Amanat, a healthcare and education investment company, has  reported a net profit of Dh42.9 million ($11.67 million) in FY 2018 in line with 2017 and 39 per cent higher excluding costs relating to acquisitions  and non-recurring one-offs.

Total net revenue of Dh104.4 million was up 21 per cent compared with Dh86.3 million in 2017. These results reflect a significant increase in share of profit from associates as well as the initial benefits from the acquisitions completed during the year.

Amanat deployed Dh1.2 billion over the course of the year to reach Dh2 billion of deployment since inception, marking 79 per cent of the Dh2.5 billion paid up capital. Four high-quality assets have been acquired in healthcare (Royal Hospital for Women in Bahrain) and education (Abu Dhabi University Holding Company and Middlesex University Dubai) and the real estate of North London Collegiate School Dubai.

Income from associates (Sukoon - KSA, Taaleem – UAE, IMC - KSA and Abu Dhabi University - UAE) more than doubled to Dh53.1 million in 2018 from Dh19.8 million in 2017 while net income from subsidiaries (Middlesex University – UAE and the Royal Hospital for Women - Bahrain) reached Dh5.3 million (Nil in FY 2017). Amanat has proactively supported both its existing associate and subsidiary companies during 2018 in developing their individual propositions and the increase in the financial contribution from associates and the partial contribution from subsidiaries is testament to these value creation initiatives.

Interest income reduced to Dh30.1 million (FY2017: Dh57.2 million), as Amanat utilized cash balances to fund acquisitions. As at 31 December 2018, cash balances stood at Dh596 million compared with Dh1.72 billion as at 31 December 2017.

Total expenses for Amanat Holdings in 2018 stood Dh61.5 million (FY2017: Dh44.0 million). Notably, the FY 2018 expenses included one-off costs relating to the acquisitions of the subsidiaries during the year and are not recurring in nature.

 
Amanat’s board is recommending a cash dividend of 1.5 fils per share for the approval of the general assembly in their upcoming meeting.

Hamad Abdulla Al Shamsi, chairman of Amanat, said: “2018 has been a year of active deployment for Amanat. The Company delivered Dh1.2 billion of acquisitions in four quality assets, an ambitious array of deals which has seen the Company scale considerably. Having achieved much in 2018, we have the foundations in place for continued growth in 2019 and beyond.

“This year, we will build on these foundations, so that Amanat is best placed to take advantage of the pipeline of opportunities. We therefore remain confident of progress towards Amanat’s aspiration to be the investment partner of choice in healthcare and education, and of creating real and lasting value for its shareholders and society as a whole.”

Dr Shamsheer Vayalil, vice chairman and managing director of Amanat, added: “We have done what we set out to do at the beginning of the year, actively identifying and securing new majority or significant minority stakes in high quality assets with the potential for strong and sustainable growth.”

“The initial impact of this achievement is reflected in the numbers, together with an encouraging contribution from our existing associate companies. We have now established platforms incorporating high quality brands which we intend to leverage going forward. Education and healthcare are at the heart of any healthy economy, and we see substantial opportunities for Amanat in its chosen markets.

“Not only to create substantial value and returns for our shareholders but also as a major player in helping governments across the GCC and beyond to develop these two sectors and build a smarter, healthier society,” Dr Vayalil concluded. – TradeArabia News Service