(MENAFN - Arab Times) KAMCO (KIPCO Asset Management Company KSCC) has reported its financial results for the third quarter ended Sept 30, 2012. The company recorded a net loss of KD 9.8 million loss-per-share (LPS) at -41.2 fils for the nine month period ended September 2012.
These figures are a result of the restructuring plan that the company is undergoing in order to bring the company back to profitability.
The restructuring, as was previously announced, will focus on reducing KAMCO's assets and concentrating on increasing operational revenues from Asset Management and Investment Banking Advisory Services provided to clients
Despite the losses, on the operational side, KAMCO has been able to increase its fee revenues by approximately 21% when compared to the same period last year. In addition, KAMCO's Assets Under Management increased by nearly 11% to KD 2.4 billion since the beginning of the year - compared to the KD2.17 billion under KAMCO's management as of December 31st 2011.
During the year, the KAMCO corporate finance team has successfully executed a number of major transactions. The most recent of which in the third quarter was acting as a buy side financial advisor to one of its clients for the acquisition of a significant equity stake in one of the leading educational provider in Kuwait. This was one of the largest Merger and Acquisition deals to take place in the education sector in the Gulf region during 2012. Commenting on the results, Acting Chief Executive Officer, Mr. Faisal Mansour Sarkhou said:
"Despite the losses we have incurred as a result of our restructuring plan which started almost a year ago which is moving according to plan, our clients' continuing and growing trust in us coupled with the positive operational key performance indicators from our Asset Management and Investment Banking practices are evidence of our capability in bringing KAMCO' overall performance back to profitability in the near future. This is already visible with our assets under management growth and a 21% increase in our fee income to September 2012 when compared to the same period last year.
This I believe is an important achievement, despite the continuing adverse economic conditions facing the Kuwaiti economy and the investment sector. We continue to expand the company's range of services and offerings of financial & investment products for our clients and are also in the process of evaluating a number of new investment products for our clients."