Shuaa Capital, a premier financial services company in the UAE, has registered a 67 per cent growth in its revenue for the first quarter which rose to Dh55.4 million ($15 million) from Dh33.2 million last year.
The company however reported a Dh24.9 million net loss for the first three months compared to a Dh11.7 million profit last year on the back of certain one-off provisions and a change in accounting standards.
The quarter saw Shuaa’s Capital Markets division registering profits worth Dh2.7 million over last year's Dh1.7 million loss with the Investment Banking division registering Dh1.1 million in profits (Q1 2018: loss Dh0.6 million).
Asset Management recorded Dh3.1 million of losses over profit of Dh4.1 million) driven by a one-off impairment of Dh4.2 million in its business following a change in revenue recognition standards for performance fees.
The Lending division recorded Dh4.4 million in losses (Q1 2018: profit 2.2 million), while Corporate reported a loss of Dh21.2 million (Q1 2018: profit Dh7.7 million) due to provisions relating to its legacy investment in an Abraaj-controlled fund and higher financing costs.
As of March 31, 2019, Shuaa’s balance sheet and total assets was Dh2.2 billion (December 31, 2018: Dh2.1 billion). The Group’s liquidity position was strong with Dh572.7 million in cash and net assets of Dh790.2 million attributable to the shareholders.
Shuaa Capital confirms it is progressing with its potential transaction with ADFG through a strategic investment structure where-in the combined entity will continue to operate as a publicly listed company. The Company is going through final stages before regulatory and shareholder approvals will be sought.
Shuaa Capital today announces its Q1 2019 financial results, with revenues increasing to Dh55.4 million (Q1 2018: Dh33.2 million).
CEO Fawad Tariq-Khan said: “The first quarter for Shuaa reflects mixed results of the business. Our core operating businesses of investment banking, capital markets and asset management continued to grow in profitability, while certain one-off provisions and higher financing costs dragged our overall results into a loss."
"That said, our continued growth in our core operations continues our strategy of solidifying our recurring revenue base taking us towards sustained long-term profitability," he added.-TradeArabia News Service