2015-08-13 07:00:01 CEST
2015-08-13 07:00:05 CEST
REGULATED INFORMATION
eQ Oyj - Interim report (Q1 and Q3)
eQ PLC’S INTERIM REPORT 1 JANUARY TO 30 JUNE 2015 – eQ GROUP'S PROFIT GREW BY MORE THAN 75%
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 1-12/1
% % 4
--------------------------------------------------------------------------------
Net revenue, Group, M€ 15.0 11.1 35% 8.5 6.7 26% 24.4
------------------------- -------
Net revenue, Asset 11.2 8.6 30% 5.8 5.3 10% 17.6
Management, M€
------------------------- -------
Net revenue, Corporate 3.1 2.6 19% 2.2 1.3 67% 6.3
Finance, M€
------------------------- -------
Net revenue, 0.8 0.0 2631% 0.5 0.1 241% 0.5
Investments, M€
------------------------- -------
Net revenue, Group
administration
------------------------- -------
and eliminations, M€ 0.0 0.0 -60% 0.0 0.0 -50% 0.0
------------------------- -------
------------------------- -------
Operating profit, Group, 6.3 3.6 73% 3.8 2.7 37% 9.0
M€
------------------------- -------
Operating profit, Asset 4.9 3.4 45% 2.6 2.4 5% 7.1
Management, M€
------------------------- -------
Operating profit, 1.4 1.1 33% 1.1 0.6 102% 2.9
Corporate Finance, M€
------------------------- -------
Operating profit, 0.8 0.0 2631% 0.5 0.1 241% 0.5
Investments, M€
------------------------- -------
Operating profit, Group -0.9 -0.8 5% -0.4 -0.4 10% -1.5
admin, M€
------------------------- -------
------------------------- -------
Profit for the period, 5.0 2.8 76% 3.0 2.2 37% 7.1
M€
--------------------------------------------------------------------------------
Key ratios 1-6/15 1-6/14 Change 4-6/15 4-6/14 Change 1-12/1
% % 4
--------------------------------------------------------------------------------
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 13.7 11.6 18% 13.7 11.6 18% 21.3
interest-bearing
liabilities, M€
------------------------- -------
Private equity 24.6 30.7 -20% 24.6 30.7 -20% 27.3
investments, M€
------------------------- -------
Interest-bearing 0.0 0.0 0% 0.0 0.0 0% 0.0
liabilities, M€
------------------------- -------
------------------------- -------
Assets under management, 7.8 7.1 9% 7.8 7.1 9% 7.5
Bn €
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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 percent 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 itbought 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.
***
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.
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