CapMan Plc Interim Report 4 May 2016 at 8.30 a.m. EEST
CapMan Plc's Interim Report for 1 January - 31 March 2016
Performance and main events for the review period:
- Group turnover totalled MEUR 7.5 (Jan-Mar 2015: MEUR 7.3).
- Operating profit was MEUR 3.8 (MEUR 0.9).
- Profit before taxes was MEUR 3.0 (MEUR 0.5).
- Profit after taxes was MEUR 2.9 (MEUR 0.5).
- Earnings per share for the review period were 3.0 cents (0.3 cents).
- Since the beginning of the year we have raised more than MEUR 120 for real estate and credit strategies.
This stock exchange release is a summary of CapMan Plc's 1 January - 31 March 2016 interim report. The complete interim report is available in pdf-format as an attachment to this release and on the company's website at http://www.capman.com/newsroom/interim-reports/.
Key figures
| 1-3/16 | 1-3/15 | |
| Turnover, MEUR | 7.5 | 7.3 |
| Operating profit, MEUR | 3.8 | 0.9 |
| Profit before taxes, MEUR | 3.0 | 0.5 |
| Profit for the period, MEUR | 2.9 | 0.5 |
| Earnings / share, cents | 3.0 | 0.3 |
| 31.3.2016 | 31.3.2015 | |
| Return on equity, % p.a. | 17.9 | 3.1 |
| Return on investment,% p.a. | 11.6 | 4.2 |
| Equity ratio, % | 40.9 | 54.3 |
| Net gearing, % | 68.1 | 0.2 |
Heikki Westerlund, CEO:
"Our year had a strong start. We have made progress in our growth initiatives by building a MEUR 80 residential portfolio for a large German investor, launching a MEUR 40 real estate product offering a stable income and finalising the establishment of a new credit fund. We are satisfied with our results for the first three months of the year, although our full potential is not yet reflected in the improvement. Our annual return on equity was at 17.9 per cent, which is close to our objective of at least 20 per cent.
Our five active investment strategies provide a good base for growing our specialised asset management business. The return on our own investments was good as the lengthy value creation process in our portfolio bore fruit. Our strategic investment in Norvestia has also generated good returns. The service business has continued growing. Relocations of offices in Moscow and Helsinki will have a positive effect on our cost structure. We proceed on our current strategic path with an objective to continuously improve our earnings per share."
CapMan maintains its outlook for 2016
The Management Company and Services business is profitable before carried interest income and any possible non-recurring expenses related to acquisitions or larger development projects. CapMan expects fees from services to continue growing and to constitute a larger share of overall fee income in 2016 compared to 2015.
A significant component contributing to CapMan's result is carried interest income. CapMan receives carried interest income from funds as a result of a completed exit in the event that the fund already is in carry or will enter carry due to the exit. The current portfolio holds several investments, which are in exit process, although the exact timing of such exits may fluctuate.
The fair value development of CapMan's investments have a substantial impact on CapMan's overall result. The development of industries and local economies, inflation development, valuation multiples of peer companies, exchange rates and various other factors outside of CapMan's control influence fair value development in addition to company and real estate specific development, and the fair value development of the overall portfolio depends on the interplay of these factors. For a future outlook on Norvestia, CapMan refers to the assessment published by Norvestia in its own reports. As a consequence, CapMan refrains from providing projections related to the fair value development of its investments.
Press and analyst conference today at 10.00 a.m. EEST
Heikki Westerlund, CEO, will present the result for the financial year to press and analysts and review the market situation in a press conference to be held at 10.00 a.m. EEST at CapMan's head office in Helsinki, address Korkeavuorenkatu 32, 00130 Helsinki. The press and analyst conference will be held in Finnish. The presentation material is available at CapMan Group's website after the event has begun. There is no webcast available. To join the conference, please register with linda.tierala@capman.com. Welcome!
Helsinki, 4 May 2016
CAPMAN PLC
Board of Directors
Further information:
Niko Haavisto, CFO, tel. +358 50 465 4125
Distribution:
NASDAQ Helsinki
Principal media
www.capman.com
CapMan www.capman.com
CapMan is a leading Nordic investment and asset management company active in the private equity industry. For more than 25 years, we have been developing companies and real estate and supporting their sustainable growth. We are committed to understanding the needs of our customers in an ever-changing market environment. Our objective is to provide attractive returns and innovative solutions for our investors and value adding services for professional investment partnerships, growth-oriented companies and tenants. Our independent investment partnerships - Buyout, Real Estate, Russia and Credit - as well as our associated company Norvestia are responsible for investment activities and value creation. CapMan's service business offering includes fundraising advisory services, purchasing activities and fund management services to both internal and external customers. CapMan has 100 private equity professionals and assets under management of €2.7 billion.
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