Q3 financial results
Aamal Company Q.S.C Board of Directors has conducted its Board Meeting on the 16th of October 2008, where several important matters were discussed and approved in regards to Al Faisal Holding initiative to pay part of Aamal Company Bank Interest Bearing Loans & borrowings in addition to the financial results for the first 9 months ended 30th September 2008
The financial results for the period ended on 30th of September 2008 has shown a positive growth compared to the same period last year reflecting Aamal strong financial position and its ability to stand strong and surpass the difficulties facing the region in relation to the setback occurring in the international economy. Aamal strategy has helped the company to accomplish such results as it focuses on diversity of activities to reduce risks and to always look for potential business opportunities and innovative projects while continue to increase the efficiency of the company.
Al Faisal Holding, major shareholder in the company, offered an initiative to pay an equal of = Q.R 500 million (only five hundred million Qatari Riyals) of bank interest bearing loans and borrowings on behalf of Aamal Company. This initiative will strengthen the performance of the company and enhance its financial position through reducing bank loans and the cost of funding and will also provide Aamal Company with sufficient cash flow for long term future investment. Aamal Company plans to deploy the cash flow in investments in the Industrial Sector & the Real Estate Sector due to the potential thriving opportunities available in these sectors.
Looking at the diversified investment portfolio of the company, one can see the clear vision of Aamal Management team and the ability to seize opportunities at the right time in pursue to offer shareholders with the best return on investment & have a vital role in the development of the economy.
Through out the past 40 years, the company has established several branches to cater for the numerous market needs and introduce top of the line products & services.
For the medical sector, “Enb Sina Medical” has played a vital role in providing the local & regional market with the best international pharmaceutical products. Hospitals & medical centers were able to obtain the best medical equipment through our banch “Aamal Medical” which represents the most well known international brands in medical equipment. In terms of Trading, “Aamal Trading & Distribution” was able to provide the market with finest tyres “Bridgestone” & lubricants “Total” since 1969. Also, in 2007, the company has introduced Bottega Verde, one of the best Italian brands offering natural beauty products to the local market. As for the Real Estate, Aamal Company owns one of the most well known souqs in Qatar which contains 300 shops in addition to 30 buildings located in different areas across Doha but of course the highlight of this division would be City Center – Doha, one of the biggest shopping centers in the region which was established in 2001. City Center –Doha shopping center is the best example of Aamal Company ability to develop its operations and its sensitivity towards the market needs. By introducing City Center Doha, the door was opened for the top international retailers to enter the Qatari Market and provide more shopping options in addition to introducing thousands of job opportunities. Furthermore; upon the opening of the five hotels on both sides of the City Center & having a direct connection to the mall this will lead to an increase in foot traffic and consequently a tremendous increase in the market value of the shopping center also it will be considered the first shopping center in the world that is surrounded and directly connected to five hotels.
Aamal management will focus its future investments towards expanding the operations of its Real Estate Division & Industrial Division. Currently, the Industrial division includes one of the best ready mix companies in Qatar “Aamal Readymix” and “Aamal Services” that provide comprehensive cleaning services to the private & public sectors. In 2007, Aamal Company has established four Industrial plants; “Aamal Cement Industries” to produce cement bricks & interlock products and it is expected to start production before the end of 2008. In partnership with Al Suwaidi Cables, one of the best suppliers in the region, “Senyar Company Qatar-Holding” was established offering all types of power cables in addition to “ IMO-Qatar” &” Frijns Middle East”. On the other hand, and in partnership with Masraf Al Rayan, Aamal Company has established a new company called “C-San trading “ with a paid up capital of QR10 million in order invest in real estate, trading & industrial projects.
The 3rd quarter financial results has shown an approximate increase in net profit by approximately % 50 compared with same period last year reaching to Q.R 736 million, also an increase in the revenues by approximately 27% to reach QR 487 million and an increase in the earning per share by 49% to reach QR1.94. The approximate value of the total assets is Q.R 5.8 billion, and the total equity is Q.R 4.7 billion also the results have indicated a decrease in bank interest bearing loans and borrowings by 73%.
Aamal Board of Directors stated that the management will invest the profits to the benefit of the shareholders and to maintain sustainable growth. They also exclaimed that these outstanding results are the mere reflection of the proper strategy the company is following and the commitment and efforts of the employees. Aamal is committed to develop its current activities and further expand its operations to attract new investments on the local & regional level which leads to positive effects on the local community.
Sheikh Faisal Bin Qassim Al Thani, Chairman of the board has added that the company succeeded to secure its presence on the local and regional level through its clear vision and implementing prudential strategy which aims to achieve the best results for the shareholders.
On the other hand, Mr. Tarek Mahmoud El Sayed – Vice Chairman has expressed his appreciation towards Al Faisal Holding initiative to pay an equal of = Q.R 500 million (only five hundred million Qatari riyals) of bank interest bearing loans and borrowings on behalf of Aamal Company and he is also pleased with the loan payment terms and conditions where it was agreed that the loan will be paid back over a seven years period and there will be a one year grace period without interest also a Repo interest rate will be effective for the second year and the agreement will be renewed annually. He also added that we consider Aamal previous achievements the corner stone for future development which we aim to achieve throughout the multiple roles of the company’s activities.
