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SHUAA Capital profits grow 21% in Q2 on stronger asset management

SHUAA Capital profits grow 21% in Q2 on stronger asset management
SHUAA Capital profits grow 21% in Q2 on stronger asset management
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Dubai – Mubasher: SHUAA Capital on Monday reported a 21% year-on-year profit rise in the second quarter of 2018.

The investment firm logged AED 14.6 million ($3.98 million) between April and June up from AED 12.1 million ($3.29 million) in the year-ago period.

SHUAA’s revenues increased to AED 30.8 million in Q2-18 from AED 30.4 million in the same period of 2017, the company said in a statement.

During the three-month period ended 30 June, SHUAA’s subsidiary, Gulf Finance Corporation PJSC, was able to fully repay its AED 450 million syndicated bank facility raised from Abu Dhabi Commercial Bank (ADCB) in 2015. After the repayment, Gulf Finance maintains a strong liquidity position on its balance sheet, the Dubai-listed investment firm revealed.

As for the first half of 2018, the company’s profits declined to AED 26.3 million from AED 36.8 million in the same period last year.

SHUAA Capital achieved AED 64 million in revenues, up from AED 62.2 million in the same period of 2017.

Commenting on his company’s results, CEO Fawad Tariq-Khan said that SHUAA Capital had been “very active” between January and June in a platform for the future.

“Our Egypt and Saudi businesses in particular have achieved a strong growth trajectory, and more importantly, given our strong liquidity position and recent recoveries, we are now in a position to look at making dividend distributions to our shareholders for the first time in ten years,” he stated.

The Dubai-based company’s asset management business, which manages the development of premium real estate projects in Saudi Arabia, Egypt and the UAE, enjoyed a particularly strong quarter.

The division achieved AED 10.5 million in revenues in Q2-18 versus AED 5.6 million in the year-ago period, whereas its profits more than doubled to AED 4.6 million compared to AED 1.3 million in Q2-17.

The asset management division is close to the final construction stages of a hospitality building in Dammam, Saudi Arabia, with the handover date set to be announced soon.

“Development works on a second multi-purpose residential complex, the Wadi Al Hada project in Riyadh, continues in full force. At a Group level, significant plans were also announced regarding a strategic partnership with a prominent Saudi real estate developer, Jabal Omar Development Company, for managing the development of projects in Makkah,” SHUAA revealed.

In the period ended 30 June 2018, SHUAA signed a memorandum of understanding with UAE-based National Bonds Corporation with the aim of rolling out the latter’s successful savings investment schemes in Saudi Arabia.

“Further details on both planned partnerships will be unveiled during the second half of the year,” the investment company added.

SHUAA also said it was seeking shareholder approval for 10% share buyback. Its board proposed a dividend of AED 0.02 per share for first half of 2018.

“Shareholder returns are key for the Board and management at SHUAA and we remain confident SHUAA can continue on its path to sustained profitability and expanding its platform throughout the region,” SHUAA CEO concluded.

SHUAA previously reported AED 11.7 million in net profits in Q1-18, down from AED 24.8 million in the year-ago period, while its revenues had grown by 4% year-on-year to AED 33.2 million.