On behalf of myself and my fellow members of the board, it is my pleasure to welcome you in our 35th meeting to present to you UIC’s annual report for the fiscal year ended December 31, 2013, to review major developments, year achievements and the financial statements
The year 2013 was in all an exceptional year; as the company once again proves an astonishing capability to withstand challenges, underpinned by its successful and conservative strategy which lays enhancing shareholders’ equity in the forefront of our efforts.
During 2013, the company continued to monitor the performance of all operating investments in view of the set plans, and in line with the broad strategy of the company, the nature and the prospects of our Investments, with the aim of improving operating results and increasing revenues. The management continued to exert more efforts to improve financial liquidity and reduce the total value of company loans by 37% compared to last year and acquired an additional shares in one of the subsidiary companies, which underpins our firm belief that we are moving surefooted on the track of achieving positive results as we move forward.
During the year in review, the company posted KD 28.08m in net profit for 2013. This represents an increase of 739% over the same period in 2012, where the company posted net profit of KD 3.35m. Earnings per share stood at 62.70 fils compared to 7.07 fils for 2012.
Exceptional profits of 2013 are attributed mainly to:
Exceptional profits posted from divestment of one of company’s subsidiaries – Saudia Dairy & Foodstuff Company – SADAFCO- posting net profit KD 20m, in addition to profits exceeding KD 9m from reclassification from a subsidiary to investment for sale.
The share of income from associates (QPIC) increased to 45% (KD 5 million) compared to KD 3.5 million during 2012.
In view of the posted results the Board of Directors recommended the distribution of 25% in cash dividends, or 25 fils per share. This recommendation is subject to the approval of pertinent authorities and the General Assembly.
Appreciation and Gratitude Note
I would like to express my appreciation and sincere gratitude to members of the board, executive management and to all our valued shareholders for their trust and support. We hope to continue to prosper and succeed with our future plans.
On a personal note, I would like to assure you that the management is committed to drive growth and improve the results which we sincerely hope will rise to your expectations.
Sheikh Khalifa Al Abdullah Al-Jaber Al-Sabah