INOVEST announces fourth quarter ,FY22 results

TDT | Manama                      

The Daily Tribune – www.newsofbahrain.com   

INOVEST announced its Q4 and full year 2022 results, which the company said was partly impacted by a reversal in provisions, as revenues improved helped by Group’s construction and real estate investment sector as well as in its management fees and services.

Quarterly results

Fourth quarter consolidated net loss attributable to the parent shareholders was US$ 878 thousand in comparison to a net profit of US$ 2.41 million for the same quarter of last year.

Loss Per Share was US cents 0.30 as compared to an Earning Per Share of US cents 0.81 for the same period in 2021.

The decline is primarily due to a reversal in provisions in 2021 associated to a legal matter which was settled in INOVEST’s favor.

The net operating losses dropped by 57% from a loss of US$ 1.5 m to a loss of US$ 670 thousand in Q4 2022, attributable to an increase in revenues in the Group’s construction and real estate investment sector as well as in its management fees and services. Operating expenses declined 8% from US$ 2.50 m to US$ 2.29 m.

Consolidated operating income increased by 69% to reach US$ 1.62 m in the last quarter of 2022 in comparison to US$ 959 thousand for the same period last year.

Full year results

Full year consolidated net profit attributable to parent shareholders was US$ 923 thousand, compared to a profit of US$ 746 thousand for the same period last year, an increase of 24%.

The net profit for 2022 includes a reversal of provisions amounting to US$1.3 m associated to a legal matter which was settled in INOVEST’s favor.

Earnings Per Share of the parent company amounted to US cents 0.31 as compared to Earnings of US cents 0.25 in 2021.

This increase is the outcome of a significant improvement in the operating income within the Group’s construction arm, and in the performance of its real estate investments.

Consolidated net operating loss declined by 94% to reach US$ 195 thousand in comparison to a loss of US$ 3.34 m for the same period in 2021 due in large to an increase in revenues in the Group’s construction and the real estate investments.

Operating expenses saw a minor drop, by 1% as a result of stringent controls.

The total operating income, stood at US$ 8.67 m, a 56% increase from the US$ 5.57 m recorded in 2021.

Accordingly, the cash and bank balances stood at US$ 17.82 m in comparison to US$ 26.38 m as at year end 2021, representing a 32% decline resulting from the settlement of financing facilities as well as a cash injection into new investments, and ongoing operational expenses. INOVEST’s Chairman, Mohammed Hamed Al Shalfan said, “The steady improvement in our performance and the improvements in our operating income stem from our dedication to our key strategic objectives, and from our approach to achieving balanced growth.

Going forward, we expect to continue our upward trajectory, through investments in various new businesses aimed at inclusive growth that ultimately benefits our key shareholders.”

CEO of INOVEST, Yasser Al Jar confirmed INOVEST’s positive outlook for the year to come noting, “We will strive to maintain and enhance our performance in 2023, a matter which we saw a marked improvement in 2022, specifically in our operating income, we expect to see significant developments in our assets under management, as well as an improvement in the performance of our current investment portfolio.