On 2026-08-10 08:05:56 (Saudi Time), Maharah Human Resources Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, Maharah Human Resources Co. reported revenue of SAR 1,853.18 million, up 26.39% YoY from SAR 1,466.23 million, driven primarily by strong growth in the Corporate Services and Individual Services sectors of 26.86% and 19.68%, respectively, fueled by increases in average workforce numbers of 15.67% and 12.65%, respectively, alongside higher demand for services. Net profit attributable to shareholders surged 48.913% YoY to SAR 132.31 million from SAR 88.85 million, supported by a 47.457% rise in gross profit to SAR 204.48 million reflecting improved utilization rates, operating efficiency, and cost management initiatives, as well as a SAR 10.7 million reduction in finance costs due to lower average financing balances and the non-recurrence of a SAR 5.2 million expected credit loss expense on other receivables recognized in the prior period. These gains were partially offset by a significant decline in the share of profit from associate Saudi Medical Systems Company to SAR 14.4 million from SAR 32.5 million in the prior period, along with lower other income, higher expected credit loss expense on trade receivables and contract assets, and increased operating expenses.

Quarter-on-Quarter Performance Drivers

QoQ revenue edged up 0.77% to SAR 930.2 million (vs. SAR 923.0 million in the prior quarter), driven by modest workforce growth of 1.04% and 2.00% in the Corporate Services and Individual Services sectors, respectively. However, net profit attributable to shareholders fell sharply by 30.20% to SAR 54.4 million (vs. SAR 77.9 million), primarily due to a 5.87% decline in gross profit caused by higher seasonal direct costs, a SAR 9.4 million increase in general and administrative expenses linked to the long-term employee incentive program, and a SAR 2.4 million rise in selling and marketing expenses from advertising campaigns. The decline was further compounded by a SAR 5.5 million drop in other income (including a SAR 1.4 million reduction in Esnad employment support income) and a significant decrease in the equity-accounted share of results from Saudi Medical Systems Company to SAR 4.4 million from SAR 9.9 million in the prior quarter. These negative impacts were only partially offset by a SAR 1.4 million reduction in expected credit loss expense on trade receivables and a slight decrease in finance costs.

Other Items

The external auditors issued a qualified conclusion on Maharah Human Resources Co.'s condensed consolidated interim financial statements for the six months ended 30 June 2026. The qualification arises from the Group's investment in its associate, Saudi Medical Systems Company, which is carried at SAR 420,962,835 as at 30 June 2026 (31 December 2025: SAR 406,583,091). The auditors noted that during the year ended 31 December 2025, the Group did not perform equity accounting for this investment in accordance with IAS 28, and due to the absence of underlying financial information and lack of access to the management and auditor of Saudi Medical Systems Company, it was impracticable to quantify the effects of this departure. Furthermore, while the Group has restated comparative figures for the three- and six-month periods ended 30 June 2025 and recognized its share of profit from the associate for the periods ended 30 June 2026, the auditors were not provided access to the associate's financial information, management, or auditor, and were therefore unable to perform review procedures regarding these restatements or the share of profit recognized, nor could they determine whether any adjustments to retained earnings as at 1 January 2025 and 30 June 2025, the carrying amount of the investment as at 30 June 2026, or the share of profit for the relevant periods are necessary. Total equity attributable to shareholders of the Parent Company stood at SAR 952.6 million as at 30 June 2026, up from SAR 876.0 million as at 31 December 2025, an increase of SAR 76.5 million or approximately 8.7%. No accumulated losses or material going concern risks were disclosed. Certain comparative figures for the three- and six-month periods ended 30 June 2025 have been adjusted and reclassified to incorporate the Group's share of results of Saudi Medical Systems Company, align the presentation of certain subsidiaries, and retrospectively adjust the weighted average number of shares to reflect the effect of bonus shares.

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