eQ PLC STOCK EXCHANGE RELEASE
16 August 2013, at 8:30 a.m.
eQ PLC’S INTERIM REPORT 1 JANUARY TO 30 JUNE 2013
April to June 2013 in brief
- In the second quarter of the year, the Group’s net revenue totalled EUR 4.1 million (EUR 2.5 million from 1 April to 30 June 2012).
- The Group’s net fee and commission income totalled EUR 3.9 million (EUR 2.5 million).
- The Group’s net investment income from own investment operations was EUR 0.2 million (EUR 0.0 million).
- The Group’s operating profit was EUR 1.1 million (EUR 0.4 million).
- Earnings per share were EUR 0.02 (EUR 0.01).
January to June 2013 in brief
- During the period under review, the Group’s net revenue totalled EUR 9.8 million (EUR 6.0 million from 1 Jan. to 30 June 2012).
- The Group’s net fee and commission income totalled EUR 7.4 million (EUR 5.0 million).
- The Group’s net investment income from own investment operations was EUR 2.5 million (EUR 1.0 million).
- The Group’s operating profit was EUR 3.2 million (EUR 1.3 million).
- Earnings per share were EUR 0.06 (EUR 0.03).
- The assets under management totalled EUR 6.3 billion (EUR 6.3 billion on 31 Dec. 2012) at the end of the period.
- The interim report contains the Icecapital 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 | 4-6/ 2013 | 4-6/ 2012 | Change % | 1-6/ 2013 | 1-6/ 2012 | Change % | 1-12/ 2012 |
| Net revenue, EUR million | 4.1 | 2.5 | 61% | 9.8 | 6.0 | 64% | 16.3 |
| Operating profit, EUR million | 1.1 | 0.4 | 197% | 3.2 | 1.3 | 155% | 4.7 |
| Profit before taxes, EUR million | 1.0 | 0.4 | 188% | 3.2 | 1.3 | 149% | 4.6 |
| Profit for the period, EUR million | 0.7 | 0.2 | 250% | 2.2 | 1.0 | 124% | 3.4 |
| Earnings per share, EUR | 0.02 | 0.01 | 100% | 0.06 | 0.03 | 100% | 0.10 |
| Equity per share, EUR | 1.95 | 2.05 | -5% | 1.95 | 2.05 | -5% | 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 | 5.9 | 6.0 | -2% | 5.9 | 6.0 | -2% | 10.7 |
| Assets under management, EUR billion | 6.3 | 3.6 | 75% | 6.3 | 3.6 | 75% | 6.3 |
Janne Larma, CEO
The first months of the year were a good period for investors in general. In May and June, uncertainty increased and share prices fell temporarily, but turned up again during the summer. The strong trend of the equity market has contributed to the development of mutual funds registered in Finland. Net subscriptions in them totalled about EUR 2.3 billion in the first six months, and the fund capital was EUR 68.3 billion at the end of June.
The assets managed by eQ totalled EUR 6.3 billion at the end of the period under review, and we are the largest asset manager in Finland that is independent of bank groups. Our funds have succeeded well as compared with their comparison indices. Among our spearhead products, I would like to mention the eQ Emerging Markets Dividend Fund, which had a fund capital of EUR 126.1 million at the end of July, and the eQ Care Fund. The capital of the eQ Care Fund was EUR 31.2 million and the end of July, and its investment capacity exceeded EUR 60 million.
In the first half of the year, the Group’s fee and commission income and profit increased from the previous year. The net revenue of the Asset Management segment has increased to EUR 6.7 million from last year’s EUR 4.2 million, which is mainly due to the acquisition of Icecapital’s asset management business. The segment’s operating profit was EUR 1.7 million, almost double last year’s figure. The result of the Corporate Finance segment was positive and almost at the same level as a year ago. There were more assignments than last year, but it continues to be very challenging to complete transactions. The Investments segment made once more a good result with an operating profit of EUR 2.3 million. The net cash flow from investments was EUR 4.8 million during the period.
The balance sheet of the Group is in excellent shape. At the end of June, the balance sheet contained no interest-bearing liabilities, and the liquid assets and interest-bearing receivables totalled EUR 5.9 million. The balance sheet value of the private equity investments was EUR 35.8 million.
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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.
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eQ’s interim report for the period 1 January to 30 June 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 6.3 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.
