SHUAA Capital progressing with potential combination with ADFG; releases Q1 2019 earnings
Source: ASDA'A BCW for SHUAA Capital , Author: Posted by BI-ME staff
Posted: Wed May 15, 2019 7:17 pm

SHUAA Capital confirms it is progressing with its potential transaction with ADFG through a strategic investment structure where-in the combined entity will continue to operate as a publicly listed company. The Company is going through final stages before regulatory and shareholder approvals will be sought.

SHUAA Capital today announces its Q1 2019 financial results, with revenues increasing to AED 55.4 million (Q1 2018: AED 33.2 million). The Company however reported a AED 24.9 million net loss (Q1 2018: profit AED 11.7 million) on the back of certain one-off provisions and a change in accounting standards.

Fawad Tariq-Khan, Chief Executive of SHUAA Capital, said: “The first quarter for SHUAA reflects mixed results of the business. Our core operating businesses of investment banking, capital markets and asset management continued to grow in profitability, while certain one-off provisions and higher financing costs dragged our overall results into a loss. That said, our continued growth in our core operations continues our strategy of solidifying our recurring revenue base taking us towards sustained long-term profitability.”

The quarter saw SHUAA’s Capital Markets division registering profits worth AED 2.7 million (Q1 2018: loss AED 1.7 million), with the Investment Banking division registering AED 1.1 million in profits (Q1 2018: loss AED 0.6 million). Asset Management recorded AED 3.1 million of losses (Q1 2018: profit AED 4.1 million) driven by a one-off impairment of AED 4.2 million in its business following a change in revenue recognition standards for performance fees.

The Lending division recorded AED 4.4 million in losses (Q1 2018: profit 2.2 million), while Corporate reported a loss of AED 21.2 million (Q1 2018: profit AED 7.7 million) due to provisions relating to its legacy investment in an Abraaj-controlled fund and higher financing costs.

As of March 31, 2019, SHUAA’s balance sheet and total assets was AED 2.2 billion (December 31, 2018: AED 2.1 billion). The Group’s liquidity position was strong with AED 572.7 million in cash and net assets of AED 790.2 million attributable to the shareholders.

About SHUAA Capital psc: Established in 1979, and often considered to be the most recognized financial advisory and investment firm in the Middle East, SHUAA Capital psc (‘SHUAA’) is an integrated financial services firm headquartered in the United Arab Emirates.

The firm services corporate and institutional clients, governments, family businesses and high-net-worth-individuals with expertise in the areas of Asset Management, Investment Banking, Capital Markets and Credit. SHUAA is a public shareholding company with its shares listed on the Dubai Financial Market. The firm is regulated as a financial investment company by the UAE Central Bank and the Emirates Securities and Commodities Authority.

The firm owns and operates subsidiaries based in the Kingdom of Saudi Arabia and the Arab Republic of Egypt. They are SHUAA Capital - Saudi Arabia which operates as a real estate asset and investment manager, Gulf Finance Saudi Arabia its Shari’ah-compliant lending arm, and SHUAA Securities – Egypt, the newest addition to the Group, specializing in brokerage services for institutional, corporate and retail clients with seamless access to regional markets.

For more information, please visit www.shuaa.com

Photo Caption: Fawad Tariq-Khan, Chief Executive of SHUAA Capital

 

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