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| Consolidated turnover: CHF 387.7 million |
| Operating profit: CHF 37.9 million |
| Net profit - Group share: CHF 21.9 million |
| Net profit per bearer share (six months): CHF 4.13 |
| Extra dividend payment for 2002 |
The effects of restructuring measures undertaken by Compagnie Financière Tradition in 2002 kicked in during the first half of 2003 and were reflected in profitability, with operating profit up by over 34% in constant terms, for a turnover up by 3.0% in constant terms.
At today's Extraordinary General Meeting, shareholders of the Company accepted the Board of Directors' recommendation to pay an extra dividend for the 2002 financial year. The dividend of CHF 1.0 per bearer share will be paid in addition to a distribution of one bonus share for every 50 shares held. Thus, in the financial year 2002, Compagnie Financière Tradition will have paid a total dividend of CHF 4.0 per bearer share, as well as two bonus shares for every 50 shares held, hence a 8.2% yield relatively to the share price of 5 September 2003 (CHF 88,75).
Turnover
Consolidated turnover was CHF 387.7 million in the first half against CHF 433.9 million a year ago (CHF 418.9 million excluding Eurobrokers Finacor Ltd (EBFL), a company deconsolidated at the end of 2002 with effect at 1 January 2002), a rise of 3.0% in constant terms. Underlying these results was an uneven performance that saw a slow start to the year, as financial markets marked time, before surging ahead in the second quarter.
These figures reflect Compagnie Financière Tradition's good showing in the U.K., which accounts for close to 32.9% of consolidated turnover, and in Asia, where the Group enhanced its leadership in interest rate derivatives. The Group's business model of a diversified product portfolio and broad geographic footprint, significantly limits its dependence on any specific market. The wisdom of this policy was born out by its strong performance in interest rate derivatives, which helped offset the fall of over 50% in the electricity and natural gas markets
Operating profit
Consolidated operating profit for the period was CHF 37.9 million, up 34.2% in constant terms, after restatement of insurance payouts of CHF 0.5 million in H1 2003 against CHF 6.3 million in H1 2002, in respect of revenues lost in 2001 as a result of the September 11 attacks, and excluding the contribution of EBFL. The consolidated operating margin, as restated, reached 9.7% of consolidated turnover compared with 7.4% in the first half of 2002. This marked improvement was due to restructuring measures announced and implemented during the second half of last year.
Net profit
Consolidated profit before tax and extraordinary items was CHF 43.1 million. This figure includes net financial income of CHF 5.2 million, against CHF 15.3 million in the first half of 2002 when Compagnie Financière Tradition realised significant gains on the disposal of securities.
Consolidated net profit stood at CHF 26.7 million, for a net margin of 6.9% of consolidated turnover. Minority interests were down sharply in the first half to CHF 4.8 million against CHF 8.6 million in the previous period, standing at 17.9% and 32.6% of consolidated net profit respectively.
Group share of net profit was CHF 21.9 million, a rise of 22.7% over H1 2002. This result brings annualised return on consolidated equity to 22.3%.
Shareholders' equity
Consolidated shareholders' equity stood at CHF 237.1 million at 30 June 2003, CHF 194.3 million of which was Group share, for a consolidated cash position and investment securities, net of financial debts, of CHF 173.9 million.
Results in the first half of 2003, reflect the quality of the Group's fundamentals, with turnover ahead, an improvement in operating margin and a strong balance sheet, in addition to a solid cash position.
The restructuring measures undertaken in 2002, coupled with the gradual repurchase of minority interests and a simplification of the Group's organisational structure, should provide the impetus for Compagnie Financière Tradition to consolidate these trends in 2003 and further enhance its operating profitability to the level of that of the market leader, i.e. over 15%.
Lausanne, 8 September 2003
With a presence in 16 countries, Compagnie Financière Tradition is one of the world's top three brokers in financial (money markets, bonds, interest rate, currency and credit derivatives, equities, equity derivatives, interest rate futures and index futures) and non-financial products (precious metals, energy products, and pulp and paper). The Company is listed on the Swiss Exchange. For more information on our Group, visit our site at www.traditiongroup.com.
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