ADC African Development Corporation AG
ADC African Development Corporation GmbH & Co. KGaA: ADC publishes third quarter 2012 results ++ Strong increase in revenues from dividends and advisory activities ++ Guidance for the fiscal year 2012 adjusted
ADC African Development Corporation GmbH & Co. KGaA / Key word(s): Interim Report 29.11.2012 18:40 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ADC African Development Corporation (ADC), ISIN DE000A1E8NW9, a fast growing pan-African banking group, focusing on the frontier markets in sub-Saharan Africa, has published its interim report for the third quarter 2012 and updated the guidance for the fiscal year 2012. The consolidated revenues and other income have more than doubled in the first nine months of 2012 to EUR 4.8 million compared to EUR 2.2 million in the corresponding period last year. The welcoming increase in revenues is due in particular to BancABC dividends, totaling to EUR 1.3 million which amounted to EUR 0.5 million the previous year. Moreover, revenues of EUR 2.1 million were generated through advisory activities. In the first nine months of 2012, the group recognized non-cash effective valuation losses of EUR 19.4 million. These were due in particular to BancABC. As a result of the mark-to-market valuation based on the share price performance, ADC recorded valuation losses of EUR 14.6 million in its stake in BancABC. Therefore, the fall in the BancABC share price from USD 0.95 at the end of 2011 to USD 0.53 (BWP 4.15) at the end of the third quarter 2012 is directly reflected in ADC's books. Consequently, ADC reported a net loss in the first nine months of this year amounting to EUR 25.9 million compared to a net profit of EUR 4.1 in the same period last year. Due to the high volatility of the BancABC share price, Management has adjusted the guidance which it had given at the beginning of the year. The forecasts which were set at the start of the year did not reflect such volatility in the BancABC share price nor did they take the increase in ADC's shareholding in BancABC into account as the possibility of taking over the majority just arose during the year. In light of this, the strong volatility was unforeseeable at the time the forecast was issued. +++ End of the Ad-hoc announcement +++ Dirk Harbecke, CEO of ADC commented: 'The financial results for the third quarter 2012 are characterized by non-cash effective revaluations. BancABC's H1 2012 results show strong growth despite a falling share price, which most analysts conclude is the result of low liquidity in Zimbabwe and Botswana, also driven by ADC now being the majority shareholder in the banking group. The stock performance does not parallel the group's excellent H1 2012 financial results, which show a year-on-year increase of 41% in net profit and a 43% increase in net asset value (NAV). Therefore, we have adjusted our guidance which we issued at the beginning of the year of over EUR 10.0 million net profit for the fiscal year 2012. As the very good operative results of BancABC do not have any influence on our results at present, we are - as already announced - working on consolidating the group's results into ADC's financial statements. Simultaneously, we are also working together with BancABC on outlining the real value of the share to existing shareholders and potential investors. Currently, we cannot give a forecast on the market price of the BancABC share price at the end of the year nor can we give updated guidance for our profits. Additionally, the recent costs for taking over the General Partner which incurred after the reporting date and the associated elimination of the fee structure will also have an impact on our 2012 results. Despite the non-cash effective valuation losses, ADC made significant progress in implementing its strategy over the past months. We see a very positive trend in the figures presented to generate cash through dividends and advisory activities and we are confident that we will achieve positive operating cash-flows in the future, thus generating break-even in operating cash-flows in 2013. All our investment performances are currently in line with our expectations - our investments in Union Bank of Nigeria and Brainworks Capital in Zimbabwe even exceed our expectations.' Investments in associates of EUR 99.4 million were recognized as at 30 September 2012. This represents a doubling compared to EUR 49.2 million at the end of 2011 due mainly to the additional investments in BancABC and Union Bank of Nigeria. After the majority acquisition in BancABC, the group now holds as at 30 September 2012, cash and cash equivalents totaling to EUR 5.6 million compared to EUR 43.3 million as at 31 December 2011. Shareholders' equity as at 30 September amounted to EUR 74.1 million compared to EUR 88.3 million at the end of last fiscal year. Overall, total assets increased by 10% from EUR 103.1 million at the end of the last fiscal year to EUR 113.2 million as at 30 September 2012. The Interim Report is available for download via the following link on the ADC website: http://www.african-development.com/en/investor-relations/investor-informat ion/financial-reports/ About ADC ADC African Development Corporation ('ADC') (ISIN: DE000A1E8NW9; Bloomberg: AZC.GR, www.african-development.com), was established in September 2007 and is on its way to become one of the leading banking groups in sub-Saharan Africa. The company's success is primarily due to its local management team, which follows international best practice principles to further develop its operational companies, and implements international best practice processes to increase their profitability. ADC was amongst the first international emerging market investors to be 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: Investor Relations investor-relations@african-development.com T +49 69 719 12 80 119 29.11.2012 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- 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 Announcement DGAP News-Service ---------------------------------------------------------------------------
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