Dubai's Amanat Holdings posts 24% jump in Q1 profit on revenue growth

Revenue rose 42% annually in the first three months, driven by its healthcare and education units

Amanat's first-quarter performance was buoyed by strong growth at Middlesex University Dubai. Sarah Dea / The National

Amanat Holdings, a Dubai-based education and healthcare investment company, has reported a 24 per cent increase in its first-quarter net profit after its health care and education units drove a surge in revenue.

Net profit attributable to equity shareholders for the three months ended March jumped to Dh39.7 million ($10.8 million), from Dh32 million a year ago, the company said in a filing on Thursday to the Dubai Financial Market, where its shares are traded.

Revenue for the period rose by 42 per cent annually to Dh185.2 million, from Dh130.8 million in the first quarter last year, driven by its health care and education units, which included the contribution from the recently acquired Human Development Company.

Amanat acquired a 60 per cent stake in Saudi-based HDC, a special education and care provider, in October for $59 million.

Adjusted earnings before interest, taxes, depreciation and amortisation grew 45 per cent annually to Dh70.8 million in the first quarter, Amanat said.

“Our strong financial results demonstrate the success of our value creation and growth strategies, as our expansion into new businesses and geographic diversification has delivered growth across both our platforms,” chairman Hamad Alshamsi said.

Amanat has embarked on an aggressive expansion strategy as it seeks to tap the growing education and health care segments in the UAE and surrounding markets.

In December, Amanat announced the creation of the largest post-acute care platform in the GCC after the merger of Sukoon International Holding Company with Cambridge Medical and Rehabilitation Centre through a non-cash share swap.

According to the agreement, Sukoon shareholders will receive about 15 per cent of Amanat’s shares in CMRC in return for Amanat receiving additional shares in Sukoon.

Amanat will own about 85 per cent of the merger business.

Last month, Amanat announced that it was consolidating its healthcare assets in the Middle East into a single platform to create Amanat Healthcare.

This is part of its plans for a potential initial public offering of the new division as part of its growth strategy, which is projected to be in the “near term” and part of “exploring potential monetisation options”, Mr Alshamsi said.

The new company will have assets across the UAE, Saudi Arabia and Bahrain, with an expected capacity of 1,000 beds within three years.

Amanat Healthcare is expected to “unlock additional value for our shareholders, including through inorganic growth opportunities with synergistic benefits”, Mr Alshamsi said.

The company's first-quarter performance was also buoyed by strong growth at Middlesex University Dubai, supported by higher student enrolment, and the increased contribution of Saudi Arabia to Amanat Healthcare.

“We maintained our strong earnings momentum in the first quarter of 2023, reflecting the quality and growth potential of our market-leading portfolio of healthcare and education assets,” said John Ireland, acting chief executive of Amanat.