Results of the Annual Ordinary General Assembly Meeting
Aamal Company Q.P.S.C. (“Aamal”)
Results of the Annual Ordinary General Assembly Meeting
AGM approved distributing cash dividends equaling 4% of the nominal value of each share
AGM approved the Company’s Corporate Governance Report for the year ended 31 December 2019
AGM approved the Company’s Internal Controls over Financial Reporting (ICOFR) Report for the year ended 31 December 2019
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1 April, 2020, 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 Wednesday, April 1st, 2020 at the Company premises in City Tower, West Bay area, Doha.
H.E. Sheikh Mohammed Bin Faisal Al Thani, CEO and Managing Director of Aamal Company, welcomed the attendees. then the AGM commenced according to 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 2019, 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 2019, and the Company’s future business plan.
Sheikh Mohammed Bin Faisal Al Thani delivered the Chairman’s report as follows:
“In the name of Allah Most Gracious Most Merciful. Dear shareholders, representatives of Ministry of Trade and auditors, thank you for attending the Annual General Assembly meeting of Aamal Company.
We are proud of our performance in 2019. Although 2019 saw significant market headwinds in the construction industry, Aamal responded positively in this very challenging environment, growing revenue by .6% and delivering a net profit to Aamal’s equity holders of QAR 322 million.
It is against this backdrop that the Board recommends a cash dividend of QAR 0.04 a share, subject to approval at the Annual General Assembly Meeting on 1 April 2020.
The diversity of Aamal’s business model undoubtedly provided great resilience in 2019. It is this diverse business platform that enables the Company to play an important part in Qatar’s growing private sector and contribute to the growth of the country’s economy.
2019 marked a year of significant development in terms of how we embed environmental, social and governance considerations in the way we do business to achieve sustainable growth. Most notably from a governance perspective, we developed a governance code to ensure Aamal is aligned with the highest levels of corporate standards and policies, implemented a code of conduct policy and a whistleblowing mechanism for all employees, ensuring they are able to act if they encounter any potential breaches of our standards. Furthermore, in 2019 we successfully completed the design and testing of an Internal Control Over Financial Reporting (ICOFR) framework and received a clean audit opinion from our auditors, PwC.
The Board was delighted to welcome Sheikh Faisal Bin Fahed Al Thani as an Independent Director who brings more than 30 years’ experience from working in several international companies in the oil and gas industry as well as experience as a main board Director of a number of significant Qatari listed companies. Further strengthening our executive management capability, the Board approved the appointments of Sheikh Mohamed Bin Faisal Al Thani as Chief Executive Officer and Managing Director,
Mr. Mohamed Ramahi as Advisor to the CEO, and Mr. Imran Chughtai as Chief Finance Officer.
I am also delighted to see the progress made by our Trading and Distribution segment, which achieved robust top line growth in the year, despite a challenging market. I am confident that we can transform the challenges the Company faces into opportunities as we continue to build our business across all segments. We enjoy a strong market position in all the areas we operate in, supported by a solid financial position and highly capable people across the business.
Without doubt, Aamal would not be able to deliver the diverse range of high quality products and services we provide without the dedication, passion and skill of our entire staff. On behalf of the Board, I would like to extend my gratitude to our management teams and to all employees who have worked so hard to steer the business through this challenging environment.
For Aamal, the outlook for the year ahead is mixed. A prolonged outbreak of COVID-19 is expected to have a negative impact on the Group’s financial results for 2020 however, Aamal’s diverse business model continues to provide resilience in these challenging times and we are confident that our strategy remains appropriate for long-term sustainable growth.
While the COVID-19 pandemic is having an unprecedented impact on global financial markets, the long-term economic outlook is encouraging and we expect Aamal to leverage the opportunities generated by the Qatar National Vision 2030, supported by the wise vision of our Government under the leadership of HH Sheikh Tamim Bin Hamad Al Thani, The Emir of Qatar. Our corporate strategy remains clear and consistent as we continue to focus on generating shareholder value through profitable growth and diversification.
Thank you for your ultimate trust.”
(2) To hear and approve the External Auditor’s report on the Company’s balance sheet and profit and loss account for the financial year ended 31 December 2019.
The General Assembly approved the External Auditor’s report on the Company’s balance sheet and profit and loss account for the financial year ended 31 December 2019.
(3 )To discuss and approve the Company’s balance sheet and profit and loss account for the financial year ended 31 December 2019.
The General Assembly approved the Company’s balance sheet and profit and loss account for the financial year ended 31 December 2019.
Financial Highlights
- Total revenue up 0.6% to QAR 1,294.1m (2018: QAR 1,286.6m), primarily due to a strong performance in the Trading and Distribution segment
- Gross profit down 7.1% to QAR 434.0m (2018: QAR 467.2m)
- 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 25.2% to QAR 259.9m (2018: QAR 347.6m)
- Net underlying profit margins decreased by 6.9 percentage points to 20.1% (2018: 27.0%)
- Share of net profits from associates and joint ventures accounted for using the equity method decreased 37.8% to QAR 62.3m (2018: QAR 100.0m)
- There were no fair value gains or losses on investment properties in 2019 or 2018
- Total Company net profit1 down 28.0% to QAR 322.1m (2018: QAR 447.6m), with net profit attributable to Aamal equity holders down 27.6% to QAR 322.3m (2018: QAR 445.3m)
- Reported earnings per share2 decreased 27.6% to QAR 0.05 (2018: QAR 0.07)
- Net capital expenditure down 83.4% to QAR 48.2m (2018: QAR 289.7m), owing to a number of property acquisitions made by Aamal Real Estate in the prior year period and not repeated in 2019
1 Total Company net profit is before the deduction of net profit attributable to non-controlling interests.
2-Restated to reflect the stock split implemented in June 2019 (a QFMA initiative requiring QSE-listed companies to split each of its shares into 10).
(4) To discuss and approve the proposal of the Board of Directors to distribute dividends to the current shareholders at a sum of 4% of the nominal value of each share of the Company that they own (i.e. QR 0.04 per share).
The General Assembly approved the proposal of the Board of Directors to distribute dividends to the current shareholders at a sum of 4% of the nominal value of each share of the Company that they own (i.e. QR 0.04 per share).
(5) To discuss and approve the Company’s Corporate Governance Report for the year ended 31 December 2019.
The General Assembly approved the Company’s Corporate Governance Report for the year ended 31 December 2019.
(6) To discuss and approve the Company’s Internal Control over Financial Reporting (ICOFR) Report for the l year ended 31 December 2019.
The General Assembly approved the Company’s Internal Controls over Financial Reporting (ICOFR) Report for the year ended 31 December 2019.
(7) To discharge Members of the Board of Directors from their liability for the year ended 31 December 2019.
The General Assembly approved discharging Members of the Board of Directors from their liability for the year ended 31 December 2019.
(8) To appoint the External Auditor for the Financial Year of 2020 and fix their fees.
The General Assembly approved appointing Price Waterhouse Coopers as the Company’s External Auditor for the Financial Year of 2020 and determined their fees.
Ends
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Further Inquiries: |
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Aamal Company |
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Laura Ackel, Communications and Marketing Officer |
About Aamal Company Q.P.S.C.
Aamal is one of the region’s most diversified companies and has been listed on the Qatar Stock Exchange since December 2007. As at 1 April 2020, the Company had a market capitalisation of QAR 3.78 bn (US$ 1.04 bn).
Aamal’s operations are widely diversified and comprise 26 active business units (subsidiaries and joint ventures) with market leading positions in the key industrial, retail, property, managed services, and medical equipment and pharmaceutical sectors, thereby offering investors a high quality and balanced exposure to Qatar’s wider economic growth and development. Aamal is focused on self-financed and profitable growth, delivering an average increase in underlying profits in excess of 1.22% (i.e. before fair value gains on investment properties) over the thirteen years to end-2019.
For further information on Aamal Company, please refer to the corporate website: http://www.aamal.com.qa
