22/05/2016 07:02 AST
AL Mazaya Holding has announced its financial results for the first quarter of 2016, with the company achieving a net profit of AED22.6 million, compared to AED20.8 million in the corresponding period, in 2015. This represents an increase of 8.5 percent. Earnings per share (EPS) reached 3.65 fils, compared to 3.37 fils, in the first quarter of 2015.
Speaking after the board meeting held on 25 April 2016, in the presence of members of the board of directors, Al Mazaya Holding’s chairman Rashid Al Nafisi, said: “Al Mazaya Holding has taken another huge new leap forward, in the first quarter of 2016. This is due to a consistently prudent strategy, comprehensive vision and well-formulated targets. The company was able to follow the schedules precisely and efficiently, boosting the sales process, leasing and delivery, and increasing Q1 2016 revenues by 66.9 per cent to AED194.34 million, compared to AED116.47 million during the same period last year.”
Al Nafisi stressed that the significant jump in revenues was, in large part, due to strong and effective marketing campaigns conducted prior to and during this period. Revenues generated from sales increased by 75.6 per cent to AED172.22 million, compared to AED98.10 million, in Q1 2015. Revenues generated from leasing activities grew by 19.7 percent to AED21.33 million, up from AED17.81 million in the first quarter of last year.
Short-term liabilities decreased to AED1,587.03 million, in Q1 2016, down 15.7 percent on the AED1,882.54 million seen in Q1 2015.
Al Nafisi attributes this decrease to the conversion of all the company’s short-term borrowing to medium and long-term borrowing vehicles. In addition, some liabilities were transferred to revenue, with payments received Nafisi said: “Al Mazaya successfully converted all its loans into Islamic Financing products, in 2015. These facilities have started to be used in new investment opportunities that are driving growth, in the first quarter of this year, and in direct accordance with the corporate strategic plan.”
Al Nafisi added that the company continued to achieve high occupancy rates in its income-generating projects, such as: Sky Gardens, located in the Dubai International Financial Centre (DIFC); Al Mazaya Towers, Kuwait City; and other projects in KSA and Dubai. The company has also achieved high numbers in its properties available for sale, such as selling and delivering a large number of residential units in Queue Point, in Dubai, and Ritim Istanbul, in Turkey.
“Al Mazaya’s quarterly growth in its operational performance continued to achieve net profits in line with well formulated targets. Gross assets totaled AED2,941.4 million in Q1 2016, compared to AED3,173.7 million, in Q1 2015. Shareholders’ equity amounted to AED1,354.3 million, in Q1 2016; a 4.9 per cent growth over the AED1,291.2 million recorded, in Q1 2015,” Al Nafisi said
Saudi Gazette
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