Wednesday 22 May 2019
 
»
 
»
Story

Shuaa Capital revenues hit $40m, profit down

DUBAI, February 15, 2019

UAE-based Shuaa Capital said its total group revenues for 2018 increased by 23 per cent to reach Dh165.2 million, however the net profit fell 63 per cent year-on-year to Dh27.2 million with the company taking mark-to-market charges on its investments in Q4 2018 and additional one-off provisions on legacy assets.

Announcing its unaudited full year results for 2018, Shuaa said the fourth quarter brought about the biggest impact on earnings, reporting a loss of Dh29.2 million, while revenues for the last quarter of 2018 rose 40 per cent to Dh60.1 million, up from Dh42.8 million in the corresponding quarter of 2017.

CEO Fawad Tariq Khan said: "During the year we continued executing our turnaround strategy and completed acquisitions of Integrated Securities, Integrated Capital and Amwal Investments, adding cash flow generative businesses that have significant cross-sell opportunities and allowing us to distribute our first dividend in ten years."

"We also re-leveraged our balance sheet with favorable debt terms once we had repaid our legacy loans providing the Group with ample liquidity coming into 2019. While our profitability for the year was impacted by challenging market conditions at the end of last year, our core operations continued to grow and position Shuaa for the future. We expect the fruits of our diversification campaigns to come through properly over the coming months as we continue to grow our presence across the region," he stated.

Volatility persisting across regional markets especially during the second half of the year, held the Group back from achieving its previously set targets. Yet, the firm navigated the adverse market headwinds well, and continued to execute its long-term business diversification objectives, which entails rolling out products and services into new jurisdictions such as Kuwait, Turkey and Jordan, said the statement from Shuaa.   

As at December 31, 2018, Shuaa's balance sheet and total assets were Dh2.1 billion over Dh1.2 billion in 2017. The group’s liquidity position was strong with Dh441.4 million in cash. Liabilities increased to Dh1.2 billion from Dh325.4 million in 2017, it added.-TradeArabia News Service




Tags:

More Finance & Capital Market Stories

calendarCalendar of Events

Ads