KBC ANCORA SA Regulated information, Leuven, 26 August 2016 (17.40 hrs CEST)
KBC Ancora closes financial year 2015/2016 with a negative result of EUR 21.0 million
KBC Ancora recorded a loss of EUR 21.0 million in the financial year 2015/2016, equivalent to EUR 0.27 per share. This compares with a profit of EUR 133.7 million in the previous financial year. The loss in the second half of the financial year was EUR 10.5 million, or EUR 0.13 per share.
Since KBC Group did not distribute a dividend in respect of the last financial year, the result for the year under review was determined primarily by the usual operating costs (EUR 2.3 million) and interest charges (EUR 18.8 million).
As announced earlier, KBC Ancora will not be distributing a dividend in respect of the year under review.
The Board of Directors of Almancora Société de gestion, statutory manager of KBC Ancora SCA, hereby announces the annual figures for the financial year ended 30 June 2016, subject to the approval of the General Meeting of KBC Ancora Shareholders to be held on 28 October 2016.
Abridged financial summary and notes[1]
Results for the financial year
| Financial year (x EUR 1,000) | 2015/2016 per share (in EUR) | Financial year (x EUR 1,000) | 2014/2015 per share (in EUR) | |
| Recurring financial profit/loss | -18,833 | -0.24 | 135,825 | 1.73 |
| Other recurring profit/loss | -2,154 | -0.03 | -2,118 | -0.03 |
| Profit/loss from capital operations | 0 | 0.00 | 0 | 0.00 |
| Extraordinary profit/loss | 0 | 0.00 | 0 | 0.00 |
| Result before taxes | -20,987 | -0.27 | 133,707 | 1.71 |
| Result after taxes | -20,987 | -0.27 | 133,707 | 1.71 |
| Number of shares in issue* | 78,301,314 | 78,301,314 |
* No instruments have been issued which could lead to dilution.
KBC Ancora recorded a loss of EUR 21.0 million in the financial year 2015/2016, compared with a profit of EUR 133.7 million in the previous financial year. KBC Ancora's negative recurring result (EUR 18.8 million) was determined principally by the cost of debt (EUR 18.8 million). The other recurring result (EUR -2.2 million) was due primarily to the usual operating costs.
Developments in the last six months of the financial year 2015/2016
Confirmation of dividend policy and introduction of KBC Group interim dividend
KBC Group did not distribute a dividend in respect of the financial year 2015. On publication of its interim results on 11 August 2016, KBC Group reaffirmed that, with effect from the financial year 2016, it will aim for a dividend payout ratio (including the coupon on the outstanding Additional Tier-1 instruments) of at least 50% of the consolidated profit. Barring exceptional or unforeseen circumstances, KBC Group will henceforth distribute an interim dividend of EUR 1.00 per share in November each year, followed by a final dividend after the Annual General Meeting of Shareholders. The interim dividend will serve as an advance payment on the total dividend.
Participating interest in KBC Group, net debt position and net asset value
KBC Ancora did not buy or sell any KBC Group shares in the second half of the financial year, and holds 77,516,380 KBC Group shares.
The net asset value of the KBC Ancora share corresponds to 0.99 times the price of the KBC Group share, less the net debt[2] per share. KBC Ancora's net debt position amounted to EUR 5.06 per share as at 30 June 2016, compared with EUR 4.93 per share on 31 December 2015.
Based on the price of the KBC Group share on 30 June 2016 (EUR 43.92), the net asset value of one KBC Ancora share amounted to EUR 38.42, and the KBC Ancora share (EUR 29.305) was trading at a discount of 23.7% to the net asset value.
Based on the closing price of the KBC Group share on 25 August 2016 (EUR 52.37) the net asset value of one KBC Ancora share amounted to EUR 46.78, and the KBC Ancora share (EUR 31.785) was trading at a discount of 32.1% to the net asset value.
The following charts illustrate the movements in the price of the KBC Group and KBC Ancora shares and the discount of the KBC Ancora share to its net asset value.
| Trend in KBC Group and KBC Ancora share price (July 2015 - June 2016) | Trend in discount of KBC Ancora share to its net asset value (July 2015 - June 2016) |
New managing director and chairman for statutory manager Almancora Société de gestion
Ms Katelijn Callewaert was appointed as a part-time managing director of Almancora Société de gestion on 24 June 2016. She replaced Mr Luc Discry with effect from 3 August 2016, who on that date reached the age limit set in the articles of association. Katelijn Callewaert joins Franky Depickere, who is a full-time managing director of Almancora Société de gestion SA, statutory manager of KBC Ancora SCA.
In the light of the new appointment, Ms Callewaert has stepped down as an independent director of Almancora Société de gestion. The procedure to fill the vacancy left by her departure has been initiated.
The appointment of Katelijn Callewaert as a managing director of Almancora Société de gestion brought an end to her term of office as Chairman of the Board of Directors. Ms Callewaert was succeeded as Chairman on 24 June 2016 by Mr Jules Stuyck, who has been an independent director of Almancora Société de gestion since November 2013.
Result for the second half of the financial year 2015/2016
| 2H FY (x EUR 1,000) | 2015/2016 per share (in EUR) | 2H FY (x EUR 1,000) | 2014/2015 per share (in EUR) | |
| Recurring financial profit/loss | -9,401 | -0.12 | 145,448 | 1.86 |
| Other recurring profit/loss | -1,091 | -0.01 | -1,045 | -0.01 |
| Profit/loss from capital operations | 0 | 0.00 | 0 | 0.00 |
| Extraordinary profit/loss | 0 | 0.00 | 0 | 0.00 |
| Result before taxes | -10,492 | -0.13 | 144,403 | 1.84 |
| Result after taxes | -10,492 | -0.13 | 144,403 | 1.84 |
In the second half of the year under review, KBC Ancora recorded a loss after tax of EUR 10.5 million. In the same period in the previous financial year, KBC Ancora recorded a profit of EUR 144.4 million.
As KBC Group did not distribute a dividend in the spring of 2016, and the cost of debt in the second half-year amounted to EUR 9.4 million, KBC Ancora recorded a negative recurring financial result of EUR 9.4 million in the second half of the financial year just ended. In the same period in the previous financial year, KBC Ancora recorded a positive recurring result of EUR 145.4 million due to the distribution by KBC Group of a dividend of EUR 2.00 per share in 2015.
The other recurring result amounted to EUR -1.1 million, in line with the result in the same period in the previous financial year. Of this total, EUR 0.9 million relates to costs incurred within the cost-sharing agreement with Cera. Other costs relate among other things to listing fees and management costs.
Balance sheet as at 30 June 2016
| (x EUR 1,000) | 30.06.2016 | 30.06.2015 | 30.06.2014 |
| BALANCE SHEET TOTAL | 2,441,801 | 2,443,180 | 2,441,805 |
| Assets | |||
| Fixed assets | 2,441,766 | 2,441,766 | 2,441,766 |
| Financial fixed assets | 2,441,766 | 2,441,766 | 2,441,766 |
| Current assets | 35 | 1,414 | 39 |
| Liabilities | |||
| Equity | 2,045,206 | 2,066,193 | 2,038,976 |
| Issued capital | 2,021,871 | 2,021,871 | 2,021,871 |
| Legal reserve | 7,541 | 7,541 | 855 |
| Unavailable reserves | 35,955 | 35,955 | 16,249 |
| Profit (loss) carried forward | -20,161 | 826 | 0 |
| Creditors | 396,595 | 376,987 | 402,830 |
| Amounts falling due after more than one year | 375,000 | 375,000 | 375,000 |
| Amounts falling due within one year | 19,883 | 232 | 26,063 |
| Accruals and deferred income | 1,712 | 1,755 | 1,766 |
Total assets stood at EUR 2.44 billion on 30 June 2016, a reduction of EUR 1.4 million compared with the previous year.
The number of KBC Group shares in portfolio remained unchanged in the year under review. As at the balance sheet date, KBC Ancora had a total of 77,516,380 KBC Group shares in portfolio, with a book value of EUR 31.50 per share. The closing price of the KBC Group share on the balance sheet date was EUR 43.92.
Amounts owed to creditors rose by EUR 19.6 million in the year under review to EUR 396.6 million; EUR 394.7 million of this total comprised financial debt. Current assets declined by EUR 1.4 million.
A recommendation will be placed before the General Meeting of Shareholders not to distribute a dividend and that the loss of EUR 21.0 million for the financial year, after set-off against the result from the previous financial year (EUR +0.8 million), be carried forward to the next financial year (EUR -20.2 million).
Notes on anticipated developments in the financial year 2016/2017
Costs within the cost-sharing agreement with Cera are expected to amount to approximately EUR 1.6 million. The total interest charge for the financial year 2016/2017 is estimated at approximately EUR 18.5 million. Other operating costs are likely to be around EUR 0.8 million.
On 11 August 2016, KBC Group announced that it would be distributing an interim dividend of EUR 1.00 per share on 18 November 2016 by way of an advance on the total dividend for the financial year 2016. This interim dividend alone will exceed KBC Ancora's projected expenses for the financial year 2016/2017 and the result brought forward from the financial year 2015/2016. As a consequence, KBC Ancora will close the financial year 2016/2017 with a positive result for appropriation. KBC Ancora intends to distribute an interim dividend in early June 2017.
Information on the external audit of the annual accounting data
The auditor, KPMG Réviseurs d'entreprises, represented by Olivier Macq, has issued an unqualified opinion with notes on the financial statements and has confirmed that the accounting data included in this press release contain no obvious inconsistencies compared with the financial statements.
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KBC Ancora is a listed company which holds 18.5% of the shares in KBC Group and which together with Cera, MRBB and the Other Permanent Shareholders is responsible for the shareholder stability and further development of the KBC group. As core shareholders of KBC Group, these parties have signed a shareholder agreement to this effect.
Financial calendar:
27 September 2016 Annual Report 2015/2016 available and convocation to Annual General Meeting of Shareholders
28 October 2016 Annual General Meeting of Shareholders
27 January 2017 Interim financial report (1H)
31 August 2017 Annual press release for the financial year 2016/2017
This press release is available in Dutch, French and English on the website www.kbcancora.be.
KBC Ancora Investor Relations & Press contact: Jan Bergmans
Tel.: +32 (0)16 279672
E-mail: jan.bergmans@kbcancora.be or mailbox@kbcancora.be
[1] KBC Ancora's reporting is based on Belgian GAAP.
[2] Net debt is defined here as the total liabilities less the total assets excluding financial assets.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: KBC Ancora via Globenewswire
