Healthcare and education focussed Amanat takes a hit on income, net profit
Investment company says education assets were not too overwhelmed by COVID-19
Dubai: The healthcare and education focussed investment company Amanat recorded a 32.1 per cent hit in adjusted total income in the first nine months, to total Dh44 million. The dent on profits was heavier, down 78.8 per cent to Dh4.9 million.
But according to a top official, the end to the bad news is in sight. “We are witnessing strong recovery beginning in the third quarter with the easing of restrictions,” said Hamad Alshamsi, Chairman. “Our healthcare assets are ramping up operations and returning to full capacity, while our education platform kicked-off the academic year better prepared to offer a safe and enhanced learning environment.”
“We remain confident in Amanat’s resilience, agility and defensive portfolio that will allow it to continue delivering sustainable value.”
Gains made
Of its assets, International Medical Center returned to profitability, and income from that investment was Dh4.2 million in third quarter and reversing a loss of Dh4.5 million posted in the first-half of the year. Similarly, Sukoon brought down its net loss to Dh0.8 million in the July to end September period compared to a net loss of Dh6.2 million during the six-month period (excluding non-recurring items).
"Factoring out these one-off charges, the healthcare platform recorded a loss from investment of Dh25.4 million for first nine months of 2020, primarily driven by ramp up costs at RHWC (Royal Hospital for Women & Children)," said Dr. Mohamad Hamade, CEO. "We expect a continued turnaround at our healthcare platform through to year-end, particularly as IMC returns to optimal operational levels, Sukoon completes its restructuring programme and RHWC’s reached full operational capacity.”
Less exposed
The impact of COVID-19 was less "profound" on Amanat's education interests. The speedy shift to online and distance learning tools helped.
"Our education platform proved resilient with stable adjusted income from investments during the nine-month period of Dh59.1 million, up 6.1 per cent year-on-year and better than expected enrolments for the new academic year across our secondary and higher education assets," the CEO added. "This comes despite lower ancillary revenue from Middlesex University Dubai (MDX) and discounts offered by Taaleem.”
Last month, Amanat terminated a deal to sell the MDX campus, pulling back from a transaction it had announced in July.
Recognizing the importance and relevance of digital transformation in today’s markets, we are particularly focused on capturing opportunities that deepen our presence in the digital space and strengthen our nascent edtech and healthtech offerings