Transguard secures profit of $20 million
UAE’s Transguard Group profits double to $20 million despite global economic climate; seen as ‘ideally placed’ for next wave of growth
Transguard Group, an Emirates Group company, has despite the tough trading and funding environment, managed to record an increase in turnover of 57% to AED607 million ($165 million) and a doubling of profits to AED75 million ($20 million), according to the company’s annual report published today.
“Despite the challenging global economic conditions, the Transguard Group has maintained its exceptional rate of growth,” said Transguard Group CEO Dr Abdulla Al Hashimi. “It is a testament to the robustness of the group that it has been able to prosper in the current economic climate.”
Dr Al Hashimi was commenting on Transguard Group’s annual financial statement showing revenue and profit increasing for the financial year which ended on 31 March 2009 to almost AED607.7 million ($165.5 million) and AED75.4 ($20.5 million) respectively, representing a net profit margin of 12.4%. This compares favourably with revenue and profit of nearly AED384.9 million ($104.8 million) and AED33.1 million ($9 million) respectively in the previous financial year, representing a total net profit margin of 8.6%.
With a full-time staff of over 38,000, the Transguard Group is the leading security services provider in the region which has successfully diversified into business support services covering facilities management, cash management, security training, consultancy, airport services and event management. Dr Al Hashimi said this process of diversification and consolidation would continue throughout the current financial year and “will be intrinsic to the future success and growth of the group.”
Chief Financial Officer John Nolan said the 2008-2009 financial results are a reflection of measures taken to protect the company against risks associated with the global credit crisis and its effects in the UAE. These included strengthening risk management and a significant focus on working capital management. “Consequently the company has successfully adapted to the tougher trading and funding environments,” said Nolan.
Looking ahead, Managing Director Mike McGeever said: “The priority is to further consolidate the group and to continue to develop its commercial profile, ensuring that it is ideally placed for the next wave of growth. With this in mind, our key objective for the next 12 months is to replicate this year’s financial performance, a substantial achievement in itself and one which will reinforce our reputation as one of the most reputable and successful companies in the UAE and one with a long and secure future.”
Transguard Group’s facilities management clients include Dubai International Airport Terminal 3, Atlantis the Palm and Emaar Hospitality, while its airside services division provides a range of support services to the Emirates Airline, including cleaning the new Airbus A380 fleet.
Its cash services division has a fleet of some 200 vehicles and has opened a cash management centre in Abu Dhabi and operational offices in Ras Al Khaimah and Fujairah, supporting its main cash centre in Dubai.
Significant clients of the Group’s security services technology division include Burj Al Arab, Madinat Jumeirah and Halliburton, while its Patrol division is seen as the number one supplier of security guarding services in the region.
Transguard Group’s events division brought international rock group Queen and Paul Rodgers to Dubai and staged the return of Irish star Bob Geldof, as well as White Collar Boxing Fight Night, a successful corporate entertainment event.
