Gulf General's earnings soar 36% to Dh551m

Dubai: Gulf General Investment Co (GGICO) has reported a 36 per cent increase in net profit to Dh551 million for 2007, compared to Dh406 million for the previous year.

The fourth quarter saw a net profit of Dh162 million, compared to Dh66 million for the previous year - a growth of 145 per cent.

The company's directors have proposed bonus shares of 100 per cent on the capital, to increase the capital to Dh1.08 billion.

"We are celebrating 35 years of excellence and our strategy is to become the most diversified industrial group in the region. Currently, we have 24 subsidiaries and affiliates and more are on its way. Most of them in the manufacturing and industrial sector with an emphasis on backward integration," Mohammad Abdullah Juma Al Sari, managing director of the company, said in a statement.

All subsidiaries recorded substantial growth in 2007 fiscal year.

Main subsidiaries included Emirates Lube Oil, Gulf Prefab Houses Factory, Al Sagr National Insurance, Dubai Al Ahlia Transport, Acorn Industries, Amalia Perfumes Trading and Manufacturing, National Aluminum Extrusion, Horizon Energy, Horizon Metallic Industries.

In 2007 GGICO acquired four companies and is looking to acquire growth potential companies in the year 2008. The board has allocated a Budget of Dh500 million for the acquisitions this year.

The company has also achieved greenfield development growth. In 2007 a hospitality company has been formed in the name of Layia Hotel Management to manage hotel apartments and furnished apartments.

More greenfield developments in industrial sector are in progress, and out of which three companies will be commissioned in 2008.