Leeds United parent shrugs off drop in profit and sales
Insider media 14/11/13
By Laurence Kilgannon, Yorkshire Correspondent
The ultimate parent of Leeds United has reported a drop in profits and income for the first nine months of its financial year. But Gulf Finance House said it expects a stronger performance in the fourth quarter and good results for the year.
In the nine months to 30 September, the Bahrain-based Islamic investment bank, reported a net profit of $1.02m (£640,000) compared with $7.54m in the corresponding period of 2012.
The bank, which this week revealed that Leeds chairman Salah Noorudin had acquired a 4.6 per cent shareholding, also reported income for the quarter of $29.7m which had fallen from $41.35m in 2012.
Results for the third quarter showed a net loss of $3.15m compared to $1.8m in profits in the third quarter of last year while total income for the third quarter was $5.21m versus $8.7m in the third quarter of 2012.
GFH said its results for the quarter were impacted by losses incurred from an associated financial institution, mandatory provisioning and reduction in income contribution. But GFH added that operating costs for the first nine months of the year were reduced by 19 per cent to $27.45m.
Chairman Dr Ahmed Al Mutawa said: "While we continue to move forward with our strategy to enhance efficiency and better position the bank to excel our results for the period and third quarter were impacted by a number of factors but primarily due to a number of income transactions, which were planned for the third quarter but were actually achieved in the fourth quarter.
"Accordingly, we expect stronger performance in the fourth quarter and good results for the year."
Acting chief executive Hisham Alrayes added: "With the re-alignment of our business and a good credit rating and market confidence to support us, we are ready to transact and to deliver positive results in the next quarter.
"In the periods ahead, we will look closely at the UK residential real estate market, where we have already undertaken a number of successful transactions and profitable sales recently.
"Additionally, we will also seek out private equity and real estate in other developed markets of the world, where we see opportunities for secured streams of income and value creation at a low risk for the bank, our shareholders and clients.
"We have a strong pipeline of opportunities in front of us and look forward to building on these as we go forward."
GFH acquired Leeds United in late December 2012 through GFH Capital in one of the most eye-catching deals of 2012.
By Laurence Kilgannon, Yorkshire Correspondent
The ultimate parent of Leeds United has reported a drop in profits and income for the first nine months of its financial year. But Gulf Finance House said it expects a stronger performance in the fourth quarter and good results for the year.
In the nine months to 30 September, the Bahrain-based Islamic investment bank, reported a net profit of $1.02m (£640,000) compared with $7.54m in the corresponding period of 2012.
The bank, which this week revealed that Leeds chairman Salah Noorudin had acquired a 4.6 per cent shareholding, also reported income for the quarter of $29.7m which had fallen from $41.35m in 2012.
Results for the third quarter showed a net loss of $3.15m compared to $1.8m in profits in the third quarter of last year while total income for the third quarter was $5.21m versus $8.7m in the third quarter of 2012.
GFH said its results for the quarter were impacted by losses incurred from an associated financial institution, mandatory provisioning and reduction in income contribution. But GFH added that operating costs for the first nine months of the year were reduced by 19 per cent to $27.45m.
Chairman Dr Ahmed Al Mutawa said: "While we continue to move forward with our strategy to enhance efficiency and better position the bank to excel our results for the period and third quarter were impacted by a number of factors but primarily due to a number of income transactions, which were planned for the third quarter but were actually achieved in the fourth quarter.
"Accordingly, we expect stronger performance in the fourth quarter and good results for the year."
Acting chief executive Hisham Alrayes added: "With the re-alignment of our business and a good credit rating and market confidence to support us, we are ready to transact and to deliver positive results in the next quarter.
"In the periods ahead, we will look closely at the UK residential real estate market, where we have already undertaken a number of successful transactions and profitable sales recently.
"Additionally, we will also seek out private equity and real estate in other developed markets of the world, where we see opportunities for secured streams of income and value creation at a low risk for the bank, our shareholders and clients.
"We have a strong pipeline of opportunities in front of us and look forward to building on these as we go forward."
GFH acquired Leeds United in late December 2012 through GFH Capital in one of the most eye-catching deals of 2012.