•The company’s revenue increased by 13% compared to the same quarter of the previous year, which was backed by some of the main sectors of the company including the corporate, and hourly services segments’ revenues where they increased by 22%, 18% respectively compared to the same quarter of the previous year due to the increase in corporate segment average workforce by 16% and to the support of the revenue recognized from the strategic signed contracts in the corporate segment. The Increase in revenue was also attributed to the logistics and other segments' revenues that increased by 397%, and 404% respectively compared to the same quarter of the previous year due to signing new contracts. In contrast, the revenue from the individual segment (household) decreased by 18% compared to the same quarter of the previous year due to the implementation of price ceilings for individual services in accordance with the applied regulations, which led to a decrease in the average price per workforce. The revenue from facilities management also decreased by 19% compared to the same quarter of last year as the company continued in restructuring some of its low margin contracts which enhanced the overall performance for this sector during this period.

However, the consolidated net income attributable to the company's shareholders was affected in the current quarter due to:

•The decrease in gross profit by 3% compared to the same quarter of the previous year which was mainly impacted by the decrease in individual segment (household) revenues, and the decrease in the average workforce in that segment.

•The results of the current quarter included profits from investments in associate, amounting to SR 14M, a decrease of SR 21M compared to the same quarter of the previous year. This is primarily due to the fact that the third quarter 2022 has included nine months of profits of year 2022 from investments in associates that were acquired during the third quarter of 2022 (Care shield and SMS Company), amounting to SR 35M as profits.

•The increase of financing cost by SR 8M during the current quarter compared to the same quarter of the previous year, mainly due to the obtained Islamic long-term loans to finance the acquisitions that were completed toward the end of the third quarter of the year 2022 therefore, the third quarter of the year 2022 included the finance cost for the month of September 2022 only.

•The increase of of doubtful debt expense by SR 9.1M compared to the same quarter of the previous year in accordance to the expected credit loss model.

•The results also included an impairment in the goodwill value of one of the subsidiaries by an amount of SR 1.1M.

•The company’s revenue increased by 2% compared to the previous quarter, which was backed by some of the main sectors of the company including the corporate, and hourly services segments’ revenues where they increased by 2%, 3% respectively compared to the previous quarter due to the increase in corporate segment average workforce and to the support of the revenue recognized from the strategic signed contracts in the corporate segment. The Increase in revenue was also attributed to the logistics and other segments' revenues that increased by 140%, and 24% respectively compared to the previous quarter due to signing new contracts. In contrast, the revenue from the individual segment (household) decreased by 4% compared with the previous quarter due to seasonality in revenues which affected the individual segment was during the current quarter.

However, the consolidated net income attributable to the company's shareholders was affected in the current quarter due to:

•The decrease in gross profit by 13% compared to the previous quarter due to the seasonality impact in the individual segment, which led to a decrease in utilization rates during the current quarter.

•The increase of of doubtful debt expense by SR 5.6M compared to the previous quarter in accordance to the expected credit loss model.

•The results also included an impairment in the goodwill value of one of the subsidiaries by an amount of SR 1.1M.

•The company’s revenue increased by 16% compared to the same period of the previous year, which was backed by some of the main sectors of the company including the corporate, and hourly services segments’ revenues where they increased by 28%, 15% respectively compared to the same period of the previous year due to the increase in corporate segment average workforce by 16% and to the support of the revenue recognized from the strategic signed contracts in the corporate segment. The increase in revenue was also attributed to the logistics and other segments' revenues that increased by 524%, and 303% respectively compared to the same period of the previous year due to signing new contracts. In contrast, the revenue from the individual segment (household) decreased by 14% compared to the same period of the previous year due to the implementation of price ceilings for individual services in accordance with the applied regulations, which led to a decrease in the average price per workforce. The revenue from facilities management also decreased by 16% compared to the same period of previous year as the company continued in restructuring some of its low margin contracts which enhanced the overall performance for this sector during this period.

•Furthermore, the gross profit increased by 9% compared to the same period of the previous year, mainly driven by improved results in some of the key segments including the corporate segment, hourly services segment, facility management segment, and other established segments.

•The investment in associates’ results increased by 24% compared to the same period of the previous year, to reach an income of SR 43.6M during the current period this year.

•In addition to an increase in other revenues by an amount of SR 5.3M compared to the same period of the previous year.

However, the consolidated net income attributable to the company's shareholders was affected in the current period due to:

•The increase of general and administrative and marketing expenses by SR 4M compared to the same period of the previous year.

• The Increase of doubtful debt expense by SR 12.2M compared to the same period of the previous year in accordance to the expected credit loss model.

• The financing costs for the new acquisitions which amounted to SR 28M compared to SAR 2M in the same period of the previous year, which was SR 2M since the current period this year's included the financing costs for the full nine months period of 2023 compared to the only month of financing cost in the similar period previous year (September 2022) when borrowing took place to finance the acquisitions that been completed last year.

•The results also included an impairment in the goodwill value of one of the subsidiaries by an amount of SR 1.1M.

•The decrease in income from the investment in financial instruments through profit or loss by SR 3M compared to the same period of the previous year due to reduced financial investments amount to finance the acquisitions completed in the previous year.

The Group's investment in associate acquired in the third quarter of 2022 was recorded at a value of SR 829M in the consolidated financial statements as of September 30, 2023. The company accounted for these investments using the equity method. As of the acquisition date, the company had recognized the investments at the transaction cost. However, as of the consolidated financial statements for the period ending on September 30, 2023, the study of the purchase price allocation by the consultant appointed by the company's management had not been completed, and its expected financial impact on the condensed consolidated financial statements had not been determined.

Qualified Conclusion

Except for the adjustments to the condensed consolidated financial statements that might have arisen had we obtained the final purchase price allocation study and completed our test, we have not become aware of any matter that leads us to believe that the accompanying condensed consolidated financial statements are not prepared, in all material respects, in accordance with the International Accounting Standard (34) adopted in the Kingdom of Saudi Arabia.

Other Matter

The consolidated financial statements for the three and nine-month periods ended on September 30, 2022, were audited by another auditor who expressed an unmodified opinion on those condensed consolidated financial statements as of 9 Rabi' Al-Thani 1444 H (corresponding to November 3, 2022).

Furthermore, the consolidated financial statements of the Group for the year ended December 31, 2022, were reviewed by another auditor who issued an unmodified opinion on those consolidated financial statements as of 14 Sha'ban 1444 H (corresponding to March 6, 2023)."

•Preliminary reports for the purchase price allocation were received from the external consultant, but the final reports were not completed and reviewed by the external auditor within the specified time. Therefore, the external auditor expressed a qualified opinion due to the expiration of the allowable period for studying the purchase price allocation in accordance with IFRS 3 'Business Combinations.'

•The Group will update the external consultant's report for the purchase price allocation and present it to the auditors before the end of the financial year ending on December 31, 2023, and reflect its results in the financial statements, if applicable."

•The details of the conference call and its timing will be available on Maharah's website in the investor relations section along with the interim financial statements and the presentation accompanying the call at the link: https://www.maharah.com/investors in addition to Maharah investor relations mobile application.