URC’s op­er­at­ing profit in­creases by 23% to KD 87 mil­lion in 2017

Com­pany achieves bal­anced fi­nan­cial re­sults, sub­stan­tial project milestones

Kuwait Times - - Business -

KUWAIT: United Real Estate Com­pany (URC), one of Kuwait’s lead­ing real estate de­vel­op­ment com­pa­nies, an­nounced the hold­ing of its Gen­eral Assem­bly Meet­ing for the fis­cal year end­ing De­cem­ber 31st 2017.

Tariq Mo­hammed Ab­dulSalam, Chair­man of URC, dis­cussed sig­nif­i­cant fi­nan­cial high­lights from the an­nual re­port for the year ended De­cem­ber 31, 2017, which pro­vided an overview of the com­pany’s ma­jor achieve­ments over the past year.

The re­port demon­strated the com­pany’s re­silience in adapt­ing to dif­fer­ent eco­nomic con­di­tions and chal­lenges to achieve both bal­anced fi­nan­cial re­sults and sub­stan­tial project milestones.

URC recorded a sig­nif­i­cant growth in rev­enues in 2017 where to­tal rev­enues in­creased by 23 per­cent to KD 87 mil­lion, com­pared to KD 71 mil­lion dur­ing the pre­vi­ous year. To­tal as­sets also in­creased by 5.24 per­cent to reach

KD 602 mil­lion, as com­pared to KD 572 mil­lion in 2016. Profit stood at KD 2.2 mil­lion in 2017. Ad­di­tion­ally, the com­pany recorded a net op­er­at­ing profit of KD 21 mil­lion dur­ing 2017, sim­i­lar to that recorded dur­ing 2016.

Ab­dulSalam said, “URC has sus­tained its growth de­spite ex­ter­nal pres­sures, demon­strat­ing a con­sis­tent and flex­i­ble busi­ness model. All fac­tors are in­dica­tive of the ef­fec­tive­ness of URC’s strat­egy, which seeks to bal­ance the sources of in­come and the com­pany’s di­ver­si­fied as­sets in the Mid­dle East and North Africa.”

Fur­ther­more, Ab­dulSalam com­mented that in 2017, the Board of Di­rec­tors made a com­mit­ment to take se­ri­ous and ef­fec­tive mea­sures to en­sure the com­pany’s ad­her­ence to the high­est level of cor­po­rate gov­er­nance and in­ter­nal con­trol, in line with URC’s na­ture of busi­ness as a lead­ing com­pany in the real estate mar­ket. This was achieved last year, and will con­tinue to be ad­hered to in 2018.

Ab­dulSalam then pro­vided an overview on the progress of URC’s on­go­ing projects that are ge­o­graph­i­cally dis­trib­uted across Kuwait and the MENA re­gion, and range from re­tail com­plexes, ho­tels and res­i­den­tial prop­er­ties, to high-rise of­fice build­ings and mixed-use de­vel­op­ments. On the sub­ject of URC’s projects, Ab­dulSalam com­mented that the com­pany achieved sig­nif­i­cant milestones on a project level. This in­cludes Phase 2 of “As­soufid”, URC’s in­au­gu­ral project in Morocco. The de­vel­op­ment cov­ers more than two mil­lion square me­ters, where the sec­ond phase will con­sist of a five-star ho­tel and a res­i­den­tial com­po­nent, com­pris­ing villas and high-end apart­ments, in ad­di­tion to sev­eral fa­cil­i­ties and ser­vices.

In Kuwait, the com­pany made sig­nif­i­cant progress in “Hes­sah Tow­ers”, URC’s first res­i­den­tial of­fer­ing in the pres­ti­gious Hes­sah Al-Mubarak District, one of the largest on­go­ing de­vel­op­ments in the coun­try. Launched last month, Hes­sah Tow­ers cov­ers a to­tal built-up area of 63,000 square me­ters and is com­prised two tow­ers, con­sist­ing of a range of high end apart­ments, du­plexes and town­houses, with panoramic views of the Ara­bian Gulf and Kuwait City. This new land­mark will also in­clude a num­ber of fa­cil­i­ties such as a health club, gym­na­sium, chil­dren’s recre­ational ar­eas,

To­tal as­sets in­creases to KD 602 mil­lion

pri­vate gar­dens for res­i­dents, a swim­ming pool and multi-story park­ing. Ahmed Kasem, Act­ing Chief Ex­ec­u­tive Of­fi­cer of URC, said: “The sub­stan­tial rise in rev­enues in 2017 and the suc­cess­ful ex­e­cu­tion of the com­pany’s port­fo­lio of as­sets re­flects URC’s sound busi­ness plan and reli­a­bil­ity of its long term vi­sion.”

Kasem added that the Board of Di­rec­tors and the Ex­ec­u­tive Man­age­ment are com­mit­ted to fur­ther de­velop and sup­port the com­pany’s sub­sidiaries, United Build­ing Com­pany (UBC), United Fa­cil­i­ties Man­age­ment Com­pany (UFM) and United In­ter­na­tional Project Man­age­ment Com­pany (UIPM). In 2017, we wit­nessed re­mark­able progress on this front, clearly re­flected in the in­crease in rev­enues of con­tract­ing and ser­vices by 72 per­cent and the to­tal profit in­creased by 79 per­cent.”

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