DAMMAM — Mohammed Al-Mojil Group (MMG), one of the largest Saudi construction service providers, held its general assembly meeting on Wednesday at its head office in Dammam during which it approved the management and auditor's report, financial results for the year ending Dec. 31 last year, appointed a new auditor for the current fiscal year, granted clearance to board members and appointed new board members for its current session. “The restructuring plan, which we adopted during the extraordinary general meeting held on November 5, 2012, is moving at a steady pace and in line with our expectations, and is likely to produce further promising results within the forthcoming quarters, allowing MMG to regain its previous position as one of the leading Saudi construction services providers in the Eastern Region and the Kingdom of Saudi Arabia,” said Adel Al-Mojil, MMG Board Chairman. “We all know that restructuring companies takes time and patience, but in our case, we could, in an 18-month period, achieve positive financial results that will prove the success of our restructuring plan.” Al-Mojil said that “during Q2 2013 we reduced the net loss by nearly 40 percent and achieved a gross profit of SR3.2 million, which was the first since 2011, combined with other positive financials.” He concluded that “MMG remains one of the pillars of the construction industry in KSA.” MMG CEO Stewart Macphail said: “Over the next 18 months, MMG will continue to reduce its losses, through the restructuring process, and specifically the completion of our legacy fixed-price contracts, while at the same time continue to realign the business model to win and deliver profitable new business. We continue to make good progress on reshaping the group to the new business model based on high-quality services, stricter expense control and better governance practices. “ In 2012, MMG adopted a restructuring plan to abate its heavy losses, handle negative equity, finalize legacy projects and pursue collection of more than SR 1.5 billion in claims from project clients. In Q2 2013, MMG reported favorable results as it lowered its net loss by 40 percent compared to Q1 2013 and realized the first gross profit since 2011. — SG
