“Shuaa Capital” announced that it has achieved the highest levels of net profit attributable to shareholders during the past ten years by 25 million dirhams for the first quarter of 2021, compared to a net loss attributable to shareholders by 262 million dirhams in the first quarter of 2020, while operating income witnessed a 132% increase Annual from 19 million dirhams in the first quarter of 2020 to 45 million dirhams in the first quarter of 2021.
The Group’s quarterly earnings before interest, taxes, depreciation and depreciation reached 75 million dirhams for the first quarter of 2021, compared with a loss of 202 million dirhams in the first quarter of 2020. The revenues of the first quarter of 2021 increased to 102 million dirhams compared to 72 million dirhams in the first quarter 2020, an increase of 42 % On an annual basis, driven by recurring revenues, exceeding the average rate of revenue for the past four quarters, noting that the group’s performance in the first quarter usually yields relatively lower results compared to other quarters.
“Shuaa was able to consolidate its business and successfully complete the merger program,” said Jassem Al-Siddiqi, Group CEO. Now our focus is shifting to achieving growth and transformation by employing many talents across its various business sectors, introducing new products and various value propositions that suit the different needs of our customers. Given our success in achieving the highest levels of profits in the first quarter during the past ten years, we are very optimistic about achieving more distinguished results through the strong momentum witnessed by the company and the important transactions it accomplishes, and we also renew our commitment to continue implementing our strategic agenda. ”
Despite the relatively weak performance of 2020 that we witnessed in the first quarter due to the early effects of the global pandemic, for the fourth consecutive quarter the company achieved profitability despite the continuing repercussions of “Covid-19” on the economic scene, which indicates the flexibility of its various businesses.
The company’s main operating platforms recorded a strong performance, as the asset management sector achieved record profits despite the slight decrease in the value of assets under management to 13.9 billion dollars compared to the record levels of 14.1 billion dollars at the end of the fiscal year 2020, due to the exit from low activities. Profitability. In return, the company continued to move forward with building the recently launched new fund business. The asset management and investment banking units of Shuaa achieved a strong start to this year, supported by many important operations during the first quarter, despite the delay that occurred in some transactions.
The Asset Management Unit of “Shuaa” continues to make tangible progress in its strategic agenda with regard to the formation of permanent capital that achieves record profits of 35 million dirhams. Two funds, among the permanent capital tools launched by the group according to the compact cell companies structure in the fourth quarter of 2020, announced their first dividends in January 2021. This is tangible evidence of the outstanding early performance of these funds with an annual return of 6.4%, and confirms the ability of “Shuaa” to create great value for its investors. Building on this positive momentum, it is expected that the integrated cell companies fund platform in SHUAA will launch three additional funds to expand its offerings.
In terms of debt instruments in the capital markets, which are a major part of Shuaa’s investment banking unit; The company created, structured and implemented an innovative financing solution that includes the issuance of US $ 50 million in Sukuk for Pure Harvest Smart Farms, a leading global agricultural company that adopts sustainable technology. This is the first time in the region that a startup has been able to secure risk debt financing from capital markets. This investment round attracted a group of major investments from Franklin Templeton and Sancta Capital, along with other investors, and sheds light on Shuaa’s unique capabilities in this field.
The company has also improved its operations by creating a new debt subsection under Asset Management. Headed by Natasha Hanoun, this section will include the recently launched Shuaa Fund for Opportunities, and will focus on private debt investments through independent deals and fund structuring. It is the area of Shuaa’s long and ancient experience. Within the framework of this change, the business of “Investment Management” and “Discretionary Managed Portfolios” (previously affiliated with Investment Solutions) were transferred to the “Investment Banking Services” and “Asset Management” sectors, respectively.
At the same time, Shuaa continues to focus on its strategic goal of improving its operations, including reducing the unit of non-core assets. The company has taken many initiatives to accelerate the reduction process, which is in full swing as planned, despite the fact that the net assets of the unit remained relatively stable during the first quarter of 2021, reaching by its end 138 million dirhams.
Shuaa enters the second quarter of the year with a strong portfolio of activities and deals across its various business sectors, including some delayed transactions in the first quarter of the year. Therefore, in addition to the listing of the Anghami platform on the Nasdaq New York Stock Exchange after its merger with the Vestas Media Accommodation Company, Inc., and the possibility of launching new funds; Shuaa is exploring a number of rewarding opportunities that will add further momentum to its business in the coming months. In particular, there are many attractive opportunities for “Shuaa” to develop its activities in the field of technological investment, benefit from the success of its transactions such as “Anghami” and “Pure Harvest”, and expand the scope of its Islamic investments, while planning to launch new funds.