Dubai-based Shuaa Capital reported a widened net loss of Dh866 million in 2023 from Dh135 million in 2022 due to non-cash impairments related to legacy assets and goodwill.
The fourth-quarter net profitability was affected by non-cash impairment of legacy assets totalling Dh128 million and one-off charges of Dh124 million, resulting in a net loss of Dh296 million for the quarter.
The company reported a 34% increase in full-year revenues to Dh165 million on a pro forma basis. Adjusted net operating income rose 128% to Dh24 million, with an 11% decrease in the cost-to-income ratio.
 “Shuaa’s recent performance linked to past legacy issues has been disappointing for its stakeholders, but we firmly believe that our business has strong fundamentals and value to be unlocked,” said Wafik Ben Mansour, Acting CEO of Shuaa Capital. “We are taking a series of decisive actions to re-focus Shuaa around the needs of our clients and stakeholders and we will continue to provide regular progress updates as we look to radically restructure our balance sheet, transform our business model, and enhance our corporate culture.”
The company is negotiating with creditors and securing regulatory approvals to convene a shareholders’ General Assembly in the coming weeks.
The agenda includes seeking approval for a reduction in share capital and subsequent capital increase to reduce leverage and strengthen the capital base, with a target completion date of June 2024.
In a statement to DFM, Shuaa said that the company is transforming its business model, focusing on asset management and investment banking, supported by a sales and distribution platform. Strategic initiatives will be undertaken to grow and diversify assets under management and expand investment banking capabilities through strategic hires. Cost rationalisation, winding down non-core assets, and rebranding efforts are underway to enhance performance and generate shareholder value.