Published: 08-04-2020 18:02
Stern Groep N.V. (Stern), the listed Dutch mobility group in automotive retail and services, announces that the excellent result of Bovemij in 2019 will lead to a considerably higher valuation of Stern’s interest in this insurer.
The excellent result of Bovemij in 2019 was recently announced. The value of the depositary receipts for shares in Bovemij is determined each year on the basis of a valuation by PwC. As a result of this valuation, Stern expects to recognise a considerably higher value for its 5.06% interest in Bovemij in Q1-2020. For further information on the valuation and the method used to value the interest in Bovemij, see page 122 of Stern’s 2019 Annual Report.
The Dutch Minister of Justice and Security has recently approved the proposed settlement agreed by Stern with the Public Prosecutor’s Office for the case relating to the ESF subsidy applied for by Stern in 2009-2010, that has been running since mid-2016. In order to meet the subsidy requirements, Stern had engaged an external adviser who was charged with formulating the policy and the internal administrative process. It was established that this adviser did not exercise due care, for which Stern was held responsible. The case was to be settled by payment of € 200,000. A reserve has been formed for this charged to the profit in 2019. This case has been disclosed in each of our reports of annual and semi-annual figures in recent years, and most recently in the Stern’s 2019 Annual Report on page 124.
Impact of the corona crisis
The effect of the corona crisis on profit have been identified to some extent, however the full picture can only be given once the mitigating effect of the government’s recently published Temporary Emergency Bridging Measure to Preserve Employment (the NOW regeling) is included in the forecasts. As a result of the divestments and cost savings realised in 2019 and early 2020, Stern has a strong solvency position and has created a liquidity position that will be sufficient to offset even very considerable setbacks.