Bahrain Car Parks Company reports 23% surge in net profit

MANAMA: Bahrain Car Parks Company shareholders have approved the company’s audited financial results for 2019 and endorsed the distribution of cash dividend of five per cent, equivalent to BD546,513 at five fils per share.

The announcement following 40th annual general meeting yesterday said it reported a net profit of BD888,035, an increase of 23 per cent compared to BD722,034 in 2018.

Total income increased to BD2,048,069 in 2019 compared to BD1,573,438 for the previous year, while net profit ratio increased by 43pc in 2019.

On June 20, 2019, the company issued 40 million shares to Bahrain Real Estate Investment Company (Edamah) at a value of 150 fils per share, in exchange for obtaining a usufruct to use the Terminal building in Adliya for a period of 99 years, renewed automatically for the same period.

Accordingly, Edamah’s stake in the company has increased to 36.26pc, followed by the Social Insurance Organisation owning 33.57pc, the Kuwait Real Estate and Commercial Company holding 13.60pc, and other public companies owning 16.57pc.

This transaction with Edamah contributed to increasing the company’s operating income by 36pc to BD1,662,612 from BD1,220,166 in 2018.

This is primarily attributed to additional rental income from the newly-acquired Terminal building and growth in car park income.

Commenting, chairman Amin Alarrayed said, “These outstanding results stand testament to the company achieving its strategic objectives which aim to develop the services and facilities available to the public. In addition, we strive to expand our ever-growing asset portfolio by establishing strategic partnerships with entities in both the private and public sectors, to develop sustainable projects that contribute to an enhanced level of service offered in the kingdom, while stimulating economic growth.”

Chief executive Tariq Al Jowder said, “The 2019 financial results are the best achieved in the history of the company, following the implementation of our strategy to increase asset growth and maximise returns. Our corporate strategic plan for the next five years is focused on transforming services by leveraging assets and turning regular parking buildings into mobility hubs as we adopt advanced technologies.”

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