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KAMCO records KD 3.0 mln profit in 2013; EPS 12.6 fils Company chalks KD 10.1 mln in operating revenues

KUWAIT  CITY, May 4: Mrs Entisar AbdulRaheem Al Suwaidi, Vice of Chairman of KAMCO- KIPCO Asset Management Company- announced the company’s return to profitability in 2013 and its journey of growth and success. In her address to shareholders during the ordinary and extra ordinary annual general assembly meeting (AGM) for the year ending 31 December 2013 which was held yesterday with an attendance percentage of 87.54%, Al Suwaidi said, “On behalf of KAMCO’s Chairman and Board, it is my pleasure to announce to our respected shareholders that the company was able to maintain and strengthen its position as one of the best performing asset management and investment companies in the region in 2013 despite the ongoing consequences of the financial crisis, particularly on the investment sector.”

She added, “I am also glad to announce our positive financial results for the year end December 2013, where KAMCO posted a Net Profit of KD 3 million (Earnings per Share of 12.6 fils); compared to a Net Loss of KD 11.67 million in 2012 (Earnings per Share of – 48.9 fils).” She also stated that KAMCO has achieved KD 10.1 million in operating revenues in 2013 against KD 1.1 million in 2012 and also was able to reduce its Debts by 27% to KD 29 million in 2013 as compared to KD 40 Million in 2012.

Moreover, she highlighted that KAMCO’s AUM registered a significant growth of 20% in 2013 to reach KD 2.9 billion compared to KD 2.4 billion in 2012, positioning KAMCO as one of the largest asset managers in the region.  Al Suwaidi further noted, “These positive results have come on board due to our shareholders and clients continuous support and trust in KAMCO. The implementation of the operational growth and restructuring plans through the wise decisions taken by the management during the year, boosted the operational and financial performance of the company, reflecting positively on KAMCO’s Shareholders and clients. In line with the constructive actions taken by the Kuwait’s Capital Markets Authority (CMA) in terms of new rules and regulations directed towards improving the investment environment and protecting investors, KAMCO has put all its efforts to adopt these new rules and regulations given our strong belief in applying the best professional and ethical practices to best serve the investment profession.”

On behalf of the Chairman, Al Suwaidi thanked the KAMCO board of directors, executive management and employees for their valuable contribution and tangible efforts during the year in making the right decisions towards the company’s benefit. He also thanked the shareholders and valuable clients for their continued support and trust in KAMCO.

Annual General Assembly
The AGM voted for a new KAMCO Board for the three coming years which will consist of the following members: Skipper Real Estate Company, Shaikha Dana Nasser Sabah Al Ahmad Al Sabah, Mrs Entisar AbdulRaheem Al Suwaidi, Mr Masaud Mahmoud Jawhar Hayat, and Mr Tariq Mohammad Abdul Salam. In addition, the ordinary AGM has approved the Board’s advice of 5% dividends distribution (5 fils per share). The Shareholders have approved all the agenda articles stated during the ordinary and extraordinary AGM.

Shafafiyah’s Investor Forum 2014
Speaking at the Shafafiyah Forum which was held immediately after the company’s AGM, KAMCO’s Chief Executive Officer, Mr. Faisal Mansour Sarkhou, said, “Since inception, KAMCO generated a revenue of KD 241 million, profits of KD 97 million and distributed dividend of KD 82 million, thus generating IRR of 15% for investors.” He added, “Since 2001, KAMCO’s Investment Banking team has successfully closed 77 transactions with a total size of KD 3.2 billion and KAMCO’s AUM increased by 20% pa to reach KD 2.9 billion in 2013. On KAMCO’s key achievements for 2013, he added, “KAMCO’s AUM’s posted a strong 20% increase in 2013, reaching KD 2.9 billion compared to KD2.4 billion for 2012 year end. KAMCO was also able to successfully close a number of investment banking transactions with the key transaction being the successful raising of over USD 200 million in Bonds.”

Moreover, KAMCO successfully launched the KAMCO Real Estate Yield Fund after gaining the approval of the CMA in late 2013.  Meanwhile, all KAMCO’s Equity Funds and Discretionary Portfolios out-performed their respective benchmarks. On a financial note, KAMCO posted a Net Profit of KD 3 million (Earning per Share of 12.6 fils), returning to profits after 2 years. Overall Revenues increased by KD 8.8 million, Operational Revenues increased by 31%, and Operational Profits increased by 34%, all as compared to 2012. Continued restructuring efforts also resulted in reduction of the debts to KD 29 million in 2013, a decrease by 27% as compared to 2012.

Sarkhou also commented that KAMCO will continue to develop its operational activities, focusing on asset management, and offering investment advisory solutions to clients. The company will also focus on enhancing its current products and services and creating new ones for its esteemed clients. He added, “Our expectations for 2014 are positive for the capital markets we operate in. With the recovery signs well in place, MENA capital markets are expected to further grow as economies prosper with increased government spending on much needed infrastructure and human capital. With the abundance of liquidity, this growth is expected to be real and visible. The year is expected to see some turbulence but if the geopolitical scene continues to improve, markets are expected to perform well overall with most markets achieving double digit returns.

The MENA markets are expected to continue seeing  more flow of liquidity  and this combined with significant development in the regulatory framework along with enhanced corporate governance will result in significant growth in depth and breadth of markets, with blue chips and growing medium sized enterprises benefiting the most in 2014.” Sarkhou continued, “In serving our market and community, KAMCO has always been dedicated to the best corporate social responsibility practices, covering different causes which include the environment, health and education sectors.”

“2013 gave us more reasons to celebrate than just the return to profitability. KAMCO celebrated its 15th year anniversary and completion of 10 years as a listed company on the Kuwait Stock Exchange. This event highlighted the much appreciated role of KAMCO’s previous and existing board, top management and all employees and their loyalty and outstanding efforts during their tenure within the company, which led to the numerous notable successes that KAMCO has achieved to date,” concluded Sarkhou.

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