CapMan Plc Interim Report 7 November 2013 at 8.15 a.m. EET
CapMan Group’s Interim Report for 1 January – 30 September 2013
Performance and main events for the review period:
· Group turnover totalled MEUR 23.2 (January – September 2012: MEUR 21.3).
· The Group’s operating profit was MEUR 4.2 (MEUR 1.9).
· Profit before taxes was MEUR 3.8 (MEUR 2.7) and profit after taxes was MEUR 3.9 (MEUR 2.3).
· Earnings per share for the review period were 2.4 cents (0.5 cents).
· The Management Company business recorded an operating profit of MEUR 0.7 (loss of MEUR 1.3).
The Fund Investment business recorded an operating profit of MEUR 3.5 (MEUR 3.2).
· Capital under management as of 30 September 2013 totalled MEUR 3,172.6 (30 September 2012: MEUR 2,977.7).
· Funds managed by CapMan completed several new investments and exits during and after the review period.
· CapMan received a total of MEUR 8.7 (MEUR 4.8) in cash flow from repaid capital and carried interest from funds due to exits completed during the review period. Exits after the review period contributed an additional MEUR 6 in cash flow from repaid capital for the Group.
· CapMan redeems its existing hybrid bond by issuing MEUR 30 in debt securities. The financing costs of the new bonds are 40% lower compared to the existing hybrid bond.
· Joakim Rubin will step down from the management group as of 11 November 2013. He continues as Head of the Public Market team.
This stock exchange release is a summary of CapMan Plc’s interim report. The complete interim report for the period 1 January-30 September 2013 is available in pdf-format as an attachment to this release, in addition to on the company’s website at http://www.capman.com/capman-group/earnings-model-and-financials/result.
Key figures
| 1-9/13 | 1-9/12 | |
| Turnover, MEUR | 23.2 | 21.3 |
| Operating profit, MEUR | 4.2 | 1.9 |
| Profit before taxes, MEUR | 3.8 | 2.7 |
| Profit for the period, MEUR | 3.9 | 2.3 |
| Earnings / share, cents | 2.4 | 0.5 |
| Diluted earnings / share, cents | 2.4 | 0.5 |
| 1-9/13 | 1-9/12 | |
| Return on equity, % p.a. | 6.3 | 3.7 |
| Return on investment,% p.a. | 5.9 | 4.4 |
| Equity ratio, % | 70.3 | 62.2 |
| Net gearing, % | 2.5 | 22.9 |
Heikki Westerlund, CEO:
“The cautious optimism in Europe that has prevailed after the summer was reflected in the value development of the Public Market fund, among others. Transaction activity also showed clear signs of picking up both in terms of exits and new investments. However, the market situation of certain industries remains challenging, especially of companies connected with industrial production.
Our business is extremely long-term in nature. Quarterly results may vary significantly depending on the timing of exits. As a result of new funds under management, our fee base is now balanced with our expenses. We continue to raise additional capital, thereby building a great foundation for the development of our business for years to come. Our plans for new strategic ventures (new funds and selective acquisitions) progress, but we strive to apply special care into selecting growth targets while taking synergies and positive EPS impact into account.
We strengthen CapMan’s financial position by issuing a senior bond and a new hybrid bond. The oversubscribed new bonds enable the repayment of our existing hybrid bond, while maintaining our good liquidity position.”
CapMan maintains its estimate for 2013:
We estimate our operating profit to increase from the level obtained in 2012.
Outlook for 2013:
The development of management fees during 2013 depends on the timing of exits made from current funds and the size and timing of new funds under establishment. We anticipate that our management fees will cover our expenses during the second half of 2013.
Our current portfolio holds several investments, which we are ready to exit during 2013. The timing of such exits will impact the results of our Management Company business for 2013 through carried interest income from funds, in the event that the fund is in carry or about to enter carry as a result of the exit.
The result of our Fund Investment business will mainly depend on the value development of investments in those funds, in which CapMan is a substantial investor. We believe that the fair values of our fund investments will develop positively during the current year.
Helsinki, 7 November 2013
CAPMAN PLC
Board of Directors
Distribution:
NASDAQ OMX Helsinki
Principal media
www.capman.com
Further information:
Heikki Westerlund, CEO, tel. +358 207 207 504 or +358 50 559 6580
Niko Haavisto, CFO, tel. +358 207 207 583 or +358 50 465 4125
Jerome Bouix, Head of Business Development and Investor Relations, tel. +358 20 720 7558 or +358 40 820 8541
CapMan www.capman.com CapMan Group is one of the leading private equity firms in the Nordic countries and Russia, with assets under management of approximately 3.2 billion. CapMan has five investment partnerships – CapMan Buyout, CapMan Russia, CapMan Credit, CapMan Public Market, and CapMan Real Estate – each of which has its own dedicated investment team and funds. Altogether, CapMan employs approx. 105 people in Helsinki, Stockholm, Oslo, Moscow and Luxembourg. CapMan was established in 1989 and has been listed on the Helsinki Stock Exchange since 2001.
