International News - Ahold allays fears after EUR1.2bn loss announced

Embattled Dutch retailer Ahold has promised shareholders it will swiftly follow last week's results with a strategy update and further figures over the next month.

The stores giant revealed last week it had made a net loss of EUR1.2 billion (£845.5 million) in 2002, under Dutch accounting standards. The announcement followed the revelation in February that EUR970 million (£683.5 million) of accounting irregularities had been uncovered.

Ahold has been struggling to convince investors that its troubles are behind it and hopes the financial clarity will restore confidence. Results for the first six months of 2003 will be released on November 7 in an effort to further appease its weary shareholders.

The heavily-geared business will also give details of plans to refinance, which is expected to include a EUR2 billion (£1.41 billion) rights issue.

Ahold's debt amounts to about EUR11 billion (£7.75 billion) and losses under GAAP accounting procedures, Ahold's official standard, are expected to exceed those announced under Dutch regulations.

Chief financial officer Hannu Ryopponen complained that resources at Ahold had been 'stretched to the limit' to provide the 2002 figures and described the results statement as 'the most expensive results document in our history'.

However, he said the timetable for the updates is achievable and he expected to have third- and fourth-quarter results statements by the end of November and in early January respectively.

Chairman Anders Moberg said: 'In many ways, it's been a lost year, difficult and negative. With 2002 now behind us, it's time to move forward and rebuild value for our customers and our shareholders.'

Meanwhile, Ahold said all three expected bids for its Brazilian business have been received.