Johannesburg - Atlas Mara, co-founded by former Barclays chief Bob Diamond, said first-half profit plunged 71 percent after many African currencies weakened amid a slowdown in economies including Nigeria and Zambia.
Net income was $1.2 million for the six months ended June, from a profit of $4.1 million a year earlier, the company, incorporated in the British Virgin Islands and traded in London, said in a statement on Thursday. Impairments rose to $9.1 million from $6.1 million a year ago.
Atlas Mara has made several acquisitions since it started in 2013, giving it access to operations in seven African countries. With some of those economies such as Zambia and Nigeria under pressure due in part to the fall commodity prices, Atlas Mara has struggled to grow. Its share price has fallen 71 percent since inception, valuing the company at $217 million, less than the more than $700 million it spent on buying African assets.
“We expect a better operational performance from our businesses during the second half of the year as the cost and revenue initiatives that we have implemented begin to deliver results,” Atlas Mara said in the statement. “Our medium-term financial targets and strategic goals remain unchanged and we remain optimistic about our ability to achieve them but recognise that further acquisitions and a supportive economic environment are central to achieving this.”
BLOOMBERG