IHC's Q1 profit up more than 1,000% on acquisitions

Abu Dhabi-based conglomerate is now the third-biggest company by value on the Abu Dhabi Securities Market

IHC is planning to list two more of its subsidiaries on the ADX during the second quarter after listing three companies on its secondary market at the end of last year. Reuters

Abu Dhabi's International Holding Company reported a 1,233 per cent increase in net profit for the first quarter of 2021 as revenue surged on the back of recent acquisitions.

Net profit for the three months to March 31 increased to Dh1.5 billion ($408.4m), from Dh112m in the same period last year as revenue trebled to Dh2.28bn, the company said in a statement to the Abu Dhabi Securities Exchange.

“Our first quarter financials were principally driven by our Industrials and Capital verticals, which provided the main thrust of our revenues," Syed Shueb, IHC’s chief executive and managing director, said. "We recorded Dh2.3bn in revenue, and importantly these results highlight our ability to grow our operations despite the economic challenges and to acquire the right businesses that add genuine value and bring synergies to our conglomerate.”

IHC's industrials vertical owns stakes in a number of businesses, including Quantlase Imaging Lab, the company behind the rapid Covid-19 screening system operated on the border between Abu Dhabi and Dubai at Ghantoot. It also owns Tamouh Healthcare, Pure Health and asset management company Eltizam Group.

The capital unit contains its International Securities arm, a securities brokerage acquired from Dubai-listed investment bank Shuaa in 2019.

IHC's acquisition spree over the past 12 months has led to substantial growth in the size of the company's balance sheet and its value. At the end of March, it had total assets of Dh19.67bn, compared to Dh8.9bn at the same period last year.

Its share price has trebled over the past 12 months to Dh91 as of Wednesday, giving it a market capitalisation of Dh165.75bn. It is now the third-biggest company by value on the ADX, behind First Abu Dhabi Bank and telecoms operator Etisalat.

The company continued its acquisitions during the quarter, buying Apex Catering, a 60 per cent share of Afkar Financial & Property Investments, increasing its stake in National Marine Dredging Company and investing in the Sinovation Disrupt Fund, a US-based vehicle investing in artificial intelligence and other advanced enabling businesses.

Within the next quarter, it will incorporate the 45 per cent stake it recently acquired in Alpha Dhabi Holding (the construction group formerly known as Trojan Holding), a 70 per cent stake in Blink Biz Holding, its 50 per cent share of EDE Research and a 50 per cent stake in Emirates International Gas, which builds gas plants and infrastructure into residential communities.

IHC also said two more of its subsidiaries have begun the process of seeking listings on the ADX – Al Seer Marine Supplies and Equipment Company and Emirates Stallions Properties. The company listed three of its subsidiaries – Palms Sports, Easy Lease and Zee Stores – on the exchange's secondary market late last year.