Abu Dhabi: Manazel posts 30% fall in H1 net profit
The company said that the drop in H1 net profit is contributed predominantly by investment in human capital and organisational restructuring efforts
UAE-based developer Manazel Real Estatey announced its financial results for the six months ended 30 June, 2016 (H1 2016).
The company recorded a 30% decline in its H1 2016 net profit for the period, which stood at $8.4m (AED31m), as compared to $12.2m (AED44.9m) in the same period last year.
However revenues for the period increased to $72.8m (AED267.4m) as compared to $71.5m (AED262.8m) for H1 2015, with the launch of Al Reef 2 and the construction progress contributing to the increase in total sales during H1 2016.
Commenting on these results, Manazel’s chairman Mohamed M. Al Qubaisi said: “Over the year, Manazel Real Estate has made significant progress both in terms of restructuring its business and focusing on the significant growth opportunities that exist in new and dynamic market sectors, which capitalize on our expertise within the residential and commercial real estate sectors.
"Manazel has achieved significant success with the sales and construction of Al Reef 2, which once again reflects the confidence of our clients in our business and the high quality of service, which we provide. Following the success of the initial Al Reef project, Manazel launched Al Reef 2 in 2014 which is located in the Al Samha area in Abu Dhabi.
"The Al Reef 2 project is scheduled to be delivered commencing from the end of the 2017 with construction progressing rapidly to deliver this project on time. ”
Chief executive officer of Manazel Real Estate, Yaqoob Al Doseri said: “Manazel has demonstrated a notable performance during the first half of the year, which demonstrates the core strength of our business.
"Additionally we have commenced a cost management, profit optimization and human capital investment program which coincides new project launches, which we are targeting for H2 2016. We expect both these initiatives to have a positive impact on our results in the years ahead”
Manazel has managed to sell 90% of its Al Reef 2 project, which is located 65km away from the city of Abu Dhabi in the Al Samha area, with delivery scheduled to commence from the end of 2017.