Amlak says well placed to resume normal business operations

Islamic mortgage provider Amlak Finance has assured investors and shareholders that it’s now well placed to resume normal business operations and work towards long-term growth and creating value for its shareholders once again.

The company says it will reduce exposure to propriety real estate assets and rather focus on property financing. “Amlak will focus on core business of property financing, as well as reducing exposure to proprietary real estate assets, to better manage and mitigate financial risk,” the company said in a post-restructuring statement to Dubai Financial Market (DFM).

Shares in Amlak Finance, which have been suspended since November 2008, will resume trading on Dubai’s main bourse on June 2.

The shares last traded at Dh1.02 ($0.28) on November 20, 2008, having fallen 79 per cent in the preceding six months.

The return to share-trading marks the last step for Amlak in the restructuring process and resumption of trading and follows shareholders’ approval of financial statements of the period 2008 to 2014 and re-admission process at DFM at last month’s Annual General Meeting. The re-admission was later approved by the Securities and Commodities Authority.

Under its restructuring plan, the company said it had reduced its workforce by more than 60 per cent from 2008 level.

At the end of the restructuring period, and after six years of market absence, the company recorded net profit attributable to its equity holders (after non-controlling interest) of Dh59 million in 2014 and Dh3.7m in the first quarter of 2015.

The mortgage company’s assets have more than halved since 2008, dropping nearly 54 per cent to Dh7.31 billion at the end of Q1 2015 from Dh14.84bn in 2008.

Amlak Finance said in its report that it would continue to generate annual profits and intends to put itself back into a leadership position as a premier and specialised property financing provider in the UAE.

“Amlak has taken steps to introduce a host of new products, value-added services and innovative financing solutions to its existing and new customers. In doing so, Amlak aims to achieve superior product and service differentiation as well as innovative funding solutions suitable for its business model and financing asset profile,” the company statement said.

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