Dubai : Shuaa Capital, a regional financial services company, yesterday reported a net loss of Dh529.8 million including investment impairment charges of Dh312.2 million and provisions of Dh210.5 million for 2009, the company said in a statement.
The company reported a net loss of Dh889.6 million for the same period ending December 31, 2008.
The net loss in the fourth quarter of 2009 was Dh154.3 million compared to a net loss of Dh577.4 million in the fourth quarter of 2008. The fourth quarter results reflect Dh53.2 million of impairment charges and provisioning of Dh89.8 million.
"Global markets went through unprecedented and profound change during 2009. Although there are visible signs of improvement in our industry, the market recovery is still fragile in certain areas of our business. At Shuaa, we took decisive steps to emerge stronger from the downturn, we continued to make progress and have passed critical milestones on our own path to recovery," Majid Saif Al Ghurair, Chairman of Shuaa Capital, said in a statement.
Cash flow of the company from operating activities year to date totals Dh914 million.
Cash generated from operations has been used largely to repay bank borrowings of Dh892.7 million. Cash on hand is Dh543 million as at the end of the fourth quarter, the company said.
"During a period of exceptional market turmoil, we have seen a flight to quality in the industry and investors have turned to the larger more established players like Shuaa. We have made significant progress across all our business lines during 2009 and this is reflected in the positive performance of our fee generating businesses during a period of significant market volatility," Sameer Al Ansari, Chief Executive Officer of Shuaa Capital, said in a press release yesterday.
During 2009, the company issued 515 million shares to Dubai Banking Group in exchange for the bond which was issued in the third quarter of 2007.
