Comments on Financial Statements - 2016
ALPHA TRUST ANDROMEDA S.A. released its financial results for the first semester 2016 under the International Financial Reporting Standards.
The overperformance of ANDROMEDA’s portfolio vis-à-vis the market was due to the relatively better yield of the investment selection in stocks and Greek government bonds.
The Company’s return was -9.20% from the beginning of the year, against returns of -14.13% recorded by the General Index of the Athex, -20.81% by FTSE/Χ.Α. Large Cap, -16.65% by FTSE/Χ.Α. MID CAP and -12.52% by the Total Return Index of the ATHEX for the same period.
The stock market remained volatile and directly linked to international capital markets. The effort to reverse the investment climate following the completion of the first assessment was interrupted by the uncertainty created by the result of the British referendum, the instability of the European banking sector and the situation in the internal front and the anxiety regarding the impact of the long-term recession and the high taxes on enterprises.
The implementation of reforms, any debt relief measures as well as the inclusion of Greek bonds in the quantitative easing program of the ECB, are deemed necessary conditions for the return of the Greek economy in normality.
In the six month period of 2016, ALPHA TRUST – ANDROMEDA S.A. marked losses after tax amounting to euro 0.760 mil., compared to losses after tax amounting to euro 0.388 mil. in the respective period last year. The Company’s gross income stood at approximately euro -0.457 mil. in total, mainly resulting from losses from the valuation of securities at fair values based on IFRS and losses from the purchase and sale of securities.
ANDROMEDA’s assets at the end of the semester stood at euro 7.781 mil while the Company’s portfolio in current prices was totally invested in Greece, by approximately 84.89% in stocks, 7.98% in bonds and 7.13% in cash reserves.
The Company’s net asset value per share at the end of the semester stood at euro 17.97 while its share price at euro 12.30, thus trading at a discount of 31.55%.
The Company’s top ten equity holdings at the end of the first semester consist of THRACE PLASTICS, TITAN, QUEST HOLDINGS, SARANTIS, OPAP, PLAISIO COMPUTERS, MOTOR OIL, ELVE, FOURLIS HOLDINGS and ALPHA BANK.