Jassim Alseddiqi, Group CEO, SHUAA Capital. Photo credit: Shuaa Capitalby Nabilah Annuar
SHUAA Capital, a Dubai Financial Market-listed entity and asset management and investment banking platform in the region created by the merger of SHUAA Capital and Abu Dhabi Financial Group (ADFG), has announced preliminary results for fiscal year 2019, recording an earnings before interest, tax, depreciation and amortization (EBITDA) of AED 181 million and a net profit to the shareholders of SHUAA Capital of AED 45 million.
The results are SHUAA Capital’s first post-merger annual results and reflects ADFG’s positive contribution to the enlarged entity and the Group’s capacity to sustain revenue and capitalise on growth opportunities.
Following its return to profitability in Q3 2019, the group maintained its performance during the fourth quarter of 2019, reporting a net profit to the shareholders of SHUAA Capital of AED 73 million, showing a significant increase in its profitability compared with AED 22 million in Q3 2019.
SHUAA Capital Q4 2019 revenues grew by 63 per cent quarter-on-quarter to reach AED 146 million during the period, driven by a number of significant transactions that closed in the final quarter. Group EBITDA for the quarter amounted to AED 134 million compared with AED 63 million in Q3 2019.
Post-merger, the group earmarked non-core assets for sale to realign SHUAA Capital’s efficient businesses, focus on managing down non-strategic assets, and strengthen the Group’s balance sheet. To that end, SHUAA Capital sold its brokerage arm, SHUAA Securities brokerage as well as its equity market-making business for a total deal value of about AED 100 million.
The Group’s asset management business is maintaining its growth trajectory. A recent deal to manage an approximately $400 million (AED1.47 billion) portfolio of assets helped increase the group’s total assets under management (AuM) to around $14 billion, up 15 per cent year-on-year supporting the group’s strategy of increasing its recurring revenue streams and strengthening its non-capital intensive asset management business.
During the past 12 months the Group has been mandated to lead over $500 million in Sukuk issues, including GFH Financial Group’s recent $300 million five-year Sukuk, Jabal Omar Development Company’s $135 million five-year Sukuk and The First Group’s $135 million Sukuk. SHUAA Capital has also played a strategic advisory role in several transactions, among them the reverse listing of PAL Holding and IHC on the Abu Dhabi Securities Exchange.