CapMan Plc Interim Report 5 November 2015 at 8:30 a.m. EET
CapMan Group's Interim Report for 1 January-30 September 2015
Performance and main events for the review period:
- Group turnover totalled MEUR 24.7 (January-September 2014: MEUR 23.1).
- Operating profit was MEUR 4.2 (MEUR 2.2).
- Profit before taxes was MEUR 2.5 (MEUR 1.1).
- Profit after taxes was MEUR 2.0 (MEUR 0.7).
- Earnings per share for the review period were 1.5 cents (0.0 cents).
- Cash flow to CapMan from exits was MEUR 17.7 (MEUR 13.6).
This stock exchange release is a summary of CapMan Plc's Interim Report for 1 January-30 September 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-m...als/result .
Key figures
| 1-9/15 | 1-9/14 | |
| Turnover, MEUR | 24.7 | 23.1 |
| Operating profit, MEUR | 4.2 | 2.2 |
| Profit before taxes, MEUR | 2.5 | 1.1 |
| Profit for the period, MEUR | 2.0 | 0.7 |
| Earnings / share, cents | 1.5 | 0.0 |
| Diluted earnings / share, cents | 1.5 | 0.0 |
| 1-9/15 | 1-9/14 | |
| Return on equity, % p.a. | 4.2 | 1.4 |
| Return on investment,% p.a. | 5.6 | 3.5 |
| Equity ratio, % | 44.3 | 56.7 |
| Net gearing, % | 49.1 | 17.6 |
Heikki Westerlund, CEO:
"Our turnover increased by seven per cent compared to last year and our profit doubled. Our operative cash flow was similarly at a good level. The negative stock market development in the third quarter was mainly reflected in the valuation of our associated company Norvestia and to some extent also in the fair value development of our own fund investments. The decrease in net asset value was moderate compared to the general development in the Nordic stock markets.
Norvestia's Board of Directors approved the new investment strategy as a result of the company's strategy process. Over the coming years, the company's objective is to invest MEUR 100 in growth equity, which includes direct minority investments, activist stakes in growth-oriented public companies and Venture and Buyout funds. The return target of growth equity portfolio is at least 15% p.a.
The development of our service business and new investment products, e.g. mandates tailored according to client specifications provide an additional boost to our growth. We have also initiated a program with the objective to save approximately one million euros in expenses by for example renewing lease agreements for our offices.
We received carried interest income from the repayment of a high yield vendor loan provided in conjunction with the exit from Inflight Service. Moreover, the completion of the exit from Cederroth resulted in significant cash flow to both fund investors and CapMan. Funds at the end of their life cycle still hold companies with notable return potential, of which the recent exits from Swereco by the CapMan Life Science IV fund and ÅF AB by the CapMan Public Market fund are good examples."
CapMan maintains its outlook estimate for 2015:
We estimate our earnings per share to improve from the level achieved in 2014.
Specified 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 are in exit process. In case the exits will be completed at the end of the year, the carried interest income can be accounted for either in 2015 or 2016, which could impact our operating profit and the achievement of our outlook estimate for 2015.
The fair value development of our own fund investments and that of Norvestia 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.
Press and analyst conference today at 10.00 a.m. EET
Heikki Westerlund, CEO, will present the result for the review period to press and analysts and review the market situation in a press conference to be held at 10.00 a.m. EET 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 or can be ordered either by phone +358 50 374 1267 or by email hanna.shkurov@capman.com after the event has begun. There is no webcast available. To join the conference, please register with linda.tierala@capman.com . Welcome!
Helsinki, 5 November 2015 CAPMAN PLC Board of Directors
Further information: Niko Haavisto, CFO, tel. +358 50 465 4125
Distribution: NASDAQ OMX Helsinki Principal media www.capman.com
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. 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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