eQ PLC’S INTERIM REPORT 1 JANUARY TO 31 MARCH 2015 – eQ CONTINUED ITS GROWTH – PROFIT TRIPLED


eQ Plc Stock Exchange Release

 

7 May 2015 at 09:40 a.m.

 

eQ PLC’S INTERIM REPORT 1 JANUARY TO 31 MARCH 2015 – eQ CONTINUED ITS GROWTH – PROFIT TRIPLED

 

January to March 2015 in brief

 

  • During the period under review, the Group's net revenue totalled EUR 6.5 million (EUR 4.4 million from 1 Jan. to 31 March 2014).
  • The Group’s net fee and commission income totalled EUR 6.2 million (EUR 4.5 million).
  • The Group’s net investment income from own investment operations was EUR 0.4 million (EUR -0.1 million).
  • The operating profit of client operations (Asset Management and Corporate Finance) was EUR 2.7 million (EUR 1.5 million).
  • The Group’s operating profit was EUR 2.5 million (EUR 0.9 million).
  • Earnings per share were EUR 0.05 (EUR 0.02).
  • The assets under management totalled EUR 7.5 billion at the end of the period (EUR 7.5 billion on 31 Dec. 2014).
  • The net cash flow from own investment operations was EUR 1.5 million (EUR 1.9 million from 1 Jan. to 31 March 2014) and the change in fair value was EUR 0.7 million (EUR 1.1 million).

 

 

Key ratios 1-3/2015 1-3/2014 Change % 1-12/2014
Net revenue, Group, MEUR 6.5 4.4 49% 24.4
Net revenue, Asset Management, MEUR 5.4 3.3 62% 17.6
Net revenue, Corporate Finance, MEUR 0.9 1.3 -30% 6.3
Net revenue, Investments, MEUR 0.3 -0.2 259% 0.5
Net revenue, Group administration        
and eliminations, MEUR 0.0 0.0 0% 0.0
         
Operating profit, Group, MEUR 2.5 0.9 190% 9.0
Operating profit, Asset Management, MEUR 2.4 1.0 146% 7.1
Operating profit, Corporate Finance, MEUR 0.3 0.5 -43% 2.9
Operating profit, Investments, MEUR 0.3 -0.2 259% 0.5
Operating profit, Group administration, MEUR -0.4 -0.4 0% -1.5
         
Profit for the period, MEUR 2.0 0.7 205% 7.1
         
Earnings per share, EUR 0.05 0.02 150% 0.20
Equity per share, EUR 1.68 1.87 -10% 2.11
         
Liquid assets and interest-bearing liabilities, MEUR 26.9 14.5 85% 21.3
Private equity investments, MEUR 26.9 29.7 -9% 27.3
Interest-bearing liabilities, MEUR 0.0 0.0 0% 0.0
         
Assets under management, EUR billion 7.5 6.8 12% 7.5

 

 

Janne Larma, CEO

 

Low interest rates and ample liquidity combined with an improved profit outlook have contributed to the rising share prices during the first months of the year. The MSCI World Index rose by 15.3 per cent during the three-month period, Helsinki Stock Exchange (OMXH Cap) rose by 18.4 per cent and the emerging markets (MSCI) gave a 15.2 per cent return.

 

The business operations of eQ Asset Management developed in an excellent manner. The net subscriptions in our two real estate funds totalled EUR 53 million. The interest in the eQ Care and eQ Finnish Real Estate Funds has grown owing to the attractive risk return ratio that they offer. At the end of March, the assets in these two funds totalled EUR 216 million. In private equity asset management, we held the first close of the eQ PE VII US Fund on USD 50 million. The final close of the fund will be held in the second quarter of 2015, the overall target being USD 75 million. The fund makes investments in other private equity funds in the US. Our local partner RCP Advisors is responsible for the fund’s investment operations.

 

The low interest rates and good availability of financing have contributed to growing activity in corporate and real estate transactions. During the three-month period, Advium acted as advisor in two transactions and issued one fairness opinion. Advium acted as advisor to the seller, e.g. when the NV Property Fund I Ky managed by NV Kiinteistösijoitus Oy sold three car dealers’ premises to the Swedish listed company AB Sagax.

 

The profit of client operations increased from the first quarter of 2014. Above all the profit of the Asset Management segment developed in an excellent manner. The net revenue of the Asset Management segment increased by more than 60 percent, and operating profit grew to EUR 2.4 million from last year’s EUR 1.0 million. The improvement of the result is mainly due to the growth in real estate and private equity management fees as well as performance fees. The net sales of the Corporate Finance segment fell by 30 per cent from last year, the operating profit being EUR 0.3 million, as compared with EUR 0.5 million in 2014. The operating profit of the Investments segment grew considerably from last year to EUR 0.3 million, compared with a loss of EUR 0.2 million last year.

 

The Group’s balance sheet is in excellent shape. At the end of March, the Group’s liquid assets and financial securities totalled EUR 26.9 million, and the balance sheet value of the private equity investments was EUR 26.9 million.

 

 

***

 

eQ’s interim report 1 January to 31 March 2015 is enclosed to this release and it will also be available on the company website at www.eQ.fi.

 

 

Additional information: Janne Larma, CEO, tel. +358 9 6817 8920

 

Distribution: NASDAQ Helsinki, www.eQ.fi, media

 

 

eQ Group is a Finnish group of companies specialising in asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and individuals. The assets managed by the Group total approximately EUR 7.5 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.

 

More information about the Group is available on our website at www.eQ.fi.


Attachments

eQ Plc Interim Report Q1 2015.pdf