Dubai-listed Amanat's annual profit surges to record high in 2021

Divestment of minority stakes in Taaleem Holdings and International Medical Centre boosted profitability

Amanat, the Dubai-listed healthcare and education investment firm, said its 2021 results set a strong foundation for the future. Photo: Amanat

Dubai-listed education and healthcare investment company Amanat Holdings posted a record annual net profit in 2021 due to the divestment of its minority stakes in education platform Taaleem Holdings and Saudi Arabian healthcare provider International Medical Centre.

Net profit attributable to shareholders of the company jumped 28-fold to Dh281 million ($76m), from Dh10m in 2020, the company said in a statement to the Dubai Financial Market, where its shared are traded.

"2021 was a transformative year which saw us deliver impressive growth, record profitability and solid progress on our longer-term value creation strategy," said Amanat’s chairman, Hamad Abdulla Alshamsi.

"The year’s results set a strong foundation for the future of Amanat, demonstrating the underlying strength of our chosen industries and investments and the effectiveness of our corporate strategy."

Amanat's divestment of its minority stakes in Taaleem Holdings and International Medical Centre KSA generated a gain on sale of Dh202.9m and cash proceeds of Dh783m.

Adjusting for the gain and trading impact of the two exits, Amanat recorded adjusted net profit of Dh103.4m, a four-fold increase from 2020, it said.

Amanat recommended the highest dividend payout to date of Dh150m, for which the board of directors will be seeking shareholders’ approval at the company’s coming General Assembly Meeting.

"We are pleased to mark this year with a significant increase in total shareholder returns of Dh1 billion derived from share price appreciation and our exceptional dividend recommendation for the year," the chairman said.

Net profit was further boosted by continuing cost saving and optimisation efforts at the corporate level, which led to holding-level costs declining 25 per cent year-on-year, despite the company expanding its team at the end of 2021 as its portfolio of assets grew, it said.

Amanat recorded a non-cash impairment charge of Dh20m against goodwill due to the delayed ramp-up of the Royal Hospital for Women and Children (RHWC) mainly attributable to Covid-related restrictions, it said.

In terms of its business units, the healthcare platform recorded income of Dh40.6m in 2021 compared to a loss of Dh49.5m in the prior year. This was due to two-fold revenue growth at the RHWC in Bahrain and the impact of purchasing Cambridge Medical and Rehabilitation Centre, which generated income of Dh61.1m in the 10 months from acquisition.

The education platform — comprising Amanat’s wholly owned Middlesex University in Dubai, Abu Dhabi University Holding Company and the real estate assets of NLCS Dubai — recorded income of Dh98.4 m, up 4 per cent year-on-year due to strong enrolments and increased market share, it said.

“We enter 2022 with continued confidence stemming from the record results delivered in 2021 and the success of our new corporate strategy," Mohamad Hamade, chief executive of Amanat said.

Executing four transactions amounting to nearly Dh1.7bn means Amanat has set the stage for its value creation strategy going forward, he said.

“We concluded the year with a strong portfolio of assets, either fully owned or with influential stakes. As we did in 2021, we kick off the new year with a new list of targets to achieve and a clear action plan to deliver on them," he said.

With a strong balance sheet, the company is "well-positioned" to continue delivering sustainable growth, he said.

Mr Alshamsi was similarly bullish in his outlook for the company's growth in 2022.

“Looking ahead, alongside enhancing our current portfolio’s performance and optimising our capital structure, we will look to invest in yielding assets, grow them into market leaders and build IPO-ready platforms," the chairman said.