Amanat’s second-quarter net profit falls amid rising cost of funding

Amanat Holdings, a Dubai-based education and healthcare investment firm, reported a sharp drop in net profit in the second quarter due to higher funding costs.

The company’s net profit attributable to shareholders fell to Dh34.63 million ($9.43 million) in the three months to the end of June, from Dh203.82 million recorded a year earlier, it said. the company said in a statement to the Dubai Financial Market on Thursday.

However, on an adjusted basis, excluding the prior year’s result of divested entities, Amanat’s second quarter net profit fell nearly 12% to MAD 35.3 million for the reporting period.

The company’s adjusted net profit for the first six months of the year increased by almost 7% to reach MAD 67.4 million. Half-year adjusted total revenue increased by 14% to MAD 96.7 million.

Amanat’s revenue for the six-month period soared more than 31% to MAD 257.1 million. Financial charges for the reporting period also jumped 39% to MAD 7.5 million.

“During the first half of 2022, we saw steady growth across our portfolio companies, which is reflected in our results,” said Hamad Al Shamsi, Chairman of Amanat.

“We are excited about the next phase of growth where we see Amanat capitalizing on new growth opportunities in addition to deploying capital into assets that complement our existing platforms.”

The company is currently reviewing “several potential investment opportunities” to expand its portfolio, Mr Al Shamsi said.

Amanat last year sold its minority stakes in education platform Taaleem Holdings and Saudi healthcare provider International Medical Center.

Half-year revenue from its healthcare platform jumped more than 70% on an annual basis to 27.3 million dirhams, the company said.

Cambridge Medical and Rehabilitation Center, which Amanat acquired for $232 million in one of the region’s largest healthcare transactions last year, broke ground on its expansion project in Al Ain, the company said.

Amanat’s education platform recorded a 5% annual decline in profits for the first six months to MAD 67.8 million.

Nema Holding, formerly Abu Dhabi University Holding Company, acquired 100% of Liwa College of Technology in the first six months of the year, Amanat said.

Updated: August 04, 2022, 07:55

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