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Interim Results
Atlas Development (LSE:ADSS), the AIM listed turnkey support services company focussed in Africa, has announced its interim results for the six months ended 31 December 2014.
Overview:
§ Solid foundation established to build a leading African based multi-sectorial support services company
§ First phase of ‘buy-and-build’ strategy completed
§ First acquisition successfully integrated and the aggregated underlying results of Ardan Logistics Kenya and Ardan Risk & Support Services (excluding Atlas) demonstrating increased revenue to US$40m from US$23m in 2013 and profit after tax of US$4.8m for 2014 compared to a loss of US$3.7m in 2013
§ Excellent market opportunity to support targeted roll-out strategy, particularly in the rapidly growing East African region
§ Actively expanding sector and geographic reach, now operating in six countries in East and North Africa
§ Head quartered in Nairobi, Kenya, and listed on the Nairobi Securities Exchange – strengthened in-country presence to support regional growth
§ Multiple new acquisition targets identified and advanced discussions underway
§ Strengthened team to continue to drive active development strategy
§ Strong balance sheet with US$12.8m cash at 31 December 2014
Carl Esprey, Chief Executive Officer of Atlas, said: “We have built a revenue generative and profitable business with multi-sectorial coverage across six high priority countries in Africa; each with significant potential for organic growth. Following the successful acquisition of the Ardan business, the first of component of our ‘buy-and-build’ strategy, we have transformed the financial performance of the business.
“We are now poised to take advantage of new large-scale contracts to provide complementary offerings across new industry sectors and additional geographies. We currently have a number of tenders out; which have the potential of transforming our long term visible revenues.”
Chairman’s Statement:
Atlas is building a leading pan-African support services and development company, with a strategy centred upon creating a scalable, margin focussed business covering multiple sectors and geographies across the continent. Since listing in London in June 2013, we have established a platform from which to grow the business, principally in East Africa, both through organic business development and through corporate acquisitions.
East Africa presents significant opportunities for a professional and scalable support services business like Atlas, because the region is in the process of undergoing rapid development, with numerous large scale infrastructure, mining, oil & gas, geothermal, power and other substantial development projects being executed.
