Bahrain:– United Gulf Holding Company B.S.C. (“UGH”) announced its results for the year ended 31 December 2018. The Company announced net profit attributable to shareholders of parent of US$ 18.6 million for 2018.

UGH was incorporated in June 2017 as part of realignment of UGB operations and was listed on Bahrain Bourse on 28 September 2017. The results represent first full year of its operations. 

Key Financial Highlights for full year 31 December 2018:

  • Net profit attributable to shareholders of the parent increased by 318% to US$ 18.6 million (2017: US$ 4.5 million).
  • Net profit attributable to shareholders of the parent from continuing operations increased by 143% to US$ 18.2 million (2017: US$ 7.5 million).
  • Net consolidated profit increased by 382% to US$ 24.5 million (2017: US$ 5.1 Million).
  • Operating Income increased by 383% to US$ 139.5 million (2017: 28.9 million)
  • Total comprehensive (loss) / profit US$ (36.1 million) (2017: USD 8.2 million) due to reserve movements.
  • Basic earnings per share for the year 2.35 cents (2017: 2.13 cents)
  • Total income before interest and other expenses increased by 364% to US$ 208.0 million (2017: 44.8 million).
  • Total assets increased by 13% to US$ 3.4 billion (2017: 3.0 billion).
  • Total equity US$ 548.5 million (2017: 541.6 million).

Key Financial Highlights for 4Q2018

  • Net profit for the 4Q 2018 attributable to shareholders of the parent increased by 47% to US$ 6.6 million (4Q 2017: US$ 4.5 million).
  • Net profit for the 4Q 2018 attributable to shareholders of the parent from continuing operations increased by 13% to US$ 5.1 million (4Q 2017: US$ 4.5 million).
  • Net consolidated profit for the 4Q 2018 increased by 88% to US$ 9.6 million (4Q 2017: US$ 5.1 million).
  • Operating Income for the 4Q 2018 increased by 103% to US$ 58.6 million (4Q 2017: 28.9 million)
  • Total income for the 4Q 2018 before interest and other expenses increased by 73% to US$ 77.3 million (4Q 2017: 44.8 million).
  • Total comprehensive loss for the 4Q 2018 is US$ 20.7 million (4Q 2017: gain 8.2 million) due to reserve movements.
  • Basic earnings per share for the 4Q 2018 of cents 1.18 (4Q 2017: 2.13 cents).

Financial Performance

In  it’s first full financial year of operations, UGH’s   net profit attributable to shareholders of the parent increased by 318% to US$ 18.6 million (2017: US$ 4.5 million). Total income before interest and other expenses increased by 364% to US$ 208.0 million (31 December 2017 US$ 44.8 million). The increase is mainly attributable to the fact that fourth quarter 2017 was the first full quarter of operations for UGH post its incorporation and listing. 

UGH total assets increased from US$ 3.0 billion in 31 December 2017 to US$ 3.4 billion in 31 December 2018. Total equity also increased from US$ 541.6 million to US$ 548.5 million. Total Assets Under Management also increased from US$ 10.8 billion in 31 December 2017 to USD 12.6 billion in 31 December 2018. 

UGH’s Board of Directors will not be recommending any dividends for the year ended 2018.

Masaud Hayat, Chairman of UGH commenting on the results said: “UGH has reaped the benefits of the realignment of operations envisaged during 2016/2017 and the results for the financial year 2018, being its first full year of operations are testament to this fact both for UGH and its fully owned subsidiary UGB.

The more focussed approach achieved through realignment of operations not only helped UGH post a record year in terms of profitability but also has set the platform for future growth. During the year UGH subsidiary KAMCO, also completed acquisition of 71% equity stake in Global Investment House, Kuwait  which once fully integrated would not only provide the Group access to new markets but would further enhance our recurring fee revenue generation capability. The acquisition also resulted in increase in the Group’s Assets Under Management to USD 12.6 billion (2017: USD 10.8 billion). With a healthy increase in equity base through retention of profits, UGH is well poised for further business growth and enhancing shareholder value despite anticipated challenging market conditions.

I take this opportunity to express our gratitude to all the regulatory authorities, especially the Central Bank of Bahrain, Bahrain Bourse as well as the Ministry of Industry, Commerce and Tourism for their longstanding support and collaboration and to thank all our shareholders including our mother company KIPCO for their trust and confidence” 

-Ends- 

About UGH:

UGH is a subsidiary of KIPCO Group and through its underlying investments conducts merchant banking activities. Group’s proprietary investments include assets in commercial banking, real estate, private equity, and quoted securities. As of 31 December 2018 assets under management held through its subsidiary UGB increased from US$ 10.8 billion in 31 December 2017 to 12.6 billion in 31 December 2018.

As of 31st December 2018, UGH’s directly and indirectly held core subsidiaries and associates include: United Gulf Bank B.S.C, Burgan Bank, KAMCO Investment Company (KAMCO), FIMBank p.l.c, North Africa Holding Company, United Gulf Financial Services – North Africa, Gulf Investment House, United Capital Transport Company and United Real Estate Company.

UGH’s subsidiaries, UGB and KAMCO have a proven track record of successfully completing more than 60 investment banking transactions for its clients since 2001 with an aggregate value of over US$ 10 billion including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and merger and acquisition.

For further information:

United Gulf Holding Company

info@ughbah.com 

T: +97317520150

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