Amanat Achieves 17% Revenue Increase In H1 2024, Declares AED 75M Dividend

Amanat Holdings PJSC (DFM symbol: AMANAT), a prominent healthcare and education investment company, reported its financial results for the first half of 2024. Revenue rose by 17% year-on-year to AED 433 million, driven by a 26% growth in the Education sector.

EBITDA saw a modest increase of 1% year-on-year to AED 154 million. This was due to an 18% rise in the Education sector, which was partially offset by a decline in Healthcare. The decline in Healthcare was attributed to a one-time gain in the previous year and short-term revenue pressures in the UAE. Adjusted EBITDA, excluding the prior year's one-time gain, increased by 8%.

The company's net profit before Tax and Zakat grew by 2% year-on-year to AED 101 million. When excluding the previous year's one-time gain, this figure rises to a 13% increase. Amanat ended H1 2024 with a substantial cash balance of AED 480 million and maintained low leverage.

The board approved an interim dividend of AED 75 million for the period, equating to AED 3 fils per share. This decision underscores Amanat's dedication to providing value to its shareholders.

Dr. Shamsheer Vayalil, Chairman of Amanat, stated: "Amanat made strong progress on its value creation strategy in the first half of 2024, with continued growth at the Education business and with both our Healthcare and Education businesses well positioned to capture significant demand growth, underpinned by favorable market and sector fundamentals."

John Ireland, Chief Executive Officer, commented on the results: "Amanat delivered a robust set of results in the first half of 2024, with revenue and adjusted EBITDA up 17% and 8% respectively year-on-year, driven by the strong performance of our Education business, which saw revenue increase 26% year-on-year, supported by record enrollments with over 3,000 students and beneficiaries added in the period."

The payment of an interim dividend also highlights Amanat's commitment to converting growth into consistent shareholder returns through its attractive dividend policy.

Amanat’s financial performance reflects its strategic focus on expanding its Education business while navigating challenges within the Healthcare sector. The company's solid cash position and low leverage further reinforce its financial stability.

The positive outlook for both sectors is supported by favourable market conditions and sector fundamentals. This positions Amanat well for future growth opportunities.

The company's strategic initiatives continue to drive performance improvements across its portfolio. The Education sector remains a key driver of growth due to increasing enrolments and demand for quality education services.

In summary, Amanat Holdings PJSC has demonstrated resilience and strategic foresight in achieving steady financial growth during H1 2024. The company remains committed to delivering value to shareholders while capitalising on market opportunities within its core sectors.

With inputs from WAM