DGAP-News: ADC publishes quarterly report for Q1 2011 ++ First quarter of 2011 saw the acquisition of a major banking group and increased portfolio and pipeline development activity ++ Q1 results in line with management expectations, outlook 2011 very pos
(firmenpresse) - DGAP-News: ADC African Development Corporation GmbH&Co. KGaA / Key
word(s): Quarter Results
ADC publishes quarterly report for Q1 2011 ++ First quarter of 2011
saw the acquisition of a major banking group and increased portfolio
and pipeline development activity ++ Q1 results in line with
management expectations, outlook 2011 very positive
26.05.2011 / 13:47
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++ ADC publishes quarterly report for Q1 2011
++ First quarter of 2011 saw the acquisition of a major banking group and
increased portfolio and pipeline development activity
++ Further bank investments in key growth markets in West and East Africa
expected in the coming months
++ Q1 results in line with management expectations, outlook 2011 very
positive
ADC African Development Corporation (ADC), ISIN DE000A1E8NW9, a fast
growing financial services group, focusing on the frontier markets in
sub-Saharan Africa, expects further positive progress in the course of the
year on the basis of today's published first quarter 2011 results. In the
first quarter 2011, the portfolio was extended by the acquisition of
BancABC as an attractive investment and the successful further enhancement,
in particular of the portfolio companies BANGE and SIMTEL.
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 have a major positive impact on full-year results. Due to
this method, single quarterly results are regularly far below full-year
results which is inherent to the system. Therefore, Q1 numbers have been
fully in line with management projections.
ADC's revenues and other operating income came in as expected at EUR 516T,
18% lower versus the previous year. The decrease in revenues is due to the
fact that in the comparing period in 2010, ADC accounted for realized
exchange gains. Losses from operating activities for the quarter were at
EUR 2,137T versus a loss of EUR 1,131T in Q1 2010. The net loss was EUR
2,070T for the quarter compared with a loss of EUR 802T in the first
quarter of 2010.
After new acquisitions, ADC had cash&cash equivalents of about EUR
28,996T at the end of the quarter, which is an excellent base for further
acquisitions.
In the first quarter of 2011, ADC successfully pursued its investment
strategy and acquired 20 % of ABC Holdings Limited (ABCH), a major African
banking group operating under the brand name BancABC, for EUR 9,613T. With
this investment, ADC increased its presence in Sub-Saharan Africa by
another 4 countries, namely Botswana, Mozambique, Zambia and Tanzania. As
of 31 March 2011, the fair value of ABCH rose by EUR 360T due to a share
price increase after posting better than expected year-end results. In
addition, in the second quarter of 2011, ADC will account for its first net
dividend from ABCH in its financial statements. The ADC management still,
regardsBancABC as a highly undervalued asset and is working together with
the BancABC management to reveal the realistic value soon.
End of December 2010, ADC made its first investment in the fast growing
insurance market in Sub-Saharan Africa with Resolution Health East Africa
Limited (RHEAL). ADC finalized the acquisition in the first quarter of 2011
by taking over board positions, including the position of the Chairman, and
advising the company on its expansion strategy.
In the course of the first quarter, ADC increased its portfolio and
pipeline development activities further and expects to announce
acquisitions in key growth frontier markets very soon.
Olaf Meier, Managing Director of ADC, gives an outlook for the full year
2011: 'With our focus on the fast growing frontier markets in sub-
Saharan-Africa and our active management approach, we deliver high returns
to our investors. Based on the strong development of the existing portfolio
as well as on expected successful negotiations on an exit of one
investment, management expects the 2011 full-year results to be well above
last year's net profit of EUR 6.6 million. Furthermore, we have a
significant pipeline of investment opportunities and will target two to
three exciting new deals over the course of 2011.'
The full-year report will be available for download at
www.african-development.com.
++ 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
Managing Director
investor-relations(at)african-development.com
T +49 69 719 12 80 119
End of Corporate News
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Language: English
Company: ADC African Development Corporation GmbH&Co. KGaA
Grüneburgweg 18
60322 Frankfurt/Main
Deutschland
Phone: +49 69 719 12 80 00
Fax: +49 69 719 12 80 011
E-mail: info(at)african-development.com
Internet: www.african-development.com
ISIN: DE000A1E8NW9
WKN: A1E8NW
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin
End of News DGAP News-Service
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126359 26.05.2011
Datum: 26.05.2011 - 13:47 Uhr
Sprache: Deutsch
News-ID 34225
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