SHUAA Capital reports results for the full year and final quarter of 2015. Revenues for the full year stood at AED 178.2 million (2014: AED 213.4 million).
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The company posted an overall loss of AED 190.3 million (2014: profit of AED 25.8 million).
For the fourth quarter of 2015, the company reported revenues of AED 40.1 million, representing a 58% increase compared to AED 25.4 million in Q4 2014, and a loss of AED 161.8 million (Q4 2014: loss of AED 14.8 million).
The majority of the loss recorded in 2015 is attributable to Gulf Finance, the SME Lending business, which set aside provisions of AED 154.6 million against bad loans.
Despite this, the business increased full year revenues by 21% to AED 159.7 million (2014: AED 131.5 million) and continues to see strong demand for its financing products, particularly in the Saudi Arabia division, where SMEs have historically experienced difficulty in accessing growth finance.
Despite volatile market conditions in 2015, SHUAA maintained a solid balance sheet and total assets at year-end stood at AED 1.6 billion (2014: AED1.6 billion).
The group’s liquidity position remains strong with AED 263 million in cash. Liabilities increased to AED 639 million from AED 459 million in 2014, principally due to additional financing support for the SME lending business. As of 31 December 2015, net assets stood at AED961 million while the leverage ratio was 0.47 at year-end.
Rigorous cost control measures continue to be a strategic priority. Operating expenses remained stable at AED 164.3 million (2014: AED 165.1 million) while general and administrative expenses for the year reduced by 9%. ■
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