Amanat's healthcare portfolio witnesses marked recovery
Amanat Holdings has announced its consolidated financial results for the nine-month period ended September 30, 2020, recording an adjusted total income of Dh44 million down 32.1 per cent year-on-year.
Amanat also posted Dh33.7 million in income from investments adjusted for non-recurring items, down 30.4 per cent year-on-year and an adjusted net profit of Dh4.9 million, down 78.8 per cent year-on-year. Excluding adjustments, the company recorded total income of Dh27.2 million, down by 63.8 per cent and income from investments of Dh16.9 million, down 67.6 per cent. Amanat recorded a net loss of Dh11.9 million in the nine-month period, compared to a profit of Dh33.4 million in the same period last year.
On a quarterly basis, excluding one-off items, Amanat's performance improved as losses from investments narrowed by 41.9 per cent and net losses were flat year-on-year, with clear signs of recovery across both healthcare and education platforms.
Amanat's chairman, Hamad Alshamsi, said: "We are witnessing strong recovery beginning in the third quarter with the easing of restrictions. Our healthcare assets are ramping up operations and returning to full capacity, while our education platform kicked-off the academic year better prepared to offer a safe and enhanced learning environment. We are aware of the challenges that lie ahead, however, we remain confident in Amanat's resilience, agility and defensive portfolio that will allow it to continue delivering sustainable value over the long term. Meanwhile, our priority remains in protecting the health and safety of our staff and communities, while keeping a lookout for potential opportunities that may arise from the prevailing market conditions."
Dr. Mohamad Hamade, CEO of Amanat, said: "Over the course of the third quarter we worked tirelessly with management across our portfolio companies to manage the challenges posed by the pandemic and ensure our assets are well-prepared for the post-Covid-19 recovery. Our healthcare platform has been witnessing a marked recovery beginning in the third quarter of the year as Covid-19 measures were eased. International Medical Center returned to profitability and income from investment recorded Dh4.2 million in Q3-2020, reversing the loss of Dh4.5 million posted in the first half of the year."
He added: "Similarly, Sukoon recorded a net loss of Dh0.8 million in Q3-2020 compared to a net loss of Dh6.2 million during the six-month period excluding non-recurring items. Factoring out these one-off charges, the healthcare platform recorded a loss from investment of Dh25.4 million, primarily driven by ramp up costs at RHWC. We expect a continued turnaround at our healthcare platform through to year-end, particularly as IMC returns to optimal operational levels, Sukoon completes its restructuring program and RHWC's reached full operational capacity. The impact of Covid-19 was less profound across our education platform thanks to our subsidiaries ability to shift swiftly to online and distance learning. Overall, our education platform proved resilient with stable adjusted income from investments during the nine-month period of Dh59.1 million, up 6.1 per cent and better than expected enrolments for the new academic year across our secondary and higher education assets."
Amanat has deployed a total of Dh2.1 billion since inception, utilising over 80 per cent of its Dh2.5 billion paid up capital. With 91.6 per cent of its revenues following DFM recognised set of rules and requirements guided by the sharia'a principles, Amanat is considered a sharia'a compliant entity.
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