Al-Mazaya makes KD 10.25m net profit for 2016

AGM endorses 8% of share nominal value in cash for shareholders

Al-Mazaya Holding’s Ordinary General Assembly convened yesterday at Al-Mazaya Tower, strategically located in AlMirqab Area in Kuwait City, one of the company’s three high-rises in the downtown capital of Kuwaiti. Up to +++++ percent of the members attended the GA meeting, which was opened by Rasheed Al-Nafisi, Board Chairman of Al-Mazaya Holding, in presence of the company’s esteemed shareholders, board members and group CEO, Engineer Ibrahim Al-Soqabi.

The meeting was also attended by representatives of the Ministry of Trade and Industry, auditing offices, and heads of the company’s different business departments, investors and a large number of media representatives working in Kuwait and other GCC states.

Aimed at reviewing company plans and achievements across the year in a streamline, documented manner, the GA’s agenda kicked off with a documentary divided into three main parts: company history since its establishment, Al-Mazaya Holding’s 10-Goal Strategy, and Milestones in 2016. The meeting featured footages and videos documenting all the projects executed by the company over the year.

Addressing the meeting, Board Chairman Rashid Al-Nafisi said that AlMazaya Holding has managed anew to maintain its eminent position in all its business platforms, reporting impressive growth and positive deliverables that kept its efficient and competitive edge and enviable stature among other real estate companies working in the region. He noted that company has made great strides in 2016 as reflected by the significant milestones that have been achieved thanks to the company’s rich portfolio of diverse and balanced revenue streams.

He underlined the company’s ability to continue to grow and develop in line with its strategy to keep its leading market position locally and regionally. Al-Nafisi added that in 2016, Al-Mazaya achieved a net profit of KD 10.25 million from KD 9.32 million, a 10.02 percent increase over 2015.Earnings Per Share (EPS) reached 16.51fils, compared to 15.04 fils in 2015.

“Al-Mazaya Holding has achieved new heights with the results for 2016, proving that our prudent strategy, comprehensive vision and well-formulated targets are continuing to drive growth across all areas of the business. The company was able to follow the schedules precisely and efficiently, boosting the process of sales, leasing, delivery and increasing operating revenue to KD55.17 million by the end of 2016,” he noted. Al-Mazaya Board Chairman also credited the jump in revenues to strong marketing campaigns, with huge revenues generated from increasing sales to KD47.81million. Revenues generated from leasing activities grew by 15.19 percent (KD7.11 million) by the end of 2016, up from KD6.17 million for the same period in 2015. Al-Nafisi underlined the company’s pioneering position in all its business platforms, noting that during 2016, the company experienced considerable growth following the successful implementation of its developments in a number of new markets it has tapped over the past years. These successes have reflected positively on the company’s total assets which increased to KD 254.78 million by the end of 2016, as opposed to KD 251.04 in 2015, with the total ownership stakes reaching KD 119.61 million by the end of 2016 as opposed to KD 111.45 by the end of December 2015.

Following the positive financial results achieved for 2016, the company’s board of directors recommended distribution of 8 percent of the company’s share nominal value in cash for all shareholders, which is equal to 8 fils per share.

“The decision to distribute the earnings in cash comes as a good sign to reflect the company’s strength in recurring cash flows and its balanced future planning outlook,” he said, adding that the recommendation was raised to the General Assembly and endorsed as per the requirements of all state departments concerned, including the Capital Markets Authority.

Concluding, the Board Chairman reiterated the board’s commitment to spare no effort to fulfill all the expectations while following the best world standards in areas of management, planning and execution to reach further heights of distinction.

General assembly agenda

Al-Nafisi reviewed the remainder of the meeting’s agenda topics, which were all approved. The attendees listened to a report by the accounting auditor on the fiscal year ending on December 31st 2016 and hence, endorsed it. They also were informed on the financial statements of the fiscal year ending on December 31st 2016 an endorsed it. They approved a recommendation by the company’s Board of Director to distribute 8 percent of the company’s share nominal value in cash for every shareholder, which is equal to 8 Kuwaiti fils per share. The GA also approved that the Board Chairman or any of the board members may combine the memberships of two competing companies, work in any business platforms that may be deemed as posing a competition to the company, or trade share for himself or for any other person in an area of business which Al-Mazaya Holding may hold in 2017.

The GA also removed all Board Members of any responsibility for any of their legal transactions for the fiscal year ending on December 31st 2016. The meeting also approved a deduction of 10 percent of the company’s net profits in favor of its mandatory legal financial reserve and deduction of an additional 10 percent of the net profits in favor of its optional reserve - this amount will be kept to meet any future commitments, if any.

Eng. Ibrahim Al-Soqabi, Group CEO of AlMazaya Holding, said the milestones reached by the company add to its track record of significant achievements and translate the well-thought out vision adopted to create innovative and balanced revenues streams in new markets. He added that the new achievements made in 2016 have bolstered the company’s stature as a regional business pioneer in areas of real estate and investment.

While consistently focusing on real estate development projects in different business platforms, including health, housing, office and retail trade, the company spares no effort in launching significant investments in areas of hospitality, said AlSoqabi. He attributed the successes achieved to the company’s comprehensive strategy to optimize its performance and maximize its returns in line with wellthought out plans aimed to mitigate risks and stamp out obstacles.