Amanat earns Dh1.47m net profit, eyes Saudi acquisition
Despite falling oil prices, firm still bullish on health care and education sectors
Health care and education company, Amanat Holdings, said yesterday it recorded a net profit of Dh1.47 million for the first quarter of 2015.
Profit on Mudaraba and Wakala deposits in the first three months of 2015 stood at Dh8.19 million, while operating expenses stood at Dh6.72 million, the company said in a statement.
Between January and March this year, Amanat continued to closely manage its cost base and deposits while assessing a series of potential acquisitions, partnerships and projects within the GCC. The quarter also witnessed the company strengthen its management and operational teams with several strategic hires.
Subsequent to the first quarter of 2015, Amanat announced to shareholders the signing of its first Sale and Purchase Agreement (SPA). The company has also entered into an agreement to acquire a significant stake in a health care company based in Saudi Arabia. The acquisition is anticipated to be completed within the next six months.
“We are enthusiastic about the quality of opportunities we are seeing and are delighted to have our first acquisition in place, subject to the necessary approvals,” Khaldoun Haj Hasan, Chief Executive Officer of Amanat, said in a statement. “Looking ahead, although 2015 has so far been characterised by lower oil prices and regional political uncertainty which potentially could result in more attractive valuations, we remain bullish on the health care and education sectors,” he added.
Initiatives
Amanat’s business model is based on three main verticals. First, Amanat looks to invest in established companies and help them grow through the implementation of value creation initiatives and funding support. Second, it will develop and fund real estate and infrastructure projects related primarily to the expansion needs of these companies. Third, it will set-up new ventures built on proven business models, bringing specialist know-how into the region through partnerships with leading international providers to address supply or quality gaps.
Health care spending in the Gulf is expected to grow at a compound annual growth rate (CAGR) of 10.7 per cent until 2017, enrolment in private education expected to grow at a CAGR of 10.5 per cent over the same period.