IFA Hotels & Resorts posts $17m loss in H1
IFA Hotels & Resorts (IFA HR) has recorded a loss of $17.37 million (KD4.96m, Dh63m) in the first half of its financial year (July 1 to December 31, 2009), and expects a better result in the second half of the year.
This is against a profit of KD25m registered by the company in the first half of its last financial year.
A global player in the development of premier integrated and mixed-use hotel and tourism resort projects and luxury leisure services, IFA HR said yesterday that the "11.4 fils per share" loss is due to the new recommendations of the International Accounting Standards Committee (IASC) adopted by the company.
"This has had an impact on the revenue in comparison to the previously applied methods, where the methodology of company income is based on the percentage of project completed," Ibrahim S Al-Therban, Chairman of IFA HR, said in a statement.
He added that though the IASC applications might have a negative effect on the company results in the short term, it would "enhance the company's transparency policy" and "enable shareholders and investors to understand and compare financial information" for companies around the globe.
The Kuwait-based company further said that shareholders' equity for the first half of the year rested at $231.23m compared to $244.85m for the same period last year. And the company's total assets increased 18 per cent to $1.37bn. IFA HR last year achieved a year-end profit of KD30.85m, which is 77.75 fils per share, with revenues totalling KD52.8m.
Meanwhile, IFA HR plans to study additional acquisitions and expansion plans in key regions, according to Talal Jassim Al Bahar, Vice-Chairman and Chief Executive Officer of IFA Hotels & Resorts. He recently told Emirates Business: "Our strategy has always been to focus on emerging markets. We will always study additional acquisitions and expansion plans in key regions."
The first half of this year witnessed the launch of a selection of IFA HR luxury properties, including three Private Residence Clubs in Thailand covering Bangkok, Pattaya and Phuket as part of the company's expansion in the Asian market.
Besides, IFA HR also launched the second hotel condominium ownership product in the Middle East – the Fairmont Palm Jumeirah in Dubai. "Further projects like Fairmont Residence-Palm Jumeirah (Dubai) and Al Abadiyah Hills in Lebanon are in their final stages of development which will be completed in the second half of this year," said Al Bahar.
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