Kuwait - 26 percent increase over the last year
Company makes 8 international acquisitions and wins 6 new major contracts in 2007
Agility, today announced its annual financial results for the year 2007 with a 26 % increase in top line growth reaching USD 6.25 billion, and with operating profits standing at USD 652.466 million for the year.
Announcing the results, Tarek Sultan, Chairman and Managing Director of Agility said: "Our 2007 financial results demonstrate the strength of our growth potential. We continue to retain long standing customers and expand our existing customer base to witness top line growth. As we progress, we will build on this potential by ensuring a stronger customer focus and closer collaboration among our individual businesses and employees at all levels.”
Agility has a network of over 32,000 employees in more than 550 offices across the world that serve three key business groups - Global Integrated Logistics (GIL), Defense & Government Services (DGS) and Investments.
Sultan highlighted: “As we continue to concentrate on organic growth and development and drive efforts to improve cash generation; we have adopted the strategic controller business model which has allowed us to evolve into three independent, yet synergized groups. This will allow us to further leverage our emerging market platform and superior growth opportunities; one of Agility’s competitive advantages. Our strategic positioning in these high growth markets and key geographies creates an ideal platform for development; leveraging our global network and unique local knowledge. Today we have a well established footprint in the Middle East region, and an unparalleled adaptable logistics and distribution capability.”
Agility’s strong position in the Middle East is reflected through some significant wins in 2007 that included the Qatar – Pearl GTL project; a 3PL contract with Matrah Cold Stores in Oman; new warehouses in Queen Alia International Airport Free Zone in Jordan; and a joint venture in Abu Dhabi with Mubadala & Al Bateen Investments.”
“We have begun putting in place the measures required to maximize our operating platform and ensure cost alignment in the coming quarters. Underlying these initiatives is Agility’s road map towards improving performance. Each business group is focused on executing its individual road map along side their strategic thrust which is focused on delivering tangible results to our investors.” Sultan added.
He also emphasized: “As always, we remain strongly committed to our shareholders and promise to continue improving our disclosures. 2007 has witnessed Agility embarking on investor road shows based in the UAE; Egypt, London, and New York to reach out to the capital markets community where senior management has met with over 250 institutional investors. This will continue in 2008 with more specific road shows and an Investor Conference. A cornerstone of this commitment is to gradually provide more transparency along the business group financials and create more comparable financial reports.”
Sultan further underscored Agility’s commitment to the shareholders by closely monitoring the stock performance and potentially putting into practice the company’s ability to buy back up to 10% of outstanding shares throughout the year.
Agility Board of Directors and have recommended a cash dividend distribution of 80 fils per share, and a stock dividends of 10%. In addition to a 25% capital increase at 100 fils par value and 350 fils premium.
Agility Key Achievements in Year 2007
Mergers, Acquisitions and Joint Ventures:
- Leader Group: A specialized freight forwarding and shipping agency services group based in Alexandria, Egypt.
- WTS Houston Inc.: A global logistics company WTS of Houston, Inc., (WTS), and its sister company, World Transportation Services, Inc., (Global Express Line)
- Guangzhou Runtong International Transportation Company Limited (GRITCL): A South China company primarily focused on ocean freight forwarding services in Guangdong.
- Synergy Shipping Pte Ltd (SSPL) and Synergy Logistics Pte Ltd (SLPL): Singapore based companies specialized in the transportation of oilfield tubulars and related exploration and drilling equipment s well providing a broad range of international freight forwarding services between South East Asia, the Middle East, Europe and the US.
- LEP International (NZ) Ltd: Leading New Zealand freight forwarder LEP International (NZ) Ltd. The new company incorporated LEP International (NZ) Ltd in New Zealand and LEP International Pty Ltd in Australia and the related project logistics company, Pan Orient Shipping Services Pty Ltd - which trades under the name of AFS Projects and Logistics.
- Mubadla & Al Bateen Investments : Joint ventures with these two UAE companies to form Agility Abu Dhabi that will provide integrated logistics solutions including warehousing, transportation, distribution, freight forwarding, project logistics and other value-added supply chain services to businesses in Abu Dhabi
- Medgroup: An agreement to acquire the Paris based Medgroup that includes Medorient Algeria, Medorient France and Med-Logistics UK.
- Starfreight Logistics Limited: Increased presence in East Africa with acquisition of Starfreight Logistics Limited, customs clearance and freight forwarding specialist in based in Nairobi, Kenya
- Combalia: Agility acquired all transportation and warehousing activities provided by Combalia Transportes Internacionales 1986, S.L. in Barcelona and Madrid, Spain
- Qatar – Pearl GTL project : Agility Project Logistics joined hands with Transcar Projects Ltd. win the global shipping contract for two phases of the Pearl Gas to Liquids (GTL) in Ras Laffan, Qatar
- US Army’s Logistics Civil Augmentation (LOGCAP) IV: Agility DGS was selected as a part of the DynCorp International team for the US Army’s Logistics Civil Augmentation Program (LOGCAP) IV contract. The LOGCAP IV program provides global, multi-functional contingency logistics support to the US Army and other US Government agencies as required
- US Air Force Base Maintenance Contract in Spain: Spain Agility First Support, LLC (Spain AFS), a joint Venture with First Support Services, Inc. (FSSI) awarded two-year, contract for Spain Base Maintenance by the United States Air Forces in Europe (USAFE).New company will support day-to-day base operations and maintenance services at Morón and Zaragoza Air Bases in Spain.
- 3PL contract with Matrah Cold Stores (Oman): Agility supplies MCS with warehousing, inventory management, transportation and other value added services
- Sultan Center Group: The Sultan Centre (TSC) chain of discount stores, one of the widely recognized retail groups in the region, has appointed Agility, to provide Logistics services in the Sultanate of Oman.
- US Air Force Base Service Operations in Kyrgyzstan: A one-year base period and four one-year options. The potential value of the contract is up to USD$25.7 Million.
Certificates and Awards:
- ISO 14001:2004 and OHSAS 18001:1999 certification: Quality Environmental, Health and Safety certifications by the Lloyds Register Quality Assurance (LRQA) for Kuwait operations
- Best 3PL Provider of the Year: Awarded at the Supply Chains & Transport Awards (SCATA) held in Dubai
- Best Onsite Agent Award: Agility Fairs and Events was chosen as the best onsite agent by International Exhibition Logistics Associates (IELA) at the IELA Congress 2007 held in Santiago, Chile.
- AEO Excellence Awards 2007: Agility Fairs & Events wins two prestigious Association of Event Organisers (AEO) Excellence 2007 awards for its Fairs and Events (F&E) division in the UK
- Best Road Hauler (Best Land Transport Company) of the year: Agility was awarded the best land transport company at the Middle East Logistics Awards (MELA), held at Dubai’s Madinat Jumeirah
- Best Airfreight Forwarder Award: At the Supply Chain Asia Awards at a glittering ceremony in Hong Kong
- Best Logistics Strategy Award: Worldwide Business Research (WBR) awarded Agility Defense & Government Services (DGS) the Best Logistics Strategy Award at the Defense Logistics 2007 awards ceremony for its Subsistence Prime Vendor Program
- Oil and gas support vessel in Indonesia: To meet growing demand for oil and gas logistics services in South East Asia, Agility launched a 70 metre long, heavy duty barge in Batam, Indonesia in October 2007.
- Three new bases in Houston, Paris and Amsterdam: Three new bases in Houston, Paris and Amsterdam Agility purchased approximately 433,000 square feet (40,300 square meters) in Houston, Paris and Amsterdam.
- New warehouse in Queen Alia International Airport Free Zone in Jordan: 1,000 square metre facility called Queen Alia Airfreight Logistics Center in Jordan.