At its annual Investors’ Forum, KIPCO – the Kuwait Projects Company – said it expected its core companies to continue to deliver double digit revenue growth in 2014.

The announcement was made at the company’s annual Shafafiyah (transparency) Investors’ Forum where KIPCO presented a review of 2013 and guidance for 2014 to an audience of shareholders, financial analysts and institutional investors.

The forum followed the company’s General Assembly meeting where KIPCO shareholders approved a cash dividend of 20 per cent (20 fils per share) and a stock dividend of 5 per cent.

As part of its review of the last 12 months, KIPCO said that 2013 was its twenty-second consecutive year of profitability. The company met its objectives for 2013 and delivered on its promise to achieve double-digit growth for its core companies. KIPCO’s revenue grew 34% from KD 414 million (US$ 1.47 billion) in 2012 to KD 553 million (US$ 1.96 billion) in 2013, and its profitability grew 27% from KD 32 million (US$ 114 million) in 2012 to KD 40 million (US$ 142 million) in 2013.

KIPCO expects Burgan Bank to continue to grow its assets by 10% and increase its operating profit by 15% in the period 2013-2016. OSN will continue its impressive growth in revenue, EBITDA, net profit and cash flow, and is expected to double its revenue in the next three years with industry-leading EBITDA margins and profits.

KIPCO said Gulf Insurance Group will further its regional expansion with entry into the Algerian market through the acquisition of a 49% stake in Algeria Insurance, and is expected to double its gross premium written to US$ 1 billion in the next five years.

KIPCO’s real estate arm, URC, is due to complete its Abdali Mall project in Jordan and the Raouche at 1090 project in Lebanon this year and start construction of its Aswar residential project in Egypt. The real estate company’s projects coming into operation in 2014-2015 will step up rental income by US$ 35 million. TAKAUD, KIPCO’s pensions and savings company, is expected to expand to other markets in 2014 following its successful launch in Bahrain, targeting a US$ 500 million contribution in the next five years.

KIPCO’s industrial arm, UIC, will continue its path of good performance in 2014 and its revenue and operating profit are both expected to grow by 20% by 2016. Meanwhile, United Education Company will continue to bring the best private education to Kuwait, developing its new K-12 school in 2014, and expanding its existing schools and the American University of Kuwait.

Speaking at the Forum, KIPCO’s Vice Chairman, Mr Faisal Al Ayyar said:

“At last year’s Shafafiyah Investors’ Forum, we said we expected to see double-digit growth in 2013. During the year, our major core operating companies have delivered on this promise. Burgan Bank’s revenue increased 33% while Gulf Insurance Group’s revenue was up 13%. OSN increased its revenue by 29%. These results reflect the positive performance trends in our core sectors. They are also evidence of the growth of our companies in 2013 and their sound profitability.”

Commenting on the outlook for 2014, Mr Al Ayyar said:

“We enter 2014 with profitable and growing businesses across the sectors in which we operate. We expect to continue to deliver double digit revenue and profit growth in the next three years. Indicators point to gradual local and regional economic recovery, and our companies are poised to benefit from this improvement in their respective markets and to continue to be profitable and dividend paying in 2014.”