(MENAFN - Bahrain Tribune) With net profit of BD6.086 million in 2006 - 25 per cent less than BD8.102 million profits in 2005, the shareholders of Bahrain Commercial Facilities Company (BCFC) were told yesterday that 2007 would be another year of success in terms of profitability and business.
The shareholders approved a payout of the cash dividend of BD4.35 million or 40 per cent of the paid-up capital. The loan portfolio recorded a 15 per cent increase in 2006 over the previous year rising to BD61 million at a time when the consumer finance market saw the full implementation of the consumer finance guidelines enforced by the Central Bank of Bahrain and the Credit Bureau of Bahrain.
BCFC board Chairman Abdulrahman Fakhro told the shareholders meeting yesterday at National Motor Company complex in Sitra that the profit of 2005 included from a non-recurring extraordinary transaction of BD3 million gains.
The total assets rose to BD145 million and earning per share saw a decrease from 74 fils per share to 56 fils in 2006. With the sales of 5000 vehicles last year, NMC has become the largest automotive sales company in the Kingdom.
He said that the company achieved 19 per cent growth compared with 2005 in the profits arising from recurrent and constant business activities such as consumer loans, insurance policies, car sales and after-sale services.
"It should be noted that the company paid 40 per cent dividends and bonus shares at the rate of 10 per cent of the paid up capital to the shareholders in 2005.
Fakhro said the Bahrain Credit Media Centre, being set with BCFC financial support, will be opened in May at the University of Bahrain, which is considered as one of the biggest and most developed academic centres in the region.
Ian Levack, chief executive officer, told Bahrain Tribune that the company has been doing exceptionally well with an annual increase in business of 10 to 15 per cent for the last three years.
He added: "The 2005 saw a real estate deal taking the earning share to 74 fils and we the company would continue to see a business growth in 2007 and beyond. We being a group are also keen to see expansion across the Gulf region with aim to add profitability to the shareholders' money. The automobile business is very strong in the Kingdom and NMC will continue to be a leader in this highly specialised business."