Elm receives approval to extend and increase contract for operating service centres with government agency, at SR89.5 mln

Elm Company announced on Sunday that it received an extension and value increase letter on 17/11/2022 for the contract with a total value of (SR 89,544,917) (including VAT) for an additional six months starting from 16/12/2022.
Since the Company started executing the contract in 2021, therefore the financial impact of this extension will be over the years 2022 and 2023, depending on the number of transactions that will be executed until the end of the contract term.
Approximately 38% of the contract value was executed and recognized in the third quarter of 2022G. It’s worth mentioning that the contract entitlement is based on performance, which is calculated based on the number of executed transactions.
Therefore, the revenue in 2022 and 2023 will be based on the number of transactions executed.
The Company clarified that the annex is expected to be signed within two months.