RAK Ceramics profit fell during the first half of the year to nearly Dh150 million, while revenue fell after the company refocused on its core products.
The Abu Dhabi-listed company reported a net profit of Dh149.9 million, down from Dh151 million during the first half of last year. Net profit margins increased to 9 per cent in the first six months, compared to 8.6 per cent for the corresponding period last year.
The decrease [in revenue] came because “we are exiting the non-core activities and focusing on core businesses, which from now will be tiles, sanitaryware, tableware, faucets and adhesives,” said Abdallah Massaad, the chief executive of RAK Ceramics.
He predicted that revenue would continue to fall until output capacity for core products was sufficiently increased.
Revenue from non-core businesses, which included construction and property activities, decreased by 34 per cent.
Revenue from ceramic products increased by 3.9 per cent to Dh1.41bn, accounting for 84.9 per cent of the total revenue. The new focus follows the private equity firm Samena Capital’s acquisition of a 30.5 per cent of the company from Ras Al Khaimah’s ruling family.
In April, Samena Limestone, a subsidiary of Samena Capital, acquired the stake for an estimated Dh957m.
The emirate’s Ruler, Sheikh Saud bin Saqr Al Qasimi, who is also the RAK Ceramics chairman, continues to hold 20 per cent of the company.
“We are working closely [with Samena], and as private equity players they have the mentality of growing the business and creating value, which tallies with what we want,” Mr Massaad said.
The company exports 75 per cent of its products. Its largest market is the Arabian Gulf, with Saudi Arabia as number one, followed by the United Kingdom and Germany in Europe.
“Europe is a stable market but not growing, while the Gulf is a fast-growing market, so it balances out,” Mr Massaad said.
In the second quarter, the UK market saw no growth in construction output compared with the first quarter, according to the UK’s Office for National Statistics. In Germany, construction output decreased 2.5 per cent in May over the same period in the previous year.
In Saudi Arabia, the value of projects planned or under way is worth US$1 trillion, according to Meed.
RAK Ceramics also said that it would invest $100m in increased capacity in Bangladesh and India. It is adding a bigger kiln to increase production in Bangladesh by 35 per cent in a year’s time.
In India it is weighing an IPO to fund its expansion there, Mr Massaad said last week.
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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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Myofascial pain syndrome refers to pain and inflammation in the body’s soft tissue. MPS is a chronic condition that affects the fascia (connective tissue that covers the muscles, which develops knots, also known as trigger points).
What are trigger points?
Trigger points are irritable knots in the soft tissue that covers muscle tissue. Through injury or overuse, muscle fibres contract as a reactive and protective measure, creating tension in the form of hard and, palpable nodules. Overuse and sustained posture are the main culprits in developing trigger points.
What is myofascial or trigger-point release?
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A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Tips for SMEs to cope
- Adapt your business model. Make changes that are future-proof to the new normal
- Make sure you have an online presence
- Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
- Open communication with customers to see how they are coping and be flexible about extending terms, etc
Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
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1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
