Citadel Capital, a private equity firm, announced on Sunday that its 2013 net profits totaled EGP 10.5m and revenues amounted to EGP 126.6m, marking a 1.9% year on year increase. The leading investment company in Africa and the Middle East pointed out that it recorded profits in the four consecutive quarters of last year as a result of collecting net financing gains, advisory fees and proceeds from affiliated companies. Founder and Chairman of Citadel Capital Ahmed Heikal attributed the profit to "prudent" risk management throughout 2013, "which reflected on the company's financial performance". "We look forward to a successful conclusion of capital increase in late March," he added. "Quarter on quarter revenues rose 59.8% on stable advisory fees and EGP 31.2m in dividend proceeds from a fully-owned Citadel Capital subsidiary," the firm said, noting that its net loss in FY 2012 recorded EGP 66.4m. Citadel Capital's release of its financial results comes as it prepares for its transformation into an investment company "that should be judged by the consolidated performance of its investments". As a part of the company's ongoing transformation from an equity firm to an investment company, Citadel Capital completed an asset purchase in five core industries, including energy, transportation, mining, cement and agrifoods, with a value of EGP 3.5bn. The transformation process, launched by the company in October, is targeting a capital increase to EGP 3.64bn. Earlier in January, the firm announced that it has completed an asset purchase worth a combined EGP 2.628bn, and expects to make additional purchases with a value of EGP 132m "in the coming period". Citadel Capital controls $9.5bn in equity, and has suffered losses in the past two years due to general economic instability in the Middle East.
