TIDMRMA
RNS Number : 6203D
Rasmala PLC
28 April 2017
Rasmala plc
Results for the year ended 31 December 2016
The Board of Rasmala plc ("Rasmala", the "Group" or the
"Company") announces its audited results for the year ended 31
December 2016.
2016 HIGHLIGHTS
Our year at a glance
-- At the end of the year, assets under management stood at
GBP775 million (US$ 956 million) (2015: GBP723 million (US$ 1,072
million)), after stripping out the impact of currency movements our
AUM rose by US$ 85 million during the year
-- The underlying business continued to strengthen with fees and
commissions rising 34 per cent from GBP5.3 million in 2015 to
GBP7.1 million
-- Two legacy investments inherited from the previous management
encountered serious challenges and this, in turn, led to
write-downs that comprised the bulk of our pre-tax loss
-- Flagship Funds continued long-standing track record of investment success
-- Expanded real estate portfolio in the UK and the UAE
-- Global Investor/ISF named Rasmala Asset Manager of the Year in the United Arab Emirates
-- Rasmala Trade Finance Fund was given the Outstanding
Performance & Innovation award by MENA Fund Manager
How we performed
-- Total operating income GBP3.6 million (2015: GBP10.2 million)
-- Loss before tax from continuing operations GBP8.1 million
(2015: profit GBP0.5 million), the majority of our loss resulted
from a GBP5.7 million write-down of two legacy investments
-- Loss to equity holders GBP8.0 million (2015: loss GBP0.1
million), after tax expense of GBP0.3 million (2015: GBP0.2
million) and loss on discontinued operations of GBP0.1 million
(2015: GBP0.1 million)
-- Loss per share of 25.97p (2015: earning per share of 0.04p)
-- Staff costs of GBP7.0 million (2015: GBP6.2 million) and
other operating expenses of GBP4.6m (2015: GBP3.4 million)
-- Net Asset Value of 295.98p per share at the year end (2015: 331.58p per share)
Enquiries:
Rasmala plc Tel: +44 (0)20 7847 9900
Zak Hydari, CEO
Stockdale Securities Tel: +44 (0)20 7601 6100
Antonio Bossi
Chairman's Statement
This was a challenging and unpredictable year in which oil
prices and regional and global geopolitics dominated. Despite the
headwinds, we continued forward momentum in our underlying
business. Fee income was significantly increased and our margins
improved. Regrettably, two legacy investments inherited from the
previous management encountered serious challenges. This, in turn,
led to write-downs that comprised the bulk of our pre-tax loss this
year of GBP8.1 million.
After three consecutive years of improving performance, this is
clearly disappointing. We are now working hard to bounce back in
2017.
Performance
Given the often-stormy financial climate of 2016, the emphasis
was on keeping the ship steady. This we managed, whilst also making
headway in a number of areas.
2016 saw greater emphasis on fee and commission income in
addition to asset management based revenue. Our investment
performance was strong across various asset classes including our
leasing and trade finance funds, which proved their value as
diversification tools during troubled times. We also closed
real-estate transactions in the UK and the UAE.
Our assets under management remained broadly stable, despite
continuing market volatility and a decline in the value of the
Egyptian pound. Despite the turbulence of 2016, our balance sheet
remains strong.
That we have made progress despite the many challenges in what
was an extraordinary year for world events is a tribute to the hard
work and focus of our team.
Market developments
The GCC economies were under pressure throughout 2016. The year
opened with the oil price collapse, with obvious implications for
regional investors. The oil price staged something of an erratic
recovery during 2016, although only to levels that would
historically have been seen as unexceptional. The oil price decline
squeezed liquidity in the banking system in the GCC, with knock-on
effects for the regional economy.
The fall in the oil-price also resulted in GCC countries issuing
more debt, both Islamic and conventional bonds. Fortunately, these
countries are not over-borrowed - debt to GDP ratios in the GCC are
less than five per cent, against an average of 87.5 per cent for
France, Germany and the UK.
The strength of the US dollar was also a constant challenge,
given local currency pegs.
Corporate governance
The year saw the departure of our senior independent director
Mohammed Al Sarhan. The Board expressed its gratitude to Mr Al
Sarhan for all his work on the company's behalf. Martin Gilbert
Barrow, currently a non-executive director, was appointed as Mr Al
Sarhan's replacement as Senior Independent Director.
The Company undertook an annual evaluation of the performance of
the Board, its committees and its Directors. The evaluation was led
by the Chairman of the Nomination and Remuneration Committee
("NRC"). Board members were also required to complete a skills
matrix to identify relative strengths and weaknesses across a
number of skill sets that the Board considered integral to its
performance.
Based on the evaluation Rasmala provided a number of training
sessions to Board members. Many of these sessions were led by
external experts whereas others were led by members of the
Company's Risk and Compliance teams.
Strategy
As 2016 was the last year in the current five-year business
plan, the Board held an offsite strategy session towards the end of
the year to discuss Rasmala's next five-year business plan. We are
now preparing the roadmap and expect to complete and announce
details with our half year results. In the meantime, some of our
immediate priorities are highlighted in the CEO's report.
Outlook
Prospects for the GCC countries have improved in 2017. At the
end of last year, the International Monetary Fund declared: "The
growth outlook for the GCC is positive." The oil price has
stabilised and businesses in the region have had to become leaner
and fitter to survive after the challenges of 2015 and 2016. As a
result of the relative stability of the oil price, a cornerstone
economic factor in the GCC, we expect to see a corresponding
increase in investors' risk appetite.
The fears of a dramatic slowdown in the emerging markets, seen
at the start of 2016, have abated. Furthermore, even though there
is political uncertainty on both sides of the Atlantic, we expect
GCC investors to be more active in both of these markets.
We are confident about our business prospects. The Board is
focused on ensuring that we bounce back in 2017 while putting in
place a clear strategy for the next five years.
Chief executive's strategic review
On behalf of the Directors, I am pleased to present my review of
the year, as part of our Strategic Report.
Results
2016 proved to be a difficult and challenging year, with
material political and economic changes taking place. In a rapidly
changing environment, our priority was to maintain stability and
investment performance across our products. Although we were able
to achieve both objectives, the Group made an operating loss before
tax of GBP8.1 million, against a profit of GBP0.5 million in 2015.
Total operating income was GBP3.6 million (2015: GBP10.2 million)
and costs were GBP11.7 million (2015: GBP9.7 million). After three
consecutive years of positive performance, these results are
clearly disappointing.
The majority of our loss resulted from a GBP6.0 million
write-down of two legacy investments, Accelerator Technology
Holdings Limited ("ATHL") and DiamondCorp plc. The Board decided to
write down both of these investments to reflect the current
uncertainty around these assets.
The net loss, including non-controlling interests, amounted to
GBP8.5 million (2015: GBP0.2 million profit) after tax expenses of
GBP0.3 million (2015: GBP0.2 million).
Whilst disappointing, we believe there are reasons to be
optimistic about our prospects for 2017 and beyond. The underlying
business continued to strengthen with fees and commissions rising
34 per cent from GBP5.3 million in 2015 to GBP7.1 million, in line
with our strategic goal of growing annuity income. Our net interest
margin also increased by 27 per cent from GBP1.1 million in 2015 to
GBP1.4 million.
During the year, we continued to make progress towards the
objectives we set ourselves some years ago, re-orientating the
Group's business towards alternative investment and real
estate.
The Asset Management business performed well, with assets under
management increasing once more in underlying currencies and
investment performance remaining strong.
The Investment Banking business strengthened its reputation as a
provider of high-quality real-estate investment opportunities. As I
discuss later in my report, our Real Estate proposition was
impacted by the after-effects of the Brexit vote in the UK on June
23. However, we believe this asset class has strong growth
potential and will remain a key area of focus moving forward.
During the year, we completed real estate transactions in the UK
and UAE and acquired a majority stake in Orchard Apartments Limited
("OAL"), a growing UK operator of serviced apartments.
Our expenses increased to support planned investment in our
people and platform. However, much of the increase from GBP9.7
million to GBP11.7 million reflects the accounting impact of the
fall in sterling against the dollar on our USD cost base. Total
costs for 2016 include GBP0.4 million provision taken against
DiamondCorp plc. As always we continue to tightly manage our cost
base and capture efficiencies where-ever possible.
Our balance sheet has remained strong despite the unpredictable
conditions that characterised the year. We continue to have
sufficient financial resources to support our business and maintain
strong capital and liquidity positions. As of 31 December 2016,
Rasmala had total capital of GBP93.8 million.
Asset Management
Our Asset Management business proved itself again during what
was, by any measure, an extraordinary year. In a 12-month period
that opened with the oil price collapse and ended with an election
upset in the United States, taking in Britain's Brexit vote along
the way, our performance remained steady throughout.
Total gross inflows remained strong at US$248 million, down from
US$404 million in 2015. The impact of foreign exchange movements
was material, with the devaluation of the Egyptian pound being the
most significant having reduced our reported Assets under
Management ("AuM") by approximately US$200 million. As at 31
December 2016 our AuM stood at US$956 million down from US$1.1
billion in 2015. After stripping out the impact of currency
movements our Assets under Management rose by US$85 million.
The business continued its strategy of expanding its product
offering into alternative investments, providing clients with
greater choice and enhancing our ability to retain and grow assets
in volatile conditions.
Some performance highlights of the year included; Rasmala Global
Sukuk Fund, which generated a net return for investors of 4.97 per
cent; the Rasmala GCC Fixed-Income Fund, which produced a net
return of 6.83 per cent and Rasmala Leasing Funds 1 and 2, which
have to date paid average annual cash distributions of 12 per cent
and 9.2 per cent respectively.
The Rasmala Trade Finance Fund invested $91.7 million in 341 new
transactions and delivered 12 consecutive months of positive
returns generating a net return of 4.77 per cent.
Once again our efforts were recognised with Rasmala being named
asset manager of the year for the United Arab Emirates by Global
Investor. This was just the latest in a series of awards for the
Group. Earlier in the year, MENA Fund Manager awarded Rasmala Best
Global Sukuk Fund and an Outstanding Performance and Innovation
Award for the Rasmala Trade Finance Fund.
Investment Banking
Our Investment Banking team led our Group's efforts to further
expand into real estate.
Our priority in 2016 was originating property transactions in
the UK and these plans were thrown into doubt by the Brexit vote.
Nevertheless, we acquired a commercial property in the UK just
outside London for GBP24.4 million (US$30.2 million) and continued
to manage our property portfolio in the UK. We also acquired a
majority stake in Orchard Apartments Limited, a business developing
and owning specialised corporate serviced apartments. This gives us
a foothold in a market with significant growth potential.
A major challenge during the year arose from the June referendum
result in the UK, in which the country voted to leave the European
Union. As many GCC investors put their UK investment plans on hold,
we were able to switch our focus to real-estate opportunities in
the UAE. In August, we acquired 72 warehouses in Dubai Investments
Park for AED300 million (US$81.7 million). This will continue to be
a theme in the year ahead - the development of real-estate products
in the UAE that can spot specific local-market opportunities.
In September, we saw the successful closing of the US$28.4
million Salaam III Limited Sukuk issuance. The sukuk was given an
investment-grade BBB rating from Fitch.
Principal investments and treasury
Principal Investments ("PI") is primarily focused on providing
seed funding for new Asset Management products and underwriting
Investment Banking transactions. PI is also responsible for
day-to-day group liquidity, capital and balance sheet
management.
The PI team spent significant time and effort in 2016 on our
non-strategic legacy holdings. DiamondCorp plc, a South African
mine, was forced into business rescue late in 2016 after a force
majeure event. ATHL, a Jordan based venture capital company,
suffered losses due to poor performance by its core portfolio
investment. These assets are minority investments inherited from
the previous management and were written down in 2016.
On a more positive note we released US$10.3 million from another
challenged legacy investment, Madaares although there was no
P&L impact as the exit was at book value.
Market outlook
Investor sentiment should improve in 2017 as the fundamentals of
the GCC countries reassert themselves. Regional governments are
attempting to diversify their revenue base away from
over-dependence on oil and these efforts are gathering speed. The
region has a good investment story to tell with low government debt
levels, abundant natural resources and significant concentrations
of both private, institutional and sovereign wealth.
We expect regional equity markets to rebound in 2017 after a few
difficult years. The interest rate environment will be more
challenging as the US Federal Reserve Bank normalises monetary
policy but this should not prevent bonds issued by regional
corporates from performing well.
While the outlook for traditional equity and fixed-income
products is positive, investors will continue to seek out
diversification opportunities. Investor interest in alternative
strategies will continue to grow, and our product offering -
including real estate, trade finance and leasing - make us well
positioned to capture market share.
There are, of course, challenges as well as opportunities, not
least geopolitical risk both regional and global. After the events
of 2016, it would be unwise to rule out more shocks in the
immediate future.
During this year and beyond, our commitment to the region and
its investors will be undimmed.
Future developments
Last year marked the end of our five-year business plan which
commenced in 2012 and was focused on restoring Rasmala to its
rightful position as a pioneer and innovator in regional markets.
Despite a challenging 2016, we believe we have been successful in
achieving that goal.
At the end of last year, we commenced a strategic review in
order to develop our next 5-year plan. The Board has already
concluded that some immediate steps need to be taken to prepare the
Group for the next phase of its development.
Over the last few years we have consolidated our business in key
business hubs and gradually reduced our regulatory footprint in
non-core markets. We believe it is possible to further simplify our
business by relinquishing our UK FCA permissions. Although we have
ambitions to expand our investment activities in the UK, we are
unlikely to manage assets at the holding company level.
Accordingly, we have started consulting with all relevant
stakeholders to ensure we implement this decision in a careful and
considered manner. We will report back to shareholders when the
consultation process has been completed.
The AIM listing is under review and the Board is assessing
whether the Alternative Investment Market is the most optimal venue
for Rasmala. All options are being considered, including remaining
in London whilst also looking at Dubai as a potential listing
venue.
The Board is reviewing options for making further capital
distribution to our shareholders, as we are unable to deploy excess
capital in the short term. The business is in a stronger position
today to access debt and equity capital when required, and this
gives the Board more flexibility when considering distributions to
shareholders. We anticipate shareholder distributions of
approximately GBP20 million in 2017.
Whilst the last five years were about strengthening the platform
and growing organically the emphasis in the next five years will be
on growth through acquisition and joint venture partnerships.
Acknowledgements
All of our efforts are focused on creating the right environment
and opportunities to grow and succeed in a disciplined way. Our
resilience in challenging conditions is a tribute to the hard work
by everyone at Rasmala and is testament to the calibre of
individuals we have and continue to attract. I would like to thank
all our staff for their contribution to our success and finally our
Chairman, Abdallah Y. Al-Mouallimi, and the Board for their counsel
and support. Although market conditions continue to be challenging,
I look forward to 2017 with optimism and confidence.
Consolidated statement of income
2016 2015
GBP'000 GBP'000
------------------------------------------------------ ---------- ----------
Income
Income from financing and investing activities 1,550 1,274
Returns to financial institutions and customers (160) (127)
------------------------------------------------------- ---------- ----------
Net margin 1,390 1,147
------------------------------------------------------- ---------- ----------
Fees and commission income 7,063 5,338
Net gain from financial assets measured at fair
value through profit or loss 542 (59)
(Loss)/gain on private equity investments designated
at fair value through profit or loss (5,715) 3,155
Fair value (loss)/gain on investment property (98) 25
Other operating income 395 609
------------------------------------------------------- ---------- ----------
Total operating income 3,577 10,215
------------------------------------------------------- ---------- ----------
Expenses
------------------------------------------------------ ---------- ----------
Staff costs (6,957) (6,199)
Depreciation and amortisation (85) (76)
Other operating expenses (4,617) (3,403)
------------------------------------------------------- ---------- ----------
Total expenses (11,659) (9,678)
------------------------------------------------------- ---------- ----------
Operating loss before tax (8,082) 537
Income tax (178) (187)
Deferred tax (135) (11)
------------------------------------------------------- ---------- ----------
Loss from continuing operations (8,395) 339
------------------------------------------------------- ---------- ----------
Loss after tax from discontinuing operations (82) (90)
Loss for the year (8,477) 249
------------------------------------------------------- ---------- ----------
Loss attributable to:
Owners of the parent (7,968) (80)
Non-controlling interest (509) 329
------------------------------------------------------- ---------- ----------
(8,477) 249
------------------------------------------------------ ---------- ----------
Earnings per share from continuing operations
attributable to the owners of the parent
- Basic (25.97p) (0.04p)
- Diluted (25.97p) (0.04p)
Earnings per share from discontinuing operations
attributable to the owners of the parent
- Basic (0.21p) (0.21p)
- Diluted (0.21p) (0.21p)
------------------------------------------------------- ---------- ----------
Earnings per share from total profit or loss attributable
to the owners of the parent
- Basic (26.17p) (0.24p)
- Diluted (26.17p) (0.24p)
------------------------------------------------------------ --------- --------
Rasmala plc
Consolidated statement of other comprehensive income
For the year ended 31 December 2016
2016 2015
GBP'000 GBP'000
------------------------------------------------------- --------- --------
Loss for the year (8,477) 249
Items that may be reclassified subsequently to
profit or loss:
Gain on fair value of available-for-sale securities 181 109
Loss on fair value of available-for-sale securities (251) (658)
Exchange loss on net investment in foreign operations (2,843) (368)
Total comprehensive loss for the year (11,390) (668)
-------------------------------------------------------- --------- --------
Total comprehensive loss attributable to:
Owners of the parent (10,940) (1,080)
Non-controlling interest (450) 412
-------------------------------------------------------- --------- --------
(11,390) (668)
------------------------------------------------------- --------- --------
Rasmala plc
Consolidated and company statement of financial position
As at 31 December 2016
Group Company
-------------------- --------------------
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ --------- --------- --------- ---------
Assets
Cash and cash equivalents 14,319 5,406 10,753 3,241
Financial assets measured at
fair value through profit or
loss 27,679 48,993 19,286 26,410
Available-for-sale securities 24,959 21,735 24,959 21,735
Financial assets measured at
amortised cost 4,931 20,565 10,389 23,747
Other assets 12,790 7,404 5,597 1,780
Investment property 5,375 1,091 - -
Property and equipment 309 344 4 4
Investments in subsidiaries - - 30,812 31,330
Intangible assets 13 - 13 -
Goodwill 16,091 11,331 - -
106,466 116,869 101,813 108,247
Assets classified as held for
sale 45 96 - -
Total assets 106,511 116,965 101,813 108,247
------------------------------------------- --------- --------- --------- ---------
Liabilities
Financial liabilities measured
at fair value through profit
or loss 1,447 1,481 1,447 1,481
Financial liabilities measured
at amortised cost 5,400 4,180 - -
Income tax payable 110 184 - -
Deferred tax payable 319 18
Other liabilities 5,385 6,731 1,703 1,675
12,661 12,594 3,150 3,156
Liabilities associated with
asset held for sale 12 115 - -
Total liabilities 12,673 12,709 3,150 3,156
------------------------------------------- --------- --------- --------- ---------
Net assets 93,838 104,256 98,663 105,091
------------------------------------------- --------- --------- --------- ---------
Capital and reserves
Share capital 15,721 15,721 15,721 15,721
Other reserves 103,386 103,386 104,297 104,297
Fair value reserve on available-for-sale
securities (221) (151) (221) (151)
Foreign exchange reserve (4,195) (1,293) - -
Accumulated losses (24,574) (16,606) (21,134) (14,776)
------------------------------------------- --------- --------- --------- ---------
Equity attributable to owners
of parent 90,177 101,057 98,663 105,091
------------------------------------------- --------- --------- --------- ---------
Non-controlling interest 3,721 3,199 - -
------------------------------------------- --------- --------- --------- ---------
Total equity 93,838 104,256 98,663 105,091
------------------------------------------- --------- --------- --------- ---------
Rasmala plc
Consolidated statement of changes in equity
For the year ended 31 December 2016
Fair
value
reserve
Other on Equity
reserves available- Foreign attributable
Share (note for-sale exchange Accumulated to owners Non-controlling Total
capital 28) securities reserve losses of parent interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- --------- --------- ----------- --------- ------------ ------------- ---------------- ---------
Balance at 1
January 2015 19,721 119,386 398 (842) (16,395) 122,268 2,827 125,095
Comprehensive
income for the
year
Profit for the year - - - - (80) (80) 329 249
Net change in fair
value of
available-for-sale
securities - - (549) - - (549) - (549)
Foreign exchange
loss on conversion
of foreign
operations - - - (451) - (451) 83 (368)
--------- --------- ----------- --------- ------------ ------------- ---------------- ---------
Total comprehensive
income - - (549) (451) (80) (1,080) 412 (668)
Contributions by
and distributions
to owners
Tender offer (4,000) (16,000) - - - (20,000) - (20,000)
Distribution made
by a subsidiary - - - - (131) (131) (40) (171)
Forex reserves - - - - - - - -
-------------------- --------- --------- ----------- --------- ------------ ------------- ---------------- ---------
Balance at 31
December 2015 15,721 103,386 (151) (1,293) (16,606) 101,057 3,199 104,256
-------------------- --------- --------- ----------- --------- ------------ ------------- ---------------- ---------
Comprehensive
income for the
year
Loss for the year - - - - (7,968) (7,968) (509) (8,477)
Net change in fair
value of
available-for-sale
securities - - (70) - - (70) - (70)
Foreign exchange
loss on conversion
of foreign
operations - - - (2,902) - (2,902) 59 (2,843)
--------- --------- ----------- --------- ------------ ------------- ---------------- ---------
Total comprehensive
income - - (70) (2,902) (7,968) (10,940) (450) (11,390)
Contributions by
and distributions
to owners
Acquisition of a
subsidiary - - - - - - 972 972
Balance at 31
December 2016 15,721 103,386 (221) (4,195) (24,574) 90,177 3,721 93,838
-------------------- --------- --------- ----------- --------- ------------ ------------- ---------------- ---------
Rasmala plc
Company statement of changes in equity
For the year ended 31 December 2016
Fair value
reserve
Other reserves on available-for-sale Accumulated
Share capital (note 28) securities losses Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- -------------- --------------- ----------------------- ------------ -------------
Balance at 1 January 2015 19,721 120,297 398 (13,565) 126,851
Comprehensive income for the
year
Loss for the year - - - (1,211) (1,211)
Net change in fair value of
available-for-sale
securities - - (549) - (549)
-------------- --------------- ----------------------- ------------ -------------
Total comprehensive income - - (549) (1,211) (1,760)
Contributions by and
distributions to
owners
Tender offer (4,000) (16,000) - - (20,000)
Balance at 31 December 2015 15,721 104,297 (151) (14,776) 105,091
------------------------------- -------------- --------------- ----------------------- ------------ -------------
Comprehensive income for the
year
Loss for the year - - - (6,358) (6,358)
Net change in fair value of
available-for-sale
securities - - (70) - (70)
Total comprehensive income - - (70) (6,358) (6,428)
Contributions by and
distributions to
owners - - - - -
Tender offer - - - - -
------------------------------- -------------- --------------- ----------------------- ------------ -------------
Balance at 31 December 2016 15,721 104,297 (221) (21,134) 98,663
------------------------------- -------------- --------------- ----------------------- ------------ -------------
Rasmala plc
Consolidated and Company statement of cash flows
For the year ended 31 December 2016
Group Company
--------------------- --------------------
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------- --------- ---------- -------- ----------
Cash flows from operating activities
Operating profit/(loss) for the
period (8,082) 537 (6,358) (1,211)
Operating loss on discontinued
operations (82) (90) - -
Adjusted for:
Unrealised loss from financial
assets measured at fair value through
profit or loss (462) 380 (462) (22)
Unrealised gain on private equity
investments designated at Fair
value through profit or loss 5,765 (3,061) 5,966 56
Unrealised gain on investment property - (99) - -
Loss from investment in subsidiaries - - 5,856 436
Depreciation and amortisation 85 76 9 14
Financial assets measured at fair
value through profit or loss 15,399 (6,808) 1,620 (4,645)
Available-for-sale securities (3,294) 188 (3,294) 188
Financial assets measured at amortised
cost 14,094 24,359 13,358 18,230
Other assets (7,232) 4,812 (7,475) 4,852
Investment property 1,194 682 - -
Financial liabilities measured
at fair value through profit or
loss (34) 527 (34) 527
Financial liabilities measured
at amortised cost (3,022) (2,450) - -
Other liabilities (2,718) 1,916 28 (237)
Assets classified as held for sale 64 (5) - -
Liabilities associated with asset
held for sale (33) (9) - -
Distribution made by a subsidiary - (171) - -
------------------------------------------- --------- ---------- -------- ----------
Cash used in operating activities 11,642 20,784 9,214 18,188
Tax paid (360) (783) - -
-------------------------------------------- --------- ---------- -------- ----------
Net cash generated from operating
activities 11,282 20,001 9,214 18,188
-------------------------------------------- --------- ---------- -------- ----------
Cash flow from investing activities
Payment on acquisition of a subsidiary
net of cash acquired (1,318) - (1,680) -
Purchase of property and equipment (2) (238) (22) -
-------------------------------------------- --------- ---------- -------- ----------
Net cash used in investing activities (1,320) (238) (1,702) -
-------------------------------------------- --------- ---------- -------- ----------
Cash flow from financing activity
Tender offer - (20,000) - (20,000)
Net cash used in investing activity - (20,000) - (20,000)
-------------------------------------------- --------- ---------- -------- ----------
Net decrease in cash and cash equivalents 9,962 (237) 7,512 (1,812)
Cash and cash equivalents at the
beginning of year 5,406 6,562 3,241 5,053
Foreign exchange difference on
cash and cash equivalents (1,049) (919) - -
Cash and cash equivalents at the
end of the year 14,319 5,406 10,753 3,241
-------------------------------------------- --------- ---------- -------- ----------
Segment information
The Group focuses on Middle East and North Africa markets and
for 2016 centered on the following three core businesses:
(a) Investment banking - advisory and arranging on corporate
finance, structured products, originating, structuring and
placement in debt capital market.
(b) Asset management - investment management solutions
encompassing equities, fixed income and alternatives.
(c) Principal investments - provision of financing, investing in
funds, debt capital market, structured debt finance and Islamic
products, includes a diversified portfolio of private equity
assets.
These core business lines were the Group's strategic business
units ('SBU'). Each SBU deals with different products and services,
and was managed separately based on the Group's management and
internal reporting structure. SBU activities are monitored by the
Group's management committees and the Board which is provided with
internal management reports on a monthly basis.
Information regarding the results of each reportable segment as
regularly reviewed by the group executive management and the board
of directors is given below. Segment results include items directly
attributable to a segment as well as those that can be allocated on
a reasonable basis.
Year ended 31 December Investment Asset Principal Discontinued
2016 banking management investments Others operations Total
---------------------------- ----------- ------------ ------------- -------- ------------- -----------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income from external
customers 1,943 4,631 2,258 176 - 9,008
Returns to external
customers - - (160) - - (160)
Fair value gain on
investments - - (5,271) - - (5,271)
---------------------------- ----------- ------------ ------------- -------- ------------- -----------
Total operating income 1,943 4,631 (3,173) 176 - 3,577
---------------------------- ----------- ------------ ------------- -------- ------------- -----------
(Loss)/profit after
tax from continuing
activities (32) 11 (6,194) (2,179) - (8,395)
Loss from discontinued
operations - - - - (82) (82)
Other comprehensive
loss after tax - - (70) (2,843) - (2,913)
----------- ------------ ------------- -------- ------------- -----------
Total comprehensive
income (32) 11 (6,264) (5,022) (82) (11,390)
---------------------------- ----------- ------------ ------------- -------- ------------- -----------
Depreciation and
amortisation (3) (39) (9) (34) - (85)
---------------------------- ----------- ------------ ------------- -------- ------------- -----------
Segment assets 17,566 41,086 26,867 20,947 45 106,511
Year ended 31 December Investment Asset Principal Discontinued
2015 banking management investments Others operations Total
---------------------------- ----------- ------------ ------------- -------- ------------- ---------
Income from external
customers 1,358 3,770 2,093 - - 7,221
Returns to external
customers - - (127) - - (127)
Fair value gain on
investments 3,121 - 3,121
---------------------------- ----------- ------------ ------------- -------- ------------- ---------
Total operating income 1,358 3,770 5,087 - - 10,215
---------------------------- ----------- ------------ ------------- -------- ------------- ---------
(Loss)/profit after
tax from continuing
activities (216) 61 2,840 (2,346) - 339
Loss from discontinued
operations - - - - (90) (90)
Other comprehensive
loss after tax - - (549) (368) - (917)
----------- ------------ ------------- -------- ------------- ---------
Total comprehensive
income (216) 61 2,291 (2,714) (90) (668)
---------------------------- ----------- ------------ ------------- -------- ------------- ---------
Depreciation and
amortisation - (32) (14) (30) - (76)
---------------------------- ----------- ------------ ------------- -------- ------------- ---------
Segment assets 17,044 40,162 30,275 29,388 96 116,965
---------------------------- ----------- ------------ ------------- -------- ------------- ---------
Geographical information
The Group operates in three geographical areas mainly the UK,
Gulf Cooperation Council (GCC), and Egypt.
The Group's revenue from continuing operations from external
customers by location of operations are detailed below.
Revenue from external
customers
---------------------- --------
2016 2015
GBP'000 GBP'000
------- ---------------------- --------
UK 3,492 2,807
GCC 3.251 2,811
Egypt 2,265 1,603
-------- ---------------------- --------
9,008 7,221
------- ---------------------- --------
A copy of our financial statements is available on the Company's
website at www.rasmala.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LLFIDSRIDFID
(END) Dow Jones Newswires
April 28, 2017 02:00 ET (06:00 GMT)
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