Loghani: We Continue to Enhance our Leadership in Auto Market and Services

Loghani: We Continue to Enhance our Leadership in Auto Market and Services

Loghani: We Continue to Enhance our Leadership in Auto Market and Services30Dec

Aayan Leasing Holding held on Tuesday May 26th, 2015 its regular general assembly with 98% attendance rate. In which a review of the most important achievements of the Company and its financial results for the fiscal year ending December 31, 2014. This came in a statement made ​​by Mr. Ahmed Issa Loughani, Chairman of the Board after the completion of the work of the Assembly.

Aayan Leasing Holding is considered the operational arm of Aayan Leasing And Investment Co. in the field of autos and its services; it is completely owned by Aayan Leasing And Investment Co. It manages Aayan's cars portfolio in Kuwait and abroad. As a holding company it owns several subsidiary companies mainly: Aayan Kuwait Auto Co. a company specialized in leasing and selling used cars, Budget rent-a-car, which is an international rent agency owned in Kuwait by Aayan and focuses on short and medium term leasing, Aayen Garage which is the main center specialized in providing repair and maintenance services to Aayan's fleet, it is equipped with up-to-date equipments and tools with two branches in Shuwaikh Industrial Area and Ahmadi city; Rekab rent a car also specializes in short and medium term leasing, Rawahel Transportation Co. whose scope of work include providing transportation services to Hajj and Omrah companies within and outside Saudi Arabia.

At the end of the General Assembly, Loghani affirmed that company results exceeded the expectations, as the revenues achieved surpassed company goals, leading to higher profits. Moreover, the company continued its relentless expansion in Kuwait in a thoughtful and systematic manner aimed at maximizing profits, increasing shareholders' equity, and reducing the risks at the same time.

Financial Indicators

On this occasion Loghani said the company was able to realize positive results as profits rose by %105 at net profit of KD 5,272 million compared with profits of KD 5,036 million for fiscal year ending in 2013. Gross profit ratio to operational income reached %26 compared with %29 for 2013; while return on total assets was %8 compared with %7.65 in 2013.

In addition, Loghani added, total company assets increased by %6 to KD 69,640 million as in 31/12/2013 compared with KD 65,823 million as of 31/12/2014. And shareholders' equity increased by %40 reaching KD 22,922 as in 31/12/2014 compared with KD 16,357 million for the same period in 2013.

Loghani said that all profits and returns of Aayan Leasing Holding Co. –a subsidiary of Aayan Leasing And Investment Co.- are fully operational profits and returns due to the pure operational nature of company activities. Adding that the company took several steps during last year that led to increase of sales; as it opened more auto showrooms, enhanced its relationships with major auto dealers in Kuwait, introduced new models to the list of available cars in the Operational Leasing product.

Furthermore, Loghani pointed out that Aayan deals with wide and important economic sectors in Kuwait such as the construction sector, service sector, government sector like the ministries, authorities, and institutions through securing and winning a decent number of government tenders.

In addition, Loghani affirmed that Aayan have a considerable leading share in the operational leasing market in Kuwait since it was one of the pioneering companies in Kuwait to offer this product. It continued its leadership in this field by being keen on completing all elements of operational leasing, from maintenance, repair, insurance, alternative car, and so on. Aayan developed and created several distinct services in the operational leasing field since it commenced activities in this market in 1999, another reason why it maintained its position as one of the leading companies in the operational leasing field in Kuwait.

With respect to used cars, Loghani said the company had excellent performance during 2014 in the sale of used cars and achieved good profit this year. With the opening of these two new branches, now Aayan operates five branches that cover all areas of Kuwait.

On the other hand, the Chairman of the Board asserted that the company continued to expand outside Kuwait; it opened a new branch during last year in Dammam city in the Eastern Province in Saudi Arabia. That comes as implementation of the expansion plan being executed deliberately in order to cover all main areas, cities, and markets in Saudi Arabia. Adding that the new branch is intended for new models of used cars, whereas the showroom expands over an area of 2600m, located in an area dedicated for used cars showrooms.

Moreover, Loghani declared that the company had launched several promotional and marketing campaigns throughout the year, taking into consideration the different seasons like spring or travel seasons, etc. additionally, Aayan issued a quarterly magazine that contains a presentation of all cars offered by the company in the operational leasing product, with display of specifications for each car. Loghani explained that the magazine –which contains 20 pages and features a sophisticated and attractive design that takes into account the modern design trends with modern, luxurious, and elegant prints- aims to familiarize clients and the public with the types of cars offered by Aayan and stays with them for future reference. Noting that this magazine is the first of its kind in Kuwait to specialize in presentation of cars available within operational leasing product.