Amanat's first-quarter net profit jumps five-fold as revenue grows

The company plans to make acquisitions in the Mena region's healthcare and education sectors, its chief executive says

Amanat reported a five-fold increase in first-quarter net profit as revenue soared. Courtesy Amanat

Amanat Holdings, the Dubai-listed investment firm that specialises in health care and education, reported a five-fold increase in first-quarter net profit as revenue grew and expenses declined.

Net profit for the three months ending March 31 climbed to Dh31.5 million ($8.6m), the company said in a statement to the Dubai Financial Market, where its shares trade. Revenue from contracts with customers rose 60 per cent to Dh73.6m and total expenses fell by 31 per cent.

“In the first quarter of the year, Amanat reported record-high profitability on the back of a commendable turnaround of our healthcare portfolio and the continuous efforts to drive top-line growth across our education investments,” said chairman Hamad Alshamsi.

“We began to reap the benefits of the strategic decisions taken during 2020 and we are also taking important steps to further optimise our portfolio.”

Last month Amanat sold its 21.7 per cent stake in UAE education provider Taaleem for Dh350m to an unknown buyer.

The divestment resulted in a total cash return of Dh225m including dividends, according to the company.

Amanat also acquired Cambridge Medical and Rehabilitation Centre for $232m in one of the region's biggest healthcare deals earlier this year.

“We look forward to continuing on a very promising trajectory in the start to the year, as we drive further improvement in our portfolio’s performance, integrating further investment to continue building specialised platforms and build scale and synergy for future monetisation,” said Mr Alshamsi.

The company has invested in Abu Dhabi University Holding, Middlesex University Dubai, Jeddah-based International Medical Centre and Bahrain's Royal Hospital for Women and Children, among others.

It is assessing acquisition opportunities in the healthcare and education sectors in the Mena region, mainly in the UAE, Egypt and Saudi Arabia, chief executive Mohamad Hamade told The National.

The Egyptian market is an “interesting market given its strong demographics and ... fundamentals both in healthcare and education sectors”, he said. However, he declined to reveal any specific targets.

“At the right time when we identify the appropriate opportunities, we will be investing further. We are in active discussions with many partners,” said Mr Hamade.

Any new deals will be financed through a combination of “cash at hand and bank debt”, he said.

By the end of March, Amanat invested a total of Dh2.9 billion, using 100 per cent of its paid-up capital of Dh2.5bn, according to the company.

Amanat will also be looking to exit companies in which it has a minority stake, said Mr Hamade.