eQ PLC STOCK EXCHANGE RELEASE
13 August 2015 at 08:00 a.m.
January to June 2015 in brief
- During the period under review, the Group's net revenue totalled EUR 15.0 million (EUR 11.1 million from 1 Jan. to 30 June 2014).
- The Group’s net fee and commission income totalled EUR 14.1 million (EUR 10.3 million).
- The Group’s net investment income from own investment operations was EUR 0.9 million (EUR 0.1 million).
- The operating profit of client operations (Asset Management and Corporate Finance) was EUR 6.4 million (EUR 4.5 million).
- The Group’s operating profit was EUR 6.3 million (EUR 3.6 million).
- Earnings per share were EUR 0.14 (EUR 0.08).
- The assets under management totalled EUR 7.8 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 4.7 million (EUR 3.0 million from 1 Jan. to 30 June 2014) and the change in fair value was EUR 1.1 million (EUR 3.1 million).
April to June 2015 in brief
- In the second quarter, the Group’s net revenue totalled EUR 8.5 million (EUR 6.7 million from 1 April to 30 June 2014).
- The Group’s net fee and commission income totalled EUR 7.9 million (EUR 5.8 million).
- The Group’s net investment income from own investment operations was EUR 0.6 million (EUR 0.2 million).
- The operating profit of client operations (Asset Management and Corporate Finance) was EUR 3.7 million (EUR 3.0 million).
- The Group’s operating profit was EUR 3.8 million (EUR 2.7 million).
- Earnings per share were EUR 0.08 (EUR 0.06).
| Key ratios | 1-6/15 | 1-6/14 | Change % | 4-6/15 | 4-6/14 | Change % | 1-12/14 |
| Net revenue, Group, M€ | 15.0 | 11.1 | 35% | 8.5 | 6.7 | 26% | 24.4 |
| Net revenue, Asset Management, M€ | 11.2 | 8.6 | 30% | 5.8 | 5.3 | 10% | 17.6 |
| Net revenue, Corporate Finance, M€ | 3.1 | 2.6 | 19% | 2.2 | 1.3 | 67% | 6.3 |
| Net revenue, Investments, M€ | 0.8 | 0.0 | 2631% | 0.5 | 0.1 | 241% | 0.5 |
| Net revenue, Group administration | |||||||
| and eliminations, M€ | 0.0 | 0.0 | -60% | 0.0 | 0.0 | -50% | 0.0 |
| Operating profit, Group, M€ | 6.3 | 3.6 | 73% | 3.8 | 2.7 | 37% | 9.0 |
| Operating profit, Asset Management, M€ | 4.9 | 3.4 | 45% | 2.6 | 2.4 | 5% | 7.1 |
| Operating profit, Corporate Finance, M€ | 1.4 | 1.1 | 33% | 1.1 | 0.6 | 102% | 2.9 |
| Operating profit, Investments, M€ | 0.8 | 0.0 | 2631% | 0.5 | 0.1 | 241% | 0.5 |
| Operating profit, Group admin, M€ | -0.9 | -0.8 | 5% | -0.4 | -0.4 | 10% | -1.5 |
| Profit for the period, M€ | 5.0 | 2.8 | 76% | 3.0 | 2.2 | 37% | 7.1 |
| Key ratios | 1-6/15 | 1-6/14 | Change % | 4-6/15 | 4-6/14 | Change % | 1-12/14 |
| Earnings per share, EUR | 0.14 | 0.08 | 75% | 0.08 | 0.06 | 33% | 0.20 |
| Equity per share, EUR | 1.77 | 1.97 | -10% | 1.77 | 1.97 | -10% | 2.11 |
| Liquid assets and interest-bearing liabilities, M€ | 13.7 | 11.6 | 18% | 13.7 | 11.6 | 18% | 21.3 |
| Private equity investments, M€ | 24.6 | 30.7 | -20% | 24.6 | 30.7 | -20% | 27.3 |
| Interest-bearing liabilities, M€ | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 0.0 |
| Assets under management, Bn € | 7.8 | 7.1 | 9% | 7.8 | 7.1 | 9% | 7.5 |
Janne Larma, CEO
On the whole, the first half of the year has offered equity investors good returns, even though the return remained negative in several markets in the second quarter. The world stock exchange index (MSCI World) gave a 11.5 per cent return during the first six months, the Helsinki Stock Exchange (OMXH Cap) a 12.0 per cent and emerging markets (MSCI) a 11.8 per cent return. The long-term interest rates in Western countries rose strongly in the second quarter, which has led to negative returns. On the other hand, bond investors have obtained a positive return in emerging markets during the first half of the year as well.
The sales of eQ Asset Management developed excellently in the first half of the year. The assets of the eQ funds registered in Finland increased by more than EUR 200 million. Our portfolio management succeeded excellently in its operations, as 80% of the funds under our own management exceeded their benchmark indices. The subscriptions in the eQ Care and eQ Finnish Real Estate funds totalled a little over EUR 100 million in the first six months. The six-month return of the Finnish Real Estate Fund was 4.6% and that of the Care Fund 3.7%. We believe that the interest in real estate investments continues to increase. In private equity asset management, the eQ PE VII US Fund was finally closed on a little over USD 80 million in June 2015. Altogether 35 investors joined the fund, 12 of which were new investors in eQ’s private equity funds. In addition, we obtained new clients to discretionary private equity asset management.
The business operations of Advium have also developed favourably, and during the first six months, it has acted as advisor in seven transactions. In the second quarter, Advium acted as advisor to Kesko, for instance, as it sold 34 store sites and two shopping centres in Finland and Sweden to a joint venture established by Kesko, AMF Pensionsförsäkring AB and Ilmarinen Mutual Pension Insurance Company. Advium also acted as financial advisor to Ilmarinen Mutual Pension Insurance Company, when it sold a portfolio of over 1 200 apartments to the non-UCITS fund OP-Rental Yield, which is part of OP-Pohjola Group. Within corporate transactions, Advium acted as financial advisor to Kämp Group as it bought three upscale hotels in the city centre of Helsinki; Hotel Haven, Hotel Fabian and Hotel Lilla Roberts, which will open in August 2015.
All segments of the Group grew and improved their operating results from the previous year. The net revenue of the Group grew by 35 per cent to EUR 15.0 million and the operating profit by 73 per cent to EUR 6.3 million. The profit of the Group increase by 76 per cent to EUR 5.0 million. The operating profit of the Asset Management segment increased by 45% to EUR 4.9 million from EUR 3.4 million in 2014. The improvement of the result is due to the growth in management fees, above all in real estate asset management, as well as higher performance fees. I am very pleased with the fact that the fee and commission income of the Asset Management segment has continued to grow and that our expenses, excluding performance-based salaries, have remained at the same level as last year. The result of the Corporate Finance segment grew, operating profit being EUR 1.4 million as compared with EUR 1.1 million in 2014. The operating profit of the Investments segment was EUR 0.8 million and its net cash flow was EUR 4.7 million.
The balance sheet of the Group is strong. At the end of June, the Group’s liquid assets totalled EUR 13.7 million, and the balance sheet value of the private equity fund investments was EUR 24.6 million.
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eQ’s interim report 1 January to 30 June 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 7.8 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.
