International Holding Company (IHC) reports strong growth in net profit to AED 814 million for the first half of 2020
• Total assets grew AED 6.7 billion during 1H 2020 to AED 10.7 billion, facilitated by acquisitions and investment in associates of AED 4.8 billion
• Net profit increased to AED 814 million in 1H 2020 from AED 11 million in 1H 2019, including a contribution of AED 240 million from strategic investments
• Revenue grew to AED 2.5 Billion in 1H 2020 from AED 353 Million in 1H 2019
ABU DHABI, 10 August 2020: International Holding Company PJSC (ADX: IHC) today announced its financial results for the first half of 2020. Net profit for the period grew to AED 814 million from AED 11 million in the comparable period of 2019, reflecting in part the impact of strategic investments under common control.
The company’s revenues grew to AED 2.5 billion in 1H 2020 from AED 353 million in 1H 2019, while total assets amounted to AED 10.7 billion as at 30 June 2020 compared with AED 4.0 billion at the start of the year. This translates to a book value of AED 4.7 billion, which has more than doubled during the same period.
These acquisitions comprised the following: • Acquisition of 100% of the issued share capital of Al Tamouh Investments Company LLC, one of Abu Dhabi’s leading real estate developers, focused on building sustainable communities on Reem Island; and • Acquisition of 100% of the issued share capital of Al Seer Marine Supplies and Equipment Company LLC, the region’s foremost marine company, with expertise in vessel design, manufacturing, repair and maintenance.
Strategic Investments
During the first half of 2020, IHC continued its business expansion through a series of strategic investments, which contributed AED 4.8 billion to asset growth over the period. The key transactions during 1H 2020 comprised the following:
• Acquisition of 100% of the share capital of the newly incorporated WFC Holdings, which offers human resource services and included the Workforce Connexion LLC, Corporate Solutions Consultants LLC and Multi Serve Typing as subsidiaries.
• The purchase of 55% of the share capital of EasyLease Motorcycle Rental LLC and 67% of the associated Uplift Delivery Services LLC. EasyLease provides leasing solutions for food delivery and courier services, and is supported by Uplift’s logistics technology solutions.
• Acquisition of 100% of the share capital of Dashing International Group LLC and associated entities which owns 15 hair salons, beauty lounges and skin care treatment clinics.
• Acquisition of 100% of the share capital of the communications agency Multiply Marketing Consultancy LLC which offers research, branding and social and digital media services. • Acquisition of 100% of the issued share capital of Al Tamouh Investments Company LLC, one of Abu Dhabi’s leading real estate developers, which focuses on building sustainable communities on Reem Island.
• Acquisition of 100% of the issued share capital of Al Seer Marine Supplies and Equipment Company LLC, the region’s foremost marine company, which has expertise in vessel design, manufacturing, repair and maintenance.
• Acquisition of 100% of the share capital of Agrinv (Al Hashemeya for Land Reclamation and Cultivation S.A.E), which comprises the purchase of large commercial plot of land in Egypt.
• Acquisition of 100% of the share capital of RTS, which provides comprehensive technology solutions, including Building Management System (BMS) Extra Low Voltage (ELV), CCTV, Audio Visual and ICT.
Commenting on the 2Q 2020 results, IHC Chairman, His Highness Sheikh Tahnoon bin Zayed Al Nahyan, said: “In a changing world where volatility is the new normal, we have been able to continue to post strong results and create value for our stakeholders.”
IHC’s response to the Pandemic
IHC and its holding companies responded decisively to the advent of the pandemic in the first half of 2020, with investments in scientific research and development, and in the health care sector.
In addition, during the second quarter of the year IHC’s research arm, QuantLase Lab, trialled and commenced use of its unique Laser DPI screening test. This innovative technology enables rapid and accurate detection of infected patients via mass screening centres that can be deployed everywhere, including shopping malls, cinemas and airports. The rollout of the technology by Tamouh Healthcare has garnered significant global commercial interest, with advanced discussions around the technology underway.
Turning challenges into opportunities
Syed Basar Shueb, IHC’s Managing Director commented: “We will continue to develop our investment strategies and optimize business operations to achieve strong sustainable growth despite all challenges. With a dedicated and highly productive team, IHC has become a futureready organization: agile, resilient and innovative”.
