eQ PLC STOCK EXCHANGE RELEASE
7 November 2013 at 1:00 p.m.
eQ PLC’S INTERIM REPORT 1 JANUARY TO 30 SEPTEMBER 2013
July to September 2013 in brief
- In the third quarter, the Group’s net revenue totalled EUR 3.9 million (EUR 6.7 million from 1 July to 30 September 2012).
- The Group’s net fee and commission income totalled EUR 3.4 million (EUR 2.7 million).
- The Group’s net investment income from own investment operations was EUR 0.5 million (EUR 4.1 million).
- The Group’s operating profit was EUR 0.6 million (EUR 4.3 million).
- Earnings per share were EUR 0.01 (EUR 0.10).
- On 30 September 2013, eQ increased its holding in Finnreit Fund Management Company Ltd from 50 per cent to 100 per cent.
January to September 2013 in brief
- During the period under review, the Group’s new revenue totalled EUR 13.7 million (EUR 12.7 million from 1 Jan. to 30 Sept. 2012).
- The Group’s net fee and commission income totalled EUR 10.8 million (EUR 7.6 million).
- The Group’s net investment income from own investment operations was EUR 2.9 million (EUR 5.1 million).
- The Group’s operating profit was EUR 3.8 million (EUR 5.6 million).
- Earnings per share were EUR 0.07 (EUR 0.13).
- The assets under management totalled EUR 6.4 billion (EUR 6.3 billion on 31 Dec. 2012) at the end of the period.
- The interim report contains Icecepital asset management companies acquired during the financial year 2012 from 20 November 2012. The comparison figures presented in the interim report are therefore not comparable.
| Key ratios | 7-9/ 2013 | 7-9/ 2012 | Change % | 1-9/ 2013 | 1-9/ 2012 | Change % | 1-12/ 2012 |
| Net revenue, EUR million | 3.9 | 6.7 | -42% | 13.7 | 12.7 | 8% | 16.3 |
| Operating profit, EUR million | 0.6 | 4.3 | -87% | 3.8 | 5.6 | -32% | 4.7 |
| Profit before taxes, EUR million | 0.6 | 4.3 | -87% | 3.7 | 5.6 | -33% | 4.6 |
| Profit for the period, EUR million | 0.4 | 3.2 | -88% | 2.6 | 4.2 | -39% | 3.4 |
| Earnings per share, EUR | 0.01 | 0.10 | -90% | 0.07 | 0.13 | -46% | 0.10 |
| Equity per share, EUR | 1.96 | 2.05 | -4% | 1.96 | 2.05 | -4% | 2.03 |
| Interest-bearing liabilities, EUR million | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 4.0 |
| Liquid assets and interest-bearing receivables, EUR million | 7.8 | 13.8 | -44% | 7.8 | 13.8 | -44% | 10.7 |
| Assets under management, EUR billion | 6.4 | 3.4 | 88% | 6.4 | 3.4 | 88% | 6.3 |
Janne Larma, CEO
The first nine months of the year have, as a rule, been good for investors in the equity market. The global share index rose by 15 per cent, and in Finland, the share index rose by 23 per cent. Emerging markets moved to the opposite direction and fell by about 7 per cent from the beginning of the year. Investors have, however, been able to succeed in emerging markets as well by making the right choices. A good example of this is the eQ Emerging Markets Dividend Fund, which gave a return of 6.6 per cent during the nine-month period, even though the return of the comparison index was 6.6 per cent negative.
The assets managed by eQ totalled EUR 6.4 billion at the end of the period under review, and we are the largest asset manager in Finland that is independent of bank groups. We consolidated out position by acquiring the entire share capital of Finnreit Fund Management Company. The acquisition will improve the management the eQ Care Fund and launch of new non-UCITS funds. The investment capacity of the eQ Care Fund already exceeds EUR 100 million, and it gave a yield of more than 12 per cent during a 12-month period. In addition, we carried out a close of EUR 64 million in the eQ PE VI North investment programme. The investment programme consists of a EUR 30 million programme launched in Q2 2013 for a local institutional investor and a EUR 34 million fund, eQ PE VI North LP. We also increased our range of fixed-income funds on 15 October 2013 as eQ LCR Income was launched.
The Group’s net revenue increased from the year before and totalled EUR 13.7 million. The increase of the net revenue was influenced by the increase in the fee and commission income of the Asset Management segment. The Group’s operating profit was EUR 3.8 million, which is lower than the figure for the corresponding period last year. This was mainly due to the lower operating profit of the Investments segment, which is independent of client operations. The net revenue of the Asset Management segment grew to EUR 9.9 million from last year’s EUR 6.4 million, and the profit of the segment increased to EUR 2.3 million, up more than 60 per cent on the year before. The result of the Corporate Finance segment was slightly positive. The net revenue and result of the Investments segment fell from the corresponding period last year and the operating profit was EUR 2.6 million. However, the net cash flow from investments was high at EUR 8.2 million during the period.
The balance sheet of the Group is in excellent shape. At the end of September, the balance sheet contained no interest-bearing liabilities, and the liquid assets and interest-bearing receivables totalled EUR 7.8 million. The balance sheet value of the private equity investments was EUR 32.7 million.
***
According to the new Securities Markets Act, which came into force at the beginning of 2013, a company is no longer liable to present an outlook in its interim reports and financial statements release. eQ has decided to give up its previous practice of issuing an outlook in its interim reports. In future, an outlook will be presented in the financial statements release and in the report by the Board of Directors, as required by the Finnish Accounting Act.
***
eQ’s interim report for the period 1 January to 30 September 2013 is enclosed to this release and it will also be available on the company website at www.eQ.fi.
Additional information: Janne Larma, CEO, tel. +358 40 500 4366
Distribution: NASDAQ OMX Helsinki, www.eQ.fi
eQ Group is a Finnish listed company specialising in asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds) for institutions and individuals. The assets managed by the Group total approximately EUR 6.4 billion. Advium Corporate Finance Ltd, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.
More information about the Group is available on our website at www.eQ.fi.
