During the first half of 2012, SHUAA incurred charges

related to the Company's restructuring programme, which only started to have a positive impact on General and administrative expenses during the second half of 2012. The full impact of the 2012 restructuring programme is expected to be recognized in 2013 with an additional cost improvement of 10%. Revenues for Q4 2012 were AED25.2 m compared to AED20.1 m for Q4 2011, representing an increase of 25% and bringing 2012 annual revenues to a total of AED137.3 m, a 38% increase over 2011 revenues of AED99.3 m. Revenues were buoyed by an increase in interest income and a positive swing in investments in SHUAA's managed funds. In the fourth quarter 2012, SHUAA achieved its strategic and financial objectives. The fourth quarter net loss improved to AED20.7 m from a loss of AED111.9 m in the same period last year with the benefits of the rightsizing programme showing a positive impact on the Company's bottom line. SHUAA continues to prudently value its assets and as such there were no investment impairments in the period. SHUAA further strengthened its balance sheet. As at 31 December 2012, total assets stood at AED1.4 bn. Cash and deposits rose 24% to AED423.3 m. Throughout the year, the Company continued to reduce liabilities by retiring debt. Total liabilities consequently fell by 38% to AED269.4 m from AED437.2 m at the end of 2011, lowering interest expenses by 28 % to AED11.7 m from AED16.2 m in 2011. HH Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of SHUAA Capital, commented on the results: "Despite the volatile market environment in 2012, SHUAA's financial results for the full year are in line with our market guidance. Strategically, 2012 was a transformational year for SHUAA and the business achieved key milestones in its announced restructuring programme. We successfully completed four major turnaround initiatives, including the rightsizing programme, the reduction in non-core assets, the transformation of our industry leading balance sheet by strengthening our liquidity position and the announcement of a clear strategic, financial and operational roadmap with a focus on recurring revenue generation. The reduced scale of our industry and the renewed need for capital and advisory expertise are playing out in our favour. While most of the regional financial services industry is still in restructuring mode, SHUAA now has a competitive advantage and the ability to focus on revenue generation. The recent revitalization of our financial brand and the positive feedback on our strategic direction from shareholders and clients underscore our position of strength versus peers. SHUAA is now in a unique position to focus on growth which will result in a stronger performance in 2013." Segmental Information- Lending: SHUAA's Lending division recorded full year revenues of AED75.6 m (FY2011: AED61.2 m) and Q4 revenues of AED19.9 m (Q4 2011: AED18.2 m). Full year profit was AED3.0 m (FY2011: AED23.4 m), with a marginal quarterly loss of AED0.8 m (Q4 2011: profit of AED5.4 m). Overall, Lending had another strong year and contributed over 55% of SHUAA's revenues in 2012. (MORE) PRNEWSWIRE/ASIANET VSS 02111735 NNNN