Business | Markets
Sorouh net profit increases by 125%
Sorouh Real Estate on Wednesday announced a 125 per cent rise in net profit for the nine months ending September 30 to Dh1.73 billion.
- Staff Report
- Published: 23:56 October 22, 2008
Dubai: Sorouh Real Estate on Wednesday announced a 125 per cent rise in net profit for the nine months ending September 30 to Dh1.73 billion.
Revenue rose from Dh1.48 billion to Dh3.19 billion. The net profit represents earnings per share of 73 fils (31 fils per share in September 2007) and was generated from operating activities, with no asset revaluations.
Despite the current global economic situation, the strong fundamentals of the Abu Dhabi market and the company's strong balance sheet and liquidity meant confidence in the future outlook, the company said in a statement yesterday.
"We continue to move forward strongly as a business and all our indicators continue to look positive for the remainder of 2008," said Abubaker Seddiq Al Khouri, Managing Director of Sorouh.
Governments' actions
"We remain on course to meet investors' expectations and we are confident that we are well positioned positively for 2009.
"The global situation introduced a note of caution into the market but thanks to the action of the UAE Government and the coordinated efforts of major governments around the world, we expect the situation on the ground to improve early next year," he said.
The company reported a growth in total assets of 132 per cent, from Dh7.2 billion at December 31, 2007, to Dh16.7 billion at September 30, 2008.
Net assets of the company increased from Dh 4.46 billion Dh5.83 billion over the same period.
Liquid funds increased from Dh1.4 billion as of December 31, 2007 to Dh7.7 billion as of September 30, 2008, as a result of cash collected on receivables from the sale of land plots, unit sales and rental income.
"The strong demand in the Abu Dhabi real estate market means that it is comparatively well-cushioned against the global economic situation," Mounir Haidar, Sorouh's Chief Executive Officer, said.
"This, coupled with the company's strong balance sheet and cash resources, means Sorouh can take a positive view of the coming period."
During the last quarter, Sorouh announced significant progress on construction at its major projects, as well as showcasing future projects at Cityscape Dubai, including Lulu Island.
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