GFH 'focused on extracting value' from Leeds United

Insider Media Ltd 7/8/13
By Laurence Kilgannon, Yorkshire Correspondent
The ultimate owner of Leeds United FC has this morning hailed the progress it has made on "building platforms to extract value" from it existing assets, specifically citing the investors it has attracted to the Championship football club.
But Gulf Finance House (GFH), the Bahrain-based Islamic investment bank, also revealed that its first-half profits and sales have fallen.
In its results for the six months to 30 June 2013, GFH, the parent company of Leeds United's direct owner GFH Capital, said it continued to report good operational performance and profitability for the period.
Commenting on its investment in Leeds United, GFH's acting chief executive Hisham Al Rayes said: "During the quarter we focused on building platforms to extract value from our existing assets.
"In this regard, we secured a number of strategic investors alongside GFH in Leeds United FC."
Following its acquisition of Leeds United at the end of 2012, GFH Capital, the Dubai-headquartered private equity firm, has outlined its plan to gather a consortium of "like-minded investors".
Bahrain-based International Investment Bank acquired a 10 per cent stake in March, while Salah Nooruddin, appointed chairman in July, owns a 3.33 per cent shareholding in the club.
In an interview in June, Nooruddin said discussions with other interested parties were ongoing.
Speaking about GFH's wider financial performance, Al Rayes added: "We are pleased to report another period of improving performance and profitability, which reflects our commitment to maintaining positive results.
"We continue to focus on the strengthening of the balance sheet and realigning projects for successful exits, which is allowing us today to establish the bank's credit rating in the market. We believe that this will further also enhance market confidence in the bank and allowing for better business making in the future."
Net profit for the half-year was down from $5.7m (£3.7m) in 2012 to $4.2m, while net profit for its second quarter also fell from $4.7m (£3m) to $2.7m.
Total income for the second quarter of 2013 was $13.4m (£8.7m) compared to a total income of $19.7m for the second quarter of 2012. Half-year income fell from $32.6m to $24.5m (£16m).
The bank said income was primarily generated from management fees from funds under management, investment income and recoveries.
Operating costs for the half-year period had been reduced by 27 per cent to $19.6m (£12.8m) compared to $26.9m for the prior year period, which GFH said underlined "ongoing efforts in the streamlining of operations and achieving greater efficiencies across the business".

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