Inovest reports H1 profit

Inovest reported first half 2019 consolidated net profit attributable to parent shareholders of US$4.29 million, representing a 58 per cent decrease as compared to US$10.16m for the same period of last year. The dip in net profit, CEO of Inovest, Yasser Al Jar said, stems in principle from the extraordinary profit attained from contracting agreements and investment exits accounted for during this time last year. “Accordingly, our results during the first half of the year follow a very natural and expected curve, especially in relation to the normal fluctuations that we, and our counterparts, are exposed to within the investment industry.”

Earnings Per Share attributable to the equity shareholders of the parent company amounted to US cents 1.52 as compared to US cents 3.59 a year ago. Consolidated net operating profit declined by 65pc from US$9.82m to US$3.40m due to an increase in the Group’s operating expenses as well as an expected decrease in revenue from the Group’s contracting activities and the capital gain from one of the investment disposal that has been taken place in the same period of last year. Consequently, the operating income decreased by 34pc in the first half of this year, reaching US$9.89m in comparison to US$14.90m for the same period of 2018.

Commenting on the results, Inovest’s Chairman Dr Omar Al Mutawa said, “Despite a challenging regional economic climate, and a specifically challenging investment atmosphere, we are pleased to see Inovest sustaining its profitability; a condition it has upheld quarter on quarter from 2016 to date. The Group performance for the first half of 2019 is a clear indication of our commitment to achieving the goals of our recently approved strategy. In accordance with it, we have taken some necessary steps towards improving the efficiency of investments held by the Group; God willing we hope to quickly see the realization of these efforts and actions.”