Amanat's second-quarter net income drops amid rising cost of financing

Company is currently examining 'several potential investment opportunities' to expand its portfolio

DUBAI, UNITED ARAB EMIRATES Ð Sep 16: Some of the traders at Dubai Financial Market in Dubai.  (Pawan Singh / The National)

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Amanat Holdings, a Dubai-based education and healthcare investment company, posted a sharp drop in its second-quarter net profit as financing costs increased.

Net profit attributable to the shareholders of the company dropped to Dh34.63 million ($9.43m) in the three months to the end of June, from Dh203.82m recorded a year earlier, the company said in a statement to the Dubai Financial Market on Thursday.

However, on an adjusted basis, excluding the previous year's result from divested entities, Amanat’s second-quarter net income dropped almost 12 per cent to Dh35.3m for the reporting period.

The company’s adjusted net profit for the first six months of the year rose nearly 7 per cent to Dh67.4m. Half-yearly adjusted total income rose 14 per cent to Dh96.7m.

Amanat’s revenue for the six-month period climbed more than 31 per cent to Dh257.1m. Finance charges for the reporting period also jumped 39 per cent to Dh7.5m.

“In the first half of 2022, we have seen steady growth across out portfolio companies, which is reflected in our bottom line,” said Hamad Al Shamsi, Amanat's chairman.

“We are excited about the next phase of growth where we see Amanat capitalising on further growth opportunities in addition to deploying capital into assets that complement our existing platforms.”

The company is currently examining “several potential investment opportunities” to expand its portfolio, Mr Al Shamsi said.

Amanat divested its minority stakes in education platform Taaleem Holdings and Saudi healthcare provider International Medical Centre last year.

Half-yearly income for its healthcare platform jumped more than 70 per cent on an annual basis to Dh27.3m, the company said.

Cambridge Medical and Rehabilitation Centre, which Amanat acquired for $232m in one of the region's biggest healthcare deals last year, broke ground on its expansion project in Al Ain, the company said.

Amanat's education platform recorded a 5 per cent annual decline in profit for the first six months to Dh67.8m.

Nema Holding, formerly Abu Dhabi University Holding Company, acquired 100 per cent of Liwa College of Technology in the first six months of the year, Amanat said.

Updated: August 04, 2022, 7:55 AM
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