KUWAIT: Chairman of the Board of Gulf Cable and Electrical Industries Co Bader Nasser Al-Kharafi said the company adopted a promising strategy to carry out controlled quality takeover operations, which will have positive effects on the company’s performance and revenues, in addition to shareholders’ equity.
Al-Kharafi, who spoke on the sidelines of the company’s general assembly that was held recently, said Gulf Cable is currently interested in expanding its operational investment to go along with approved strategic plans, which reflects its ability and solvency as a main umbrella that has become like a holding company.
Plans and standards:
Going for various acquisitions.
The right selection at the right time.
Concentrating on highly active management.
Al-Kharafi said the search for acquisitions resulted in the quality takeover of National Investments Company, which is now categorized as an associate company after the increase of Gulf Cable’s share in it. “The creation of various investment Gulf Cable is only the start towards more sustainable growth, and maybe our presence as a major shareholder in National Investments Company is one of the historic main steps of the portfolio,” he said.
Effects of takeovers
Al-Kharafi expected the operation to have a great impact on Gulf Cable and its assets as a comprehensive entity that is enough to expand it to various sectors. He added the plan includes ownership of other operational entities including Care for Building and Cities Cleaning Contracting Company as a subsidiary, along with Heavy Engineering Industries and Shipbuilding Co (HEISCO), which is considered among the strategic moves, besides NIC and other promising assets.
Al-Kharafi said the ambitious future vision of Gulf Cable relies on moving along with quick changes in local, regional and international markets, as the company is currently concentrating its efforts on the development of its resources and plans on seizing promising investment opportunities to increase income and profits in a way that guarantees it ability to compete and expand.
Al-Kharafi spoke about Gulf Cable’s annual performance, which reflects a growth in its profits for the year by 188.2 percent to reach KD 16.06 million at 77 fils per share, compared to KD 5.57 million for 2020. The general assembly approved the board of director’s recommendation to distribute cash dividends estimated by 60 fils per share according to the rules in effect at Boursa Kuwait. The general assembly approved all items on the agenda including the board of director’s and auditors’ reports.
The company’s assets recorded a 56 percent increase reaching KD 316.35 million, compared to KD 202.77 million, according the annual financial data for 2020. Cables achieved total revenues of KD 81.3 million for 2021, a growth rate of 2.6 percent compared to KD 79.3 million for 2020. It is worth mentioning that the company revenues are made up of three elements – Gulf Cable sales at KD 65.5 million, investments of KD 12.8 million and rendering services of KD 3 million.