Apr 2008 Financial News

AHL Releases Year End Results

Apr 15, 2008

Angostura Holdings Limited
Results for the Year Ended December 31, 2007

Earnings Per Share
For the Year Ended December 31, 2007, Angostura Holdings Limited (AHL) reported a Loss of $137.4 million. This translated into a Loss Per Share (LPS) of $0.67 compared to an Earnings Per Share (EPS) of $0.91 in FY06. According to the Chairman, this was largely as a result of the reversal of net non-cash gains in relation to market value adjustments on Belvedere related financial instruments recorded in 2006.

Financials
• Net Sales, down 0.5 per cent to $679.4 million
• Gross Profit up 23.1 per cent or $56.2 million to $299.3 million
• Net Fair Value Loss of $181.2 million compared to a Net Fair Value Gain of $203.5 million in FY06
• Net Loss of $137.4 million compared to a Net Profit of $187.8 million in FY06

Dividends
In light of the year end loss position, arising primarily out of the Company’s Belvedere acquisition and subsequent disposal, the Board has decided that no final dividend will be declared this year. The total dividend thus paid for 2007 was 5 cents per share.

The Annual General Meeting will be held on Wednesday May 28, 2008.

Recommendation
Angostura’s earnings continue to be challenged by its deep-rooted commitment of becoming a global drinks group. While the Chairman has stated that the group is now better positioned, in terms of a much reduced debt profile to take advantage of ongoing international opportunities in the spirits sector, significant investment is still required in terms of brand marketing and distribution in the major global markets. Thus, while AHL’s vision may come to fruition in the long term, at this time we continue to recommend a SELL on this share.


Nancy Chen
WISE Equity Research Team