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DGAP-News: DF Deutsche Forfait AG / Key word(s): Preliminary Results/Final Results DF Deutsche Forfait AG publishes preliminary 2013 financials

07.03.2014 / 07:50

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DF Deutsche Forfait AG publishes preliminary 2013 financials

- One-time expenses weighing on profitability: Group results at EUR -3.8 million.

- Business volume and margin clearly down on the previous year

- Company is making intensive efforts to be taken off the OFAC list

Cologne, 7 March 2014 - DF Deutsche Forfait AG (Prime Standard, ISIN: DE0005488795) is reporting a negative Group result for the financial year 2013. Based on preliminary figures, the loss amounts to approximately EUR 3.8 million (EUR -0.56 per share). The company's ad hoc press release of 12 February 2014 anticipated a loss between EUR 3.0 and EUR 3.3 million based on information available at the time. In particular, two special effects weighed on the company's profitability, namely the creation of provisions for VAT payments as well as the inclusion of DF Deutsche Forfait AG in the sanction list of the Office of Foreign Assets Control (OFAC), an agency of the US Treasury due to alleged violation of Iran sanctions. The negative earnings impact of these two special effects amounted to approximately EUR 3.8 million.

In addition, the company's performance clearly fell short of the targets set for its operations. The fourth quarter saw the forfaiting volume and margin clearly below expectations due to delays in placing receivables. Reasons for this included the longer processing times for business with new customers in the strategically important African market. The DF Group's business volume for the full year came to EUR 523 million, down 22% on the previous year. Higher refinancing costs resulting from the bond issue and a lower turnover of receivables meant that the margin declined to 1.4% (previous year 1.9%). The company expects that with the realisation of its strategic projects, namely Trade Finance Funds and ABS programme it will increase the turnover rate which will lead to an improvement of the overall margin. The gross result including financial results dropped from the previous year's EUR 13.0 million to EUR 7.2 million. Administrative expenses before one-time expenses amounted to EUR 10.5 million, up 17% on the prior year; contributing factors included the higher costs for the development of the new Asset Management business which is yet to generate earnings. In order to counterbalance the increase in administrative expenses, the company initiated a cost reduction programme in the fourth quarter of 2013. The estimated savings amount to approximately EUR 1.0 million in 2014.

Frank Hock, member of the Board of Management of DF Deutsche Forfait AG, said: "We have clearly missed our 2013 operative targets. Following a good start to the current year, the unexpected inclusion of our company in the OFAC list not only weighed on our 2013 results but also continues to substantially constrain our scope for action. However, we are confident that our intensive talks with the OFAC and the ongoing internal and external examinations will result in these allegations being invalidated so that we can fully focus on our day-to-day business again at the earliest possible point in time. An additional audit by the German Bundesbank will also assist us in the complete elimination of the allegations of sanction infringements."

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PRESS RELEASE: DF Deutsche Forfait AG publishes preliminary 2013 financials