Leeds Utd boost GFH profits but 'sale nears'Last updated: 25th Feb 2013 at 08:16am
Keyword tags: GFH Capital, Leeds United
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By Laurence Kilgannon, Yorkshire Correspondent
The acquisition of Leeds United has boosted profits at their Bahraini owner, accounts for Islamic investment bank Gulf Finance House (GFH) have revealed.
But the Championship club are reportedly set to be sold to a consortium led by sports entrepreneur and former Leeds director Adam Pearson with a share purchase agreement drawn up between the parties.
GFH, which acquired Leeds United in late December through its Dubai-headquartered subsidiary GFH Capital in one of the most eye-catching deals of 2012, reported net profit of $10m (£6.6m) for the year to 31 December.
This was up from its $380,000 net profit in 2011 and helped by a net profit of $2.5m in its fourth quarter which the bank accredited in part to the income generated from its investment in Leeds United.
GFH's acting chief executive Hisham Alrayes hailed the Leeds deal as an example of the bank's diversifying approach.
"GFH has undertaken new investments, Leeds United FC being one of them, which indicates the bank's entrepreneurial initiatives in exploring new area of investments and establishing new standards," said Alrayes. "These should prove to be successful milestones for the bank."
Despite the success of the Leeds United acquisition, a deal to sell the club to a consortium fronted by Pearson is close to conclusion, the Sunday Times has reported.
Pearson, who is understood to be working with Clipper chairman Steve Parkin, will take over day-to-day running of the club, and has secured backing from an unnamed Saudi Arabian investor. The current Hull FC rugby league chairman exclusively revealed his interest in returning to football, preferably with Leeds United, to Insider at the start of February.
Having previously owned and chaired football clubs Hull City and Derby County, Pearson said he would "definitely get back into football".
"I'm just looking for the right opportunity. I would like to go in with a consortium with a club that has huge potential.
"The one that stands out is Leeds United."
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