Manazel Real Estate, a leading UAE developer, has posted a net profit of Dh45 million ($12.2 million) for the first half (H1) of the year, up by 179 per cent from Dh16.1 million ($4.4 million) during the same period of 2014.

The increase was largely driven by improved margins from sale of properties, reduction in financing cost and mark to market of investment properties, a company statement said.

Revenues are at Dh262.8 million compared to Dh284.5 million as the handover of Al Reef Downtown was completed in 2014, the statement added.

EBITDA (earnings before interest, taxes, depreciation and amortisation) during the period was Dh77.9 million up by 39 per cent from Dh56.1 million. This is attributable to Manazel’s cost management programme, which also included renegotiations with existing banks to reduce financing costs.

Manazel‘s growth in profits is underpinned by the successful restructuring of the company, according to the statement.

This was coupled with the introduction of a comprehensive new business strategy with a focus on growing non-cyclical revenues through diversification into closely aligned growth sectors.

Manazel listed on the Abu Dhabi Securities Exchange at the end of 2014 and adopted comprehensive corporate governance protocols in support of its longer term growth strategy.

Manazel’s chairman Mohamed M Al Qubaisi said: “Over the year, Manazel Real Estate has made significant progress both in terms of restructuring its business in order to focus on the significant growth opportunities in new and dynamic market sectors, which will capitalise on our expertise in the residential and commercial real estate sectors.”

“Following the success of Al Reef, Manazel launched Al Reef 2 project and the sales are in line with our expectations. We are very excited to see the progress and look forward to reporting on further developments in due course,” he added.

Manazel’s chief executive officer Hassan Fahmi said: “Manazel has demonstrated good performance during the first half of the year, which demonstrates the core strength of our business. First half profits have increased to Dh45 million. Further, we have commenced cost management and profit optimisation programme and these initiatives coupled with new project launches which we are targeting for H2 2015, are expected to have positive impact on our results in the future periods.”

“Manazel has delivered 1,818 apartments and 2,376 villas in Al Reef and handover was completed in 2014. We are now focusing on our Al Reef 2 project which consists of 860 villas which is located in Samha, near Kizad and Khalifa Port.

“We will continue to pursue the significant growth opportunities that exist for our group via diversification as we evaluate opportunities both in our local and regional markets. We remain firmly focused on expansion and growing Manazel’s brand and footprint in the years ahead,” Fahmi added. – TradeArabia News Service