Dubai | Amanat Holdings PJSC (“Amanat” or the “Company”), the GCC’s largest healthcare and education investment company, announced its consolidated financial results for the year ended 31 December 2020.
Audited Financial Results for 4Q-2020
During 4Q-2020, Amanat’s portfolio witnessed a solid recovery showcasing a rebound in performance since the first wave of COVID-19 in Spring 2020. Income from Amanat’s education investments increased 67.0% y-o-y in 4Q-2020 while losses from healthcare investments narrowed by 24.6% during the same period. This resulted in income from investments of AED 39.2 million for the quarter, up 95.4% versus 4Q-2019.
Audited Financial Results for FY-2020
Amanat reported total income of AED 70.6 million in FY-2020, down by 36.8% y-o-y and income from investments of AED 56.1 million, down 22.3% y-o-y. Amanat reported a net profit of AED 10.1 million for the year, compared to AED 60.0 million last year.
Excluding one-off items, Amanat’s normalized total income recorded AED 87.5 million, down a mere 4.5% y-o-y, and AED 72.9 million in income from investments, up marginally versus last year. Normalized net profit recorded AED 26.9 million, down 32.5% y-o-y.
H.E. Hamad Al Shamsi, Amanat’s Chairman commented: “Reflecting on our financial results for FY-2020 we have witnessed a solid recovery across our portfolio in 4Q-2020, thanks to the operational agility and nimble strategic input from our management teams since the onset of COVID-19. Amanat’s balance sheet strength and capital structure managed to put us in a favorable position to achieve these results. Our strong market positioning enabled us to tackle the economic headwinds, to deliver solid performance and to report reasonable financial results despite the challenging external factors.
In 2020 we focused on building stronger foundations operationally at the corporate and portfolio level. While this did result in a series of one-off items as a result of a series of restructuring, our team proactively addressed the challenges and remained focused on building value across our portfolio while ensuring our assets continued operating efficiently.
While the challenges we faced during the year did no doubt impact profitability at some of our assets, these strides were navigated adequately and have reversed into solid recovery and, in some cases, even growth, such as Abu Dhabi University Holding Company and Middlesex University Dubai.
With FY-2020 behind us, we will look closely at improving our earnings further to ensure adequate and above market dividend returns to our shareholders. We have built a clear pathway to achieve this through potential divestments, transforming minority stakes into majority investments to consolidate the ‘platform model’ more coherently and investing in assets that have the potential to grow earnings whether through recycled cash or through raising debt. Additionally, Amanat still has cash at hand of AED 456.6 million.”
Chief Executive Officer of Amanat, Dr. Mohamad Hamade added: “Looking back at 2020, our results reflect our proactive response strategy that was focused on mitigating short-term impacts and positioning us for long-term growth. We saw a particularly strong recovery in Q4 with income from our education investments increasing 67.0% y-o-y supported by strong spring and summer enrollments and successful cost saving initiatives across our platform companies. We also managed to narrow losses from our healthcare investments by 24.6% y-o-y supported by record volumes at IMC, resumption of our services ramp-up efforts at RHWC as well as growing volumes and the successful restructuring at Sukoon.”
“Towards the end of the year, we shifted our focus increasingly towards planning a post-COVID-19 Amanat. We outlined our strategic priorities to drive our next growth cycle as we look to leverage the opportunities presented by this unprecedented global crisis and generate further sustainable value in the coming years. We are optimistic about Amanat’s prospects as we enter a new development phase steered by the key growth pillars we have formulated under the guidance of our Board of Directors. These pillars include strategic initiatives to improve our portfolios’ performance and profitability, accelerate investments in high-yielding assets, and further optimizing our capital structure.”
Amanat has deployed a total of AED 2.1 billion since inception, utilizing over 84% of its AED 2.5 billion paid up capital. With 94.8% of its revenues following DFM recognized set of rules and requirements guided by the sharia’a principles, Amanat is considered a sharia’a compliant entity.
About Amanat Holdings PJSC
Amanat Holdings PJSC is the region’s largest integrated healthcare and education investment company with paid-up capital of AED 2.5 billion. Listed on the Dubai Financial Market (DFM) since 2014, Amanat has a mandate to establish, acquire and incorporate companies working in the healthcare and education sectors, and develop, manage, and operate these companies within the GCC and beyond. Amanat’s healthcare platform includes International Medical Center (IMC), a 300-bed multi-disciplinary hospital based in Jeddah, Saudi Arabia; Sukoon, a provider of acute extended care, critical care and home care medical services in Jeddah, Saudi Arabia; and the Royal Hospital for Women and Children (RHWC), a world-class hospital for women and children located in the Kingdom of Bahrain. Amanat’s education platform includes Taaleem, a leading provider of K12 and early education in the UAE; Abu Dhabi University Holding Company, a leading provider of higher education; and Middlesex University Dubai, the first overseas campus of the internationally renowned Middlesex University in London and BEGiN, a US-based award-winning education technology company. Amanat also owns the real estate assets of the North London Collegiate School in Dubai, UAE.
© Press Release 2021
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