the new Articles of Association for the purposes of authenticating the new Articles of Association by the relevant authorities, and to approve the Chairman delegating the Company’s staff undertaking the necessary steps to complete the authentication and registration of the new Articles of Association with the relevant authorities.
Referencing the above mentioned point (1) the General Assembly authorized the Chairman of the Board to sign the new Articles of Association for the purposes of authenticating the new Articles of Association by the relevant authorities, and authorized the Chairman to delegate to the Company’s staff undertaking the necessary steps to complete the authentication and registration of the new Articles of Association with the relevant authorities.
By this, the Extra-Ordinary General Assembly Meeting has been completed.
Then, the assembly went on to discuss the agenda of the Ordinary Annual General Assembly meeting as follows:
- To hear and approve Chairman’s report on the Company’s activities and the financial position for the financial year ended 31 December 2017, and hearing the Company’s future business plan.
The General Assembly approved the Chairman’s report on the Company’s activities and the financial position for the financial year ended 31 December 2017, and the Company’s future business plan.
Sheikh Mohamed Bin Faisal Al Thani, Vice Chairman and Managing Director, delivered the Chairman’s report, as follows:
“In the name of Allah Most Gracious Most Merciful, distinguished Shareholders, prestigious Auditors and Company Control Representatives, thank you for attending The Annual Extra Ordinary and Ordinary General Assembly Meeting of Aamal Company Q.P.S.C.
I am pleased to present a summary of the financial results of Aamal Company QPSC, with an approximate 10% increase in Earnings per share and a Net profit attributable to equity holders exceeds QAR 500, praise be to God.
In view of the 2017 financial statements, allow me to mention some of the main financial highlights:
- Total revenue down 43.3% to QAR 1,604.2m (2016: QAR 2,829.1m), primarily due to the reclassification of two business entities within the Industrial Manufacturing division from subsidiaries to joint ventures, with a consequent change in their accounting presentation
- Net profit before share of net profits of associates and joint ventures accounted for using the equity method and fair value gains on investment properties (“net underlying profit”) down 15.7% to QAR 421.0m (2016: QAR 499.2m)
- Net underlying profit margins have increased by 8.7 percentage points to 26.3% (2016: 17.6%)
- Share of net profits from associates and joint ventures accounted for using the equity method increased 69.4% to QAR 102.0m (2016: QAR 60.2m)
- Total Company net profit down 6.6% to QAR 523.1m (2016: 560.2m), with net profit attributable to Aamal equity holders up 8.4% to QAR 500.9m (2016: QAR 462.3m)
- Reported earnings per share increased 9.6% to QAR 0.80 (2016: QAR 0.73)
Looking at these results, I’m pleased to report that Aamal has been at the forefront here, which in the current climate is a very impressive result indeed. I should also highlight that in 2017 we have applied a change in the accounting presentation of a couple of business entities during the year, which has a direct impact on presentation of the numbers between this year and the previous year and in specific to the Revenue. The effects of this change will remain valid until after Q4 2018, by which time they will have reversed out.
Looking at the market conditions, while the continuing blockade has undoubtedly created some challenging headwinds, I am very proud to say that Qatar as a nation is successfully navigating through them. I believe this is testimony not only to the resilience of the Qatari economy but also to the strong and clear leadership that our national government provides as we strive to achieve the holistic goals set out in the Qatar National Vision 2030, including diversification of the economy. I must also mention the resourcefulness of the Qatari people in meeting these challenges head on, as they did in previously demanding times including the global slump post‐2007 and the oil price lows of early 2016.
Aamal has always been noted for its practicality and decisiveness, and no better is this demonstrated than by how rapidly we moved to help establish alternative supply chains in the face of the continuing embargo against Qatar. This resilience is also borne out by the diversity of our business model, so that if one sector is experiencing a tightening in general business conditions for example, there will be others that are able to more than compensate.
Allied to this is Aamal’s strong financial position and cash generation which means that should we identify a potential value‐creating opportunity, we are able to act quickly, often giving us a competitive advantage over our peers. An excellent example of this is the decision we announced in early January to proceed with three major new industrial projects which will be the first of their kind in Qatar, having applied for the necessary approvals in 2017. Not surprisingly, we are also the partner of choice for those international blue‐chip names looking to enter the Qatari market for the first time.
I am also pleased to announce that Board of Directors has recommended a cash dividend QAR 0.60 a share (equivalent to 6% of paid‐up share capital), subject to the approval at the Annual General Assembly Meeting taking place today.
Finally, I would like to extend my thanks and appreciation to our valued shareholders for their trust and support in us, and we promise that we will continue giving our best efforts to further develop the activities of the Company, and to continue our search for further growth that benefits all stakeholders.
Furthermore, I would like to take a moment to express my gratitude and appreciation to all employees of the company, to our partners, our cooperative clients, and to all those who had a role in supporting any growth or prosperity Aamal Company has achieved, which is a reflection of the growth and prosperity of the Qatari economy, under the wise leadership of His Highness Sheikh Tamim bin Hamad Al Thani, Emir of the State of Qatar, and the esteemed Government who have the greatest role in overcoming any challenges facing the national economy.”
- To hear and approve the External Auditor’s report on the Company’s Financial Statements for the year ended 31 December 2017.
The General Assembly approved the External Auditor’s report on the Company’s Financial Statements for the year ended 31 December 2017.
- To discuss and approve the Company’s Financial Statements, profits and losses for the financial year ended 31 December 2017.
The General Assembly approved the Company’s Financial Statements, profits and losses for the financial year ended 31 December 2017.
- To discuss and approve the proposal of the Board of Directors to distribute dividends to the current shareholders the sum of 6% of the nominal value of each share of the Company that they own (i.e. QR 0.6 per share).
The General Assembly approved the proposal of the Board of Directors to distribute dividends at the rate of 6% of the nominal value of each share of the Company (i.e. QR 0.6 per share) for the financial year ended 31 December 2017 to the shareholders that owned shares in the Company at the end of the trading session on the date of holding the Company’s Annual Ordinary General Assembly Meeting, held on Sunday 22 April 2018.
- To discharge Members of the Board of Directors from their directorship responsibilities having been met for the financial year ended 31 December 2017 and to determine their bonus
The General Assembly approved discharging Members of the Board of Directors from their directorship responsibilities having been met for the financial year ended 31 December 2017 and approved their bonus which was set at QAR1,200,000 divided equaling amongst the Board members.
- To discuss and approve the Company’s Corporate Governance Report for the year 2017.
The General Assembly approved the Company’s Corporate Governance Report for the year 2017.
- To vote on the candidates nominated for the Independent Directorship seats on the Board in accordance with the requirements of the Corporate Governance Code for listed companies and legal entities issued by Qatar Financial Markets Authority’s Board directive no. (5) for the year 2016.
The General Assembly voted the following candidates nominated for the Independent Directorship seats on the Board:
a. H.E. Mr. Faisal Al Mahmoud
b. H.E. Mr. Yousef bin Rashid Al Khater
c. Mr. Hamad Al Nuaimi
The above mentioned Independent Directors shall serve on the Board of the Company until the end of the current Board’s tenure which expires on the date of holding the Company’s AGM for the year ending on 31 December 2018.
- To appoint the External Audit for the Financial Year of 2018 and decide their fees.
The General Assembly approved appointing Price Waterhouse Coopers as the Company’s External Auditor for the Financial Year of 2018 and decided their fees.
-Ends-
For media enquiries, please contact:
Aamal Company Q.P.S.C.: +974 44350666
Arwa Goussous – Corporate Communications Manager
(+97455139539 / [email protected])
Mira Al Ahmad- Marketing and Communications Officer
(+974 -33669640 / [email protected])
Arwa Hamdieh – IR and Compliance Manager
+ 974 44223888/ [email protected]
Aamal Company Q.P.S.C.:
Aamal Company is one of the GCC’s fastest growing diversified conglomerates, with a market capitalization of QAR 7 bn (US$ 1.9 bn), at date of 19 of April 2018. Aamal is one of the largest diversified companies quoted on the Qatar Stock Exchange (“QSE”), having been listed since December 2007. Focused on sustained, profitable growth and strongly diversified, with 26 business units with market leading positions in the key industrial, retail, property, managed services and medical equipment and pharmaceutical sectors, Aamal offers investors a high quality and balanced exposure to Qatar’s economic growth and development.
For more information, please visit our website (aamal.com.qa).
