INOVEST reports Q3 profit

TDT | Manama                       

The Daily Tribune – www.newsofbahrain.com    

Helped by growths in the construction and real estate businesses and the reversal of a provision, INOVEST yesterday reported profits in its third quarter and nine-months, which the company also attributed to a jump in fees for management and other services.

Q3 results

Third-quarter consolidated net profit attributable to parent shareholders was US$ 0.36 million, compared to a net profit of US$ 0.012 m in the year-ago quarter. Earnings Per Share rose to US cents 0.12 from US cents zero in the year-ago quarter.

The company attributed the increase primarily to positive contributions in the construction and real estate business, as well as a reversal of a previously taken provision against expected legal actions which have since been concluded as a result of court rulings in favour of Inovest during the first half of 2022.

In addition to that, the fee for management and other services has almost doubled compared to last year’s quarter. Net operating profit stood at US$ 0.21 m compared to a loss of US$ 0.002 m in the prior-year quarter. Consolidated operating income increased by 29% to reach US$ 2.35 m, whilst operating expenses rose 17% to US$ 2.13 m from the year-earlier quarter.

Nine-month results

Consolidated net profit attributable to parent shareholders was US$ 1.80 m, compared to a loss of US$ 1.66 m for the same period last year. Earnings Per Share of the parent company amounted to US cents 0.61 compared to a loss per share of US cents 0.56 in 2021. This increase is primarily attributed to an improvement in revenues from the real estate and contracting sector, as well as a reversal of a previously taken provision.

Additionally, INOVEST maintained specific control over expenses across its business. Consolidated net operating profit increased by 126% to US$ 0.48 m, compared to a loss of US$ 1.80 m a year ago, while consolidated operating income increased by 53% to US$ 7.05 million from a year ago.

INOVEST’s Chairman, Mohammed Hamed Al Shalfan said, “We are very pleased to report INOVEST’s continued delivery of positive results, a clear indication of the relevance of our business strategy. One of the key elements of this strategy has been the reactivation of Al Khaleej Development Company “Tameer” as the Group’s real estate development arm.

“As for our investments in other sectors, INOVEST is in the final stages of assessing an acquisition opportunity in the healthcare sector, which falls in line with the company’s key corporate objectives.” CEO of INOVEST, Yasser Al Jar noted, “Our positive current results stem from our approved Group strategy, in which we have endeavoured to create sustainable growth platforms to propel our performance and deliver positive results in a calculated manner.”

“We are confident that our objectives for the year will be met, and that we will reap its benefits in the forthcoming stages of our corporate journey.”