Wrap Text
Summarised unaudited consolidated results for the quarter and six months ended 30 June 2018
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 AND SIX MONTHS ENDED 30 JUNE 2018
Astoria is an investment company with a principal objective 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. The Company has primary listings on the Stock Exchange of Mauritius
("SEM") and the Alternative Exchange ("AltX") of the Johannesburg Stock Exchange ("JSE") and a secondary listing
on the main board of the Namibian Stock Exchange ("NSX").
REPORTING CURRENCY
The Group’s results are reported in United States dollars (“USD”).
BUSINESS REVIEW
As at 30 June 2018, the net asset value ("NAV") per Astoria share was USD 1.14 (30 June 2017: USD 1.12).
While the investment performance has been solid since inception, the most recent quarter was negatively impacted by
negative currency fluctuations (particularly on EPP N.V, the Company’s Pound-denominated assets and the small South
African Rand exposure), the reduction in the value of European Wealth Group Limited (albeit still above purchase price
– 2.2% of portfolio value) and extraordinary costs. The performance of the equity component, since inception, is ahead
of the MSCI World Index, which is one of the objectives of the business. The cash holding generates a low return, but
a portion is ring-fenced for private equity commitments to four large global private equity components. The accretion
in the value of the private equity component is anticipated to materialise over time, as opposed to the more volatile
nature of the direct equity component.
The markets were volatile during the second quarter of 2018, a great deal of which appears to be linked to rising interest
rates, disruptions to the prevailing trade regime and valuation. Astoria focuses on great long-term businesses and has
maintained a fairly consistent level of equity exposure.
As at 30 June 2018, the Group's funds were deployed as follows: listed global equities: 78.5%, niche funds and private
equity: 8.1%, fixed income: 1.9% and USD cash: 11.5%.
Astoria's top 10 direct listed equity positions as at 30 June 2018 were: EPP N.V, Facebook Inc, Apple Inc, The
Blackstone Group LP, Admiral Group PLC, Home Depot, Nike Inc, Mastercard Inc, JP Morgan Chase & Co and
Hastings Group Holdings PLC. None of the equity positions comprised more than 4.7% of the portfolio value.
Operational costs for the Group were USD 1.835 million for the six months ended 30 June 2018 (30 June 2017: USD
0.988 million). This was made up of management fees of USD 0.666 million with the balance being operating expenses
of USD 1.169 million. These operating expenses includes professional fees of USD 0.704 million of which
USD 0.450 million is accrued for further expenses directly relating to the previously announced RECM and Calibre
Limited ("RAC") offer, strategic review and legal advice.
RAC OFFER, THE BOARD'S STRATEGIC REVIEW, CAUTIONARY ANNOUNCEMENT
On 4 May 2018, RAC announced its intention to make a voluntary offer to Astoria shareholders. To date, no such offer
has been forthcoming. However, on 26 July 2018, RAC stated publicly that it is "currently finalising documentation
with the Mauritian Financial Services Commission in order to be able to post the full offer document to Astoria
shareholders".
The board of directors of the Company ("Board") has reservations about RAC's intentions and the contemplated
structure of the offer. Whilst the Board’s views will be fully communicated in response to any offer, Astoria shareholders
are referred to the Company’s announcement of 7 May 2018 which contains preliminary views on RAC’s announcement
of its intentions.
As indicated earlier this year, the Board is mindful of the discount in the Astoria share price to NAV and has identified
strategies and initiatives to unlock value for Astoria shareholders. Whilst the RAC process has restricted Astoria's
ability to provide further details, the Board hopes to be in a position to make an announcement regarding these
strategies and initiatives as soon as possible. In the meantime, and whilst the Board awaits clarity from RAC on its
intentions regarding any offer, shareholders are reminded that the Company is under cautionary.
PROSPECTS
The biggest driver for the Group's performance will be the direction of global developed equity markets. The Group
also anticipates further cash calls from the cash portion ring-fenced in terms of its commitment to four global private
equity firms.
BASIS OF PREPARATION
These summarised unaudited consolidated results for the six months ended 30 June 2018 have been prepared in
accordance with the requirements of IFRS, particularly IAS34 – Interim Financial Reporting the SEM Listing Rules,
and the Securities Act of Mauritius 2005 and the JSE Listings Requirements.
ACCOUNTING POLICIES
These summarised unaudited consolidated results for the six months ended 30 June 2018 were approved by the Board
on 23 July 2018. 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 2017, except for new standards and interpretations effective as from
1 January 2018.
By order of the Board
Mauritius – 8 August 2018
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, 5th
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, 5th 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 accepts full responsibility for the accuracy of the information in this announcement.
For further information, please contact:
JSE designated advisor
Java Capital
NSX sponsor
Namibian Equity Brokers
Mauritian company administrator
Osiris International Group
ASTORIA INVESTMENTS LTD
SUMMARISED GROUP STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2018
Unaudited Audited Unaudited
30 June 2018 31 December
30 June 2017
2017
$000 $000 $000
ASSETS
Non-current assets
Financial assets at fair value through profit or
124,312 129,942 114,916
loss
Total non-current assets 124,312 129,942 114,916
Current assets
Cash and cash equivalents 16,954 19,505 27,137
Trade and other receivables 13 181 16
Total current assets 16,967 19,686 27,153
Total assets 141,279 149,628 142,069
EQUITY AND LIABILITIES
EQUITY
Stated capital 121,111 124,062 124,504
Treasury shares (17) (2,968) (625)
Foreign currency translation reserve 314 - -
Retained earnings 19,088 28,136 17,949
Total equity 140,496 149,230 141,828
LIABILITIES
Current liabilities
Trade and other payables 783 398 241
Total current liabilities 783 398 241
Total equity and liabilities 141,279 149,628 142,069
ASTORIA INVESTMENTS LTD
SUMMARISED GROUP STATEMENTS OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE QUARTER AND SIX MONTHS ENDED 30 JUNE 2018
Unaudited Unaudited Audited for Unaudited Unaudited
for the for the 6 the year for the for the 6
quarter months ended 31 quarter months
ended 30 ended 30 December ended 30 ended 30
June 2018 June 2018 2017 June 2017 June 2017
$000 $000 $000 $000 $000
REVENUE
Dividend income 1,354 1,837 2,811 678 1,229
Net (loss)/gain from financial assets at fair
value through profit or loss (6,399) (8,556) 25,452 7,930 15,293
Total revenue (5,045) (6,719) 28,263 8,608 16,522
EXPENSES
General and administrative expenses (1,265) (1,835) (2,268) (511) (988)
OPERATING (LOSS)/PROFIT (6,310) (8,554) 25,995 8,097 15,534
Net foreign exchange (loss)/gain (730) (454) 61 157 137
Net interest income 69 133 303 68 121
(LOSS)/PROFIT FOR THE PERIOD
BEFORE TAX (6,971) (8,875) 26,359 8,322 15,792
Taxation 6 (173) (420) - -
(LOSS)/PROFIT FOR THE PERIOD
AFTER TAX (6,965) (9,048) 25,939 8,322 15,792
OTHER COMPREHENSIVE INCOME
Gain arising on foreign currency translation
differences 209 314 - - -
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD (6,756) (8,734) 25,939 8,322 15,792
(Loss)/profit per share from continuing
operations
Basic (loss)/earnings per share (cents) (5.49) (7.10) 20.64 6.57 12.47
Headline (loss)/earnings per share (cents) (5.49) (7.10) 20.64 6.57 12.47
Astoria has no dilutive instruments in issue.
ASTORIA INVESTMENTS LTD
RECONCILIATION OF (LOSS)/PROFIT TO HEADLINE (LOSS)/EARNINGS FOR THE
QUARTER AND SIX MONTHS ENDED 30 JUNE 2018
Unaudited Unaudited Audited for Unaudited Unaudited
for the for the 6 the year for the for the 6
quarter months ended 31 quarter months
ended 30 ended 30 December ended 30 ended 30
June 2018 June 2018 2017 June 2017 June 2017
$000 $000 $000 $000 $000
Basic (loss)/profit from continuing
operations attributable to equity holders (6,756) (8,734) 25,939 8,322 15,792
Headline (loss)/earnings from continuing
operations attributable
to equity holders (6,756) (8,734) 25,939 8,322 15,792
Weighted average number of shares (units) 122,954,726 122,954,726 125,692,952 126,636,106 126,636,106
Basic (loss)/profit per share (cents) (5.49) (7.10) 20.64 6.57 12.47
Headline (loss)/earnings per share (cents) (5.49) (7.10) 20.64 6.57 12.47
ASTORIA INVESTMENTS LTD
SUMMARISED GROUP STATEMENTS OF CHANGES IN EQUITY FOR THE QUARTER AND SIX
MONTHS ENDED 30 JUNE 2018
Stated Translation Treasury Retained
capital reserve shares earnings Total
$000 $000 $000 $000 $000
Balance at 1 April 2018 122,108 105 (1,014) 26,053 147,252
Transactions with owners of the Group
Cancellation of shares (997) - 997 - -
Total transactions with owners of the
Group (997) - 997 - -
Total comprehensive income for the period
Loss for the quarter - 209 - (6,965) (6,756)
Total comprehensive income - 209 - (6,965) (6,756)
Balance at 30 June 2018 (Unaudited) 121,111 314 (17) 19,088 140,496
Balance at 1 January 2018 124,062 - (2,968) 28,136 149,230
Transactions with owners of the Group
Cancellation of shares (2,951) - 2,951 - -
Total transactions with owners of the - 2,951 - -
(2,951)
Group
Total comprehensive income for the period
Loss for the period - 314 - (9,048) (8,734)
Total comprehensive income - 314 - (9,048) (8,734)
Balance at 30 June 2018 (Unaudited) 121,111 314 (17) 19,088 140,496
Balance at 1 January 2017 124,504 - - 2,197 126,701
Adjustment to opening balance - - - (40) (40)
Transactions with owners of the Group
Repurchase of shares - - (625) - (625)
Total transactions with owners of the Group - - (625) - (625)
Total comprehensive income for the period
Profit for the quarter - - - 15,792 15,792
Total comprehensive income - - - 15,792 15,792
Balance at 30 June 2017 (Unaudited) 124,504 - (625) 17,949 141,828
ASTORIA INVESTMENTS LTD
SUMMARISED GROUP STATEMENTS OF CASH FLOWS FOR THE QUARTER AND SIX MONTHS
ENDED 30 JUNE 2018
Unaudited Unaudited Audited for Unaudited Unaudited
for the for the 6 the year for the for the 6
quarter months ended 31 quarter months
ended 30 ended 30 December ended 30 ended 30
June 2018 June 2018 2017 June 2017 June 2017
$000 $000 $000 $000 $000
Cash flows from operating activities
(Loss)/profit before tax (6,971) (8,875) 26,359 8,322 15,792
Adjustments for:
Net loss/(gain) from revaluation of
financial assets at fair value through profit
or loss 5,214 9,378 (19,769) (4,816) (11,472)
Net loss/(gain) on disposal of investments 1,226 (702) (5,683) (3,114) (3,821)
Interest income (69) (133) (303) -
Foreign currency translation reserve 208 102 - -
Net foreign exchange loss/(gain) 730 454 (61) (154) (129)
338 224 543 238 370
Changes in working capital:
Decrease/(increase) in trade and other
receivables 2 168 (172) 2 (14)
Increase/(decrease) in trade and other
payables 517 333 235 5 85
Interest received 69 133 303 - -
Witholding tax suffered on dividend
income 6 (173) (420) - -
Net cash (used in)/generated from
operating activities 932 685 489 245 441
Cash flows from investing activities
Acquisition of financial assets designated at
fair value through profit or loss (5,376) (22,448) (56,501) (11,621) (25,805)
Proceeds on sale of financial assets 7,824 18,510 45,920 10,672 19,790
Dividend received 1,157 1,157 - 261 261
Net cash generated from/(used in)
investing activities 3,605 (2,781) (10,581) (688) (5,754)
Cash flows from financing activities
Repurchase of treasury shares - - (3,393) (625) (625)
Repurchase of treasury shares costs - - (17) - -
Net cash used in financing activities - - (3,410) (625) (625)
Net increase/(decrease) in cash and cash
equivalents 4,537 (2,096) (13,502) (1,068) (5,938)
Cash and cash equivalents at beginning of
period 13,147 19,505 32,946 28,051 32,946
Effect on exchange rate fluctuations on
cash and cash equivalents (730) (455) 61 154 129
Cash and cash equivalents at end of period 16,954 16,954 19,505 27,137 27,137
ASTORIA INVESTMENTS LTD
SUMMARISED GROUP SEGMENTAL INFORMATION FOR THE QUARTER AND SIX MONTHS ENDED
30 JUNE 2018
The Group reports segmental information in terms of geographical location. Geographical location is split between
United States, United Kingdom, Europe, South Africa, Mauritius, Far East and Australia. The Group has investments in
high-quality global growth businesses.
Unaudited for the Unaudited for the Audited for the Unaudited for the
quarter ended 6 months ended year ended quarter ended
30 June 2018 30 June 2018 31 December 2017 30 June 2017
$000 $000 $000 $000
(Loss)/profit before tax
United States (832) (5,241) 16,802 7,494
United Kingdom (3,063) (3,308) 3,046 812
Europe (66) 2,295 1,596 (67)
South Africa (1,849) (1,738) (40) 4
Australia (42) (84) (3) (43)
Mauritius (1,113) (972) 4,540 122
Far East - - (2) -
(6,965) (9,048) 25,939 8,322
Unaudited as at Audited as at Unaudited as at
30 June 2018 31 December 2017 30 June 2017
$000 $000 $000
Total Assets
United States 74,067 76,303 75,074
United Kingdom 39,089 24,765 12,916
Europe 17,572 25,584 31,793
South Africa 5,791 2,968 1,572
Mauritius 3,604 16,942 20,714
Far East - 3,066 -
Australia 1,156 - -
141,279 149,628 142,069
Date: 08/08/2018 05:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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