2014-02-14 11:00:00 CET
2014-02-14 11:00:03 CET
REGULATED INFORMATION
eQ Oyj - Financial Statement Release
eQ PLC’S FINANCIAL STATEMENTS RELEASE 2013 – RESULT OF CLIENT OPERATIONS GREW – DIVIDEND WILL RISE TO EUR 0.15
eQ PLC
STOCK EXCHANGE RELEASE
14 February 2014 at 12:00 noon
eQ PLC'S FINANCIAL STATEMENTS RELEASE 2013 - RESULT OF CLIENT OPERATIONS GREW -
DIVIDEND WILL RISE TO EUR 0.15
October to December 2013 in brief
-- In the last quarter, the Group's net revenue totalled EUR 5.1 million (EUR
3.6 million from 1 Oct. to 31 Dec. 2012).
-- The Group's net fee and commission income totalled EUR 4.6 million (EUR 3.6
million).
-- The Group's net investment income from own investments operations was EUR
0.5
million (EUR 0.0 million).
-- The Group's operating profit was EUR 1.1 million (EUR -0.9 million).
-- Earnings per share were EUR 0.02 (EUR -0.03).
January to December 2013 in brief
-- In the financial period, the Group's net revenue totalled EUR 18.8 million
(EUR 16.3 million from 1 Jan. to 31 Dec. 2012).
-- The Group's net fee and commission income totalled EUR 15.4 million (EUR
11.3
million).
-- The Group's net investment income from own investments operations was EUR
3.4
million (EUR 5.1 million).
-- The Group's operating profit was EUR 4.9 million (EUR 4.7 million).
-- The operating profit of client operations (Asset Management and Corporate
Finance) was EUR 3.5
million (EUR 1.6 million).
-- Earnings per share were EUR 0.10 (EUR 0.10).
-- Dividend proposal EUR 0.15 per share (EUR 0.12).
-- The assets under management totalled EUR 6.7 billion (EUR 6.3 billion on 31
Dec. 2012) at the
end of the period.
-- The net cash flow from own investment operations was EUR 10.4 million (EUR
7.6 million).
-- The financial statements release contains Icecepital asset management
companies acquired during the financial year 2012 from 20 November 2012. On
30 September 2013, eQ increased its holding in Finnreit Fund Management
Company Ltd from 50 per cent to 100 per cent. Finnreit Fund Management
Company has been consolidated with the Group's result as a subsidiary from
1 October 2013. Due to the acquisitions, the comparison figures of the
interim report are not comparable.
Key ratios 10-12/ 10-12/ Change 1-12/ 1-12/ Change
2013 2012 % 2013 2012 %
--------------------------------------------------------------------------------
Earnings per share, EUR 0.02 -0.03 167% 0.10 0.10 0%
Dividend proposal, EUR 0.15 0.12 25%
Equity per share, EUR 1.97 2.03 -3% 1.97 2.03 -3%
Interest-bearing liabilities, 0.0 4.0 -100% 0.0 4.0 -100%
EUR million
Liquid assets and 11.3 10.7 5% 11.3 10.7 5%
interest-bearing receivables,
EUR million
Assets under management, EUR 6.7 6.3 6% 6.7 6.3 6%
billion
--------------------------------------------------------------------------------
Key ratios 10-12/ 10-12/ Change 1-12/ 1-12/ Change
2013 2012 % 2013 2012 %
--------------------------------------------------------------------------------
Net revenue, Group, EUR 5.1 3.6 40% 18.8 16.3 15%
million
Net revenue, Asset 3.7 2.6 43% 13.6 9.0 51%
Management, EUR
million
Net revenue, Corporate 0.9 1.1 -14% 2.2 2.6 -18%
Finance, EUR million
Net revenue, Investments, 0.4 -0.1 600% 3.0 4.7 -35%
EUR million
Net revenue, other segments
and
eliminations, EUR million 0.0 0.0 114% 0.0 0.0 -2%
Operating profit, Group, 1.1 -0.9 222% 4.9 4.7 6%
EUR million
Operating profit, Asset 0.8 -0.5 250% 3.1 0.9 244%
Management, EUR
million
Operating profit, Corporate 0.3 0.4 -13% 0.4 0.7 -46%
Finance, EUR
million
Operating profit, 0.4 -0.1 600% 3.0 4.7 -35%
Investments, EUR million
Operating profit, other -0.4 -0.7 41% -1.6 -1.6 -1%
segments, EUR million
Profit for the period, EUR 0.8 -0.8 201% 3.4 3.4 1%
million
--------------------------------------------------------------------------------
Janne Larma, CEO
eQ consolidated its position as leading asset manager
The assets managed by eQ increased to EUR 6.7 billion by the end of the year.
Measured with the value of the assets under management, eQ is the largest asset
manager in Finland that is independent of bank groups. In 2013, we have
successfully sold particularly asset management services related to emerging
markets, real estate and private equity investments. During the year, the size
of the eQ Emerging Markets Dividend Fund grew from EUR 70 million to EUR 159
million and the eQ Care Fund from EUR 6 million to EUR 81 million. The
investment capacity of the eQ Care Fund exceeded EUR 160 million at the
year-end. In the private equity market, we made a EUR 64 million close in the
eQ PE VI North investment programme.
During the year, we improved our services by investing in a new information
system. The system was introduced in stages during the year and is not fully
operational. By investing in this new system, we were able to close three old
systems, which both improves our client reporting and brings about cost
savings.
Advium's market position remained good
For the fifth year in a row, the number of corporate and real estate
acquisitions remained fairly modest. Towards the end of the year, activity
started to grow, however, and the outlook is significantly better. In 2013,
Advium acted as advisor in seven concluded transactions. Advium has a highly
experienced team of 13, which creates good preconditions for result-yielding
operations.
Asset Management increased its result
The Asset Management segment was able to increase its result significantly from
the previous year, and its operating profit was EUR 3.1 million. In addition,
one should note that all the synergy benefits related to the Icecapital
acquisition were not yet visible at year level in 2013. Advium's result was
modest with an operating profit of EUR 0.4 million. Based on the first months
of 2014, the outlook is better, however. The Investments segment also made a
lower result than in 2012 with an operating profit of EUR 3.0 million. The net
cash flow of investments, EUR 10.4 million, exceeded, however, the 2012 level.
The Group's capital adequacy is high and balance sheet extremely strong
The balance sheet of the Group remained extremely strong during the entire
year. The Group's liquid assets and interest-bearing receivables totalled EUR
11.3 million at the close of the year, while the balance sheet value of the
private equity investments was EUR 30.6 million.
Outlook
The asset management business introduced the year 2014 from good preconditions.
The strong sales during the last months of the year combined with the
favourable outlook for new sales give trust in the growth of yields. Based on
the beginning of the year, Advium's outlook is also encouraging. As a result,
we believe that the result of the client operations, i.e. the Asset Management
and Corporate Finance segments, will improve significantly from 2013. The
result of the Investments segment depends, on the other hand, mainly on factors
that the company cannot influence, due to which the result of the segment may
vary considerably and is difficult to forecast.
***
eQ has decided to change the company's disclosure policy regarding issuing an
outlook. According to the new practice, profit guidance is presented in the
outlook as a verbal assessment regarding client operations (Asset Management
and Corporate Finance). Previously, the company did not issue performance
guidance and published the outlook as general verbal estimates. The outlook is
presented in the financial statements release and in the report by the Board of
Directors, as required by the Finnish Accounting Act. eQ will update the
company's disclosure policy accordingly.
***
eQ's financial statements release for the period 1 January to 31 December 2013
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 40 500 4366
Distribution: NASDAQ OMX Helsinki, www.eQ.fi
eQ Group is a Finnish listed company specialising in asset management and
corporate finance business. eQ Asset Management offers a wide range of asset
management services (including private equity funds) for institutions and
individuals. The assets managed by the Group total approximately EUR 6.7
billion. Advium Corporate Finance Ltd, 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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