United Development Company (UDC), a fast growing diversified group, has reported a 9% rise in its January-June net profit to QR325.41mn despite a relatively marginal decline in revenue.

Otherwise, the company — the owner and developer of the Pearl Island — registered a double-digit growth in operating income, which was rather due to a substantial reduction in loss on impairment of investment portfolio as well as direct cost, according to its financial statement filed with the Qatar Exchange.

The company recorded a net profit of QR389mn compared to net profit of QR370mn, an increase of   5%, while net profit attributable to owners of the company stood at QR325mn against QR299mn.

“Our outstanding results are largely attributed to Qatar’s economic growth and stability,” UDC chairman Sheikh Ahmed bin Nasser bin Faleh Nasser al-Thani said.

Revenue was otherwise down 2% to QR1.27bn but cost of revenue plunged 14% to QR716.71mn, thereby helping the company to report a 13% growth in gross profit to QR508.25mn.

Of the QR1.27bn external revenue, urban development contributed QR1.03bn, infrastructure and utilities (QR169.17mn), hospitality and leisure (QR36.40mn) and others (QR32.31mn).

“Our financial results for the first half of 2013 reflect solid performances by the company and its subsidiaries, and we are confident we will keep up this momentum in the second half of this year,” according to UDC CEO Ebrahim Mubarak al-Sulaiti.

Dividend income was down less than 1% to QR26.04mn; even as other income gained 4% to QR70.93mn.

Though general and administrative costs rose 11% to QR142.89mn; loss on impairment of available-for-sale investments shrank 87% to QR2.91mn; helping UDC to report a 16% jump in results from operating activities to QR459.60mn.

Net finance costs were up 10% to QR22.42mn and net loss of results of associates grew about 11-fold to QR47.82mn.

Total assets were valued at QR18.35bn comprising current assets of QR6.63bn and non-current assets of QR11.72bn. Total equity stood at QR11.31bn on a capital base of QR3.37bn and earnings-per-share was QR0.96 at the end of June 30, 2013.

UDC has established successful strategic partnerships with major international companies operating in different fields.

Its target areas of interest include: infrastructure and utilities, real estate, hydrocarbon and energy, urban development, environmental-related businesses, hospitality and leisure, fashion, information technology, business and marketing services.