Global holds a seminar on Gulf Franchising Company listing at Kuwait Stock Exchange

Attending the seminar were, from GFC Mr. Ahmed Saadoun Al-Yaqub, Chairman and Managing Director, Mr. Yasser Kouatly, the vice-president for Franchise Sales, and from Global Mr. Omar M. El-Quqa, CFA, Executive Vice President- Corporate Finance & Treasury, and Mr. Mohamed Abdul Aziz, a financial analyst, where they gave a detailed explanation of GFC's operations and financial data.

At the beginning, Mr. El-Quqa spoke briefly about the company history and the nature of its work, then he addressed Global's role in listing GFC at KSE, which comes at market upsurge period.

"The listing of the company coincides with the high activity that the market witnesses, either from the increase of the size of the current shares or, the rise of value," he said

He applauded the listings of many companies at the stock exchange lately and considered "a healthy economic phenomenon, on condition they are studied and controlled by market laws and regulations."

From his side, the Mr. Al-Yaqub expressed his thanks to Global's efforts for the completion of GFC listing in KSE, and hoped that it will added value to the spectrum of listed companies.

Then he spoke about the company history saying, "Gulf Franchising Company was founded in Kuwait in 2001 with a capital of 10 million Kuwaiti Dinars. Its aims at a possession, development, and marketing of International franchising licenses (Franchise) in different sectors."

He added, "Despite the company relative young age, we were able to possess five international licenses to the Gulf Corporation Countries (GCC) and the Middle East."

On the vision and mission of GFC, Mr. Al-Yaqub pointed that the company aims to become the most successful in developing and marketing of local and international franchise projects, either directly or, through a mediator.

From his side, Mr. Kouatly said the "franchise" term means the approval of a tested and successful system for an expansion and the development of the business, and giving the opportunity for entrepreneurs to run and manage a known brand.

He explained that the "franchise license" is acquired when the owner of a successful business owner grants permission to others for the use of the trade name, trademark, the commercial system, and the complete work mechanism for the development of their business in return to certain allowances and according to the license terms.

The vice-president the vice-president for Franchise Sales dept. said the GFC business divided currently into two main parts; the services sector and retail sector, with an eye to expand into food and entertainment in the near future.

The first sector includes the French laundry chain "5a sec," "Kwik Kopy" printing and photocopying services, computer services, and education and training services, shipping and expresses mail services, whereas the second sector has the Spanish fashion brand "ADOLFO DOMINGUEZ"as the current franchise.

Mr. Kouatly said, in light of positive results posted by Gulf Franchising Laundry company, carrier of "5a sec" franchise, GFC established Al-Bareeq Holding Company, specializing in the possession and the development of the dry-cleaning centers, with a capital of 1,500,000 Kuwaiti Dinars and plans to list the company at KSE.

"Currently, "5a sec" has nine branches with plans to open four outlets this year," he continued. "Also, Kwik Kopy has five branches, with five more slated to open in 2005."

On the other side, Mr. Abdulaziz spoke about GFC in 2004 until the first quarter of 2005.

He pointed that in 2004, the company incomes reached 2,179,159 Dinars, and the company net profits were 1,4 million Dinars approximately, with a percentage growth of 373%, return on equity 12% and return on assets 8 % in 2004

As for this year's first quarter, the revenues have reached 1,278,180 Dinars and net profit 932,135 Dinars.

As for the stock performance, Global's financial analyst explained that earnings per share in 2004 reached 14 Fils and the GFC dividends was 7%, whereas the Share Book Value was 117 Fils. For the first quarter of this year, earnings per share reached 9.32 Fils and book value 121 Fils.