$10.1m net profit for Inovest
Manama : Inovest Group has posted a consolidated net profit of US$ 10.1 million as compared to a net loss of US$ 48.1 m in 2015. Net profit for the last 3 months of 2016 amounted 0.9 m compared to a net loss of 45.5 m for the same period in 2015.
The key performance indicators of Inovest’s 2016 financial results include an increase of 78 pc in its operating income to $16 m in comparison to $1.8 m at the end of 2015.
Further, the Group’s operating expenses saw a 23 pc decline, standing at US$8.5 m as compared to $11.1 m in 2015.
Commenting on the results, Khaled Al Sanousi, the Chairman of the Board of Directors of Inovest said, “Our turnaround performance and the consistent quarter on quarter profitability this year stand testament to the Group’s three-year strategy (2016-2018). The Group’s strategy included key targets such as a return to profitability in 2016. This was successfully achieved as a result of our effective management of operating expenses, successful investment exits, improving performance of existing investments, and a reduction in financing costs which dropped by a significant 74pc, as well as a debt restructuring, as financing to banks dropped by 31pc. Furthermore, we have witnessed an increase in revenues from our construction activities led by our contracting subsidiary ‘Tamcon’, he said.
Al Sanousi also added that the Board of Directors has recommended to the Annual General Assembly a cash dividend distribution of 7 pc subject to the approval of Central Bank of Bahrain and the Ministry of Industry and Commerce and Tourism.
Murad Al Ramadan, CEO of Inovest acknowledged that Inovest was not without its residual challenges, but affirmed the Group’s commitment to implementing its 3-year strategy. “We will strive to maintain and accelerate our performance in 2017, as we will continue to improve the performance of our investment portfolio and achieve further successful investment exits and asset disposals,” he said.
As for the new Investments pipeline, Al Ramadan added that Inovest has started evaluating new investment opportunities in the F&B and retail sectors as well as opportunities in the education and health care sectors that will be announced soon.
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