Vijay Valecha, Special to Gulf News August 17, 2021
Amanat Holdings principally invests in the education and healthcare sectors, and with a market cap of Dh2.8 billion has been reporting eye-catching revenue and profit numbers. Total income recorded for the first -half of 2021 is Dh255.6 million, a significant nine-fold increase from the Dh28.2 million in H1-2020.
Income from investments grew at a stellar pace to Dh251.9 million versus Dh21.3 million same period last year. In fact, the performance filtered down all the way to the bottom-line, with a net profit of Dh235.3 million from Dh600 million. Amanat’s profitability was also bolstered by the Dh160 million gain on sale of a stake in Taaleem Holdings in April, along with robust contributions made from Amanat’s new healthcare investment in Cambridge Medical and Rehabilitation Center.
The portfolio of assets includes Abu Dhabi University Holding Company, Middlesex University Dubai, International Medical Centre and Royal Hospital for Women and Children, among others that contributed to the group’s spectacular performance. In the first quarter, Amanat fully acquired for an enterprise total of $232 million, thus being one of the biggest deals in the Gulf’s healthcare sector in recent years. CMRC is a leading post-acute care and rehabilitation provider in the UAE and Saudi Arabia. The acquisition offers Amanat a profitable and scalable opportunity to diversify in the GCC space and emerge as market leader.
The strong improvement is particularly evident across all Amanat’s healthcare investments, which recorded an income from investments of Dh19.2 million versus a loss of Dh38.7 million. The education platform recorded an income from investment of Dh232.8 million, up 288.2 per cent year-on-year.
Increased student enrolments have been witnessed as the economy is gradually inching towards recovery. Amanat’s total expenses stood at Dh20.2 million, down 26.8 per cent. These cost reduction strategies aided the company to achieve impressive profitability.
The share price is currently Dh1.13, helped by a 28 per cent increase in the last one year. The half-yearly performance demonstrates the group’s ability to deliver results and build on investor confidence.