FY 2020 Audited Financial Results International Holding Company PJSC (IHC) reports six-fold increase in FY2020 net profit to AED 3 billion driven by acquisitionsAbu Dhabi, UAE; 6th March 2021
Abu Dhabi-based strategic investment company International Holding Company PJSC (“IHC” or the “Company”) (ADX: IHC) has reported a net profit of AED 3 billion for 2020, a six-fold, year-on-year increase, driven by a series of acquisitions as well as organic growth across its diversified portfolio.
In its fully audited financial statements for the full year 2020, published on 4th March 2021, the Company reported annual revenues of AED 7 billion, compared to AED 1.26 billion in 2019. The Company has experienced rapid expansion across its major business segments, which include healthcare, food products, real estate, agriculture and digital technologies. The expansion is the result of well thought out strategic acquisitions of companies within its industry, through business combinations and common control, which would help drive value and long-term growth. The Company also sought investments in significant minority stakes in growth companies.
IHC has taken stakes in California-based aerospace company SpaceX through a private equity fund, as well other investments in UK-based DNA sequencing firm Oxford Nanopore technologies, New York digital marketing company Yieldmo, and Abu Dhabi National Oil Company (ADNOC).
Syed Basar Shueb, IHC’s Chief Executive Officer and Managing Director, commented: “IHC has transformed into a major investment company that benefits from a robust balance sheet and a highly diversified portfolio that spans six vertical segments. Although our growth has been partially driven by strategic acquisitions and investments, our subsidiaries have also delivered strong organic revenue growth of 165%, displaying significant resilience when faced with considerable global macroeconomic challenges. IHC has built a solid platform for value creation in the coming years, and we are well positioned to invest further in high potential opportunities.”
IHC has a clear strategy of enhancing its portfolio through acquisitions, strategic investments, restructuring, consolidation, diversification, and divesting. Comprising more than 25 entities, the current six vertical segments: Industrial, Capital, Digital, Food, Utilities and Real Estate will be expanded in 2021 to include Education, Leisure and Retail, Agriculture and Healthcare. The Company will continue to enhance shareholder value through growth, operational synergies and maximize cost efficiencies. It will also continue to evaluate investment opportunities through direct ownership and entering partnerships in the UAE and abroad.
IHC’s total assets increased to AED 14 billion as at 31 December 2020, from AED 4 billion a year earlier. The company held cash and cash equivalents of AED 3.7 billion at the end of 2020.
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