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Amer Group restructures restaurants to keep up with consequences of pound flotation  - Daily News Egypt

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Amer Group restructures restaurants to keep up with consequences of pound flotation 

Company begins establishment of residential project comprising 23,000 units near Porto Marina 

Amer Group is working on restructuring its restaurants to benefit from the recent economic decisions, especially the liberalisation of the foreign exchange rate. This requires restructuring costs while increasing restaurants’ contribution to the group’s revenues, according to an official at the company.

The source pointed out that the group possesses roughly 50 branches of a number of international restaurants, including Chili’s, Halket El-Samak, Al-Azhar Park, Studio Masr, Johnny Carino’s, and Ocean Basket in tourist areas and Greater Cairo. The company intends to financially and managerially restructure its restaurants, in order to enhance revenues and profit growth.

The source speculated the restructuring process to be completed during the first quarter of 2017.

Amer Group had explained in several previous press releases that the real estate investment sector represents 76% of total revenues, restaurants represent 11%, hotels 5%, malls  2%, Porto Vacation club 2%, and the rest for other activities..

Amer Group opened three Ocean Basket branches in 2016. Ocean Basket is one of the biggest South African restaurant chains, owning 195 branches in 12 countries in South Africa, Africa, Europe, and the Arabian Gulf.

Restaurants’ revenues registered EGP 107.5m during the first half of 2016 with an annual increase of 11%.

The source emphasised that Amer Group contracted with EFG-Hermes and Matouk Bassiouny law firm to take over the financial and legal advice to offering and converting part of the company’s capital to GDRs, and the ratio to be 33% of the total capital.

The source pointed out that many foreign financial institutions are interested in investing in shares of Amer Group, which was the reason behind the group’s idea to convert its shares in the Egyptian Stock Exchange to GDRs in the London stock exchange.

He emphasised the group’s interest in deposit certificates, considering it one of the main mechanisms of publicity and promotion for tourism projects.

The company will hold a general assembly in February to obtain the shareholders’ approval, then seek the Egyptian Financial Supervisory Authority’s (EFSA) approval. Certificates are expected to be offered during the second quarter of 2017.

Amer Group’s total revenues registered EGP 1.8bn during the first nine months of 2016, compared to EGP 1.5bn for the same period in 2015, an increase of 22%.

In terms of the current situation taking place in the Egyptian market following the Egyptian pound’s flotation, the group decided to increase the prices of tourism and real estate units that will be implemented during the current year, due to price hikes of construction materials, including cement, steel, labour, and lands.

The source stressed that the first project to be implemented by the group in 2017 is the launch of the first phase of a residential project comprising 23,000 housing units near Porto Marina North Coast, in which Amer Group is planning to complete the foundations and concrete structure before the end of 2017.

Amer Group registered net profits of EGP 151.5m in the first nine months of 2016, compared to EGP 111.4m the same period of 2015, a growth of 36%.

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