TAM net profit declines 26% to SAR 30.1M in 2024; H2 at SAR 18.7M

TAM Development Co. reported a net profit of SAR 30.1 million for 2024, a 26% decline from SAR 40.6 million a year earlier.

The company attributed the year on-year (YoY) profit decline to delays in government project awards and budget reviews during the first half of 2024, which impacted contract pricing, revenue recognition, and resource utilization rates.

Moreover, the financial results were affected by a 39% increase in general and administrative expenses due to workforce expansion to support company project growth. This resulted in a rise in unbilled employee costs from SAR 4.5 million in 2023 to SAR 12.2 million in 2024, stemming from project delays and subsequent underutilization.

However, this was offset by a higher revenue driven by the expansion of the consulting segment, which grew by 40% to SAR 232 million, as well as a significant growth in the digital solutions segment, which surged by 78% to SAR 41 million, and a 42% expansion of the company's client base.

H2 2024 net profit fell 48% year-on-year to SAR 18.7 million. Sequentially, H2 profit jumped 63.7% from SAR 11.4 million in H1 2024.

Shareholders' equity (no minority interests) reached SAR 136.72 million by the end of the period, compared to SAR 109.76 million at the end of the same period last year.

Earnings per share (EPS) for the current and comparative periods were SAR 9.15 and SAR 12.33, respectively, calculated by dividing net income by the weighted average number of shares.

Attached Document:

View more financial results