CapMan Group's Interim Report for 1 January-31 March 2015

CapMan Plc Interim Report 7 May 2015 at 8:30 a.m. EEST

CapMan Group's Interim Report for 1 January-31 March 2015

Performance and main events for the review period:

  • Group turnover totalled MEUR 7.3 (January-March 2014: MEUR 7.0).
  • Operating profit was MEUR 0.9 (MEUR 1.7).
  • Profit before and after taxes was MEUR 0.5 (MEUR 1.2).
  • Earnings per share for the review period were 0.3 cents (1.1 cents).
  • Interest bearing net debt decreased to MEUR 0.1 (MEUR 11.0).
  • The CapMan Nordic Real Estate fund closed at MEUR 273.


This stock exchange release is a summary of CapMan Plc's Interim Report for 1 January-31 March 2015. The complete Interim Report is available in pdf-format as an attachment to this release and on the company's website at http://www.capman.com/capman-group/earnings-model-and-financials/result.

Key figures

1-3/15 1-3/14
Turnover, MEUR 7.3 7.0
Operating profit, MEUR 0.9 1.7
Profit before taxes, MEUR 0.5 1.2
Profit for the period, MEUR 0.5 1.2
Earnings / share, cents 0.3 1.1
Diluted earnings / share, cents 0.3 1.1
1-3/15 1-3/14
Return on equity, % p.a. 3.1 7.3
Return on investment,% p.a. 4.2 6.9
Equity ratio, % 54.3 56.8
Net gearing, % 0.2 17.3

Heikki Westerlund, CEO:

"The CapMan Nordic Real Estate fund exceeded its original target size and we believe that the investment area will demonstrate significant growth potential in the future. The fund has been especially active in Denmark, where it has already completed five investments. Our service business has started to grow and will become a major business area together with management fees within the next two years.

The first quarter results reflect the fact that three months is a very short time frame in private equity. The overall development of our funds' portfolio companies and real estate was slightly positive.

We expect our full year cash flow to remain robust due to already announced exits. The cash position will strengthen our ability to make strategic moves. As such, we continue to evaluate options for growth either organically or by selective M&A."

CapMan maintains its outlook estimate for 2015:

We estimate our earnings per share to improve from the level achieved in 2014.

Basis for outlook:

CapMan receives carried interest income from funds as a result of a completed exit in the event that the fund already is in carry or will enter carry due to the exit. Our current portfolio holds several investments, which we expect to exit during 2015. The most significant exits are expected to be completed during the second half of 2015.

The fair value development of our own fund investments will have a substantial impact on our overall result in 2015. We expect disparity in the development of individual portfolio companies and real estate also during 2015 depending on their industry and geographical location. In addition, our portfolio companies and real estate are also influenced by various other factors, among others the general development of industries and local economies, inflation development, valuation multiples of peer companies, and exchange rates.

We estimate other fees to increase clearly alongside the management fees. Our fees as a whole will exceed our expenses before possible non-recurring expenses related to acquisitions or larger development projects.

Helsinki, 7 May 2015
CAPMAN PLC
Board of Directors

Distribution:
NASDAQ OMX Helsinki
Principal media
www.capman.com

Further information:
Niko Haavisto, CFO, tel. +358 50 465 4125

CapMan www.capman.com
CapMan is one of the European leaders in the private equity industry. For more than 25 years, we have been developing companies and real estate and supporting their sustainable growth. We are committed to understanding the needs of our customers in an ever-changing market environment. We provide attractive returns and innovative solutions for our investors and value adding services for professional investment partnerships, growth-oriented companies and tenants. Our independent investment partnerships - Buyout, Real Estate, Russia and Credit - are responsible for investment activities and value creation. CapMan's service business offering includes fundraising advisory services, purchasing activities and fund management services to both internal and external customers. CapMan has 100 private equity professionals and assets under management of €3.0 billion.

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