Waha Capital announces preliminary full-year results for 2019 as turnaround strategy is implemented

ABU DHABI, 28 January 2020 – Waha Capital PJSC, a leading investment company in Abu Dhabi (ADX: WAHA), has announced its preliminary, unaudited financial results for 2019. 

Anchored by the company’s flagship funds, Waha CEEMEA Credit and Waha MENA Equity, Waha Capital’s Asset Management division had an outstanding year in 2019. The CEEMEA Fund and the MENA Equity Fund continued to beat benchmarks in 2019 and achieved returns of 19.6% and 24.3% respectively on Waha Capital’s investment, bringing total cumulative returns since inception to 180.9% and 175.2%. Total AUM’s for the company’s Asset Management division grew by 32% to reach AED 3.3 billion in 2019 from AED 2.5 billion in 2018.

Funds managed on behalf of third party investors grew by 40% from AED 1 billion to AED 1.4 billion in 2019.

Throughout 2019, Waha Capital gradually and successfully divested 17 million shares of its final remaining stake in AerCap at an average price of USD 53.93 per share, generating net cash of AED 933 million. Since inception, AerCap has generated IRR of 31.7% and a return on invested capital at a multiple of 2.6. 

Driven by the AerCap exit, but offset by the increase in the Asset Management division’s financial investments, total assets at year end stood at AED 9.3 billion compared to AED 11.6 billion in the prior year. 

The leverage ratio stood at a prudent 25.6% at year-end as compared to 25.3% in 2018. On a consolidated basis, cash and cash equivalents reached AED 765 million in 2019, as compared to AED 429 million in the prior year. 

In line with the turnaround strategy rolled out in H2, the company embarked on a careful review of the business in 2019. As a result of this reassessment, which Waha Capital considers essential for its future prospects, the company booked a net loss of AED 616.3m for 2019 as the Private Investments division was impacted by one-off adjustments.

H.E. Waleed Al Mokarrab Al Muhairi, Chairman of Waha Capital, said: “Waha Capital’s Board fully supports the company’s recently-adopted turnaround strategy.  We are optimistic that this strategy will yield positive results throughout 2020 as the business focuses on generating increased revenue and creating long term shareholder value.”

Amr Al Menhali, Chief Executive Officer for Waha Capital, said: “Waha Capital has concluded its financial restructuring in 2019 and remains on a solid financial footing. This is due to the prudent measures taken to ensure the firm returns to a path of sustainable long-term growth. We will continue to focus on our Asset Management business in 2020 whilst pursuing opportunities for the Private Investments business that can generate attractive long-term returns for Waha Capital shareholders.” 

Waha Capital will continue to leverage its international business networks in 2020 as it explores new business opportunities in growing sectors of the economy while remaining well-diversified across a broad range of sectors that include energy, healthcare, fintech and financial services.