Bifogade filer
eQ Plc Interim Report Q3 2019
Kurs & Likviditet
Beskrivning
| Land | Finland |
|---|---|
| Lista | Mid Cap Helsinki |
| Sektor | Finans |
| Industri | Övriga finansiella tjänster |
eQ PLC INTERIM REPORT
24 October 2019 at 8:00 AM
January to September 2019 in brief
- During the period under review, the Group's net revenue totalled EUR 35.0 million (EUR 30.6 million from 1 Jan. to 30 Sept. 2018).
- The Group’s net fee and commission income was EUR 34.5 million (EUR 28.9 million).
- The Group’s net investment income from own investment operations was EUR 0.5 million (EUR 1.7 million).
- The Group’s operating profit grew by 19% to EUR 17.9 million (EUR 15.1 million).
- The Group’s profit was EUR 14.3 million (EUR 11.9 million).
- The consolidated earnings per share were EUR 0.38 (EUR 0.32).
- The net cash flow from the Group’s own private equity fund investment operations was EUR 0.8 million (EUR 2.6 million).
- The net revenue of the Asset Management segment increased by 18% to EUR 31.8 million (EUR 26.8 million) and the operating profit by 26% to EUR 18.2 million (EUR 14.4 million).
- The net revenue of the Corporate Finance segment was EUR 2.9 million (EUR 2.3 million) and the operating profit was EUR 0.8 million (EUR 0.4 million).
July to September 2019 in brief
- In the third quarter, the Group’s net revenue totalled EUR 12.1 million (EUR 10.2 million from 1 July to 30 Sept. 2018).
- The Group’s net fee and commission income was EUR 12.0 million (EUR 9.8 million).
- The Group’s net investment income from own investment operations was EUR 0.1 million (EUR 0.5 million).
- The Group’s operating profit grew by 24% to EUR 6.9 million (EUR 5.6 million).
- The Group’s profit was EUR 5.5 million (EUR 4.4 million).
- The consolidated earnings per share were EUR 0.15 (EUR 0.12).
| Key ratios | 1-9/19 | 1-9/18 | Change % | 7-9/19 | 7-9/18 | Change % | 1-12/18 |
| Net revenue, Group, M€ | 35.0 | 30.6 | 14% | 12.1 | 10.2 | 18% | 45.4 |
| Net revenue, Asset Management, M€ | 31.8 | 26.8 | 18% | 10.9 | 9.3 | 18% | 36.7 |
| Net revenue, Corporate Finance, M€ | 2.9 | 2.3 | 28% | 1.1 | 0.5 | 120% | 7.1 |
| Net revenue, Investments, M€ | 0.2 | 1.6 | -86% | 0.1 | 0.4 | -83% | 1.8 |
| Net revenue, Group administration | |||||||
| and eliminations, M€ | 0.1 | 0.0 | 0.0 | 0.0 | -0.1 | ||
| Operating profit, Group, M€ | 17.9 | 15.1 | 19% | 6.9 | 5.6 | 24% | 22.4 |
| Operating profit, Asset Management, M€ | 18.2 | 14.4 | 26% | 6.8 | 5.4 | 27% | 19.5 |
| Operating profit, Corporate Finance, M€ | 0.8 | 0.4 | 71% | 0.4 | 0.1 | 590% | 3.2 |
| Operating profit, Investments, M€ | 0.2 | 1.6 | -86% | 0.1 | 0.4 | -83% | 1.8 |
| Operating profit, Group admin., M€ | -1.3 | -1.4 | -7% | -0.4 | -0.3 | 23% | -2.1 |
| Profit for the period, M€ | 14.3 | 11.9 | 20% | 5.5 | 4.4 | 25% | 17.8 |
| Key ratios | 1-9/19 | 1-9/18 | Change % | 7-9/19 | 7-9/18 | Change % | 1-12/18 |
| Earnings per share, € | 0.38 | 0.32 | 19% | 0.15 | 0.12 | 25% | 0.47 |
| Equity per share, € | 1.52 | 1.49 | 2% | 1.52 | 1.49 | 2% | 1.65 |
| Cost/income ratio, Group, % | 48.9 | 50.9 | -4% | 42.9 | 45.6 | -6% | 50.5 |
| Liquid assets, M€ | 18.8 | 15.8 | 19% | 18.8 | 15.8 | 19% | 25.7 |
| Private equity fund investments, M€ | 16.4 | 17.9 | -8% | 16.4 | 17.9 | -8% | 16.9 |
| Interest-bearing loans, M€ | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 0.0 |
| Assets under management, € billion | 11.2 | 9.0 | 25% | 11.2 | 9.0 | 25% | 9.5 |
Janne Larma, CEO
The Group's profit development continued to be strong. eQ Group’s operating profit has grown for 22 consecutive quarters. During the first nine months of the year, the net revenue of the Group grew by 14% to EUR 35.0 million and the operating profit by 19% to EUR 17.9 million. The Group’s profit increased to EUR 14.3 million (EUR 11.9 million from 1 Jan. to 30 Sept. 2018).
The growth of eQ Asset Management’s management fees and operating profit continued
Growth of eQ Asset Management’s fee and commission income has still been driven by real estate and private equity asset management. Net subscriptions in eQ’s real estate funds have remained at a high level and amounted to EUR 67 million in the third quarter and EUR 240 million in the nine-month period. Within private equity asset management, we have raised USD 214 million to the eQ PE XI US Fund in 2019. This fund is eQ’s largest private equity fund so far. We also raised EUR 73.5 million to the eQ Private Credit II Fund. We estimate that investors' interest in real estate and private equity investments will remain good.
Within traditional asset management, the returns of the funds managed by eQ have been excellent. Of the funds managed by eQ, 73% surpassed their benchmark indices during the year, and in the past three years, 71% of the funds managed by eQ have surpassed their benchmark indices.
eQ Asset Management’s profit growth continued to be good and the growth of the operating profit accelerated. The net revenue of the Asset Management segment increased by 18% to EUR 31.8 million and the operating profit grew by 26% to EUR 18.2 million. The cost/income ratio of the Asset Management segment has continued to fall, and it was at an excellent level of 42.8% during the first nine months.
Advium’s result improved on the previous year
In the Corporate Finance segment, Advium has acted as advisor in eight finalised transactions during the nine-month period. In the third quarter, Advium acted as advisor to, e.g. Starwood Capital, as it bought more than 2 000 rental apartments from Elo and OP Group. We also acted as advisor as Cobbleyard sold a property at Kalevankatu in the city centre of Helsinki to Conficap Oy.
In the nine-month period, Advium’s income was higher than last year. Advium’s net revenue during the period under review was EUR 2.9 million (EUR 2.3 million from 1 Jan. to 30 Sept. 2018). Operating profit was EUR 0.8 million (EUR 0.4 million).
The market situation within corporate and real estate transactions continues to be good, and according to our estimates, the last quarter of the year will be the most active quarter of the current year for Advium. Great variations in fees per quarter are typical of corporate finance operations.
The result of the Investments segment lower than last year
The net revenue and operating profit of the Investments segment fell markedly from the year before. The operating profit of the segment was EUR 0.2 million (EUR 1.6 million). During the period under review, the net cash flow from investments was EUR 0.8 million (EUR 2.6 million). At the end of September, the fair value of the private equity fund investments was EUR 16.4 million (EUR 16.9 million on 31 Dec. 2018).
The Group’s balance sheet and capital adequacy are very strong
The Group’s balance sheet remains very strong. We have no interest-bearing loans, and liquid assets totalled EUR 18.8 million at the end of the period. In the third quarter of 2019, eQ Asset Management Ltd has given up its right to engage in trade on own account, which was included in its investment firm authorisation. As a result of the changes in the authorisation, the capital adequacy requirements on eQ Group have changed and the Group's capital adequacy (CET1) has improved markedly. The Group’s capital adequacy ratio was 26.3% at the end of the period as compared with 9.6% at the beginning of 2019.
Outlook
The 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 half year financial report we stated that it is possible that one of our private equity funds will begin to pay a performance fee next year and not at the end of this year, as we had estimated at the beginning of the year. We estimate that the fund in question will begin to pay a performance fee next year.
***
eQ’s interim report 1 January to 30 September 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,eQ.fi, media
eQ Group is a group of companies that concentrates on 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 11.2 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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