, the global investment group that specializes in alternative assets, Saturday announced a net profit for the fiscal year ended June 30, 2005 of $110.3 million, representing an increase of 22 percent over the prior fiscal year. Income before operating expenses, at $324.7 million, was a record achievement for the Firm. Net income before provisions was $171.6 million, one of Investcorp’s strongest ever performances. The Firm allocated $61.3 million in provisions, further adding to the strength of its balance sheet reserves.
Investcorp’s Board of Directors has recommended a dividend payment of $40 million on ordinary shares, maintaining the level paid for the past 2 years. Additionally, a dividend at the prescribed rate of ten percent per annum will be paid on Investcorp’s preference shares. Total assets at June 30, 2005 were $4.8 billion, and total shareholders’ funds were $1.2 billion.
Nemir A. Kirdar, Investcorp’s President and Chief Executive Officer, said: “Investcorp had an outstanding year in Fiscal 2005. It has been a year of many achievements that have once again reconfirmed the value of Investcorp’s franchise in the Gulf region. Each of Investcorp’s four lines of business started the year in a position of strength, and all went on to generate excellent results, with many record-breaking accomplishments.
“Investcorp scored a record performance in its placement activities. The Firm’s Gulf marketing team placed $1.5 billion of Investcorp products with clients this year, reflecting a 50 percent increase over historical annual placement levels. At the same time, clients received distributions of almost $1 billion from various investment realizations. Investcorp now manages total investments in alternative assets of around $9.5 billion.”
