$4m improvement for Ana Imep

Electric motors producer Ana Imep, controlled by businessman George Copos keeps improving its financial situation, though this will probably not make the minority shareholders of the company any richer this year, either.

Ana Imep logged $4.06 million net profit for 2003 (133.18bn ROL), up 20% from the previous year, as well as $42.18 million (1,392bn ROL) turnover, which progressed at about the same pace.

Ana Imep’s are among the most heavily traded shares on RASDAQ, and the company’s results are eagerly expected by the investors looking for dividend-generating shares.

The company will most likely apply the same dividend policy as in the last few years, when it allocated almost the entire profit for investments.

The policy to not disburse dividends was imposed by George Copos, who owns 70.5% in Ana Imep through his Ana Group. The businessman set out to turn Ana Imep into the second-leading European motor producer and plans to double turnover in the next few years.

George Copos could not be reached for comment on the financial results of the company and on the dividend policy.

He had told Ziarul Financiar in an interview last fall, however, that Ana Imep would require 7 million-euro investments over the next few years, for which reason the company would not be disbursing dividends throughout that time.

On the other hand, Ana Imep announced it would contribute $3 million to the capital increase of Ana Hotels, and the funds will be used for investments in the Eforie Nord resort.

Part of the money, 65bn ROL, has already been transferred by Ana Imep since as early as last year, while the remaining 45bn ROL should be transferred by this spring. Its policy to hold dividends makes Ana Imep’s shares to be undervalued on RASDAQ. Earnings per share reach 556 ROL, so that (if calculated at the 2,750 ROL price on Friday) its P/E (price-earnings) Ratio is 5, compared to companies listed on the Bucharest Stock Exchange that see their P/E Ratio at 10 or even 15.

Ana Imep’s dividend policy is also the reason why it no longer has any investment funds among its shareholders holding more than 5%.

The Romanian Reconstruction Capital Fund, which held 20% in 2001, has sold its interest in the meantime.

The only minority shareholder that owns a significant stake now is Cyprus-based Banwell Ltd. – 7.7%. Ana Imep’s share capital is worth 239.5bn ROL and is divided into 1,000 ROL par value shares. If calculated at the latest stock quote, 2,750 ROL, its market capitalisation reaches $20 million.

Although on the rise, the 2003 turnover, 1,392bn ROL, was lower than anticipated in the S&R budget, which had set it to 1,529.3bn ROL.
laurentiu.ispir@zf.ro