CapMan Group’s Financial Statements Bulletin for 2011

Performance and main events during 2011:                    

• Group turnover totalled MEUR 32.4 (January-December 2010: MEUR 38.2).
• The Group’s operating profit was MEUR 11.1 (The Group’s operating profit for 2010 was MEUR 6.3 excluding one-off items and MEUR 21.0 including one-off items).
• The Management Company business recorded an operating loss of MEUR -1.1 (MEUR 18.9). The Fund Investment business recorded an operating profit of MEUR 12.2 (MEUR 2.1), of which exits accounted for approximately 40%.
• Profit before taxes was MEUR 13.7 (MEUR 23.9) and profit after taxes was MEUR 11.1 (MEUR 17.6).
• Profit attributable to the owners of the parent company was MEUR 10.9 (MEUR 17.3). Earnings per share were 10.1 cents (17.7 cents).
• Capital under management as of 31 December 2011 totalled MEUR 3,065.9 (31 December 2010: MEUR 3,231.1).
• A total of MEUR 35 of new capital was raised for the CapMan Mezzanine V fund during the last quarter, and the fund’s final size reached MEUR 95.
• The Board of Directors of CapMan Plc will propose paying a dividend of EUR 0.07 per share for 2011.

Future outlook:

CapMan’s next major fundraising rounds will take place in 2012. The development of the company’s management fees during 2012 will depend on the timing of exits made from current funds and the size and timing of new funds to be established.

Our operating expenses will continue to decline as a result of various efficiency enhancement measures taken. Due to our fundraising efforts, management fees will not fully cover operating expenses until the new funds currently in the process of being established reach an adequate size.

The fair value of CapMan’s fund investments developed favourably during 2011. We believe that our portfolio companies are well-placed to continue performing well in this respect during 2012, which would have a positive effect on the fair value development of our fund investments.

The Group’s overall result for 2012 will mainly depend on whether new exits are made by funds already generating carried interest, whether new funds will transfer to carry, and on how the value of investments develops in those funds in which CapMan is a substantial investor. Due to difficulties to forecast these developments, CapMan will not issue guidance on its result for the full year.

CEO Lennart Simonsen:

“Our result for 2011 was satisfactory, given the challenging nature of our operating environment, particularly during the latter half of the year. The portfolio companies and real estate owned by our funds developed well on the whole. As a result, the fair values of our fund investments developed favourably, although stock market performance was weak during the year. The strong development of our portfolio companies indicates that we have been successful in implementing our strategy, with its focus on constantly improving our performance.

The decline in M&A activity in Europe towards the end of the year was also reflected in CapMan’s operations and delayed a number of exits. The bank financing has continued to be available in the Nordic region, particularly for small and medium-sized M&A transactions and for real estate investments.

Economic uncertainty was also reflected in the fundraising market, and the amount of capital raised for new funds globally during 2011 was historically at a low level*. We believe that the fundraising market will remain challenging during 2012, when we will launch our next major rounds of fundraising. CapMan’s strong market position, long-term investor relations, historically good levels of returns, and more than 20 years’ experience in the private equity industry will, however, provide a solid foundation for the success of our fundraising activities. Compared to other areas of Europe, international investors’ interest in the Nordic countries has increased in relative terms as a result of the European debt crisis, which should support our fundraising in 2012.”

^{* Preqin Private Equity Spotlight, December 2011.}

To read CapMan Group's Financial Statements Bulletin for 2011 in PDF format, please click below:
CapMan Group's Financial Statements Bulletin for 2011