Inovest revenues hit $9.2 million

16/02/2016 08:37 AST

Inovest, a Bahrain-based Sharia-compliant investment firm, has registered a consolidated net loss of $53.7 million last year in comparison with $3.8m in 2014.

In an announcement yesterday following a board meeting, the firm said total revenues excluding unrealised revaluation losses stood at $9.2m compared with $13.3m in the previous year, with last year's fourth-quarter losses reaching $51.1m in comparison with $3.9m during the same quarter in 2014.

Accordingly, the loss per share was 16.9 cents compared with 1.35 cents in 2014. Chairman Khaled Al Sanaousi said the "significant differential between the year end results of 2014 and 2015 is the result of a stern decision to provision against certain investments and receivables to the tune of $44.35m, actual operating losses for the year ended before such provisioning stand at $9.37m."

He added that a strategic revival plan was implemented last year aimed at a reduction and more stringent management of operating expenses, enhancement of liquidity position through debt and balance sheet restructuring, and the sale and exit of legacy investments. It has resulted in enhancing liquidity, which reached $40.4m at last year's end in comparison with $8.6m in December 2014, an increase of 371pc, he added.

Additionally, the firm said it was able to restructure its financing facilities, reducing the cost of financing as well as the early settlement of a number of facilities both of which reduced the debt exposure by 34pc, from $36m in 2014 down to $23.9m this year; with an expected further reduction of 25pc during the year.

Moreover, it was also able to reduce outstanding receivables balance by 17.3pc, with recovery of approximately $15m in receivables, a segment of which stems from long outstanding receivables.

Inovest's chief executive Murad Al Ramadan said, "it was an accomplishment to reduce operating expenses a further 12.1pc without affecting operations."

By last year's end, operating expenses stood at $11.2m in comparison with $12.7m in December 2014, he added.

"It is expected that the final impact of saving initiatives will be felt this year." According to him, in light of critical changes, and with a notable improvement in financial standing, the firm saw the current year as "a testament to a more sustainable and profitable way of doing business".

The statement also said the firm's board has approved a new three-year strategy for the period 2016-2018.

Gulf Daily News