Inovest swings to net profit of $3.2 million

12/05/2016 09:25 AST

Inovest, a Bahrain-based Sharia-compliant investment firm, yesterday announced it has swung to a net profit of $3.2 million for the first quarter this year from a loss of $900,000 for the same period last year.

The firm also reported an increase of 150 per cent in its operating income from $2m in the first quarter of last year to $5m for the same period this year.

Over the first quarter this year, operating expenses saw a 38pc decline to $1.9m as against $3m in the previous year.

Earnings per share were a positive 1.13 cents for the first quarter this year as against a loss per share of 0.35 cents for the same time period last year.

The turnaround in performance, and the achievement of profit for the first time in several years, was the outcome of a series of exits from legacy real estate investments as well as activities in contracting and development.

It is also attributable to efficiency in the management of operating expenses, specifically reduction in cost of financing as well as a restructuring and settlement of debts. This led to an improvement in the liquidity position as well as a reduction in total debt exposure by 27.6pc in comparison to last year's end.

Inovest chairman Khaled Al Sanaousi said "the company has come through a very challenging 2015", marked by a series of revival initiatives that have resulted in profit for the first time in several years.

"We will continue to strive towards improving our performance through the implementation of our three year strategy."

Though this year is dedicated towards a return to profitability through the exit of legacy investments and enhanced performance, Inovest will also look at diversification of its investment portfolio to include new sectors and markets beyond local boundaries," he said.

Gulf Daily News