MANAMA: Inovest has reported a consolidated net profit of $2.14 million for the three months ended December 2019 in comparison with $1.7m for the same period of 2018, representing an increase of 26 per cent.
The increase is largely due to management fees attributed to an Inovest subsidiary.
Accordingly, the basic and diluted earnings per share for the quarter, amounted to 0.76 cents compared with 0.6 cents for the same period in 2018.
Net operating profit increased by 249pc to $2.07m compared with $0.6m for the same period of 2018.
Consolidated operating income for the quarter increased by 49pc to $6.3m compared with $4.22m for the same period in 2018.
For the year ended December 2019, consolidated net profit was $7.15m, a 49pc decline compared with $14.01m for 2018.
The decline was primarily due to an expected decrease in revenue from contracting activities, with completion of a major government project, and the capital gain from disposal of an investment in 2018.
Basic and diluted earnings per share as of end-December 2019 amounted to 2.52 cents compared with 4.95 cents in 2018.
Consolidated net operating profit decreased by 51pc to $6.17m in comparison with $12.52m for the same period of 2018.
Equity attributable to parent shareholders increased by 1pc to $138m as of end-December 2019 in comparison with $137m as of 2018 year-end.
At $244m, consolidated total assets saw a decrease of 9pc from $267m as of 2018 year-end.
Cash and bank balances represented 15pc of total consolidated assets and as of end-December 2019, cash and bank balances rose to $37m, a 3pc increase from $36m in end-December 2018.
Operating income for 2019 dropped by 16pc from $23.74m to $19.94m.
Operating expenses saw an increase of 23pc to $13.78m for 2019 in comparison with $11.22m for 2018. The increase stems from completion of a major government project and the reclassification of labour expenses within the contracting arm from a project level cost to an operational level until work begins on new construction projects this year.
The firm’s board of directors has recommended a stock dividend of 5pc of paid up capital.
Inovest chairman Dr Omar Al Mutawa said, “Our results confirm the validity of our board approved strategy. We have seen continuation in our profitability and steady progress for the fourth year running. On an operational and administrative level, significant effort has been placed on strengthening our group-wide network towards overcoming challenges, as well as creating greater efficacy through professional standards for progress and development.
“We have no doubt that the benefits of this will manifest in the coming years, and at a strategic level. To that end, the principles of our strategy – sustainability, profitable growth, and diversity through investments stand true,” he said.
“These principles are geared to create and deliver value to the company and its shareholders.”
Inovest chief executive Yasser Al Jar said, “Inovest’s performance is squarely where we expect it to be, and is in line with our approved plans and strategies for 2019. In an economically difficult year in the market and region, we have managed to effectively implement the first year of our strategy and to further maintain positive financial indicators across the board.
“Return on equity stands at 5pc; Return on assets at 3pc, and cash and bank balances represent 15pc of total consolidated assets. We have already begun diversifying our portfolio and the first outcome of this directive is seen through a recently announced investment into the manufacturing sector in Kuwait.
“The team continues to consider new opportunities, markets, and sectors that encourage consistent long-term growth and income generation.”
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