Amanat swings to profit on recovery of healthcare assets
16 August, 2021
Dubai-listed investment firm Amanat Holdings swung to a net profit in the second quarter on the back of a recovery in its healthcare assets, streamlining of costs and a gain from the sale of UAE education provider Taaleem.
The company posted a Dh203.8 million ($55.5m) profit attributable to shareholders for the three-month period to the end of June, compared to a loss of Dh5.1m in the same quarter of 2020, the company said in a statement to the Dubai Financial Market on Sunday.
Quarterly revenue rose 160 per cent to Dh121.9m from the year-earlier period.
"At our healthcare assets, we are witnessing a strong and steady recovery in patient volumes from last year’s lows, while the cost reduction and optimisation initiatives introduced over the last twelve months continue to bear fruit," Mohamad Hamade, chief executive of Amanat, said.
In April, Amanat sold its 21.7 per cent stake in Taaleem Holdings for Dh350m.
"At our education platform, continued outperformance is fuelled by growing student enrolments and our successful operational efficiency initiatives, which delivered strong returns even after excluding the gain on sale from the Taaleem exit," Mr Hamade said.
"Meanwhile at the corporate level, we are continuing to further streamline our operations having laid the foundations for a stronger, leaner, and earnings-driven Amanat.”
The Dh160m gain on sale of Amanat’s share of Taaleem Holdings, along with contributions made from Amanat’s new healthcare investment, Cambridge Medical and Rehabilitation Centre (CMRC), contributed to the company's profitability, it said.
Amanat had acquired CMRC for $232m in one of the region's biggest healthcare deals earlier this year.
Amanat, which specialises in healthcare and education investments, swung to a first-half profit of Dh235.2m, compared with a loss of Dh3.88m in the first six months of 2020.
This was due to growth at its healthcare and education platforms as operations continued to rebound from lows recorded in the first half of last year following the outbreak of Covid-19, the company said.
Amanat’s total expenses fell 26.8 per cent year-on-year to Dh20.2m in the first half of the year.
The company recorded an income from healthcare investments of Dh19.2m, compared to a loss of Dh38.7m in the first half of 2020.
Its healthcare platform's results were also buoyed by the addition of CMRC, which contributed Dh21.8m to income from investment since its acquisition in February.
Amanat’s education platform recorded an income from investment of Dh232.8m in the first half of 2021, a 288.2 per cent year-on-year jump.
Excluding the impact of the recent sale of Taaleem Holdings, income from education investments was Dh72.8m, up 21.1 per cent from last year on the back of growing student enrolments and higher profitability at Abu Dhabi University Holding Company as well as a "solid" year-to-date performance at Middlesex University Dubai.
“Our priorities for the coming months remain unchanged as we look to drive further growth and profitability and deliver above market returns for our shareholders," Mr Hamade said.
"Whether through new opportunities to further grow our platforms or through strategic exits that help us better align to our platform model, we will continue to focus on building fundamental and sustainable value for shareholders."
Source: www.thenationalnews.com
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