Wednesday, Jul 27, 2011
Gulf News
Dubai: After going through a management restructuring, repositioning of strategy and realignment of its core resources Shuaa Capital, the Dubai-based regional financial services company yesterday reported a Dh0.6 million net profit for the second quarter of 2011.
“The second quarter’s performance demonstrates that Shuaa has a more solid foundation. Asset Management, Finance and Private Equity reported a profit, while Brokerage and Investment Banking continue to suffer from subdued market activity,” said Sameer Al Ansari, Chief Executive Officer of Shuaa Capital.
The company had reported Dh56.5 million losses in the second quarter of last year and Dh26.3 million losses in the first quarter of this year.
Shuaa’s return to profit comes amidst analysts’ forecasts of potential losses ahead of the second quarter result announcement. An analyst with HSBC had estimated that the company would post a loss of Dh29 million in the quarter.
Jaap Meijer, Head of Banks Research and senior analyst with HC had projected a second quarter net loss of Dh11.5 million ahead of the result announcement.
The bank had undertaken a detailed strategic review of its business last year to develop corporate strategy and refocus its business.
“In the last quarter, Shuaa Capital has been working hard to strengthen its existing business and improve its bottom line. The break even result in the second quarter gives us reason to be cautiously optimistic for the future but we realise that more work needs to be done,” said Shaikh Maktoum Bin Hasher Al Maktoum, Chairman of Shuaa Capital.
As part of its restructuring, Shuaa had divested from non-core assets and strengthened its balance sheet. At the close of the second quarter, Shuaa’s total assets were at Dh1.9 billion, including Dh412 million in cash, against total liabilities of Dh422 million.
“This gives us the flexibility to invest in organic as well as inorganic growth, playing a consolidator role when opportunities arise,” said Al Ansari.
Non-core assets stood at Dh397 million, Dh 78.1 million lower than at the end of the first quarter of 2011. This includes Dh194.5 million of investments in third party associates, Dh19.2 million of investment in third-party funds, Dh10 million in equities, Dh16 million in bonds, Dh149.4 million of investments available for sale and 7.5 million of investments held to maturity.
Treasury deployed excess cash in the second quarter which included fixed income securities of Dh9.1 million and placed Dh15.4 million with Shuaa Asset Management.
By Babu Das Augustine, Deputy Business Editor
© Gulf News 2011. All rights reserved.
Gulf News
Dubai: After going through a management restructuring, repositioning of strategy and realignment of its core resources Shuaa Capital, the Dubai-based regional financial services company yesterday reported a Dh0.6 million net profit for the second quarter of 2011.
“The second quarter’s performance demonstrates that Shuaa has a more solid foundation. Asset Management, Finance and Private Equity reported a profit, while Brokerage and Investment Banking continue to suffer from subdued market activity,” said Sameer Al Ansari, Chief Executive Officer of Shuaa Capital.
The company had reported Dh56.5 million losses in the second quarter of last year and Dh26.3 million losses in the first quarter of this year.
Shuaa’s return to profit comes amidst analysts’ forecasts of potential losses ahead of the second quarter result announcement. An analyst with HSBC had estimated that the company would post a loss of Dh29 million in the quarter.
Jaap Meijer, Head of Banks Research and senior analyst with HC had projected a second quarter net loss of Dh11.5 million ahead of the result announcement.
The bank had undertaken a detailed strategic review of its business last year to develop corporate strategy and refocus its business.
“In the last quarter, Shuaa Capital has been working hard to strengthen its existing business and improve its bottom line. The break even result in the second quarter gives us reason to be cautiously optimistic for the future but we realise that more work needs to be done,” said Shaikh Maktoum Bin Hasher Al Maktoum, Chairman of Shuaa Capital.
As part of its restructuring, Shuaa had divested from non-core assets and strengthened its balance sheet. At the close of the second quarter, Shuaa’s total assets were at Dh1.9 billion, including Dh412 million in cash, against total liabilities of Dh422 million.
“This gives us the flexibility to invest in organic as well as inorganic growth, playing a consolidator role when opportunities arise,” said Al Ansari.
Non-core assets stood at Dh397 million, Dh 78.1 million lower than at the end of the first quarter of 2011. This includes Dh194.5 million of investments in third party associates, Dh19.2 million of investment in third-party funds, Dh10 million in equities, Dh16 million in bonds, Dh149.4 million of investments available for sale and 7.5 million of investments held to maturity.
Treasury deployed excess cash in the second quarter which included fixed income securities of Dh9.1 million and placed Dh15.4 million with Shuaa Asset Management.
By Babu Das Augustine, Deputy Business Editor
© Gulf News 2011. All rights reserved.
