CapMan Plc's Half-Year Financial Report 2016 - Operating profit doubled

CapMan Plc Half-Year Financial Report 11 August 2016 at 8.30 a.m. EEST

CapMan Plc's Half-Year Financial Report 2016 - Operating profit doubled

Performance and main events for the review period 1 January - 30 June 2016:

  • Group turnover totalled MEUR 15.4 (Jan-Jun 2015: MEUR 15.7).
  • Operating profit was MEUR 7.2 (MEUR 3.6).
  • Profit before taxes was MEUR 5.5 (MEUR 2.6).
  • Profit after taxes was MEUR 5.1 (MEUR 2.2).
  • Earnings per share for the review period were 5.4 cents (2.0 cents).
  • CapMan was awarded a MEUR 400 real estate investment mandate by BVK, Germany's largest pension scheme group.

This stock exchange release is a summary of CapMan Plc's Half-Year Financial Report 2016. The complete report is available in pdf-format as an attachment to this release and on the company's website at http://www.capman.com/newsroom/interim-reports/.

Key figures

1-6/16 1-6/15
Turnover, MEUR 15.4 15.7
Operating profit, MEUR 7.2 3.6
Profit before taxes, MEUR 5.5 2.6
Profit for the period, MEUR 5.1 2.2
Earnings / share, cents 5.4 2.0
30.6.2016 30.6.2015
Return on equity, % p.a. 15.9 7.3
Return on investment, % p.a. 10.8 6.8
Equity ratio, % 44.0 41.5
Net gearing, % 73.9 74.5

Heikki Westerlund, CEO:

"The successful implementation of strategic projects is important also considering our future development. We signed a MEUR 400 residential real estate mandate with BVK, Germany's largest pension scheme group, and established a new MEUR 100 private debt fund.

Our results continued to develop favourably during the second quarter of 2016. Over the first six months, we have doubled our operating profit and nearly tripled our earnings per share. The results improved despite the second quarter including a MEUR 1,0 write-down of a value-added tax receivable that affected comparability, among others.

Our cash flow has been good following exits made in the first half of the year, which provides a good foundation for the achievement of our objectives. Growth has been especially satisfactory in real estate investment and the development of specialised services. Selective launch of new product areas is also part of our programme for the upcoming 12 months.

Interest rates are expected to remain low for a considerable time as Brexit adds to capital market uncertainty. Despite potential volatility affecting valuations, the current market conditions continue to support the growth of private equity as an asset class."

CapMan maintains its outlook for 2016

The Management Company and Services business is profitable before carried interest income and any possible items affecting comparability. CapMan expects fees from services to continue growing and to constitute a larger share of overall fee income in 2016 compared to 2015.

A significant component contributing to CapMan's result is carried interest income. 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. The current portfolio holds several investments, which are in exit process, although the exact timing of such exits may fluctuate.

The fair value development of CapMan's investments have a substantial impact on CapMan's overall result. The development of industries and local economies, inflation development, valuation multiples of peer companies, exchange rates and various other factors outside of CapMan's control influence fair value development in addition to company and real estate specific development, and the fair value development of the overall portfolio depends on the interplay of these factors. For a future outlook on Norvestia, CapMan refers to the assessment published by Norvestia in its own reports. As a consequence, CapMan refrains from providing projections related to the fair value development of its investments.

Press, analyst and investor conference today at 10.00 a.m. EEST

Heikki Westerlund, CEO, will present the result for the review period to press, analysts and investors and review the market situation in a press conference to be held at 10.00 a.m. EEST at CapMan's head office in Helsinki, address Korkeavuorenkatu 32, 00130 Helsinki. The press and analyst conference will be held in Finnish. The presentation material is available at CapMan Group's website after the event has begun. There is no webcast available. To join the conference, please register with linda.tierala@capman.com. Welcome!

Helsinki, 11 August 2016
CAPMAN PLC
Board of Directors

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

Distribution:
NASDAQ Helsinki
Principal media
www.capman.com

CapMan www.capman.com
CapMan is a leading Nordic investment and asset management company active 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. Our objective is to 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 - as well as our associated company Norvestia 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 2.8 billion.

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