• The company's revenue increased by 12% compared to the previous year, supported by the improvements in revenues in some of its main sectors, including the corporate segment and hourly services segment (Khidmah), which increased by 22% and 14% respectively compared to previous year as a result of the increase in average number of workforce in those segments by 13% and 19% respectively, to match the rising demand of the offered services in those sectors and as a result of the increase in revenues recognized from the strategic contracts in the corporate segment.

• The increase in revenues was achieved in 2023 despite the impact of the revenue decrease in individual sector (Permanent Services) by 15% compared to the previous year, as this sector face challenges throughout the 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, and due to the temporary suspension in recruitment from Indonesia as a result of changes of workforce regulations, which were lifted at the beginning of 2024. Additionally, there was an 18% decrease in facility management revenues due to the restructuring of some of their unprofitable contracts.

• Despite that impact, the corporate sector achieved an increase of 22% in gross profit compared to previous year. However, the overall profit margin was negatively affected by the results of the individual segment, and the facility management, logistics, and home healthcare, leading the company to record a net increase in gross profit of 3% compared to previous year.

• The results of year 2023 included profits from investments in associate (Care shield and SMS Company), amounting to SR 38.7M. This result is the net of the reflected amortizations of their intangible assets in accordance to the purchase price allocation exercise that was completed during the current year 2023.

• Also, other income increased by SR 7.2 million compared to previous year, mainly due to leasing the building under investment in property and other items.

• In contrast, The provisions of doubtful debt increased by SR 19M compared to previous year, according to the expected credit loss model (ECL) as well as booking certain identified and doubtful accounts.

• The financing cost amounted to SR 44M during the current year compared to SR 11M in the previous year, which was mainly due to the obtained long-term loans to finance part of the acquisitions that have been completed during third quarter 2022. This year includes the full year's financing costs for 2023, in contrast to financing costs for only four months in the previous year 2022.

• The results also included an impairment subsidiaries goodwill for an amount of SR 2M.

• In addition, the company’s investment in financial instruments through profit or loss has a decrease in income by SR 2.5M compared to previous year.

o Saudi Medical System Company with a 40% ownership, at a purchase cost of SR 427M.

o Care Shield Company with a 41.36% ownership, at a purchase cost of SR 307M.

Based on the sales and purchase agreements of these investments, which included a waiver by the sellers of their share in the profits of these companies from the valuation date of 01/01/2022 in favor of Maharah Company, the company recorded its share of the results from these associate companies for the period starting from the valuation date to the acquisition date (the first nine months of 2022) in the third quarter of 2022 results, based on the information available at the time.

In accordance with IFRS, a purchase price allocation exercise must be conducted for each of these investments to determine the fair value of its share in the assets and identifiable liabilities of the entities as of the acquisition date, and to account for any difference between the cost of the investment and the entity's share of the net fair value of the investee's identifiable assets and liabilities. The IFRS gives the company a period of one year from the acquisition date to complete the purchase price allocation exercise. Therefore, the acquisition process required identifying several important matters, including the acquisition date associated with obtaining significant influence in these companies to use as a base for allocating the purchase price, based on the fair value at the acquisition date and identifying its intangible assets and goodwill.

In 2023, the company completed the purchase price allocation exercise for the associate companies acquired in the third quarter of 2022 in accordance to IFRS resulting in determining the closing date of the acquisition (the date of obtaining significant influence) of these associate companies (SMS and Shield Care) to be on 31/08/2022 and 30/09/2022, respectively. These dates are consequent to the valuation date (01/01/2022), where the initial investment value was recorded in the company's balance sheet and to the waiver of its share in the earnings of these associate companies from that date.

As a result of the purchase price allocation exercise, the company made necessary adjustments as per the IFRS with the following financial impact:

• Adjustment of the share of the profits recognized for the period from the beginning of 2022 to the acquisition dates (the first nine months of 2022) for the acquired companies (SMS and Care shield) amounting to SR 35M, as the results of these companies for this period are included in the net book value of these investments (their equity) as of the acquisition dates determined for the purposes of the purchase price allocation.

• The determination of the fair value of these investments resulted in an intangible assets and goodwill, leading the company to record amortizations for the intangible assets on the financial results for the years 2022 and 2023 according to IFRS No. 3, amounting to SR 5.2M and SR 17M, respectively.

• Total equity attributable to the shareholders of the parent company amounted to SR 568.6M (SR 558.8M in 2022)

• The details of the conference call and its timing will be available on Maharath’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.