BCFC financials approved

MANAMA: Bahrain Commercial Facilities Company shareholders approved the financial results for 2020 during their annual general meeting yesterday.

The meeting was held at the company headquarters and saw both physical attendance as well as virtual participation from shareholders.

Presiding over the meeting, the company’s vice-chairman Dr Abdulrahman Saif said: “The pandemic had a negative impact on all segments of the economy, more so on small and medium size enterprises which the company predominantly deals with.

“In this crisis, BCFC Group remained extremely conservative and prudent in taking impairment provisions. The company prioritised its long-term health over tactically focusing on current period profitability as the impact of the pandemic is still not fully revealed. However, the company with its core competencies, solid business model and strong financial position shall continue to support its customers and shall provide healthy returns to its shareholders once activities normalise,” he added.

The group has reported a net loss of BD4.3 million for 2020 which is significantly lower than net profit of BD17.1m achieved in 2019.

This resulted in a basic and diluted earnings per share of minus 21 fils (2019: 85 fils).

Total comprehensive loss was BD8m compared to comprehensive income of BD14m achieved during the previous year.

Net interest income was BD23.5m, 12pc below the BD26.7m in 2019.

Total operating income was BD33.8m, which is 25pc lower than BD45.3m in 2019.

Managing director Reyadh Sater said the company shall continue to support its customers and has ensured availability of its services throughout the crisis period without any interruptions thanks to the investments made in digital initiatives to address every customer relation touchpoint.

“All the services were provided to customers in full compliance with government directives, prioritising the health and wellbeing of our employees. BCFC Group with strong equity and diversified business model, shall continue to look for new opportunities to further diversify its revenue streams and increase shareholders’ value,” Mr Sater added.

BCFC Group faced certain challenges in its liquidity with the regulatory deferral of instalments. But due to its well-defined, adequately spaced maturity profile for its borrowings, the company continues to enjoy a strong and healthy liquidity position.

Last year, it reached an early settlement of a $80m syndicated loan and repaid a $125m syndicated loan on maturity.

These loans were repaid through issuing new term loans.

The group is currently operating at a low and healthy leverage of 1.8 multiples.

This augurs well for the group to explore new opportunities, as and when they present themselves, with potential to increase value for shareholders.

An extraordinary general meeting was also held, where approval was given to amend the memorandum and articles of association after obtaining necessary regulatory approvals.

 

Source: https://www.gdnonline.com/Details/940580/BCFC-financials-approved

 

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