GFH Q1 net profit USD11.9m

01 Jun 2011

(MENAFN) Gulf Finance House (GFH) the Bahraini Islamic investment firm said that due to a severe cost cutting and the reversal of a bonus scheme granted three years ago, the company’s first quarter net profit reached USD11.9 million from a USD7.5 million loss in 2010, reported Arab News.

The company added that from the USD500 million it aimed to raise in new capital, it managed to raise USD120 million from investors through issue of equity linked convertible (Murabahas), adding that it trimmed expenses by around 50 percent to USD14.5 million as a result of cost cuts and debt restructuring.

It also said that total income in the quarter reached USD26.4 million, mostly due to reversal of an employee reward program in 2008 in which the company granted certain bonus shares to employees.

It is worth noting that the Gulf’s economic crisis had negative impact on GFH, it struggled throughout 2010 to repay the debt it took on during the Gulf property boom that ended three years ago.

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