6 February 2014:
Heikki Westerlund, CEO and senior partner, comments on the events during the financial year and CapMan’s prospects:
“We succeeded in significantly improving the profitability of our Management Company business. In addition to balancing our fees and expenses, we also accomplished a good financing position and flexibility in our capital structure. The lower financing costs as a result of the repayment of the 2008 hybrid bond will be reflected in our earnings per share starting from 2014.
The general market outlook was more positive in the Nordic countries as well as in Europe at large. However, the economic slowdown in some of our home markets, namely Finland and Russia, had a negative impact especially on the fair value changes of our own fund investments in the second half of 2013. Different sectors also continued their diverging development. The weakest development was seen in companies linked to industrial production, where the ongoing structural changes have had the most impact. Many of these investments were made before the onset of the financial crisis and therefore the completion of the value creation work in these companies is taking longer than expected.
We were active in the exit market during 2013, although the exits we aimed to complete by the end of last year have been postponed to this year. Further realised exits would result in excellent positive cash flow through distributions from our own fund investments.”
To read the full January - December 2013 Financial Statements Bulletin, please click here.
To read CapMan Group’s Interim Reports, please click below: