Gulf Holding Company (GHC), a highly diversified Kuwait-based holding company, on Monday announced a net profit of KD18.72 million (approximately $71 million) for the financial year 2006-07, an increase of 59 percent over the previous year. Net earnings per share stood at 26.75 fils, compared to 16.8 fils in fiscal 2006. Approving the company's excellent financial results, the Board of Directors proposed the company's first dividend of 20 percent, payable as 10 percent cash and 10 percent bonus shares, subject to the approval of the annual general meeting (agm). Abdul Rahman Al-Jasmi, chairman, GHC, said: “GHC has seen steady growth ever since its inception two years back and this can only be expected from a company that is well-attuned and responsive to the business dynamics of the market as well as the investment needs and opportunities available to the discerning client. GHC's rational approach, coupled with exclusivity, has ensured that retail and residential units in both its flagship projects were sold in record time. The substantial revenue earned from these successful transactions is reflected in this year's financial result.” He added that recent GHC plans to list its subsidiary Villamar Sukuk Company Limited's successful $190-million Sukuk bond issue on the Dubai International Financial Exchange (DIFX), had been successfully executed at the start of trade of Sukuk on the DIFX. The listing was arranged by Merrill Lynch International (MLI), which is one of the world's leading wealth management, capital markets and advisory companies with offices in over 40 countries, and was jointly led managed by Al-Rajhi Banking and Investment Corporation, which is one of the world's largest Islamic banks and the largest listed bank in the Kingdom of Saudi Arabia. MLI were also the mandated book-runners for this issue which successfully closed on April 18, 2008. “Going forward I am confident that GHC and its subsidiaries will continue their exemplary performance, propelling the company to new heights of success as a trusted holding company that promises unflinching quality,” he added. Ahmed Al-Ameer, vice-chairman & chief executive officer, GHC, said: “We are extremely proud of the 59 percent growth in net profit over the previous year that we have managed to post in 2007. This rise in net profit to KD18.72 million gains even more in significance as it comes against the backdrop of the global mayhem from the sub-prime crisis, rapidly rising global prices for raw materials and a near slowdown in some of the most advanced markets. It is a clear vindication of our commitment towards continued growth and value creation for all our stakeholders. “Furthermore, the year witnessed some of our most ambitious efforts, which included the setting up of Gulf Management Services, an associate company in Bahrain jointly with Aswaq Management and Services that offers property consultancy and assistance in design, sales etc. Another significant initiative was the setting up of an affiliate, Daheyat Al-Areen Real Estate Development Company, to develop the mixed-use project in the Downtown Al- Areen development. We also opened a state-of-the-art headquarters in Burj Al-Khaleej in the Watiya area of Kuwait with the aim of commencing our global diversification plans. Furthermore, the process of listing GHC on the Kuwait Stock Exchange is well under way and should be completed before the end of the year.” GHC has drawn up an ambitious expansion and diversification program, which will cover the GCC region in the near term and the key markets of North Africa and South Asia, particularly India, in the long term. The company will also open more offices in the region and foray into the telecommunications, energy and logistics sectors, in addition to its continuing focus on real estate. __
