LONDON (Alliance News) - Dubai-based Shari'a compliant investment company Tejoori Ltd said Tuesday that it expects to be more active in its current financial year, as it posted a fall in profit in the first half of the year due to lower returns on its wakala deposits.
Its net profit in the half year to end-December 2014 was USD26,481, down from USD89,175 as its return on wakala deposits was USD77,226 compared with USD219,746, although this was partly offset by a reduction in administrative and operating expenses.
Tejoori said that as at the end of the year USD3.95 million of its cash from investment was placed on short term wakala deposits, which carry a profit rate of 5% per year.
Wakala refers to a shari'a compliant savings account.
It made no new investments during the year as its existing investment portfolio continues to mature.
"We expect the company to be more active in the current financial year. The board will continue to work towards strengthening the company's investment portfolio and delivering value to shareholders," the company said in a statement.
Shares in Tejoori are untraded Tuesday. It last closed at 0.0700 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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