Total shareholders' equity surges 69% to KD 82.38 mln
KUWAIT CITY: KPCO Asset Management Company (KAMCO), Kuwait's most advanced and innovative asset management and financial services company, and part of Kuwait Projects Company (KPCO), has posted a 208 per cent leap in net profit for 2005 to KD 25 million ($85.62 million), or 114 fils (39 cents) per share, compared to KD 8 million ($23.64 million), or 37.8 fils (13 cents) per share in the same period of 2004. Total shareholders' equity in the full year for 2005 surged 69 per cent to KD 82.38 million ($282 million), compared to KD 49 million ($168 million) in the same period last year.
Total assets also increased in the full year for 2005, up 39 per cent to KD 128 million ($438 million), against KD 92 million ($315 million) for the 2004 financial year. KAMCO chairman Masaud Hayat said: "These impressive results not only demonstrate profitabililty, but also our willingness to grow and progess. It is particularly pleasing that our well-planned strategies continue to produce consistently profitable results." KAMCO's core asset management activity registered a 33.7 per cent rise in client assets with management fees reaching a new high of KD 9.2 million in 2005, up 110 per cent compared to 2004. This was a result of the increased value of client assets under management and high returns generated on managed portfolios and funds largely due to the significant rise in the Kuwait Stock Exchange (KSE) in 2005.
During 2005, KAMCO was active in proprietary investing which resulted in a very significant increase in gains from investments available for sale, from KD 0.44 million in 2004 to KD 6.22 million in 2005. A measure of the success in earlier strategic investment decisions resulted in income from associated companies rising 236 per cent in the year to reach KD 6.2 million. During 2005, KAMCO also successfully promoted the establishment of a new Kuwaiti investment company, Manafae Investment company, which will operate in accordance with Islamic Shariah principles, and in which KAMCO holds a 24.8 per cent stake. This investment gives KAMCO exposure to the fast growing Islamic financial services sector in Kuwait.
KAMCO corporate finance continued to be active in 2005, completing or launching six transactions with an aggregated value of KD 175 million. Fees from advisory services increased 93 per cent in 2005 to reach KD 2.26 million. Clients advised in 2005 included Mushrif Trading & Contracting Company, Combined Group Company, United Projects for Aviation company and Al-Dhiyafa Holding Company.
KAMCO, a subsidiary of United Gulf Bank (UGB), KPCO's investment banking subsidiary, has assets of US$ 6 billion under management or control, a portfolio of some 557 companies and individuals, and more than 130 employees throughout its operations. KAMCO's core operating companies are United Industries Co. (UIC) the specialized industrial investor in the oil, gas and foodstuffs sectors of the GCC and its neighboring countries; Gulf Egypt Hotels and Tourism (GEHT), a five-star hotel and tourism company operating from Cairo which holds a major stake in the luxury Sheraton Heliopolis; and United Medical Services (UMSC), Kuwait's leading health care provider with fast-growing services in dental and general health care. KPCO is one of the leading diversified operating holding companies in the Middle East and North Africa with more than $15 billion under management or control. Its shares are among the most actively traded on the Kuwait Stock Exchange.
It has substantial ownership interests in a portfolio of 55 companies operating throughout the region and internationally in two major business sectors: Financial Services and media & Telecommunications. subsidiaries and affiliates of KPCO companies with interests in Real Estate and Industry are contained in a sub-sector of Financial Services an other subsidiaries and affiliates are contained in the Management and Advisory sector. KPCO's core operating companies are investment banking subsidiary United Gulf Bank (UGB); Gulf Insurance Company (GIC), a regional leader in commercial and personal insurance; Burgan Bank, Kuwait's leading technology-driven commercial bank; Watniya Telecom, the dynamic and fast-growing regional mobile telephone services provider; and Showtime the hugely-popular digital pay-TV service spanning the Middle East and North Africa.
© Arab Times 2006
