Inovest announces profit, dividend
Helped largely by an increase in management fees attributed to its subsidiary, Inovest posted a 26 per cent jump in its consolidated net profit attributable to the parent shareholders to US$2.14 m from US$1.70m in the same quarter a year ago. Earnings Per Share for the last quarter of 2019, amounted to US cents 0.76 as compared to Earnings Per Share of US cents 0.60 for the same period in 2018. Net operating profit increased by 249pc to US$2.07 m from US$0.6 m for the same period last year.
Consolidated operating income for this quarter increased by 49pc to reach US$6.3 m from US$4.22 m in year ago quarter.
Full year results
For the year ended December 31st, 2019, consolidated net profit attributable to parent shareholders of US$7.15 m, representing a 49pc decline as compared to US$14.01 m for last year. Inovest attributed the decline primarily to an expected decrease in revenue from the contracting activities, from completion of a major government project, and the capital gain from disposal of an investments that took place in the same period of last year.
Earnings Per Share of the parent company amounted to US cents 2.52 as compared to US cents 4.95 in 2018. Consolidated net operating profit decreased by 51pc to US$6.17 m from US$12.52 m a year ago. Equity Attributable to Parent Shareholders, increased by 1pc to stand at US$138 m at the end of the of December 31st, 2019 in comparison to US$137 m at 2018 year-end. Within the same period, INOVEST reported consolidated total assets of US$244 m, representing a decrease of 9% in comparison to US$267 m as of 2018 year-end Operating income for 2019 dropped by 16pc from US$23.74 m to US$19.94 m. Group’s operating expenses increased, standing at US$13.78 m in comparison to US$11.22 m for 2018, reflecting an increase of 23pc.
The increase stems, as in previous quarters this year, from completion of a major government project and therein the reclassification of labour expenses within our contracting arm from a project level cost to an operational level until work begins on new construction projects, which is expected within 2020.
The board recommended, a stock dividend distribution of 5pc of paid up capital subject to the approval of Central Bank of Bahrain and the Ministry of Industry and Commerce and Tourism.