Amanat’s Q3 loss widens as revenue falls and costs rise

In the wake of the Covid-19 pandemic, the company is focused on capturing opportunities that deepen its presence in the digital space

Amanat is aiming to play a key role in the ongoing digitisation of the education, which has been accelerated by the challenges presented by the Covid-19 pandemic. Courtesy Amanat

Amanat Holdings, the Dubai-listed investment firm that specialises in healthcare and education, said its third-quarter losses widened due to lower revenue and higher costs.

The loss attributable to equity holders of the company for the three months to the end of September grew to Dh12.4 ($3.4m) million, from Dh1.6m from the same period last year, the company said in a regulatory filing to the Dubai Financial Market, where its shares trade.

Revenue from contracts with customers dropped 47 per cent to Dh6.2m, while direct costs rose 44 per cent to Dh13.2m. Finance costs climbed more than threefold to Dh1.3m.

"Over the course of the third quarter we worked tirelessly with management across our portfolio companies to manage the challenges posed by the pandemic and ensure our assets are well-prepared for the post-Covid recovery,” Amanat's chief executive Mohamad Hamade said.

"Our financial position remains strong with ample liquidity in excess of Dh470m, placing us in a unique position to seize opportunities that may arise from prevailing market conditions," he added. "Recognising the importance and relevance of digital transformation in today’s markets, we are particularly focused on capturing opportunities that deepen our presence in the digital space and strengthen our nascent EdTech and HealthTech offerings.”

Amanat has investments across education, health care and property sectors. Its education portfolio includes school operator Taaleem, Abu Dhabi University Holding and Middlesex University Dubai. It also owns property assets of the North London Collegiate School in Dubai.

Amanat’s healthcare platform includes International Medical Center (IMC), a 300-bed multi-disciplinary hospital based in Jeddah, Sukoon, a provider of acute extended care, critical care and home care medical services and the Royal Hospital for Women and Children in Bahrain.

"Our healthcare assets are ramping up operations and returning to full capacity, while our education platform kicked-off the academic year better prepared to offer a safe and enhanced learning environment," Amanat’s chairman Hamad Alshamsi, said on Monday.

"We are aware of the challenges that lie ahead, however, we remain confident in Amanat’s resilience, agility and defensive portfolio that will allow it to continue delivering sustainable value over the long term."