CapMan Plc's January-September 2016 Interim Report
CapMan Plc Interim Report 3 November 2016 at 8.30 a.m. EET
CapMan Plc's January-September 2016 Interim Report
Performance and main events for the review period 1 January - 30 September 2016:
- Group turnover totalled MEUR 22.0 (1 January - 30 September 2015: MEUR 24.7).
- Operating profit was MEUR 10.0 (MEUR 4.2).
- Profit before taxes was MEUR 7.5 (MEUR 2.5).
- Profit after taxes was MEUR 7.1 (MEUR 2.0).
- Diluted earnings per share for the review period were 7.3 cents (1.5 cents).
- CapMan will make a public voluntary exchange offer of all Norvestia Plc's shares. More information regarding the offer will be available in a stock exchange release to be published today 3 November 2016.
This stock exchange release is a summary of CapMan Plc's January-September 2016 Interim Report. 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/newsroom/financial-reports/ .
|Operating profit, MEUR||10.0||4.2|
|Profit before taxes, MEUR||7.5||2.5|
|Profit for the period, MEUR||7.1||2.0|
|Diluted earnings / share, cents||7.3||1.5|
|Return on equity, % p.a.||14.3||4.2|
|Return on investment, % p.a.||10.0||5.6|
|Equity ratio, %||44.8||44.3|
|Net gearing, %||56.4||49.1|
Heikki Westerlund, CEO:
"We have realised our strategy in terms of growth and result development according to plan during the year. The success of our value creation effort is visible as a clear improvement in results especially due to the favourable development of our investments and successful exits in the first nine months of the year. Our cash flow has also been strong. Nordic Real estate transaction activity has remained high, which is also reflected in the activity of our own real estate team. CapMan Nordic Real Estate fund has announced several exits in the beginning of autumn. The fund is among the best performing in its category in the Nordic countries.
Our service business has overall developed according to plan and has a significant role as we seek improved fee profitability.
We presently own 28.7% of Norvestia and have today published a voluntary public exchange offer to acquire all remaining issued Norvestia shares. More than 50% of Norvestia's shareholders have already given their support for the exchange offer. Norvestia significantly strengthens CapMan's position as a leading Nordic private equity asset management and investment company with strong liquidity. The acquisition would support the implementation of our long term strategy."
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.
CapMan refers to its Half-Year 2016 Report published on 11 August 2016 for a description of items affecting comparability.
Press, analyst and investor conference today at 10.00 a.m. EET
CapMan will hold a press, analyst and investor conference today, on 3 November 2016, at 10:00 a.m. at CapMan's head office in Helsinki, at Korkeavuorenkatu 32. CapMan's CEO Heikki Westerlund, CapMan's Chairman of the Board Karri Kaitue and Norvestia's Vice Chairman of the Board Hannu Syrjänen will present at the conference. The presentation material is available at CapMan's website at the beginning of the event. The conference will be held in Finnish. Welcome!
Helsinki, 3 November 2016
Board of Directors
Niko Haavisto, CFO, tel. +358 50 465 4125
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.