KBC Ancora closes financial year 2019/2020 with a profit of EUR 60.8 million

Regulated information, Leuven, 28 August 2020 (17.40 hrs CEST)KBC Ancora closes financial year 2019/2020 with a profit of EUR 60.8 millionKBC Ancora recorded a profit of EUR 60.8 million in the financial year 2019/2020, equivalent to EUR 0.78 per share. This compares with a profit of EUR 253.7 million in the previous financial year. The full-year result was determined by the income from the interim dividend received on the participating interest in KBC Group (EUR 77.5 million), operating costs (EUR 2.2 million) and interest charges (EUR 14.5 million). The result in the second half of the financial year was EUR -8.2 million, or EUR -0.11 per share.
As announced on 2 April 2020, the Board of Directors of Almancora Société de gestion, statutory director of KBC Ancora, decided not to distribute an interim dividend in respect of the financial year 2019/2020 and not to propose payment of a final dividend.The Board of Directors of Almancora Société de gestion, statutory director of KBC Ancora NV, hereby announces the annual figures for the financial year ended 30 June 2020, subject to the approval of the General Meeting of KBC Ancora Shareholders to be held on 30 October 2020.Abridged financial summaries and notes¹Results for the financial year* No instruments have been issued which could lead to dilution.KBC Ancora recorded a profit of EUR 60.8 million in the financial year 2019/2020, compared with a profit of EUR 253.7 million in the previous financial year.
Income (EUR 77.6 million) principally comprised the dividend received on the participating interest in KBC Group (EUR 77.5 million). Expenses (EUR 16.7 million) consisted mainly of the usual operating costs (EUR 2.2 million) and interest charges (EUR 14.5 million).Developments in the last six months of the financial year 2019/2020KBC Group did not distribute a final dividend in respect of the financial year 2019. KBC Ancora decided not to distribute an interim dividend in respect of the financial year 2019/2020, and not to propose payment of a final dividend.In a press release dated 30 March 2020, KBC Group announced that its Board of Directors had decided, in line with the European Central Bank recommendation in relation to the Covid-19 pandemic, not to propose a final dividend for the financial year 2019. This was followed on 2 April 2020 by a press release from KBC Ancora announcing that the Board of Directors of Almancora Société de gestion, statutory director of KBC Ancora, had decided not to distribute an interim dividend in respect of the financial year 2019/2020 and not to propose a final dividend. The press release also stated that the Board of Directors will propose to the General Meeting of Shareholders in October 2020 to allocate 5% of the result to the legal reserve and to add the balance to the available reserves. As a result KBC Ancora has a liquidity buffer which can be used to meet its future financial obligations. These decisions reflect the decision by the statutory director to adopt, like KBC Group, a cautious stance in exceptional circumstances.Participating interest in KBC Group, net debt position and net asset valueKBC Ancora did not buy or sell any KBC Group shares in the second half of the financial year, and holds 77,516,380 KBC Group shares.The net asset value of the KBC Ancora share corresponds to 0.99 times the price of the KBC Group share, less the net debt² per share. KBC Ancora’s net debt position as at 30 June 2020 stood at EUR 3.61 per share. The net debt position at the end of the previous financial year amounted to EUR 4.39 per share.Based on the price of the KBC Group share on 30 June 2020 (EUR 51.06), the net asset value of one KBC Ancora share amounted to EUR 46.94, and the KBC Ancora share (EUR 30.28) was trading at a discount of 35.5% to its net asset value.
The following charts illustrate the movements in the price of the KBC Group and KBC Ancora shares and the discount of the KBC Ancora share to its net asset value.