- Net Asset Value (NAV) increases to € 47.6 million as of June 30, 2023 (December 31, 2022: € 47.5 million)
- NAV per share slightly up to € 6.91 as of June 30, 2023
(December 31, 2022: € 6.89)
- Conversion of accounting standards to HGB / individual financial statements
- Significant earnings improvement in first half results of 2023 and further reduction in net financial liabilities to € 0.97 million
Munich, September 20, 2023 – Mountain Alliance AG (MA, ISIN DE000A12UK08) today published its half-year report 2023 as well as net asset value as of June 30, 2023. Beginning with the financial year 2023, Mountain Alliance AG will only prepare individual financial statements in accordance with the German Commercial Code (HGB) and no longer consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) while at the same time implementing investor reporting as of the annual financial statements 2023. The main reason for this decision is the high cost of complying with IFRS accounting requirements.
Mountain Alliance AG continued to perform solidly in the first half of 2023 even though the prevailing economic sentiment remained subdued. From an operational perspective, Mountain Alliance AG is on a growth path at group level and is on track overall to achieve the annual targets for the development of net asset value in the current year as announced in the Annual Report 2022.
Mountain Alliance AG generated sales of € 63,833 in the first half of 2023, compared to € 27,900 in the previous year according to the German Commercial Code (HGB). Net loss for the first half of 2023 was € 584,659 compared to a loss of € 1,101,553 in the same period of the previous year.
Pro forma data on an IFRS basis for better comparability are as follows: in the first half of 2023, Mountain Alliance AG generated consolidated pro forma sales (IFRS) of € 5.9 million compared to € 5.7 million in the same period of the previous year.
The relevant pro forma financial result for the first half of the year 2023 improved significantly to € 1.99 million compared to minus € 1.75 million in the same period of the previous year, benefiting in particular from positive valuation effects at Lingoda. Pro forma earnings before tax (EBT) improved to € 1.44 million in the period under review, compared to minus € 2.32 million in the same period of the previous year, and pro forma net profit to € 0.98 million, compared to minus € 2.32 million in the first half of 2023. Pro forma earnings per Mountain Alliance share therefore stood at € 0.14 in the first half of 2023, compared to minus € 0.34 in the same period of the previous year.
For Mountain Alliance AG as a venture capital investment company, the development of the portfolio is the key target and control indicator. As of June 30, 2023, the portfolio value amounted to € 48.6 million, compared to € 49.3 million as of December 31, 2022. The moderate decrease is mainly due to the development and sale of listed investments that are no longer part of the core portfolio. Taking into account net financial liabilities of € 0.97 million, the NAV of Mountain Alliance AG amounted to € 47.6 million, compared to € 47.5 million at year-end 2022. The reduction in net financial liabilities to € 0.97 million (December 31, 2022: € 1.8 million) had a positive impact. Based on 6.886 million shares outstanding, the NAV per share is slightly higher at € 6.91 as of June 30, 2023, compared to € 6.89 as of December 31, 2022.
The investment portfolio has reached a certain maturity that will ensure a continuation of the successful exit activity of recent years. In this regard, great expectations are placed on the online language learning platform Lingoda, in which Mountain Alliance AG holds a stake of around 7%.
Looking ahead to the full year 2023 and beyond, the Management Board is optimistic given the foreseeable milestones, even though external conditions such as continued high inflation, the development of the war in Ukraine, rising market interest rates, and slowing economic momentum significantly limit the accuracy of the forecast. Provided there is no significant deterioration in these external factors, the Management Board believes that the previously communicated target for the full year 2023 is achievable, with an organic increase of 5%, starting from a net asset value in 2022 of € 47.5 million. This target remains subject to the future performance of the listed investments and based on the growth of the portfolio companies, increasing investor interest in portfolio investments and value-adding acquisitions.
"We are facing exciting times with our promising portfolio. From an exit perspective, the focus is primarily on our investments in AlphaPet and our largest asset by value, Lingoda," says Manfred Danner, CEO of Mountain Alliance AG.
The half-year report 2023 is available for download at www.mountain-alliance.de.