Ackermans & van Haaren: Interim report first quarter 2011
Interim report on the current state of affairs of the main group companies - First quarter 2011
CONTRACTING, DREDGING AND CONCESSIONS
(AvH 50%) had a continuous high level of activity in the first quarter 2011, driven by a nearly full utilisation of the fleet. Due to the exceptional loss on a soil decontamination project in Santos (Brazil), which has in the mean time been stopped in the second quarter, the net result for 2011 could possibly remain below the level of the record year 2010.
Thanks to important new orders in Australia (Gladstone), Russia, Malaysia and the United Arab Emirates and for the construction of the second phase of the C-Power wind farm in Belgium, the order book increased per 31.03.2011 to 2,387 million euros (vs 1,935 million euros per 31 December 2010).
DEME also continues its diversification strategy and, in March, joined forces with IHC Merwede for the development of deep-sea mining activities. As part of the investment program, the 30,000 m³ trailing suction hopper dredger 'Congo River' was launched in January and will be operational from July.
ALGEMENE AANNEMINGEN VAN LAERE (AvH 100%) stood firm in a competitive environment and experiences that most projects are running well.
REAL ESTATE AND RELATED SERVICES
LEASINVEST REAL ESTATE (AvH 30.01%) realized a stable net current result in the first quarter 2011. The fair value of the real estate portfolio amounted to 500.6 million euros at 31 March 2011 (compared to 494.2 million euros at 31 December 2010), partially due to the amount paid to Redevco for the Brixton Business Park in Nossegem, partially due to limited negative variations in the value of the real estate portfolio. Both the occupancy rate (97.6% vs 97.45% at 31 December 2010) and the rental yield (7.59% vs 7.41% at 31 December 2010) remained at a very decent level. The debt ratio remained constant at 44%.
EXTENSA (AvH 100%) realized a limited contribution, from the sale of land parcels and from promotion activities (mainly Roeselare, Istanbul). The preparation of the first realizations on the sites of Tour & Taxis in Brussels and Cloche d'Or in Luxembourg continues intensively and should possibly lead to a first contribution to the result in 2011.
The turnover of COBELGUARD (AvH 39.6%) increased further and the group signed an important new contract in Luxembourg. In addition, the start-up of the partial acquisition of the valuables transport from the bankruptcy of Brink's continues at full speed.
At GROUPE DUVAL (AvH 39.2%), the first quarter is traditionally loss making due to the low season of the exploitation activities (mainly the holiday parks). The order book of the real estate activities continued to grow and resulted already in the first quarter in a higher turnover.
ANIMA CARE (AvH 100%) managed 358 beds in the first quarter 2011 with a high utilization and a good result. Anima Care continues the development of its greenfield projects (410 beds) and has several acquisitions in the pipeline. Anima Care acquired the "Clos du Trimbleu" residential care centre in Blegny (47 beds) on 1 February 2011, and plans for a new-built structure with 120 beds are currently being drawn up for this site.
DELEN - PRIVATE BANK (AvH 78.75%) continued the positive trend of the record year 2010 during the first quarter 2011 with an increase of the assets under management to 15,585 million euros (vs 15,272 million euros at the end of 2010). This increase is completely due to a very strong net inflow of new assets, as well as from the branches of Bank Delen, as from the Bank J.Van Breda & C° network.
BANK J.VAN BREDA & C° (AvH 78.75%) again realized a very strong first quarter with volume growth in all product categories. The total client assets increased to 6,696 million euros (vs. 6,369 million euros at the end of 2010), both at the level of client deposits (2,768 million euros) and of the entrusted funds (3,928 million euros). The loans increased to 2,693 million euros, while the provisions for loan losses were exceptionally low.
At the end of January 2011, the bank announced that it wishes to submit a friendly and conditional counterbid for the takeover of Antwerps Beroepskrediet. Despite the higher bid from CMNE Belgium, Bank J.Van Breda & Co maintains its friendly bid in the interest of all shareholders, employees and customers of the bank and has hence extended its bid period until the end of the bid period of CMNE.
The private equity participations realized a further improvement of the results in the first quarter, in line with the economic recovery of the second half of 2010.
GROUPE FLO (GIB 47.82%) realized a 2% increase of turnover (to 95 million euros) and a 48% increase of the net result (to 3 million euros) in the first quarter. The commercial dynamics enable to regain gradually the volumes lost during the crisis while the changes made to the business model lead to a continued profitability improvement.
The investment and divestment activity was limited to the sale of Coditel US and an increase of the participation of GIB in TRASYS GROUP to 83.89% as a result of the exercise of options.
It is worth to mention the participation of CORELIO (Sofinim 20.2%) through its participation in De Vijver, in the acquisition of the television activities of SBS Belgium (VT4, VijfTV).
ENERGY AND MATERIALS
At the plantation group SIPEF (AvH 25.39%), the favourable climatic conditions and a higher maturity of the planted areas resulted in a strong increase of palm oil production (+18%) in the first quarter. The price level of palm oil was significantly higher than in the same period last year. Taking into account the growth in production and the price outlook, Sipef expects that the recurrent results will exceed those of 2010. In the first quarter, AvH increased its participation in Sipef to 25.39%.
Due to market circumstances in the South Indian cement market, SAGAR CEMENTS (AvH 14.99%) continues to produce at a capacity utilization which is too low, but at higher sales prices.
The volume sold by ORIENTAL QUARRIES & MINES (AvH 50%) in the past quarter was back in line with the targets.
At MAX GREEN (AvH 20%), the conversion of the Rodenhuize power station to biomass will be finalized in the first half of 2011, thereby limiting the production.
AvH & Subholdings
The net cash position of AvH decreased slightly compared to the end of 2010 and amounted to 75.3 million euros at 31.03.2011.
The geopolitical unrest and the present economic climate still call for caution. However, the board of directors of AvH expects the current results of the group to grow again in the current year 2011.
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Source: Ackermans & van Haaren via Thomson Reuters ONE