Bahrain Mumtalakat Holding Company, the investment arm of the kingdom, has announced that its full-year results for 2014 reflected another solid financial and operational performance across the group, constituting of 38 portfolio companies.

While group revenues for the year were up by 11 per cent to BD1.2 billion ($3.1 billion), direct costs rose by less than five per cent, resulting in a 65 per cent increase in gross profit to BD181.1 million ($477 million), compared with BD109.4 million in 2013, said a report in the Gulf Daily News (GDN), our sister publication.

The revenue growth was primarily due to higher sales reported both by Alba and Gulf Air.

A continuing focus on revenue enhancement and cost control within the group has contributed to a significant increase in operating income by 60 per cent to BD113.1 million from BD70.7 million in 2013.

The overall result was a net profit for the year of BD91.6 million, 11 per cent higher than the previous year of BD82.7 million.

Impairment in the year amounted to BD34.4 million, compared with BD20.9 million in 2013, while net profit before impairment grew by 22 per cent.

Total assets were BD4.2 billion.

Gulf Air continued to reduce its operating losses as a result of its restructuring initiatives, the group said.

Alba continued to perform well, growing revenues and profits, and benefiting both from improved operating efficiencies and higher LME prices.

Mumtalakat's two leading associate companies, Batelco and National Bank of Bahrain both grew net profits.

"Last year was another good one for Mumtalakat and we are very proud of what we have achieved," Mumtalakat chief executive Mahmood Al Kooheji said.

"The strength of our financial results reflects the fact that we have been successful in implementing a disciplined and focused approach in the management of our portfolio.

"Our portfolio management and investment strategy is conducted not only with a commercial mind-set, but we ensure that both we and our portfolio companies adhere to the highest standards of corporate governance and transparency.

"In doing so, we always seek to engage with management teams who share our vision and cultural values," he said.

"In addition, Mumtalakat aims to diversify its portfolio across geographies through new investments and acquisitions.

"The benefits of our overall approach are clear from these results, which demonstrate the continued progression towards greater profitability.

"The global and regional economies are undoubtedly experiencing some challenging headwinds.

"However, we are confident that we have the right strategy, the right people and the right expertise in order to ensure that we are able to continue to grow the wealth of Bahrain in a sustainable way, for the long term," he added.

Gulf Air reported revenues of BD349.4m for the year, an increase of 14 per cent, compared with BD307.2 million in 2013, as a result of increased passenger volumes and yields on routes.

With improved cost controls and operating efficiencies, Gulf Air was able to register a net profit for the year after impairments and government grants of BD15.8 million, compared to a net loss of BD12 million in 2013.

Alba achieved a 9.7 per cent increase in revenue (BD821.7 million in 2014 compared to BD749.3 million in 2013) on the back of higher LME prices for aluminium, particularly in the second half of the year.

Alba also achieved higher premiums on its value-added products.

As a result, Alba achieved a net profit for the year of BD96.4 million in 2014, compared to a net profit of BD79.8 million in 2013.

Batelco grew its net profit by 12 per cent, making a contribution to the group net profit of BD17.7 million. National Bank of Bahrain increased net profits by four per cent, contributing BD24.3 million to the group net profit. - TradeArabia News Service