eQ PLC STOCK EXCHANGE RELEASE
5 November 2015 at 9:50 a.m.
January to September 2015 in brief
- During the period under review, the Group's net revenue totalled EUR 21.7 million (EUR 16.4 million from 1 Jan. to 30 Sept. 2014).
- The Group’s net fee and commission income totalled EUR 20.1 million (EUR 15.6 million).
- The Group’s net investment income from own investment operations was EUR 1.6 million (EUR 0.1 million).
- The operating profit of client operations (Asset Management and Corporate Finance) was EUR 9.2 million (EUR 6.9 million).
- The Group’s operating profit was EUR 9.5 million (EUR 5.6 million).
- Earnings per share were EUR 0.21 (EUR 0.12).
- The assets under management totalled EUR 7.4 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 6.2 million (EUR 4.8 million from 1 Jan. to 31 Sept. 2014) and the change in fair value was EUR 0.3 million (EUR 4.4 million).
July to September 2015 in brief
- In the third quarter, the Group’s net revenue totalled EUR 6.7 million (EUR 5.2 million from 1 July to 30 Sept. 2014).
- The Group’s net fee and commission income totalled EUR 6.0 million (EUR 5.3 million).
- The Group’s net investment income from own investment operations was EUR 0.7 million (EUR -0.1 million).
- The operating profit of client operations (Asset Management and Corporate Finance) was EUR 2.9 million (EUR 2.4 million).
- The Group’s operating profit was EUR 3.2 million (EUR 2.0 million).
- Earnings per share were EUR 0.07 (EUR 0.04).
| Key ratios | 1-9/15 | 1-9/14 | Change % | 7-9/15 | 7-9/14 | Change % | 1-12/14 |
| Net revenue, Group, M€ | 21.7 | 16.4 | 33% | 6.7 | 5.2 | 28% | 24.4 |
| Net revenue, Asset Management, M€ | 16.2 | 12.9 | 25% | 5.0 | 4.4 | 14% | 17.6 |
| Net revenue, Corporate Finance, M€ | 4.2 | 3.6 | 17% | 1.1 | 1.0 | 11% | 6.3 |
| Net revenue, Investments, M€ | 1.4 | -0.2 | 981% | 0.6 | -0.1 | 579% | 0.5 |
| Net revenue, Group administration | |||||||
| and eliminations, M€ | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 0.0 |
| Operating profit, Group, M€ | 9.5 | 5.6 | 68% | 3.2 | 2.0 | 59% | 9.0 |
| Operating profit, Asset Managem., M€ | 7.3 | 5.4 | 35% | 2.4 | 2.0 | 19% | 7.1 |
| Operating profit, Corporate Finance, M€ | 1.9 | 1.5 | 27% | 0.5 | 0.4 | 14% | 2.9 |
| Operating profit, Investments, M€ | 1.4 | -0.2 | 981% | 0.6 | -0.1 | 579% | 0.5 |
| Operating profit, Group admin. M€, | -1.1 | -1.1 | 2% | -0.2 | -0.3 | -8% | -1.5 |
| Profit for the period, M€ | 7.5 | 4.4 | 70% | 2.6 | 1.6 | 60% | 7.1 |
| Key ratios | 1-9/15 | 1-9/14 | Change % | 7-9/15 | 7-9/14 | Change % | 1-12/14 |
| Earnings per share, € | 0.21 | 0.12 | 75% | 0.07 | 0.04 | 75% | 0.20 |
| Equity per share, € | 1.82 | 2.04 | -11% | 1.82 | 2.04 | -11% | 2.11 |
| Liquid assets and interest-bearing liabilities, M€ | 18.1 | 16.4 | 11% | 18.1 | 16.4 | 11% | 21.3 |
| Private equity fund investments, M€ | 23.0 | 30.3 | -24% | 23.0 | 30.3 | -24% | 27.3 |
| Interest-bearing liabilities, M€ | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 0.0 |
| Assets under management, € billion | 7.4 | 7.4 | 1% | 7.4 | 7.4 | 1% | 7.5 |
Janne Larma, CEO
At the beginning of the year, share prices were on a positive trend, but after the first quarter the development turned into negative. The price fall was at its steepest in August due to, e.g. the devaluation of the Chinese yuan and the investors’ fear that economic growth in China would not meet expectations. The equity market in Europe and the US fell by almost 10 per cent in the third quarter, but the nine-month return still remained a few percentage points positive. In emerging markets, the equity market fell, however, considerably more between July and September, and for its part, the fall in the nine month period has been -8.4% (MSCI Emerging Markets Eur). In Finland, investors remained fairly calm in August even though equity markets fell markedly and volatility increased. Net subscriptions were made in equity funds registered in Finland in August, and fairly little fund units were redeemed from emerging markets. The same trend continued in September. After the period under review, in October, share prices rose and volatility decreased.
eQ succeeded relatively well in the difficult capital market. We succeeded especially well in selling our real estate funds, and subscriptions in them totalled EUR 32 million in the third quarter. Net subscriptions in the eQ funds registered in Finland since the beginning of the year exceeded EUR 100 million. The interest in real estate asset management products and private equity asset management has continued to be active during the entire year. The growth and excellent result development of eQ’s Asset Management segment continued. From January to September, its net revenue grew by 25 per cent to EUR 16.2 million and operating profit by 35 per cent to EUR 7.3 million from the previous year. 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.
The volatility of the capital market and the fall in share prices had no impact on Advium’s business operations. The number of transactions and assignments has increased from the previous year, and during the nine-month period, Avdium acted as advisor in eleven transactions. In the third quarter, Advium acted, e.g. as advisor to Forcit as it acquired Bergsäker AB. In the real estate sector, Advium acted as advisor to NV Kiinteistösijoitus, for instance, as a fund that it manages sold a production and office facility in Oulu to the Swedish company Sagax AB. From January to September, Advium’s net revenue grew by 17 per cent to EUR 4.2 million and operating profit by 27 per cent to EUR 1.9 million.
All segments of the Group grew and improved their operating results from the previous year. The net revenue of the Group grew by 33 per cent to EUR 21.7 million and the operating profit by 68 per cent to EUR 9.5 million. The profit of the Group increase by 70 per cent to EUR 7.5 million. The operating profit of the Investments segment was EUR 1.4 million and its net cash flow was EUR 6.2 million.
The balance sheet of the Group is strong. At the end of September, the Group’s liquid assets totalled EUR 18.1 million, and the balance sheet value of the private equity fund investments was EUR 23.0 million.
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eQ’s interim report 1 January to 30 September 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 7.4 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.
