Abu Dhabi investment company Waha Capital saw revenue rise 13 per cent during the third quarter, although it swung to a net loss as impairments hit its bottom line.
The Abu Dhabi investment company’s revenue increased to Dh75.8m, up from Dh66.9m in the same period last year. However, impairment charges led to the firm posting a net loss of Dh205 million, compared to a profit of Dh55.4m in the same period last year, the company said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded. The company appointed Amr Al Menhali as chief executive in September and has embarked on a turnaround strategy to "set the company on a path of sustainable growth".
“The company has adopted a strategy to optimise and grow our investment portfolio, and to address asset-specific issues that have impacted financial performance,” said Mr Al Menhali.
“We will leverage our significant representation on the boards of portfolio companies to influence strategy and create long-term value, whilst pursuing new opportunities in growth sectors both locally and internationally.”
The company, which counts Abu Dhabi’s Mubadala Investment Company among its shareholders, had total assets of Dh10.61 billion at September 30, 2019, down from Dh11.67bn at the end of 2018. It manages assets across several sectors including aircraft leasing, health care, financial services, energy, infrastructure, industrial real estate and capital markets.
The Asset Management division, which has seen assets under management rise 24 per cent this year to Dh3.1bn, is also stepping up its efforts to attract third-party investors to its funds.
"The asset management division is a key area that the company will develop further, utilising the sectoral expertise of the company’s board and senior management, as well as a highly impressive track record of outperformance by our funds," Mr Al Menhali said.
In a separate announcement, one of the company's investments, credit cards and loans business Dunia Finance, announced it has rebranded as Deem.
Waha Capital has a 25 per cent stake in Deem, which is a co-investment alongside Mubadala Investment Company, Fullerton Financial Holdings and AA Al Moosa Enterprises. Deem Finance has loans and advances of more than Dh1bn. Accounts show that Waha Capital injected Dh87.5m into Deem Finance during the quarter.
