By: Lamia Nabil
Operating standalone revenues reached EGP 14.17m, compared to EGP 17.17m last year, a decrease of 21%. Meanwhile net profits also witnessed a decline of 22% from EGP 20.93m last year, standing currently at EGP 16.42m.
Managing Director of AMIC Khaled Abou Heif commented on the results: “Despite the continued economic malaise and the slowdown of the Egyptian economy during 2012, AMIC has performed well in some of its investment activities.”
He attributed the main reason for the decline in revenues to “the performance of most of our investments” which, he said, had been affected by the political and economic conditions experienced by the country since 2011, and had, accordingly, “led to the decline in the performance of these companies and thus lowered the rates of distributions for the year”.
The company’s expenses reached EGP 6.7m in 2012, an increase of EGP 2.3m compared to the same period in 2011.
Net profit after tax for 2012 stood at EGP 16.4m, versus EGP 20.9m in 2011, a decline of 21.5%.
The company’s trading portfolio achieved EGP 1.13m compared to EGP 690,000 in profitability in 2011, an increase of EGP 440,000, or 64%. “It is worth noting that the trading portfolio rate of return reached 26%,” added Abou Heif.
Abou Heif also explained that in terms of exited investments, targeted exits during 2012 were not completed due to the political and economic instability currently gripping the country.
Targeted profits from the sale of the United Company for Investment and Real Estate Development were “in the range of EGP 8m”, in addition to the sale of owned lands located in the Almaza area in Heliopolis, Cairo, due to the slowing down of the real estate sector during 2012.
However, with the start of the gradual recovery in the real estate market, AMIC is currently studying the possibility of real estate development to maximise the added value, said the statement.
AMIC’s capital stands currently currently EGP 123m and is expected an increase reaching EGP 197.9m after the acquisition of 80% of the Al-Tawfeek Development Holding Company through swapping 15,999,900 shares of A.T. Lease Company, valued at EGP 307,998,075.