During the nine month period ended on 30 September 2012, the Group recorded a reduced loss of AED 38.3 million (9M 2011: loss of AED 181.9 million), principally due to a rise in 9M 2012 revenues to AED 112.1 million from AED 79.2 million in 9M 2011. The rise in revenues was supported by gains from Other Investments of AED 10.4 million compared to losses of AED 38.0 million in 9M 2011. The reduced loss was supported by 9M 2012 total expenses, which saw a substantial drop to AED 160.1 million (9M 2011: AED 223.0 million).
SHUAA's balance sheet remains strong with total assets of AED 1.4 billion. The Group retains a healthy cash balance of AED 343.6 million at the period end, up 26% from AED 272.2 million at the end of June 2012. Liabilities were further reduced by AED 31.0 million to AED 298.1 million at the end of the third quarter 2012.
HH Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of SHUAA Capital, said:
"The third quarter results prove that we took the right decisions to reduce our cost base against the uncertain market environment, exit non-core businesses and investments, focus on liquidity management, and reduce the volatility in our asset base. We have a clear plan to reach profitability and I am pleased that we continue to move in the right direction.Our strategy implementation is making good progress. We are transforming SHUAA to a fully integrated investment banking services platform to meet the demands of our client base, redeploying our balance sheet while maintaining cost and risk control. We have already begun to expand our Credit offering and are managing for profitability in our equities businesses. The response from our shareholders, our banking partners and the wider market to our new strategic direction has been overwhelmingly positive. It is early days, but as a team we have become energised and united behind our strategy. We have set ourselves challenging but realistic targets to act as milestones for our recovery and we look forward to achieving these aspirations."