Mar 22 2010
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Aamal Company QSC ('Aamal') Annual Results for year ended 31 December 2009
Doha, 22 March 2010 - the Board of Directors of Aamal Company QSC ('Aamal') , one of the GCC's fastest growing diversified conglomerates, today announce the audited financial results for the year ended 31 December 2009.
- Group revenue up 8.3% to QAR 705.2m (2008: QAR 651m)
- Gross profit up 15.5% to QAR 286.1m (2008: QAR 247.7m)
- Net Profit before fair value gains on investment properties up 18.3% to QAR 181m (2008: 153m)
- Net profit of QAR 249.6m was down 60% (2008: QAR 625.2m) due to lower positive Fair Value adjustments of QAR 68.5m (2008: QAR 472m)
- Reported earnings per share down 60% to QAR 0.66
- Adjusted* earnings per share up 18% to QAR 0.48
- Net investment in capital expenditure of QAR 292.3m (2008: QAR 36.2m)
- Bonus share issue of 1.8577 shares for every 10 shares held (2008: none)
* eps adjusted to show underlying profitability (i.e. excluding fair value gains on investment properties)
- Net Profit margin up 220 basis points to 25.7% driven by continued efficiency gains and strong revenue growth
- Strong trading performance across all divisions reflect Aamal's diversified strategy of investment in developing leading market positions
- Streamlined divisional structure established focused on 4 core business areas: Property Development & Management, Trading & Distribution, Industrial Manufacturing, Managed Services
H.E. Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal Company QSC, commented:
"Our increased revenues and operating profitability in 2009 demonstrate the strength of our strategy to target diversified strategic investments that drive profitable growth and balance our risk profile, while adopting sound operational management and efficiency measures to maximise performance and returns. These principles were tested more than ever throughout the challenging trading environment of 2009 and I am therefore delighted to report another encouraging set of results.
Aamal offers investors high quality, balanced exposure to key growth segments of the Qatari economy. Our goal is focused on creating shareholder value in building sustainable long term earnings growth and increasing total returns for shareholders. The beginning of 2010 has seen the pace of our development activity increase with the launch of significant new revenue streams across the transport, construction and business services sectors and I am confident of another year of strong growth."
I am pleased to be able to report another good full year performance. During the year considerable progress was made in the development of the group as a result of carefully planned capital expenditure, the restructuring of a number of businesses and a continual review of the cost base. These activities helped deliver a growth in net profit before fair value gains of 18.3%. All of this was achieved against a background of a worldwide economic slow-down.
The fact that we have been able to continue with our high level of capital investment despite these economic conditions is a testament to the strength of the group's financial position and our ability to generate cash.
Aamal's ongoing investment model is designed to benefit today's stakeholders and also serve their interests tomorrow. Our clear strategy is to create strong, long term market leading positions in all our sectors, driven by organic growth and supplemented where necessary with joint ventures and strategic acquisitions. This model not only also fits well with the growing demands of the Qatar economy - but also the local community. For example, major infrastructure projects and new business ventures provide local employment opportunities and in time, a whole range of other social benefits.
New Divisional Structure
To better reflect the business sectors we operate in, we recently re-organised and streamlined our business organisational structure into four divisions: 1.Property Management & Development, 2.Trading & Distribution, 3.Industrial Manufacturing, 4.Managed Services. Further trading updates and developments in respect of each division are given below in the Divisional Review.
Group revenue increased by 8.3% to QAR 705.2m and Net Profit (before fair value gains on investment properties) was up 18.3% to QAR 181m. As expected and as highlighted at the half year results, the global economic downturn again saw a continued impact on the valuation of the Company's Real Estate portfolio and consequently, net profit. Nevertheless, at the operating level I am delighted to report that trading was extremely robust.
This strong trading performance was delivered by a number of our branch businesses and most notably from the divisions of Property Development & Management and Trading & Distribution. For example, City Center shopping mall continues to deliver excellent growth in both revenue and profit, achieved through strong like-for-like revenue growth, sound tenancy management and will further benefit from the addition of retail selling space. In the Trading & Distribution division, the branches provided an encouraging contribution to the group, gaining further market shares in the areas they operate in.
As always we continue to consider new investment opportunities to expand our operations and activities both locally and regionally to the benefit of the local community and its other stakeholders. Whilst there are still many opportunities to extend Aamal business interests within Qatar, expansion into the MENA region represents an exciting and substantial growth prospect for us.
The growth of all our businesses has resulted in the number of our employees now exceeding 1800 and I would like to thank them for their dedication and hard work. The success of the Company is a tribute to their commitment and enthusiasm, led by our experienced and committed management team.
Issue of Bonus Shares
A bonus share issue of 1.8577 shares for every 10 shares held, subject to the approval of the General Assembly.
DIVISIONAL REVIEW PROPERTY MANAGEMENT & DEVELOPMENT
Net Profit *
* before fair value gains on investment properties
Branches in this division comprise City Center Doha and Aamal Real Estate.
In the period City Center achieved an occupancy rate of 100%. This helped City Center achieve an increase in operational income of 9.5%. Significant new retail tenants at City Center included Vodafone, Jack & Jones and Hippopotamus.
Aamal Real Estate successfully completed the refurbishment and retail reorganization of Souq Al Nijma and commenced the construction of a residential compound, with 45 villas, around Doha.
TRADING & DISTRIBUTION
Branches in this division include Aamal Trading & Distribution, Ebn Sina Medical, Aamal Medical, Bottega Verde and Foot Care Centre.
The branch of Aamal Trading & Distribution managed to retain its leading market share amidst a challenging backdrop.
Aamal Medical successfully grew market share in new areas such as Radiotherapy and Endoscopy and maintained market share in all Pharmacy and Operating Theatre specialities. New initiatives include the introduction of Pharmacy Automation as a new standard for modern hospitals and the introduction of Integrated Operating Theatres as a new concept. New Hospitals to be opened in 2010 and 2011 in Wakkrah and Dukhan are set to increase healthcare market opportunities.
Ebn Sina Medical succeeded to sign several agreements with international pharmaceutical companies.
Bottega Verde and Foot Care Centre both continued to trade in line with expectations.
Net Profit *
Branches and subsidiaries in this division include Aamal Readymix , Senyar Industries Qatar Holding, IMO Qatar, Frijns Steel Construction Middle East, Aamal Cement Industries, Cometrans and Doha Cables (the latter three starting up operations in early 2010).
In 2009 Aamal Readymix finalised the construction of new maintenance facilities as well as introduced new techniques for the efficient delivery and pumping ratio of concrete. New contracts won included supplying projects at the Heart of Doha project (mushaireb) and four towers on The Pearl Qatar and other big projects in Doha.
Branches and subsidiaries in this division comprise Aamal Travel & Tourism, Aamal Services and most recently in early 2010, ECCO Gulf was added.
For 2009 Aamal Services achieved QAR 23.6m in gross revenues, whilst also maintaining a 23% net profit margin. New services were added to its core cleaning business as well as a greater focus on service quality and customer response. New contracts won in the period included the Supreme Council of Health, Abdullah Abdulghani & Brothers, Hemaya Security , Al Tameez and Qatari Diar.
Major new clients at Aamal Travel & Tourism included the Qatar Exchange and Al Hassan Group .
SUMMARY & OUTLOOK
We are now firmly established as one of the region's most successful conglomerates delivering the highest quality products and services across a range of high growth sectors. As a result, Aamal Company offers investors a quality, balanced exposure across the entire Qatari economy. The beginning of 2010 has seen the pace of development activity increase and all our businesses are well equipped to deliver future growth.
- Ends -
About Aamal Company QSC
Aamal Company QSC ('Aamal') is one of the GCC's fastest growing diversified conglomerates, delivering a CAGR in net profit, excluding fair value gains, of 22% p.a.
from 2006-2009 and generating revenues of QAR 705m (US$194m) in 2009. Focused on sustained, profitable growth and strongly diversified for balanced exposure across Qatar's growing economy, Aamal's operations comprise of over 18 business units with market leading positions in the key property management and development, industrial, retail, managed services, medical equipment and pharmaceutical sectors. Listed on the Qatar Exchange, Aamal currently ranks in the top 10 listed companies by market capitalisation.
PLEASE NOTE: A video webcast of Aamal Company management presenting the 2009 Full Year Results is available for equity analysts and investors to download from the Investor Relations section of the Aamal Company website:
For more information, please contact:
Arwa Goussous, Corporate Communications Manager
Tel: + 974 513 9539
Citigate Dewe Rogerson
Andrew Hey / Seb Hoyle / Nick Cox-Johnson
Tel:+974 452 8335
Ayman Hammamieh / Habib Bacha (for Arabic media)
Tel: +971 (0)2 401 2612
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