FranconoWest AG
FranconoWest AG: slight loss of EUR 0.5 million (IFRS)
FranconoWest AG / Half Year Results
31.08.2009
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Düsseldorf, 31 August 2009 – FranconoWest AG (ISIN: DE000A0KFRM5; German
Securities Identification Number: A0KFRM), a specialist in the management
of small-scale residential properties in North Rhine-Westphalia, has
reported a slight loss of EUR 0.5 million (IFRS) for the first half of
2009. The company reported a profit of EUR 2.3 million for the same period
in the previous year. The current results include an ineffective loss of
EUR 0.2 million on the re-measurement of interest rate swaps (IAS 39) as
well as a non-recurring employee-related payment of EUR 0.2 million. If the
results for the first half of the year were adjusted for these effects, the
company would virtually break even.
Earnings per share were EUR -0.02 for the first half of 2009 (same period
in previous year: EUR 0.07).
EBIT amounted to EUR 1.3 million for the reporting period in comparison
with EUR 4.3 million for the first half of 2008.
Given its restrained purchasing policy, the company assumed only one
property during the period under review, which explains the relatively
small unrealised gain of EUR 6,011 on the re-measurement of investment
property (first half of 2008: EUR 3.3 million). Not taking account of the
unrealised items arising from the fair value measurement of investment
property, the comparative figure for the same period in 2008 would come to
EUR 1.0 million. Based on the adjusted comparative figures, the trend in
business turns out positive.
Adjusted rental income in the first half of 2009 increased by 11.1% to EUR
3.0 million in comparison with EUR 2.7 million in the previous year.
The company’s cost-cutting measures have also contributed to the
significant reduction in administrative expenses from EUR 1.6 million in
the first half of 2008 to EUR 1.0 million in the period under review.
Group equity amounted to EUR 38.5 million at the end of the first half of
the year (31 December 2008: EUR 39.4 million). The equity ratio developed
from 38.0% at year-end 2008 to a solid 35.5% at the end of the first half
of 2009, accordingly.
Total assets of EUR 103.7 million at the end of the previous year grew as
expected to EUR 108.5 million at 30 June 2009. Total investment property in
the first half of the year saw a slight increase to EUR 87.4 million from
EUR 86.6 million at 31 December 2008 (fair value in accordance with IAS
40).
Looking towards the second half of the year, Guido Dollhausen – Director of
FranconoWest AG – expects a further improvement in business in 2009 in
spite of the tough market: ‘Apart from selective property disposals, the
emphasis will lie on higher revenues and lower costs; this involves taking
advantage of opportunities to increase rents for existing and new tenants
and reducing vacancy rates and unpaid rent while implementing efficient
cost management for the company and its property portfolio.’
The entire report on the first half of 2009 can be found in the investor
relations section at www.franconowest.de.
About FranconoWest AG:
FranconoWest AG is a listed property company with a regional focus on North
Rhine-Westphalia; it specialises in the acquisition and management of
small-scale urban residential properties. All activities centre round
preserving and constantly increasing the value of the company’s property
assets. The company uses active, permanent and targeted property management
with a view to maximising property returns and the value added potential of
the portfolio.
FranconoWest AG (ISIN: DE000A0KFRM5; German Securities Identification
Number: A0KFRM) is listed in the Prime Standard segment of the Frankfurt
Stock Exchange. The company plans to switch from the Prime Standard segment
to the Entry Standard segment within the open market of the Frankfurt Stock
Exchange shortly.
Contact:
Guido Dollhausen
– Director –
FranconoWest AG
Kaistraße 20 (MedienHafen)
40221 Düsseldorf
Tel.:+49 (0) 211 90 99 6 – 200
Fax: +49 (0) 211 90 99 6 – 201
Email: info@franconowest.de
31.08.2009 Financial News transmitted by DGAP
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Language: English
Company: FranconoWest AG
Kaistraße 20
40221 Düsseldorf
Deutschland
Phone: +49 (0)211 90 996 200
Fax: +49 (0)211 90 996 201
E-mail: info@franconowest.de
Internet: www.franconowest.de
ISIN: DE000A0KFRM5
WKN: A0KFRM
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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