Elm says govt entity extends, increases value of operating center contract by SAR 89.5 mln

Logo of Elm Co.

Elm Co. received a letter from a government entity to extend a contract for operating services centers for additional six months, starting from Dec. 16, 2022, according to a statement to Tadawul.  

Additionally, the contract value was raised by SAR 89.5 million, the company added.  

The financial impact will show in 2022 and 2023, depending on the number of transactions executed until the end of the contract term.  

Approximately 38% of the contract value was executed and recognized in the third quarter of 2022. The contract entitlement is based on performance assessed according to the number of executed transactions. Therefore, the revenue in 2022 and 2023 will be linked to the number of transactions executed.  

The statement said that the extension annex is expected to be signed within two months.  

Elm announced in March that a contract to operate services centers with a government agency was extended and its value was increased by SAR 569.96 million. The agreement was originally signed in 2021, Argaam earlier reported.  

In August, the company signed an extension annex to the contract of operating centers with a government entity for additional six months, noting that there was no change in the contract value.