UAE- SHUAA Capital reports Q1 2012 results 

(MENAFN - Khaleej Times) SHUAA Capital (SHUAA) today reported results for the first quarter 2012. Revenues were AED 55.0 million (Q1 2011: AED 27.1 million) underpinned by continued strong returns from SHUAA's Lending business and from investments in SHUAA managed funds.


The loss for the period narrowed considerably to AED 8.5 million (Q1 2011: loss AED 26.3 million).

SHUAA has continued to focus on cost cutting measures during the first quarter of 2012 and has seen a dramatic improvement in its monthly operating cash expenditure from AED 11 million to AED 4.5 million per month. This is a result of continued cost cutting measures including a reduction in the number of employees, primarily from brokerage, following the exit from the Company's retail brokerage business, and a significant reduction in annualised rent related expenditure. SHUAA Capital plans to further improve this operating cash expenditure to below AED 3.0 million per month by the end of the first half of 2012.

SHUAA's balance sheet remained strong with total assets marginally down at AED 1.57 billion compared to AED 1.60 billion at the year end. The cash position strengthened slightly to AED 345.1 million from AED 340.2 million and this has been helped by the continued drop in operating costs and the consequential drop in monthly operating expenditures. Total liabilities fell to AED 405.8 million from AED 437.2 million due to a further reduction in medium term debt levels.