Mohammed Al-Mojil Group makes promising restructuring strides

Mohammed Al-Mojil Group (MMG), one of the largest Saudi construction service providers, held its general assembly meeting at its head office in Dammam recently.
The meeting approved the management and auditor’s reports, the financial results for the year ended Dec. 31, 2012, appointing a new auditor for the current financial year, granting clearance to board members and appointing new members to the board for its current session.
Adel Al-Mojil, MMG chairman of the board, said: “The restructuring plan, which we adopted during the extraordinary general meeting held on Nov. 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 elsewhere in the Kingdom.”
Al-Mojil said: “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: “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. MMG remains one of the pillars of the construction industry in the Kingdom.”
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.”
Macphail said: “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.”