eQ PLC STOCK EXCHANGE RELEASE
11 February 2016 at 8:00 a.m.
January to December 2015 in brief
- During the period under review, the Group's net revenue totalled EUR 30.5 million (EUR 24.4 million from 1 Jan. to 31 Dec. 2014).
- The Group’s net fee and commission income totalled EUR 28.5 million (EUR 22.9 million).
- The Group’s net investment income from own investment operations was EUR 2.1 million (EUR 0.8 million).
- The operating profit of client operations (Asset Management and Corporate Finance) was EUR 13.0 million (EUR 10.0 million).
- The Group’s operating profit was EUR 13.2 million (EUR 9.0 million).
- Earnings per share were EUR 0.29 (EUR 0.20).
- Dividend proposal EUR 0.30 (EUR 0.20) and proposal for return of capital EUR 0.20 (EUR 0.30) per share.
- The net cash flow from own investment operations was EUR 7.2 million (EUR 8.0 million from 1 Jan. to 31 Sept. 2014) and the change in fair value was EUR 0.3 million (EUR 3.8 million).
October to December 2015 in brief
- In the fourth quarter, the Group’s net revenue totalled EUR 8.8 million (EUR 8.1 million from 1 Oct. to 31 Dec. 2014).
- The Group’s net fee and commission income totalled EUR 8.3 million (EUR 7.3 million).
- The Group’s net investment income from own investment operations was EUR 0.4 million (EUR 0.8 million).
- The operating profit of client operations (Asset Management and Corporate Finance) was EUR 3.8 million (EUR 3.1 million).
- The Group’s operating profit was EUR 3.7 million (EUR 3.4 million).
- Earnings per share were EUR 0.08 (EUR 0.07).
| Key ratios | 1-12/15 | 1-12/14 | Change % | 10-12/15 | 10-12/14 | Change % |
| Net revenue, Group, M€ | 30.5 | 24.4 | 25% | 8.8 | 8.1 | 9% |
| Net revenue, Asset Management, M€ | 21.7 | 17.6 | 24% | 5.6 | 4.6 | 20% |
| Net revenue, Corporate Finance, M€ | 7.0 | 6.3 | 11% | 2.8 | 2.7 | 4% |
| Net revenue, Investments, M€ | 1.8 | 0.5 | 230% | 0.4 | 0.7 | 48% |
| Net revenue, Group admin. and eliminations, M€ | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% |
| Operating profit, Group, M€ | 13.2 | 9.0 | 46% | 3.7 | 3.4 | 10% |
| Operating profit, Asset Management, M€ | 9.6 | 7.1 | 36% | 2.3 | 1.7 | 38% |
| Operating profit, Corporate Finance, M€ | 3.4 | 2.9 | 15% | 1.5 | 1.4 | 3% |
| Operating profit, Investments, M€ | 1.8 | 0.5 | 230% | 0.4 | 0.7 | -48% |
| Operating profit, Group administration, M€ | -1.6 | -1.5 | 3% | -0.5 | -0.4 | 6% |
| Profit for the period, M€ | 10.5 | 7.1 | 47% | 2.9 | 2.7 | 9% |
| Key ratios | 1-12/15 | 1-12/14 | Change % | 10-12/15 | 10-12/14 | Change % |
| Earnings per share, € | 0.29 | 0.20 | 47% | 0.08 | 0.07 | 9% |
| Proposal for dividend and return of capital per share, € | 0.50 | 0.50 | 0% | |||
| Equity per share, € | 1.91 | 2.11 | -9% | 1.91 | 2.11 | -9% |
| Cost/income ratio, Group, % | 55.1 | 60.9 | -10% | 56.2 | 55.6 | 1% |
| Liquid assets and interest-bearing liabilities, M€ | 21.6 | 21.3 | 1% | 21.6 | 21.3 | 1% |
| Private equity investments, M€ | 22.5 | 27.3 | -18% | 22.5 | 27.3 | -18% |
| Interest-bearing liabilities, M€ | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% |
| Assets under management, € billion | 7.6 | 7.5 | 2% | 7.6 | 7.5 | 2% |
Janne Larma, CEO
eQ’s result in 2015 was excellent. We managed to increase our net revenue by 25 per cent to EUR 30.5 million and our operating profit to EUR 13.2 million. The Group’s profit for the financial period increased by 47 per cent to EUR 10.5 million, i.e. 29 cents per share. The profits of all segments grew from the previous year.
The Group’s balance sheet remains strong. The market value of eQ’s own private equity investments totalled EUR 22.5 million and liquid assets amounted to EUR 21.6 million at the close of the year. The Group has no interest-bearing liabilities.
eQ Asset Management grew much faster than the market and improved its profitability
eQ Asset Management was able to increase its fee and commission income by 28 per cent to EUR 22.0 million. The segment’s profitability improved markedly, and operating profit grew by 36 per cent to EUR 9.6 million. eQ Asset Management managed to grow faster than the market due to, above all, the good sales development of real estate funds and private equity products. eQ’s real estate funds gathered EUR 213 million of new capital in 2015 and offered an extremely competitive return in the present market situation. The return of the eQ Care Fund in 2015 was 8.2 per cent and that of the eQ Finnish Real Estate Fund 9.8 per cent. The interest in eQ’s real estate funds is wide, among both institutional and private investors, and the eQ Care Fund already has more than 1 600 unit holders. Our private equity asset management also consolidated its position and gained a lot of new capital. Our first private equity fund investing in the US, eQ PE VII US, gathered a little more than USD 80 million of capital. In addition, we obtained several new asset management clients to our private equity asset management. Also eQ’s fixed-income and equity funds succeeded well. In 2015, 73 per cent of eQ’s funds registered in Finland surpassed their benchmark indices.
Advium had a successful year
eQ’s corporate finance unit Advium had a successful year in 2015. Advium acted as advisor in 16 finalised transactions, and its net revenue increased by 11 per cent to EUR 7.0 million. The operating profit of Advium increased to EUR 3.4 million. Advium held its market leading position in large real estate transactions and was chosen the best Finnish investment bank in the real estate sector, already for the ninth time, in an enquiry by the distinguished Euromoney magazine. In addition, Advium took the second place in TNS Prospera’s M&A Advisors 2015 Finland inquiry.
Advium acted, for instance, as advisor to Rettig as it bought the Italian company Emmeti S.p.A., as advisor to Sponda Plc, as Certeum Oy’s shareholders sold the share majority in Certeum to funds managed by the American Blackstone. Advium also acted as advisor when Kesko and its pension fund sold 36 store sites and three shopping centres to Ankkurikadun Kiinteistöt Oy, a joint venture between Kesko, AMF Pensionsförsäkring AB and Ilmarinen Mutual Pension Insurance Company.
The Investments segment made a positive result
The operating profit of the Investments segment was EUR 1.8 million (EUR 0.5 million). The net cash flow of investments was almost at the same level as last year, i.e. EUR 7.2 million (EUR 8.0 million). The market value of the investments was EUR 22.5 million at the close of the year.
Dividend proposal and outlook
The Board of Directors’ dividend proposal for 2015 is 30 cents per share, and in addition, the Board proposes a return of capital of 20 cents per share. These figures adhere to the dividend policy updated last year.
The asset management business grew well in 2015, which gives an excellent starting point for the year 2016. We expect that the net revenue and operating profit of the Asset Management segment will grow in 2016. The assignment base of the Corporate Finance segment is at the moment at the same level as in 2015, and we estimate that the net cash flow of the Investments segment will be strongly positive.
The Board of Directors of eQ Plc has decided to issue a profit forecast only for the Asset Management segment in future, as the results of the Corporate Finance and Investments segments are highly dependent of factors that are independent of the company. Consequently, the operating profit of these segments may vary considerably and is difficult to foresee.
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eQ’s financial statements release 1 January to 31 December 2015 is enclosed to this release and it is also available on the company website at www.eQ.fi.
Additional information: Janne Larma, CEO, tel. +358 9 6817 8920Distribution: 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 7.6 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.
