Amanat Holdings, the GCC’s largest healthcare and education investment company, recorded a total income of Dh113.3 million ($30.85 million) in FY-2019, up 8% year-on-year, and a net profit of Dh60 million ($16.34 million), up 39.8% y-o-y.
The board of directors has proposed a cash dividend of 2.2 fils per share for the year ended December 31, 2019, subject to shareholders approval at Amanat’s Annual General Meeting to be held on April 13.
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% higher compared to FY-2018.
Income from Investments increased 2.3% to Dh73.5 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 (RHWC), which successfully commenced operations in March 2019 and is currently in its ramp-up phase.
RHWC has successfully launched 90% of its 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.
Total expenses amounted to Dh51.7 million in FY-2019, down by 16% y-o-y versus the Dh61.5 million recorded in FY-2018. Lower expenses came as Amanat recorded an 11% decline in staff costs to Dh29.2 million, an 8% decline in G&A expenses to Dh16.7 million following cost reduction initiatives taken by management at the Holding level as well as a 45% reduction in project costs.
Amanat’s Chairman 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 Dh1.2 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.”
Dr Shamsheer Vayalil, Vice Chairman and Managing Director of Amanat, added: “We are pleased to have delivered a strong set of results for FY 2019 which were driven by the solid performance of our Education Platform recording a 54.8% increase y-o-y. We have continued to build our platforms and our team has worked intensely with our portfolio companies to help advance their service offering and operational performance. We have made significant headway during the year which has enabled us to deliver a 39.8% year-on-year increase in our net profit supporting Amanat’s solid growth trajectory.
“We remain optimistic on the macro-economic backdrop, which is supported by growing populations and a rising demand for education and healthcare services. Amanat stands uniquely positioned as a market consolidator and an investment vehicle that can tap into two of the region’s most resilient sectors.” - TradeArabia News Service