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16 February 2020
INVESTMENT

Amanat records 40 per cent increase in net profit

Amanat Holdings net profit for the year stood at AED 60 million

Amanat Holdings is based in Dubai and is the largest healthcare and education investment company in the GCC. Photo credit: Sophie James

by Nabilah Annuar

Dubai-based Amanat Holdings, the GCC’s largest healthcare and education investment company, has announced its consolidated financial results for the year ended 31 December 2019. The company recorded total income of AED 113.3 million in FY-2019, up eight per cent year-on-year (y-o-y) and a net profit of AED 60 million up 39.8 per cent y-o-y.

The Board of Directors has proposed a cash dividend of 2.2 fils per share for the year ended 31 December 2019, subject to shareholders approval at Amanat’s Annual General Meeting to be held on 13 April 2020. The dividend represents the fifth consecutive payout to shareholders, distributed yearly since Amanat’s listing on the Dubai Financial Market at the end of 2014 and is 46.7 per cent higher compared to FY-2018. Income from Investments increased 2.3 per cent to AED 73.5 million in FY-2019.

Improved performance at the Education Platform helped offset the expected negative contribution to investment income from the Royal Hospital for Women & Children, which successfully commenced operations in March 2019 and is currently in its ramp-up phase. RHWC has successfully launched 90 per cent of it’s medical services, completed the recruitment of the clinical team and signed with key insurance companies, all of which should support the growth of higher patient footfall going forward.

Net profit for the year stood at AED 60 million in FY-2019, up 39.8 per cent y-o-y reflecting the company’s 8.0 per cent increase in total income and a 16.0 per cent decline in operating expenses. Accordingly, net profit margin increased by 13.3 per cent to 54.4 per cent in FY-2019. It is worth noting that bottom-line profitability excluding RHWC’s ramp-up losses would have been AED 82.0 million, up 84.9 per cent compared to the previous year. 

Commenting on the year’s results, Amanat’s Chairman HE Hamad Abdulla Al Shamsi said, “Throughout 2019 we remained focused on integrating and aligning our portfolio companies, both operationally and strategically, particularly after having deployed over AED 1.2 billion across four investments in 2018. The merits of our team’s efforts are clearly reflected in Amanat’s performance, and we are well positioned to capitalise on favourable legislative and economic trends in the regional healthcare and education sectors.”

“Domestically, we have built a diversified education platform that comprises four quality assets and that sees us fully aligned with the UAE’s 2021 vision of building a first-rate education system. On the healthcare front, we are excited to have brought RHWC to the fold, with the Bahraini asset now in its ramp-up phase, and we continue to provide our KSA healthcare assets with the resources necessary to capture the strong demand for quality healthcare services.”

Amanat has deployed a total of AED 2 billion since inception, utilising 80 per cent of its AED 2.5 billion paid up capital. With 99 per cent of its revenues following DFM recognised set of rules and requirements guided by the Shari'ah’a principles, Amanat is considered a Shari'ah’a compliant entity.

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