Kipco expects to double profits in 2009

The company also expects to grow revenue by 10% or more during the year.

Kipco also announced, that market conditions permitting, it expected during 2009 to launch a regional savings and pension product and private equity fund focused on the Mena region and aimed at the global financial community.

The announcements were made at the company's annual Shafafiyah (transparency) Investor's Forum where Kipco presented a review of 2008 and guidance for 2009 to shareholders, partners and institutional investors.

The Investor's Forum followed the company's General Assembly meeting where Kipco shareholders approved the proposed dividend of 40% (40 fils per share).

At the Forum, Kipco also outlined its plans for its existing operations which include improving the cash flows of its core companies, reducing the average cost of ownership and regionalizing core companies at a deeper and faster rate. The company has also instructed its core operations to maintain strict liquidity management and introduced cost savings across the Kipco Group.

Speaking at the Forum, Mr Faisal Al Ayyar, Kipco's Vice Chairman, said despite tough market conditions, the company's core operations were performing well and that Kipco is determined to manage the implications of the current financial crisis and emerge from it even stronger:

"Our existing operations are in good shape and performing well in their first quarter of 2009. These companies are currently delivering operating results ahead of their budgets and are demonstrating the quality of management and processes we have installed across the Kipco Group. This is allowing them to deliver superior operating results in these difficult times."

"Kipco has a very strong liquidity position and no debt repayments for 20 months. We remain the highest rated corporate in the region. This is a very healthy position for the company to be in and we fully expect the Kipco Group to exploit current market conditions. As a result, we expect 2009 to be our eighteenth consecutive year of profitability."