.Logo of Batic Investments and Logistics Co
The turnaround of Batic Investments and Logistics Co.’s (BATIC) segments will positively reflect on the company’s financial results for the second quarter and the rest of the year, Managing Director Mohammed Saud Al-Zamil told CNBC Arabia.
The company reconsidered the operations of the security guard, transportation, money transfer, cash management and ATM feeding. Since mid-2020, BATIC worked on restructuring of these segments and started generating better operating profit margins.
Arab Security & Safety Services Co. is witnessing robust growth. Moreover, BATIC began investments in the healthcare sector since mid-2020. It is planning to enter into new ventures in the medical services and home care business, Al-Zamil said, adding the new projects will be announced duly.
Moreover, BATIC has a “highly solid” financial position, as liquidity improves on a quarterly basis. Current assets are almost two times the current liabilities, while the debt to capital ratio is very low. The company can further expand depending on its capital and loans.
The company’s smart car park project will be 70% financed by loans, while the remaining 30% will be self-financed, Al-Zamil explained.
BATIC is expected to achieve the full target of the project over the next two years, Al-Zamil noted, pointing out that the park rental will reach SAR 3 per hour. The project will deliver revenue through other services, including a special application that offers parking services, advance payments, special packages, etc. through a strategic partnership with Huawei.
Elsewhere, Al-Zamil expected to close the acquisition deal of a 38% stake in Smart Cities Solutions for Communications and Information Technology by the end of this year. BATIC is in process of finalizing the paperwork and obtaining the required regulatory approvals. BATIC is also eying new acquisitions, especially in the cold storage industry, but no opportunities are ready to date.
BATIC announced that Smart Cities Solutions Company for Telecom and Information Technology, which is 40% owned by AMNCO - a Batic subsidiary - started the trial run for the first phase of the smart parking project in Dammam.
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