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Amer Group's net profits in 9 months decline to EGP 111m Splitting up the group, paying back securitisation deal main/temporary reasons behind decline in profits, says Investor Relations Manager
Amer Group's net profits stood at EGP 111.38m for the first nine months of 2015, according to Reyad Refaat, Investor Relations Manager at the group. This is considered a good amount considering the circumstances the group is going through, Refaat noted. However, compared with last year's profits, a 33.89% decrease was recorded, as in the same period last year the group generated net profits worth EGP 168.48m. Commenting on this, Raafat indicated that with Amer Group splitting into two separate groups, more costs were incurred for the restructuring process to take place. He further elaborated that with splitting up into two companies (namely Amer Group Holding; and Porto Holding) the costs of establishing new offices and buildings have increased, "which is a temporary situation"; he said. Further, Raafat indicated that the costs of real estate and construction have surged in the past period. In January the group carried out a securitisation operation worth approximately EGP 233m through EFG Hermes and Tharwa Capital. Thereby, the group had to pay the full costs of the deal at once, at approximately EGP 70m, which is again a reason why the net profits were lower than the year before, Raafat added. Amer Group's general assembly last July agreed to adopt the General Authority for Investment and Free Zones' report regarding the verification of the company's rights, obligations and assets. This is for the purpose of the division based on the financial position in 30 December 2014. The meeting confirmed that Amer Group Holding's capital amounts to EGP 911.91m, divided over 4.56bn shares, with a nominal value of 20 piasters per share. Amer Group includes two subsidiaries, namely Amer for Services and Project Management, and Amer Energy and Infrastructure. Porto Holding Group Co was given approval for a capital of EGP 455.9m, distributed over 4.5bn shares, valued at 10 piasters per share. It includes four subsidiaries, namely Porto International Holdings Ltd, Porto Said, Porto World, and Porto for Real Estate Development.
