WSM Information Technology posts profit growth to SAR 3.3M in H1 2023

WSM for Information Technology Co., which will list shares soon on Nomu Parallel-Market, reported an increase in net profit to SAR 3.3 million in H1 2023, compared to SAR 1.2 million in the year-earlier period.

The profit rise was spurred by a rise in revenues to SAR 12.2 million from SAR 3.9 million in H1 2022, primarily due to better revenues from the government sector.

The company’s operating profit margin was unchanged at 29% in the six-month period, despite higher administrative and marketing expenses.

On the other hand, WSM’s gross profit margin dropped to 58% in H1 2023 from 63% in H1 2022, as the percentage of the cost of sales/revenues rose to 42%.

Total shareholders’ equity, no minority interest, reached SAR 31.90 million as of June 30, 2023, compared to SAR 25.62 million a year earlier.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to SAR 3.80 million from SAR 1.41 million in H1 2022.

The company’s cash balance stood at SAR 0.53 million, compared to SAR 13.23 million in H1 2022.

On revenue level, the government sector accounted for 87%, or SAR 10.65 million, of total topline, compared to SAR 3.44 million in H1 2022.

The private sector recorded revenues of SAR 1.53 million, representing 13% of total topline, up from SAR 410,000 in the first half of 2022.

On Oct. 21, 2022, WSM shareholders approved to sell 390,000 shares, or 20% of the company’s SAR 19.5 million capital, on Nomu.