BATIC’s segment turnaround to boost Q2 2021 financials, ‘highly solid’ position: MD

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.

Batic begins trial run of Dammam smart parking project; full operations to start July 1

Batic said in a bourse statement that the actual operations, along with parking fees, will begin on July 1, 2021, and are expected to impact the group’s revenues in H2 2021.

The company aims to operate 19,078 parking spaces in Dammam, Khobar, and Dhahran, upon the completion of the project.

The trial phase comes as the continuation of the technical and structural preparations, in coordination with Dammam’s sub-municipalities and the Secretariat of the Eastern region, the statement said.

The company targets 7,634 parking spaces in Dammam once the project is complete.

The first phase of smart parking was already launched in Khobar, while work is underway for the project in Dhahran. The company aims to reach 11,444 parking spaces in Khobar and Dhahran.

The projects – multi-floor car parks and smart parking lots – are considered to be the largest in terms of services and solutions for public parking in the Kingdom. They include multiple payment methods and are considered one of the basic building blocks of smart cities, in line with the plans of secretariats, municipalities and the Vision 2030.

The projects also conform to Batic’s strategy to increase local investment, including the implementation and management of smart cities through advanced technical solutions. Eastern Province is the first of its projects, which include enabling national cadres and localization of manufacturing.

The company is currently working to complete the procedures for implementing an agreement on the sale and purchase of shares between Batic (buyer) and Smart Parking Holding Co. (seller).

An agreement on this was signed by Batic managing director Mohammed bin Saud Al-Zamil and Smart Parking Holding chairman Alwaleed Bin Khalid Almogbel, to acquire 35.8% of Smart Cities Solutions Co.

In September 2019, Batic said that the Smart Cities Solutions Co. signed two contracts to establish, develop, invest and operate multi-story parking lots with the Ministry of Municipal, Rural Affairs and Housing. The contracts worth SAR 1.24 billion were for a term of 25 years, Argaam reported.

Batic Investments and Logistics Co. Announces an update on the signing of a memorandum of understanding to form an alliance for the purpose of applying for qualification to enter the competition for the construction and management of parking in the Olaya district in Riyadh

BATC Investment and Logistics Company announces that on Thursday, January 28, 2021, the extension of the previously signing of a memorandum of understanding with ALMARSHAD GROUP HOLDING and Smart Cities Solutions Compamy
to form an alliance for the purpose of applying for qualification to enter the competition for the construction and management of parking in the Olaya district in Riyadh for a period of three months ending on 29/04/2021 (Nine Months)

Batic Investments and Logistics Co. Announces an update on the signing of a memorandum of understanding to form an alliance for the purpose of applying for qualification to enter the competition for the construction and management of parking in the Olaya district in Riyadh

Batic Investments and Logistics Co. announces the interim consolidated financial results for the period ending on 30-09-2020 (Nine Months)

Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to The reason for increasing the net profits during the current quarter compared to net profit for the same quarter of the previous year by 344% is mainly due to:
– The increase in Operating profit by SAR 15,919,043 (307%) compared to the same quarter of the previous year due to increase the revenue by 65% and increase Total profit by 112% because of the contribution of the revenue from supplying medical equipment sector through one of the subsidiaries.

– The increase in other revenue for the current quarter by SAR 558,976 (142%) compared to the same quarter last year.

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to The reason for achieving net income for the current quarter compared to the net loss in the previous quarter is mainly due to:
– The increase in total profit by SAR 26,071,865 (524%) compared to the previous quarter due to increase the revenue by 95% and because of the contribution of the revenue from supplying medical equipment sector through one of the subsidiaries.

– The increase in other revenue for the current quarter by SAR 885,924 (1304%) compared to the previous quarter.

Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to The reason for achieving net loss during the current Period compared to net profit during the same Period of the previous year is mainly due to:
– The increase of the provision of expected credit loss by 138 % where the provision of expected credit loss during this period amounting to SAR 8,729,272 compared to SAR 3,661,400 for the same period of the previous year.

– The increase in finance costs by 145% where the finance costs amounting to SAR 4,540,237 compared to SAR 1,856,046 for during the same Period of the previous year as a result of a loan borrowed from the bank for one of the subsidiaries in order to implement smart parking project in the Eastern region in addition to supplying of Medical equipment and purchasing new fleet.

– The increase of non-controlling interest by 699% which the non-controlling interest amounting SAR 4,533,754 during the current period compared to SAR 567,456 for same period of the last year.

Basis of the External Auditor’s Opinion Unmodified opinion
Reclassification of Comparison Items Prior period figures have been re-classified to conform to the presentation in the current period.