SHUAA Capital (SHUAA) Q4 2024 earnings summary

Executive summary

• Net loss attributable to owners narrowed to AED 299 million for FY 2024, including AED 220 million in one-off non-cash charges, mainly impairments related to the Goldilocks fund.

• Operating revenues declined to AED 89 million in 2024 from AED 121 million in 2023 (excluding one-offs), mainly due to reduced capital allocation and lower fund net asset values impacting management fees.

• Adjusted net operating loss was AED 11 million, reflecting a temporary revenue reduction during a major business transformation and capital optimization.

• Strategic transformation and cost optimization measures implemented, including further impairments to enhance financial stability.

• No dividend recommended for 2024 due to ongoing losses.

Financial highlights

• FY 2024 revenues: AED 88.8 million, down AED 31.7 million from FY 2023 after normalizing for one-offs.

• Net loss: AED 321.2 million in 2024 vs AED 1,154.7 million in 2023.

• Loss per share: AED (0.12) in 2024 vs AED (0.36) in 2023.

• Total assets: AED 1,171 million at year-end 2024, down from AED 1,721 million at year-end 2023.

• Equity attributable to owners: AED 34.6 million at year-end 2024, down from AED 344.2 million in 2023.

Outlook and guidance

• Focus for 2025 is on completing capital optimization, reducing leverage, and enhancing the capital base.

• Further cost optimization and revenue-enhancing initiatives planned for FY 2025, contingent on capital optimization plan execution.

• Continued execution of cost rationalization and winding down of non-core assets to create a leaner organization.

• Core businesses positioned to capitalize on emerging opportunities in 2025.

• Management remains committed to reducing debt and managing liabilities.