DGAP-News: ADC African Development Corporation GmbH & Co. KGaA / Key
word(s): Half Year Results
ADC publishes excellent results for Q2 2011 ++ Net profit of EUR 3.2
million ++ Outlook very positive and guidance for the full-year
confirmed
11.08.2011 / 17:43
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ADC African Development Corporation (ADC), ISIN DE000A1E8NW9, a fast
growing financial services group focusing on the frontier markets in
sub-Saharan Africa, today reports its results for the second quarter of
2011.
ADC is pleased to report an excellent net profit of EUR 3,242k (Q2 2010:
EUR -664k). In the second quarter of 2011, ADC earned consolidated revenues
and investment income of EUR 761k, an increase of 29 % compared to the
previous year's second quarter (Q2 2010: EUR 590k). The increase in revenue
occurred due to a dividend paid by ADC's portfolio company BancABC.
Earnings from operating activities (EBITDA) in the second quarter amounted
to EUR 2,471k. The main driver in this quarter was the revaluation from
ADC's stock market listed portfolio company BancABC. The 20.1% stake
acquired in March of this year, increased in value from EUR 9,973k in the
first quarter to EUR 14,178k in the second quarter 2011. As of June 30th,
2011 ADC has shares in associated companies on the balance sheet valued at
EUR 37,405k at the end of the quarter. Besides that, ADC has cash of EUR
28,762k at the end of the quarter.
These numbers - especially net earnings - are even more impressive, as
currently ADC only consolidates SIMTEL, therefore just operating expenses
including transaction fees for new acquisitions as well as mark-to-market
revaluations of listed portfolio companies are shown on the profit-and-loss
statement at the end of each quarter. The positive development of
non-listed portfolio companies is just shown in year-end accounts as
revaluation gains that have a major positive impact on full-year results.
Due to this method, single quarterly results are inherent to the system
regularly far below full-year results. Q2 numbers therefore have been above
management projections.
The consolidated interim financial statement for the second quarter of 2011
(IAS 34) will be released together with the quarterly report on August
23rd, 2011. In the meantime, last Monday's monthly letter to the
shareholders gives investors further background information:
http://www.african-development.com/files/adc_shareholder-letter_august_eng
lisch.pdf
Olaf Meier, Managing Director of ADC, commented: 'For sure in the last
weeks thinking about investment opportunities in Africa has not been
investors' first priority. Europe's debt crisis, the almost-default of the
US and the decline of the international stock markets have been the hot
topics superposing every other issue. But exactly these global problems are
actually a good reason to look at Africa: The dominance of the Western
world is coming to an end, and Europe and the US are struggling for
survival as economic forces. Of course, over the next decades both regions
will still play an important role, but not a dominant one. The new
pacemakers of the world are the booming states in Asia, especially China,
India and Africa. Investors should go where real fundamental economic
growth is, and our Q2-results show that value creation on the ground is
healthy and boosted by sustainable growth in the region. We therefore
confirm our guidance given to the market in Q1: we expect 2011 year-end
results to exceed the 2010 full year consolidated net profits, which
totalled to EUR 6.6 million.'
Management is pleased to meet with investors on the occasion of 2nd African
Alliance East African Investor Conference, Nairobi, on 5th & 6th September,
2011, or on the occasion of Standard Bank's African Equities Conference on
26 & 27th September, 2011 in New York.
About ADC
ADC African Development Corporation, ISIN DE000A1E8NW9 (ticker symbol:
AZC.GR), was established in September 2007 and quickly positioned itself as
one of the leading investors for banks and insurance companies in the
above-average growth markets of sub-Saharan Africa. The company's success
is primarily due to its local management team, which follows international
best practice principles to further develop banks and implements
conventional international processes to increase their profitability. As
the second international emerging market investor in the world, ADC was
integrated into the insurance solution offered by the Multilateral
Investment Guarantee Agency ('MIGA'), a member of the World Bank Group,
primarily due to its strong operational approach and adherence to the
highest ethical standards. This insurance offers protection against a
variety of political risks, in particular the risk of radical political
change.
Contact:
Olaf Meier
Member of the Board
investor-relations@african-development.com
T +49 69. 719 12 80 123
End of Corporate News
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Language: English
Company: ADC African Development Corporation GmbH & Co. KGaA
Grüneburgweg 18
60322 Frankfurt/Main
Germany
Phone: +49 69 719 12 80 00
Fax: +49 69 719 12 80 011
E-mail: info@african-development.com
Internet: www.african-development.com
ISIN: DE000A1E8NW9
WKN: A1E8NW
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
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135399 11.08.2011
DGAP-News: ADC publishes excellent results for Q2 2011 ++ Net profit of EUR 3.2 million ++ Outlook very positive and guidance for the full-year confirmed
| Source: EQS Group AG