Kuwait 30 May, 2012- Global Investment House ("Global" or the "Company") today announced its financial results for the quarter ended 31 March 2012.

Key points of the results:

- Fee-based businesses (asset management, investment banking and brokerage) generated operating income amounting to KWD2.4 million

- Global made a USD21.0 million principal repayment of its bank debt during the quarter

- Overall net loss of KWD11.0 million (KWD0.009 per share)

Focus on Global's fee-based business

In Q1 2012 Global generated KWD2.4 million of operating income from the fee-based businesses of asset management, investment banking and brokerage.   During Q1 2012, the Asset Management business remained resilient with KWD1.0 billion (USD3.8 billion) of assets under management. Several funds managed by Global outperformed their respective indices and peers. During the quarter of Q1 2012, Global EPADI Fund received "GCC Equity Fund of the year" and the Global Distressed Fund received the "Fund of Funds of the Year" award by MENA Fund Manager.

Principal Investments

During the quarter ended 31 March 2012, the Principal Investments income stood at KWD0.04 million.

Cost base

Global continues its drive to rationalize its cost base. Staff costs in Q1 2012 were 12% lower than the Q1 2011. The other operating expenses increased by 49% to KWD3.9 million, mainly due to costs associated with a project to seek a long-term solution to the company's capital structure.

During the quarter, interest costs increased by 2% to KWD6.2 million compared to Q1 2011 interest cost of KWD 6.1 million primarily due to increase in the margin of the restructured facility by 1%.

Debt repayment

During Q1 2012 Global made USD21.0 million principal repayments, bringing the total repayments since inception under the restructured bank debt to USD263.0 million (15.1% of the original principal amount).

As announced earlier Global is in constructive and regular engagement with its creditors to seek a long-term solution to its capital structure. 

-Ends-

For further information:
The full set of financials will be available on the Global's website (www.globalinv.net) shortly.
Moustafa Zantout
Senior Vice President
Marketing & communications
Global Investment House
Tel: +965 2295 1615
Fax: +965 2295 1638
E-mail:  mzantout@global.com.kw

Ed Gascoigne-Pees
Managing Director
FTI Consulting
Holborn Gate, 26 Southampton Buildings
London, WC2A 1PB
Tel: +44 (0)20 7269 7132
Mobile: +44 (0)7884 001 949
Email: Ed.gascoigne-pees@fticonsulting.com

© Press Release 2012