Ackermans & van Haaren NV - Half year results

The Board of Directors of Ackermans & van Haaren N.V. announces that the consolidated net profit (part of the group) as at 30.06.2003 amounts to € 21.5 million compared to € 18.2 million at 30.06.2002.

 

 

 

On average, the DEME equipment utilisation is under increased pressure, especially in the large hopper segment. The future of the sand reclamation in Indonesia is still unsure and - consequently - the continuation of the large land reclamation projects in Singapore. On the other hand, activity is increasing in Europe (e.g. France) and there are interesting new projects in the Middle East and in India, in West Africa and in Latin America. The outlook for the offshore market is also favorable.

Due to the problems in Indonesia, year-end expectations are difficult to provide. In early 2004, the group will put another new hopper into operation in the mid-segment (5,400 m3).

 

VAN LAERE is keeping a steadfast course in the increasingly difficult markets. We expect that the 2003 results will lie at the anticipated level. Notwithstanding some promising new projects, the company remains cautious about the future.

(The 2002 results were positively impacted for an amount of € 4.1 million due to the accounting change to a 'percentage of completion' method.)

 

 

The half-year results of SOLVUS suffer under the negative impact from the difficult market conditions and increasing pressure on prices, especially in the Netherlands but also in Germany and Switzerland. Bureau Van Dijk Computer Services also suffered a net loss due to the surplus capacity in the IT sector. However, Solvus was able to increase both its sales and its gross margin in Belgium, France, Spain and Italy.

In the meantime, the administrative problems in France have been solved and are under control.
End 2002, Solvus started a cost reduction program, closing fifty locations during the first semester of 2003 and laying off 300 "full-time equivalent" employees. The impact of these measures was only minimally felt on June 30, 2003, but will structurally reduce the cost basis  in 2004 by 10% as compared to 2002.

Additional measures will be implemented during the second part of the year to bring the profitability back on track.

The targeted decrease by 10 days in "days sales outstanding" by end 2003 should also contribute to reduce the net debt position.

Solvus will take the measures required to further reduce the costs and to restructure the entities operating at a loss. Restoring profitability will be strongly impacted by the way the market evolves in the Netherlands.

 

 

 

During the first six months, the stock markets suffered a strong downward trend, followed by upward swings. By June 30, 2003, the markets had stabilized somewhat and, due to a further net increase of the entrusted capital, the BANK DELEN deposits had grown from € 5,1 billion on 31 December 2002  to € 5,5 billion.

Thanks to a strict cost control, the Bank Delen results remained stable as compared to 2002.

 

In spite of a difficult economic environment, the profits of Bank J. VAN BREDA & Co.  increased by 8% during the first semester of 2003.

As a result of the increased commercial efforts, the number of target group clients gained another 4%.

 

 

The volume of off-balance-sheet investments gained 10%, with a sharp increase in insurance investments. This resulted in an increase in fee revenues.

The costs remained stable at the previous year level. With respect to leasing activities, the vendors now direct 95% of their requests directly through the Internet.

 

During the first half of the year, LEASINVEST realized little capital gains as compared to 2002. The development of the various land and real estate projects is proceeding as planned. The Leasinvest Real Estate (Sicafi) managed to increase slightly its occupancy rate as at 30.06.2003.

 

 

 

The contribution of SOFINIM and its consolidated participations has improved as compared to 30.06.2002, especially due to the absence of write-downs of assets as compared to the previous year (mainly from Coditel). Moreover, Sofinim was able to realize an important capital gain (€ 10.8 million, AvH group share) as a result of the replacement of its indirect participation, via Unisel, by a direct participation in the listed company SCF (E5-Mode).
As expected, Quick further improved its results and consequently brings a first positive contribution to the AvH results. Following a successful capital increase, the balance sheet structure of Quick has now also considerably improved.

Aside from its rearrangement of the Unisel/SCF participation, which generated a positive cash contribution on the balance sheet, Sofinim realized no important investments or disinvestments.

 

The EVCA-valuation of Sofinim as at 30.06.2003 amounts to € 267 million, versus € 272 million as of 31.12.2002.

 

 

 

As of 30.06.2003, the contribution of " AvH and subholdings" was negative due to the absence of capital gains, but was compensated by a positive contribution by GIB.
GIB' s bottom line (50%) has profited from its financial results and the further realization of assets.

 

 

 

The uncertain economic circumstances (cfr. Solvus) are limiting the profit visibility of the AvH-group.

The Board of Directors nevertheless expects a further improvement of the result in the 2nd half of the year.

In the meantime AvH realized an additional capital gain of € 3.7 million on the divestment of insurance broker Ch. Le Jeune Limited N.V. to the Belgian  broker ALLIA.

 

 

We have made a limited review of the half-yearly information regarding Ackermans & van Haaren NV as at 30 June 2003, in accordance with the standards of the "Instituut der Bedrijfsrevisoren".

Our review did not reveal any facts that necessitated any significant adjustments to the figures in the half-yearly report.

 

Boudewijn Van Ussel

partner

Ernst & Young Company Auditors BCV

 

2nd week of March 2004                      announcement of the year results 2003

24 May 2004                                        general shareholders'meeting

 

There are 33,496,904 shares on June 30, 2003. Each share gives right to one vote. No convertible bonds or warrants have been issued. Owners of securities may exercise their rights at the following financial institutions: Degroof Bank, Bank Delen, Bank J. van Breda & Co, Fortis Bank, ING Belgium, KBC Bank, Dexia Bank and Petercam.

 

 

 

 

All press releases issued by AvH and its most important group companies as well as the 'Investor Presentation' can also be consulted on the AvH website: www.avh.be and http://www.ackermansvanhaaren.com

 

Antwerp, September 15th  2003