Mannai Corporation QSC (Qatar Exchange: MCCS) (“Mannai”, or “the Group”), a Qatar-based conglomerate with over 60 years in trade and service industries, today announced its full-year results for the year ended 31 December 2011.
Financial Highlights
- Revenues up 16% to Qatari Riyals (QR) 2.3 billion (FY2010: QR 2 billion).
- Net profit up 21% to QR 279 million for 2011 (FY2010: QR 231 million).
- Earnings per share rose to QR9.01 compared to QR 7.71 for 2010.
- Recommended cash dividend of 55% (QR 5.50 per share).
- The Group maintains a strong balance sheet with net assets at the end of 2011 amounting to QR 1.4 billion and a debt : equity ratio of 0.4 : 1.
Alekh Grewal, Chief Executive Officer, said:
“We are very pleased to be able to report another year of significant profits growth for our shareholders despite the global economic challenges. Our strategic decisions to further diversify our earnings by growing and expanding our business interests beyond Qatar is progressing well. We made two important strategic investments in NEXThink and Axiom Telecom, and we are currently moving forward with two more significant opportunities. We are focused on investing in sector-leading companies that have a dynamic business model, a proven track record and strong growth potential across different continents.
The Group will continue to explore further growth opportunities, in Qatar and overseas, for sustained profitability in 2012 and beyond. We remain confident that Mannai will continue to deliver superior returns for our shareholders.”
Operational Highlights
The 2011 financial year produced record earnings for the Group, as the business continued its growth story and concluded a successful year operationally. The substantial increase in net profit, despite the global economic slowdown, was achieved by the broad diversity of the Group’s activities, including the recent investment in Axiom Telecom, the UAE-based international retail business. The Group’s growth in 2011 builds on the 25% increase in net profit achieved in 2010.
Mannai operates a broad range of trade and service businesses where it believes it can add significant value. These include working with customers in the oil and gas, commercial, retail and Government sectors.
The Group’s core business activities in Qatar continue to deliver strong revenue growth of 16%. Every division and subsidiary works to the same high standards, totally committed to the provision of outstanding levels of service to our clients, enabling them to improve their own business performance.
With Qatar hosting 2022 FIFA World Cup and the construction of Qatar Metro and Railway projects, huge investments are expected in the infrastructure and hospitality sectors. Mannai with its diversified business activities is well placed to fully contribute and participate in the transformation of Qatar’s infrastructure.
Following the Board’s decision to focus on new areas of growth including overseas expansion and opportunities in regional market, this was started in 2010 by the acquisition of Utility Networks Information Systems Consultants (UtilNet), an IT company in Jordan, and by establishing a subsidiary of Gulf Laboratories, our geotechnical business, in Oman. In 2011, this programme was further enhanced by the acquisition of a minority but strategic interest in NEXThink, a Swiss-based IT management company. NEXThink has been adopted by more than 300 customers including large multinationals and government ministries. By end of year 2011, NEXThink have installed more than 1 million licences across Europe, Middle East and Africa. This strategic investment will directly support the growth of Mannai’s IT business regionally. Furthermore, the Group acquired a 35% stake in AXIOM Telecom, the UAE-based handset retailer and distributor. AXIOM operates across the GCC and has interests in a joint venture in South Africa and an associate in India.
On the 11th January 2012, Mannai confirmed that it is considering the possibility of making a cash offer for Damas International Limited, which may be made in conjunction with one or more other investors. Financial and legal due diligence has commenced, but there can be no guarantee that any offer will ultimately be made for Damas nor as to the terms on which any offer might be made.