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ASTORIA INVESTMENTS LIMITED - Summarised unaudited consolidated results for the quarter ended 31 march 2017 and update to share buyback

Release Date: 24/04/2017 09:30
Code(s): ARA     PDF:  
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Summarised unaudited consolidated results for the quarter ended 31 march 2017 and update to share buyback

ASTORIA INVESTMENTS LTD
(Incorporated in the Republic of Mauritius)
(Registration number 1297585 C1/GBL)
SEM share code: ATIL.N0000
JSE share code: ARA  NSX share code: ARO
ISIN: MU0499N00007
(“Astoria” or “the Company” or “the Group”)


SUMMARISED UNAUDITED CONSOLIDATED RESULTS FOR THE QUARTER ENDED 31 MARCH 2017
AND UPDATE TO SHARE BUYBACK


Astoria was established in Mauritius on 20 April 2015 as a public company,
limited by shares, holding a Category 1 Global Business Licence. The Company
has its primary listing on the Stock Exchange of Mauritius (“SEM”) and
secondary listings on both the Alternative Exchange (“AltX”) of the
Johannesburg Stock Exchange (“JSE”) and the Namibian Stock Exchange (“NSX”).

The principal objective of the Group is to achieve strong USD capital
appreciation over the medium to long-term by investing in global, equity-
dominated holdings of primarily direct, high-quality listed businesses that are
located primarily in developed markets.

REPORTING CURRENCY

The Group’s results are reported in United States dollars (“USD”).

BUSINESS REVIEW

As at 31 March 2017, the net asset value (“NAV”) per Astoria share was USD
1.06. This is an increase of 6% compared to the NAV per share as at 
31 December 2016.

The board believes that this is a satisfactory outcome reflecting the
positioning of the Company’s assets in strongly performing equity markets, 
whilst noting both the high cash balance which produces a low but positive yield, 
and the investments in unlisted private equity partnerships which are in the investment 
phase.

As at 31 March 2017, the Group’s funds were deployed as follows: listed global
equities 74.0% (including Echo Polska Properties N.V (“EPP”)), niche funds and
private equity 5.3% and USD cash 20.7%. The USD is Astoria’s reporting
currency, therefore it is a sensible approach to retain cash balances in USD
pending investment.

Astoria’s top 15 listed equity positions (excluding EPP) at year-end were: The
Blackstone Group LP, Facebook Inc, Amazon, Home Depot, Apple Inc, Starbucks
Corp, Tempur Sealy, Nike, Activision Blizzard, Fedex, Chipotle, Johnson & Johnson, 
Walt Disney, ICICI Bank and Hastings Group PLC. Apart from the investment in EPP, 
none of the equity positions comprise more than 4.2% of the portfolio value. The 
EPP weighting as at 31 March 2017 was 12.4%.

Operational costs for the Group were USD 0.5 million for the quarter. This was
made up of management and brokerage fees of USD 0.4 million with the balance
being operating expenses of USD 0.1 million.

The Company has recently announced the salient dates for the share buyback and
has released the Explanatory Statement which includes a notice convening a
special meeting of shareholders as well as a proxy form. A copy of the
announcement and the Explanatory Statement can be found in the investor
relations section of the Company’s website at www.astoria.mu. The buyback is
currently scheduled to commence on Friday, 5 May 2017.

PROSPECTS

The biggest driver for the Group’s performance will be the direction of global
developed equity markets. We believe we are well positioned. We also anticipate
further cash calls from the cash portion ring-fenced in terms of our commitment
to four global private equity firms.

NET ASSET VALUE (“NAV”)

The NAV per share at 31 March 2017 was USD 1.06 (31 Dec 2016: USD 1.00).

DIVIDEND

No dividend has been declared for the period under review.

BASIS OF PREPARATION

These summarised unaudited consolidated results for the quarter ended 31 March
2017 have been prepared in accordance with the measurement recognition
requirements of IFRS, IAS34 – Interim Financial Reporting the SEM Listing
Rules, and the Securities Act of Mauritius 2005 and the JSE Listings
Requirements to the extent required. Prior to 5 May 2016, only company accounts
were being prepared. The Group was formed last year when the Company acquired
Astoria LP Holdings Ltd on 5 May 2016. Hence there are no comparatives for the
Group.

ACCOUNTING POLICIES

These summarised unaudited consolidated results were approved by the board on
21 April 2017. The summarised results below have not been reviewed or reported
by the Group’s external auditors, KPMG Mauritius. The accounting policies
adopted are consistent with those published in the audited financial statements
for the year ended 31 December 2016, except for new standards and
interpretations effective as from 1 January 2017.

SHARE BUYBACK

The definitions outlined in the Explanatory Statement issued on 6 April 2017
have, where appropriate, been used in this paragraph.

Shareholders are advised that in order to facilitate efficient settlement for
Shares bought back on the SEM (if any) under the proposed buyback;

  (i)   the SEM Buyback Price to be paid will be determined in USD and not in
        Mauritian Rupees as set out in the Explanatory Statement and the spot
        USD:ZAR exchange rates provided by Astoria’s bankers will be used;
  (ii) settlement of the SEM Buyback Price will be paid to selling
        shareholders in USD; and
  (iii) such SEM Buyback Price and the settlement thereof will constitute full
        and final settlement of any claims by selling shareholders on SEM and
        full compliance with the terms of the Explanatory Statement.

Paragraph (iii) of the Special Resolution to be tabled and voted on, at the
Special Meeting, will be modified to reflect the above and all votes cast
whether in person or by proxy will be taken to be cast on the resolution to be
modified in line with the above.


By order of the Board
Mauritius – 24 April 2017

Company secretary
Osiris Corporate Solutions (Mauritius) Limited

NOTES

Copies of this report are available to the public at the registered office of
the Company, B45 Twenty Foot Road, 3rd Floor, La Croisette, Grand Baie,
Republic of Mauritius.

Copies of the statement of direct or indirect interest of the Senior Officers
of the Company pursuant to rule 8(2)(m) of the Securities (Disclosure of
Obligations of Reporting Issuers) Rules 2007 are available to the public upon
request to the Company Secretary at the Registered Office of the Company at B45
Twenty Foot Road, 3rd Floor, La Croisette, Grand Baie, Republic of Mauritius.

This announcement is issued pursuant to SEM Listing Rules 12.20 and 12.21 and
section 88 of the Securities Act 2005 of Mauritius. The Board of Astoria
Investments Ltd accepts full responsibility for the accuracy of the information
in this announcement.

For further information, please contact:

JSE sponsor
Java Capital                                      +27 11 722 3050

Company secretary
Osiris Corporate Solutions (Mauritius) Limited    +230 650 4030


24 April 2017



SUMMARISED STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2017

                                              The
                                            Group             The Company
                                            As at       As at       As at
                                               31                      31
                                            March    31 March       March
                                             2017        2017        2016
                                          USD’000     USD’000     USD’000

ASSETS
Non-current assets
Investment in subsidiary
company*                                        -          *-           *-
Financial assets at fair value
through profit or loss                    106,340     103,541       55,626
Total non-current assets                  106,340     103,541       55,626
Current assets
Cash and cash equivalents                  28,048      27,996       66,572
Trade and other receivables                    18          34           18
Total current assets                       28,066      30,711       66,590

Total assets                              134,406     134,252      122,216

EQUITY AND LIABILITIES
EQUITY
Stated capital                            124,504     124,504      124,504
Retained earnings                           9,666       9,520      (2,433)
Total equity                              134,170     134,024      122,071

LIABILITIES
Current liabilities
Trade and other payables                      236         228          145

Total current liabilities                     236         228          145
Total equity and liabilities              134,406     134,252      122,216

* Investment in subsidiary company is USD 1
(less than USD 1,000)


SUMMARISED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE QUARTER 
ENDED 31 MARCH 2017

                                               The Group                 The Company
                                               Unaudited     Unaudited     Unaudited
                                                 for the       for the       for the
                                                 quarter       quarter       quarter
                                                ended 31      ended 31      ended 31
                                                   March         March         March
                                                    2017          2017          2016
                                                 USD’000       USD’000       USD’000
REVENUE

Dividend income                                      551           551           121
Net gain/(loss) from financial assets at
fair value through profit or loss                  7,363         7,368          (515)

Total revenue                                      7,914         7,919          (394)

EXPENSES
General and administrative expenses                 (477)         (474)         (419)


OPERATING PROFIT/(LOSS)                             7,437         7,445         (813)

Net foreign exchange (loss)/gain                      (20)          (25)           2
Net interest
income                                                 52            54           49


PROFIT/(LOSS) FOR THE PERIOD BEFORE TAX             7,469         7,474         (762)
Taxation                                                -             -            -

PROFIT/(LOSS) FOR THE PERIOD AFTER TAX              7,469         7,474         (762)


TOTAL COMPREHENSIVE INCOME FOR THE PERIOD           7,469         7,474         (762)

Profit/(loss) per share from continuing
operations
Basic earnings/(loss) per share (cents)                 6             6           (2)

Headline earnings/(loss) per share
(cents)                                                 6             6           (2)

Astoria has no dilutive instruments in
issue.



RECONCILIATION OF PROFIT TO HEADLINE EARNINGS FOR THE QUARTER ENDED 31 MARCH 2017


                                             The Group                    The Company
                                             Unaudited      Unaudited       Unaudited
                                               for the        for the         for the
                                               quarter        quarter         quarter
                                              ended 31       ended 31        ended 31
                                            March 2017     March 2017      March 2016
                                               USD’000        USD’000         USD’000
Basic profit/(loss) from continuing
operations
attributable to equity holders                   7,469          7,474            (762)
Headline earnings/(loss) from
continuing operations
attributable to equity holders                   7,469          7,474            (762)

Weighted average number of shares
(units)                                    126,809,944    126,809,944       35,892,486

Basic profit/(loss) per share (cents)                6              6               (2)

Headline earnings/(loss) per share
(cents)                                              6              6               (2)


SUMMARISED STATEMENTS OF CHANGES IN EQUITY FOR THE QUARTER ENDED 31 MARCH 2017

THE GROUP:

                                                 Stated     Retained
                                                capital     earnings      Total
                                                USD’000      USD’000    USD’000

At 01 January 2017                              124,504        2,197    126,701


Total comprehensive income for the period
Profit for the quarter
                                                      -        7,469      7,469
Total comprehensive income
                                                124,504        9,666    134,170

At 31 March 2017                                124,504        9,666    134,170


At 01 January 2016                              124,504       (1,671)   122,833
Total comprehensive income for the year

Profit for the year                                   -        3,868      3,868
Total comprehensive income
                                                      -        3,868      3,868

At 31 December 2016 (Audited)                   124,504        2,197    126,701




SUMMARISED STATEMENTS OF CASH FLOWS FOR THE QUARTER ENDED 31 MARCH 2017

                                            The Group              The Company
                                            Unaudited   Unaudited    Unaudited
                                              for the     for the      for the
                                              quarter     quarter      quarter
                                             ended 31    ended 31     ended 31
                                                March       March        March
                                                 2017        2017         2016
                                              USD’000     USD’000      USD’000

Cash flows from operating
activities
Profit/(loss) before tax                        7,469       7,474         (762)
Adjustments for:
Net (gain)/loss from revaluation
of financial assets at fair value
through profit or loss                         (7,363)     (7,368)         515
Net foreign exchange loss/(gain)                   20          25           (2)
                                                  126         131         (249)
Changes in working capital:
(Increase)/decrease in trade and
other receivables                                 (16)        (18)           6
Increase/(decrease) in trade and
other payables                                     81          73         (213)
Net cash generated from operating
activities                                        191         186         (456)

Cash flows from investing
activities
Acquisition of financial assets
designated at fair value through
profit or loss                                (14,181)    (13,663)     (16,411)
Proceeds on sale of financial
assets                                          9,117       9,117            -
Advances made
                                                    -        (487)           -

Net cash used in investing
activities                                     (5,064)     (5,033)     (16,411)

Net decrease in cash and cash
equivalents                                    (4,873)     (4,847)     (16,867)
Cash and cash equivalents at
beginning of period                            32,946      32,868       83,437
Effect on exchange rate
fluctuations on cash and cash
equivalents                                       (25)        (25)           2
Cash and cash equivalents at end
of period                                      28,048      27,996       66,572



ABRIDGED GROUP SEGMENTAL INFORMATION FOR THE QUARTER ENDED 31 MARCH 2017


The Group reports segmental information in terms of geographical
location. Geographical location is split between United States, Europe,
United Kingdom, Asia, South Africa, Australia and Mauritius. The Group
has investments in high-quality global growth businesses.

                                          The Group
                     Unaudited for      Audited for
                       the quarter         the year
                    ended 31 March         ended 31
                              2017    December 2016
                           USD’000          USD’000

Profit before tax

United States
                             7,388            2,170
United Kingdom                 368            (1570)
Europe
                               108            3,541
Asia
                                 -             (116)
South Africa                  (35)              247
Australia                     (42)              (14)
Mauritius                    (318)             (391)

                             7,469            3,868


                                           The Group
                                       Audited as at
                    Unaudited as at      31 December
                      31 March 2017             2016
                            USD’000          USD’000
Total Assets

United States
                             73,023           60,305
Europe
                             27,235           26,907
Mauritius
                             24,787           28,915
United Kingdom
                              8,876            8,667
South Africa
                                454            1,852
Asia
                                 31              218

                            134,406          126,864

Date: 24/04/2017 09:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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