Amanat Holdings, a leading healthcare and education investment company, has seen its first-half (H1) net profit decline 8% to AED89.1 million ($24.2 million), impacted by a one-time gain in the previous year and the corporate tax in UAE. Excluding these items net profit was 12% higher year-on-year.

 

Meanwhile, the company’s revenue grew by 17% year-on-year to AED433 million in H1 2024 driven by strong performance in Education, which grew 26% year-on-year

 

EBITDA increased by 1% year-on-year to AED154 million in H1 2024, with an 18% increase in Education partially offset by a decline at Healthcare due to a one-time prior year gain and near-term revenue pressure in the UAE. Excluding the prior year one-time gain, adjusted EBITDA increased by 8%.

 

Net profit before tax and zakat

Net profit before tax and zakat increased 2% year-on-year to AED101 million in H1 2024, or 13% excluding a prior year one-time gain. 

 

The company’s balance sheet shows significant cash balance of AED480 million with low leverage at the end of H1 2024.

 

Amanat’s Board has endorsed an interim dividend of AED75 million for the period, equivalent to AED3 fils per share, reflecting Amanat’s commitment to returning value to its shareholders

 

H1 2024 operating highlights

Strong student and beneficiary growth: Over 3,000 students and beneficiaries added across Education, bringing total enrollments to more than 20,000 with record increases at Middlesex University Dubai (MDX) (up 20%) and Human Development Company (HDC) (up 22%) and a 14% increase at NEMA.

 

Expanding special education needs network: HDC opened 3 new centres in the first half of 2024, following the launch of 6 new centres in 2023 taking total centres to 31. An additional 9 centres are under development and scheduled for opening through 2025.

 

Amanat’s Chairman, Dr Shamsheer Vayalil, said: “Amanat made strong progress on its value creation strategy in the first half of 2024, with continued growth at the Education business and with both our Healthcare and Education businesses well positioned to capture significant demand growth, underpinned by favorable market and sector fundamentals.

 

Interim dividend

“The payment of an interim dividend of AED75 million also demonstrates our ongoing commitment to translate growth into consistent shareholder returns through our attractive dividend policy.”

 

John Ireland, Chief Executive Officer, added: “Amanat delivered a robust set of results in the first half of 2024, with revenue and adjusted EBITDA up 17% and 8% respectively year-on-year, driven by the strong performance of our Education business, which saw revenue increase 26% year-on-year, supported by record enrollments with over 3,000 students and beneficiaries added in the period.

 

“We remain committed to both driving growth in long-term care through increasing bed capacity, with 200 beds currently under construction, and growing our Education business through increasing enrollments in the UAE, further expansion of HDC and exploring M&A opportunities.”--TradeArabia News Service