Bifogade filer
eQ Plc Half Year Financial Report 2019
Kurs & Likviditet
Beskrivning
| Land | Finland |
|---|---|
| Lista | Mid Cap Helsinki |
| Sektor | Finans |
| Industri | Övriga finansiella tjänster |
eQ PLC HALF YEAR FINANCIAL REPORT
13 August 2019 at 8:00 AM
January to June 2019 in brief
- During the period under review, the Group's net revenue totalled EUR 22.9 million (EUR 20.4 million from 1 Jan. to 30 June 2018).
- The Group’s net fee and commission income was EUR 22.5 million (EUR 19.2 million).
- The Group’s net investment income from own investment operations was EUR 0.4 million (EUR 1.2 million).
- The Group’s operating profit grew by 15% to EUR 11.0 million (EUR 9.5 million).
- The Group’s profit was EUR 8.8 million (EUR 7.5 million).
- The consolidated earnings per share were EUR 0.23 (EUR 0.20).
- The net cash flow from the Group’s own private equity fund investment operations was EUR 0.3 million (EUR 1.7 million).
- The net revenue of the Asset Management segment increased by 19% to EUR 20.8 million (EUR 17.5 million) and the operating profit by 26% to EUR 11.3 million (EUR 9.0 million).
- The net revenue of the Corporate Finance segment was EUR 1.8 million (EUR 1.8 million) and the operating profit was EUR 0.4 million (EUR 0.4 million).
April to June 2019 in brief
- In the second quarter, the Group’s net revenue totalled EUR 11.3 million (EUR 10.8 million from 1 April to 30 June 2018).
- The Group’s net fee and commission income was EUR 11.3 million (EUR 10.3 million).
- The Group’s net investment income from own investment operations was EUR 0.0 million (EUR 0.5 million).
- The Group’s operating profit grew by 11% to EUR 5.7 million (EUR 5.1 million).
- The Group’s profit was EUR 4.6 million (EUR 4.0 million).
- The consolidated earnings per share were EUR 0.12 (EUR 0.11).
| Key ratios | 1-6/19 | 1-6/18 | Change % | 4-6/19 | 4-6/18 | Change % | 1-12/18 |
| Net revenue, Group, M€ | 22.9 | 20.4 | 12% | 11.3 | 10.8 | 5% | 45.4 |
| Net revenue, Asset Management, M€ | 20.8 | 17.5 | 19% | 10.6 | 9.0 | 17% | 36.7 |
| Net revenue, Corporate Finance, M€ | 1.8 | 1.8 | 2% | 0.7 | 1.3 | -43% | 7.1 |
| Net revenue, Investments, M€ | 0.1 | 1.2 | -88% | -0.0 | 0.5 | -105% | 1.8 |
| Net revenue, Group administration | |||||||
| and eliminations, M€ | 0.1 | -0.0 | 0.0 | -0.0 | -0.1 | ||
| Operating profit, Group, M€ | 11.0 | 9.5 | 15% | 5.7 | 5.1 | 11% | 22.4 |
| Operating profit, Asset Management, M€ | 11.3 | 9.0 | 26% | 6.0 | 4.7 | 29% | 19.5 |
| Operating profit, Corporate Finance, M€ | 0.4 | 0.4 | -9% | 0.1 | 0.5 | -81% | 3.2 |
| Operating profit, Investments, M€ | 0.1 | 1.2 | -88.% | -0.0 | 0.5 | -105% | 1.8 |
| Operating profit, Group admin., M€ | -0.9 | -1.1 | -16% | -0.5 | -0.6 | -23% | -2.1 |
| Profit for the period, M€ | 8.8 | 7.5 | 17% | 4.6 | 4.0 | 13% | 17.8 |
| Key ratios | 1-6/19 | 1-6/18 | Change % | 4-6/19 | 4-6/18 | Change % | 1-12/18 |
| Earnings per share, € | 0.23 | 0.20 | 15% | 0.12 | 0.11 | 11% | 0.47 |
| Equity per share, € | 1.37 | 1.37 | 0% | 1.37 | 1.37 | 0% | 1.65 |
| Cost/income ratio, Group, % | 52.1 | 53.5 | -3% | 49.9 | 52.9 | -6% | 50.5 |
| Liquid assets, M€ | 12.2 | 9.2 | 33% | 12.2 | 9.2 | 33% | 25.7 |
| Private equity fund investments, M€ | 16.8 | 18.4 | -9% | 16.8 | 18.4 | -9% | 16.9 |
| Interest-bearing loans, M€ | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 0.0 |
| Assets under management, € billion | 10.9 | 8.9 | 23% | 10.9 | 8.9 | 23% | 9.5 |
Janne Larma, CEO
The result development of the Group has continued to be excellent. In the first half of 2019, the net revenue of the Group grew by 12% to EUR 22.9 million and the operating profit by 15% to EUR 11.0 million. eQ Group’s operating profit has grown for 21 consecutive quarters. The profit of the Group increase by 17% to EUR 8.8 million.
eQ Asset Management made its best quarterly result ever
The sentiment in the equity market was positive in the first half of the year. Stock exchange returns have been very good during the six-month period, and the global index rose by 18.1%. Interest rates have fallen across the board during the first half, and bond investments have also offered good returns.
Within eQ Asset Management, the demand for real estate and private equity asset management products continued to be very strong. We managed to raise USD 214 million to the eQ PE XI US private equity fund investing in the US, which makes it eQ’s largest private equity fund. Our previous fund investing in US was less than half the size. The demand for private equity asset management is clearly on the rise. Within real estate asset management, net subscriptions amounted to EUR 174 million in the first six months. In traditional asset management, the returns of the funds managed by eQ continued to be good. During a three-year investment period, 71% of the funds managed by eQ have surpassed their benchmark indices.
The net revenue of eQ Asset Management increased by 19% on the previous year to EUR 20.8 million. Operating profit grew by 26% to EUR 11.3 million. The management fees of real estate and private equity asset management grew by EUR 3.6 million on the previous year, i.e. by 31%.
Advium’s fee income at last year’s level
In the Corporate Finance segment, Advium has acted as advisor in five transactions during the six-month period. Ïn the second quarter, Advium acted as financial advisor to the owners, as Picnic, Europicnic and La Torrefazione were sold to Sentica Partners. In addition, Advium acted as advisor to Konstsamfundet as it bought the 30.9% share of the Lasipalatsi property in Helsinki that had been held by the city of Helsinki. After the period under review, Advium has acted as advisor in five signed transactions, one of which has been finalised. According to estimates, the remaining four transaction will be finalised by the end of the year.
The market activity in corporate and real estate transactions continues to be good. Advium’s net revenue was EUR 1.8 million (EUR 1.8 million) and operating profit EUR 0.4 million (EUR 0.4 million).
The operating profit of the Investments segment slightly positive
The operating profit of the Investments segment was EUR 0.1 million. The net cash flow was EUR 0.3 million. At the end of June, the balance sheet value of the private equity fund investments was EUR 16.8 million.
Outlook
Outlook for the financial year is the same as previously and we expect the profit of the Asset Management segment to grow clearly more than in 2018.
In the 2018 Financial Statements, we estimated that one of the private equity funds managed by eQ would reach the hurdle rate during the second half of this year and begin to pay a performance fee this year. We still expect that the private equity fund will reach the hurdle rate and begin to pay performance fee. Exits are dependent among other things on the market development and estimating the timing of them is difficult. Considering this, it is possible that the fund would start paying performance fee next year and not at the end of this year.
***
eQ’s half year financial report 1 January to 30 June 2019 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 that concentrates on responsible 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 private individuals. The assets managed by the Group total approximately EUR 10.9 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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