MANAMA, BAHRAIN: The Board of Directors if Ithmaar Holding is in discussions to recapitalize Ithmaar Holding during 2019 including restructuring the existing share capital by setting off the accumulated losses against the share capital.[the_ad id=”31605″]“In addition, the major shareholder has stated its intention to inject new capital of up to USD 300 million during the second half of 2019. The capital plans are being reviewed and will be announced in due course, following necessary shareholder and regulatory approvals,” said Abdulellah Ebrahim Al-Qassimi, an Independent Member of the Ithmaar Board of Directors.
Ithmaar Holding hosted its Annual General Meeting (AGM) where the consolidated financial statements for 2018 were approved.
The annual shareholder meeting was attended by members of the Ithmaar Board of Directors, its executive management team and its Sharia Supervisory Board, as well as representatives from the Central Bank of Bahrain (CBB), the Ministry of Industry, Commerce and Tourism, the Bahrain Bourse, and statutory auditors PricewaterhouseCoopers (PWC).
“On behalf of the Chairman, His Royal Highness, Prince Amr Al Faisal and Members of the Board of Directors, we are pleased to announce that efforts to significantly transform the Group’s operations in line with the strategic decisions taken by shareholders in 2016 have paid off in 2018, with Ithmaar Holding reporting profits for the year,” said Abdulellah Ebrahim Al-Qassimi, an Independent Member of the Ithmaar Board of Directors who chaired the meeting.
“In particular, we are pleased to announce that Ithmaar Holding reported a total net profit of USD 10.06 million for the year ended December 31, 2018, compared to a net loss of USD 72.40 million for 2017, with net loss attributable to shareholders of USD 24 million compared to a net loss of USD 84.7 million for 2017. The improvement in results compared to last year is, in a large part, a result of the persistent efforts over the past two years which paved the way for the Group’s gradual transformation and set the stage for a return to sustainable profitability,” he said.
Al-Qassimi clarified that trading of Ithmaar Holding’s shares continues on both the Bahrain
Bourse and Dubai Financial Market (DFM), but was recently suspended on Boursa Kuwait in accordance with Article 9.8.2 of the Kuwait Stock Exchange’s rules relating to companies whose accumulated losses exceed 75 percent of the share capital.
He reconfirmed that the accumulated losses, as of December 31, 2018, represent mainly impairment provisions resulting from non-core investments and due to FAS 30 impact. The shareholder equity as at December 31, 2018 stood at USD 116 million.
“Ithmaar Holding’s audited 2018 financial results show that net income before provision for impairment and overseas taxation for the year increased to USD 43.42 million, a 96.8 percent increase from the USD 22.10 million reported for the same period last year,” said Al-Qassimi. “As a result, our operating income for the year increased to USD 259.82 million, a 12.7 percent increase from the USD 230.56 million reported for 2017,” he said