Amanat reports 40% rise in full-year net profit as income from investments climb

Amanat has invested Dh2 billion since its inception, about 80 per cent of its paid up capital

Tristan de Boysson, chief executive of Amanat Holdings says the company will continue to look for new investment opportunities. Pawan Singh / The National 

Amanat Holdings, the Dubai-listed investment firm that specialises in health care and education, reported a 40 per cent rise in its full-year net profit as its income from investments rose and expenses fell.

Net income for the 12-month period ending December 31 climbed to Dh60 million, the company said in a filing to the Dubai Financial Market, where its shares trade. Total income for the reporting period rose to Dh113.3m, an 8 per cent year-on-year rise.

The company has “delivered a strong set of results for FY 2019, which were driven by the solid performance of our education platform ….,” said Shamsheer Vayalil, vice chairman and managing director of Amanat.  “We have continued to build our platforms and our team has worked with our portfolio companies to help advance their service offering and operational performance. We have made significant headway during the year …. supporting Amanat’s solid growth trajectory.”

Amanat’s income from investments increased 2.3 per cent last year to Dh73.5m. An improved performance of the company’s education platform helped offset the impact on investment income from the Royal Hospital for Women & Children (RHWC), which commenced operations in March 2019 and is currently in its ramp-up phase.

The bottom-line profitability excluding RHWC’s ramp-up losses would have been Dh82m, up 84.9 per cent compared to the previous year, the company noted.

Amanat said its expenses last year dropped 16 per cent to Dh51.7m as the company recorded an 11 per cent decline in staff costs and an 8 per cent reduction in general.

“Management will continue to work on cost optimisation and operational efficiency at the group level to help maintain our lean structure and maximise shareholder returns,” chief executive Tristan de Boysson said.

“We look forward to continue working with our portfolio companies to deliver growth and develop these assets into leading platforms in the region, while focusing on further deployment and debt raising to execute on a strong pipeline of opportunities.”

Amanat, since its inception, has invested Dh2 billion, about 80 per cent of its paid up capital.

The company is planning to invest Dh800m to Dh900m in the GCC and Egyptian markets over the next few years, as it looks to boost growth, Mr de Boysson told The National in November.

The company received a nod from its board in January to buy a strategic stake in VPS Healthcare. It has formed a “special steering committee” to consider the potential investment opportunity and discuss “terms of the transaction” with VPS, it said in a statement at the time

The potential deal, which is in line with its strategy to grow and scale profitably within the region, could help consolidate Amanat's position within the healthcare industry. Amanat appointed JP Morgan as the financial adviser on the transaction, which is subject to securing necessary regulatory approvals.

“We remain optimistic on the macro-economic backdrop, which is supported by growing populations and a rising demand for education and healthcare services,”  Mr Vayalil said on Sunday. “Amanat stands uniquely positioned as a market consolidator and an investment vehicle that can tap into two of the region’s most resilient sectors.”