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Dubai-listed financial services company, Shuaa Capital, has posted a loss of AED 143.9 ($39.2 million) for the second quarter of the year, down from AED 39.4 million profit posted same time last year.
The company’s CEO, Fawad Tariq Khan, said it had embarked on a group-wide exercise to streamline business by addressing non-cash expenses and cost optimisation measures to position it for profitability.
Losses for H1 were heavy, reaching AED 192.5 million, against an AED 68.2 million profit YoY, according to financial results published to Dubai Financial Market (DFM) today.
Shuaa said non-cash expenses such as mark-to-market of Shuaa managed funds, accrued expenses, accelerated amortisation of intangible assets, contributed to results.
Its financial results showed operating income fell to AED 61.6 million in Q2 2022, down from AED 71.6 million in 2021, and AED 147.7 million in H1 2022 compared to AED 171.1 million in 2021.
The results also showed soaring operating expenses soaring year-on-year, reaching AED 214.3 million in H1 2022, up from AED 137.8 million in 2021.
Shuaa said its asset management segment had delivered a “robust” performance with AED 33 million revenue. Investment banking business reported AED 3 million revenue.
Referring to the company’s decision to merge its real estate operations with UK-based wholly owned subsidiary, Northacre, CEO Khan, who was appointed in mid-June, said: “We remain committed to providing innovative investment solutions to our clients, as evidenced by the global launch of Northacre and the increase in the number of managed funds our clients have access to.”
Earlier this week, the Goldilocks Fund, managed by Shuaa Capital unit Shuaa GMC, was acquired in a share swap deal by Eshraq Investments, chaired by Jassim Alseddiqi, who was CEO of Shuaa Capital until top level job shakeups at the firm in June.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
