2017-02-03 07:00:02 CET
2017-02-03 07:00:02 CET
REGULATED INFORMATION
eQ Oyj - Financial Statement Release
eQ PLC’S FINANCIAL STATEMENTS RELEASE 2016 – eQ’S RESULT INCREASED BY 23%, DISTRIBUTION PROPOSAL OF EUR 0.50 PER SHARE TO THE SHAREHOLDERS
eQ PLC FINANCIAL STATEMENTS RELEASE
3 February 2017 at 8:00 a.m.
January to December 2016 in brief
-- The Group's net revenue grew by 16 per cent to EUR 35.4 million (EUR 30.5
million from 1 Jan. to 31 Dec. 2015).
-- The Group’s net fee and commission income increased to EUR 33.2 million
(EUR 28.5 million).
-- The Group’s net investment income from own investment operations was EUR
2.2 million (EUR 2.1 million).
-- The Group’s operating profit grew by 23 per cent to EUR 16.2 million (EUR
13.2 million).
-- The Group’s profit was EUR 12.8 million (EUR 10.5 million).
-- The consolidated earnings per share grew by 23 per cent to EUR 0.35 (EUR
0.29).
-- The net cash flow from own investment operations was EUR 4.4 million (EUR
7.2 million from 1 Jan. to 31 Dec. 2015) and the change in fair value was
EUR -1.0 million (EUR 0.3 million).
-- Dividend proposal EUR 0.35 (EUR 0.30) and proposal for equity repayment EUR
0.15 (EUR 0.20) per share.
October to December 2016 in brief
-- In the fourth quarter, the Group’s net revenue grew by 5 per cent to EUR
9.2 million (EUR 8.8 million from 1 Oct. to 31 Dec. 2015).
-- The Group’s net fee and commission income increased to EUR 8.6 million (EUR
8.3 million).
-- The Group’s net investment income from own investment operations was EUR
0.7 million (EUR 0.4 million).
-- The Group’s operating profit grew by 12 per cent to EUR 4.2 million (EUR
3.7 million).
-- The Group’s profit was EUR 3.3 million (EUR 2.9 million).
-- The consolidated earnings per share grew by 12 per cent to EUR 0.09 (EUR
0.08).
Key ratios 1-12/1 1-12/1 Change 10–12/ 10–12/ Change
6 5 % 16 15 %
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Net revenue, Group, M€ 35.4 30.5 16% 9.2 8.8 5%
--------------------------------- -------
Net revenue, Asset Management, 25.6 21.7 18% 7.0 5.6 26%
M€
--------------------------------- -------
Net revenue, Corporate Finance, 7.9 7.0 12% 1.6 2.8 -43%
M€
--------------------------------- -------
Net revenue, Investments, M€ 1.9 1.8 8% 0.6 0.4 64%
--------------------------------- -------
Net revenue, Group
administration
--------------------------------- -------
and eliminations, M€ 0.0 0.0 0% 0.0 0.0 0%
--------------------------------- -------
--------------------------------- -------
Operating profit, Group, M€ 16.2 13.2 23% 4.2 3.7 12%
--------------------------------- -------
Operating profit, Asset 12.0 9.6 25% 3.3 2.3 41%
Management, M€
--------------------------------- -------
Operating profit, Corporate 3.7 3.4 9% 0.7 1.5 -56%
Finance, M€
--------------------------------- -------
Operating profit, Investments, 1.9 1.8 8% 0.6 0.4 64%
M€
--------------------------------- -------
Operating profit, Group -1.4 -1.6 12% -0.4 -0.5 19%
administration, M€
--------------------------------- -------
--------------------------------- -------
Profit for the period, M€ 12.8 10.5 23% 3.3 2.9 12%
--------------------------------------------------------------------------------
Key ratios 1-12/1 1-12/1 Change 10–12/ 10–12/ Change
6 5 % 16 15 %
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Earnings per share, € 0.35 0.29 23% 0.09 0.08 12%
--------------------------------- -------
Proposal for dividend and equity 0.50 0.50 0%
repayment per share, €
--------------------------------- -------
Equity per share, € 1.74 1.91 -9% 1.74 1.91 -9%
--------------------------------- -------
Cost/income ratio, Group, % 53.0 55.1 -4% 54.1 56.2 -4%
--------------------------------- -------
--------------------------------- -------
Liquid assets, M€ 16.7 21.6 -23% 16.7 21.6 -23%
--------------------------------- -------
Private equity investments, M€ 19.2 22.5 -14% 19.2 22.5 -14%
--------------------------------- -------
Interest-bearing liabilities, M€ 0.0 0.0 0% 0.0 0.0 0%
--------------------------------- -------
--------------------------------- -------
Assets under management, € 8.8 7.6 15% 8.8 7.6 15%
billion
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Janne Larma, CEO
eQ’s result was excellent in 2016. We managed to increase our net revenue by 16
per cent to EUR 35.4 million and our operating profit to EUR 16.2 million. The
Group’s profit for the financial period increased by 23 per cent to EUR 12.8
million, i.e. 35 cents per share. The results of all segments grew from the
previous year.
The Group’s balance sheet remains very strong. The market value of eQ’s own
private equity investments totalled EUR 19.2 million and liquid assets amounted
to EUR 16.7 million at the close of the year. The Group has no interest-bearing
liabilities.
eQ Asset Management grew and improved its profitability, excellent returns in
the funds
eQ Asset Management was able to increase its net fee and commission income by
18% per cent to EUR 25.6 million. The profitability of the segment improved
markedly, and the operating profit grew by 25 per cent to EUR 12.0 million.
Particularly real estate and private equity asset management grew strongly. In
2016, net subscriptions for EUR 247 million were made in eQ’s real estate
funds, and both funds gave very good returns to investors. The return of the eQ
Care Fund in 2016 was 9.8 per cent and that of the eQ Finnish Real Estate Fund
10.5 per cent. Private equity asset management also consolidated its position
and gained a lot of new capital. We raised a record amount of capital, EUR 160
million, to the eQ PE VIII North fund of almost 80 investors. In addition, our
private equity asset management obtained several new asset management clients.
The equity and bond funds as well as asset management portfolios of eQ also
showed excellent results in return comparisons. During the past three years,
93% per cent of eQ’s funds registered in Finland that the company manages
itself have surpassed their benchmark indices.
Advium had a successful year
eQ’s corporate finance unit Advium had a successful year. Advium acted as
advisor in 14 finalised transactions, and its net revenue increased by 12 per
cent to EUR 7.9 million. The operating profit of Advium rose to EUR 3.7
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 tenth time, in a survey made by the distinguished
Euromoney magazine. In addition, Advium took the fourth place in TNS Prospera’s
M&A Advisors 2016 Finland inquiry.
Advium acted, for instance, as advisor to the Finnish Government, as it sold
49.9 per cent of Patria to Norwegian Kongsberg for EUR 279 million. In
addition, Advium advised Elo Mutual Pension Insurance Company as it divested
six office properties to funds managed by NIAM for EUR 160 million. Advium
further acted as advisor to the LocalTapiola Group in three separate real
estate transactions in 2016.
The profit of the Investments segment improved from the previous year
The operating profit of the Investments segment was EUR 1.9 million (EUR 1.8
million). The net cash flow of investments was lower than the year before, i.e.
EUR 4.4 million (EUR 7.2 million). The market value of the private equity
investments was EUR 19.2 million at the close of the year.
Dividend proposal and outlook
The Board of Directors’ dividend proposal for 2016 is 35 cents per share, and
in addition, the Board proposes an equity repayment of 15 cents per share.
The asset management business grew well in 2016, which gives an excellent
starting point for the year 2017. We expect that the net revenue and operating
profit of the Asset Management segment will grow in 2017. In accordance with
our disclosure policy, we do not issue profit guidance for the Corporate
Finance and Investments segments. The results of these segments are highly
dependent of factors that are not dependent of the company. Consequently, the
operating profit of these segments may vary considerably and is difficult to
foresee.
***
eQ’s financial statements release 1 January to 31 December 2016 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 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 8.8 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 www.eQ.fi.
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