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Securities House FY17 profits plunge 97%; capital cut proposed

Securities House FY17 profits plunge 97%; capital cut proposed
Securities House’s board members recommended zero dividends
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Mubasher: The Securities House reported an increase of 95.8% in profits to about KWD 593,200 ($1.98 million) in the fourth quarter of 2017 compared to around KWD 302,960 ($1.01 million) in the same period in the previous year.

During FY17, the Kuwait-based firm registered a drop of 97.1% in profits to approximately KWD 22,130 compared to nearly KWD 757,620 in FY16, according to a bourse statement on Monday.

The company noted that the drop in FY17 profits is attributed to lower income from investments worth nearly KWD 960,000 in an associate.

Securities House’s board members recommended zero dividends for FY17.

The board has also proposed a capital reduction to KWD 45 million from KWD 48 million in return for paying 6.25% of capital or KWD 3 million to the shareholders as an exchange for cancelling 30 million shares.

Following the capital cut process, the financial impact will affect shareholders’ equity rights which will decline by KWD 3 million.