Abu Dhabi's IHC reports eight-fold revenue increase on back of acquisition spree

The company owns Quantlase Imaging Lab, which is behind the rapid screening test in place on the Abu Dhabi-Dubai border

QuantLase Imaging Lab's technology has run rapid laser testing to screen people on the border between Abu Dhabi and Dubai. It tests for signs of surging red blood cells, which is an early indicator thShow more

Abu Dhabi-based International Holding Company posted an eight-fold increase in revenue for the third quarter of 2020.

The rise in revenue to Dh2.2 billion ($599.45 million) for the three months to the end of September propelled quarterly net income to Dh959m, up from just Dh16m in the same period last year.

The rise was "primarily driven by our healthcare, food products and maintenance and service verticals, which make up to 67 per cent of total revenues", IHC's chief executive Syed Basar Shueb said. "We look forward to an outstanding end of year."

The company's healthcare arm owns Quantlase Imaging Lab, the company behind the rapid Covid-19 screening system operated on the border between Abu Dhabi and Dubai at Ghantoot.

IHC, which is majority owned by Abu Dhabi's PAL Group of Companies, has been on a acquisition spree this year, securing a 52 per cent stake in R-Med Medical Supplies, a company that makes sterilising gates placed at the entrance of buildings to limit the spread of Covid-19.

It also acquired property developer Royal Development and project management firm Royal Architect and taken a 60 per cent stake in Apex Alwataniah Catering Service. The deals meant the company's total assets have increased three-fold during the nine-month period to Dh12.1bn. Liabilities have also increased more than three-fold to Dh6.2bn over the same period.

Revenue for the nine-month period grew more than seven-fold to Dh4.6bn, while profit jumped to almost Dh1.8bn, up from Dh27m in the same period last year.

Earlier this month, the company took a stake in Oxford Nanopore Technologies, a UK-based firm that specialises in DNA sequencing technology. The company invested £39m ($51m) in Oxford Nanopore’s £84.4m equity raising exercise and said the deal would help it to boost its Covid-19 testing capability.

Its subsidiary IHC Food Holding also entered into a partnership with Sudan's DAL Group, which will invest $225m in developing more than 100,000 acres of farmland in the North African country over the next 10 years.

The company's shares closed 1 per cent higher on Wednesday at Dh38.36 per share and have increased more than six-fold in value since the start of the year.