Dubai: Kuwait-based developer IFA Hotels & Resorts (IFA HR) has reported a loss of 19.5 million Kuwaiti dinars (Dh250 million) for the 2010 financial year.
Earnings per share fell to 45.2 fils this year, while shareholder equity decreased to 50.79 million dinars. The company's total assets, however, increased by 10 per cent to 400.85 million dinars.
Chairman Ebrahim S. Al Therban said: "The company adopted the completed method of accounting as per the recommendations of the International Accounting Standard Board and so we were not able to recognise revenue based on proportion of construction completed for units sold.
"The losses we reported this year were largely due to a capital loss on the sale of land. The land was sold to generate further liquidity for the company to be able to repay financial commitments and finance ongoing projects. A revaluation loss has also been taken on our property portfolio in South Africa and provisions have been made in the fourth quarter in order to compensate for current market conditions."
Busiest year
"Despite tough economic conditions, this year has been our busiest year yet in terms of moving projects from construction to completion. To date, we have completed projects in excess of $1 billion (Dh3.6 billion) including two five-star hotels and five luxury residential developments. Important to note is how this significantly reduces the company's construction exposure, with more than 70 per cent of our projects in South Africa and on the Palm Jumeirah now complete. We expect to see these results improve in the coming year," said Talal Jasem Al Bahar, Vice-Chairman and CEO.
