CapMan Plc Financial Statements Bulletin 6 February 2014 at 8:30 a.m. EET
CapMan Group’s Financial Statements Bulletin for 1 January – 31 December 2013
Performance and main events for the financial year 2013:
- Group turnover totalled MEUR 29.8 (January – December 2012: MEUR 27.3).
- The Group’s operating profit was MEUR 3.3 (MEUR 2.6).
- Profit before taxes was MEUR 2.0 (MEUR 3.3) and profit after taxes was MEUR 1.5 (MEUR 2.7).
- Earnings per share for the financial year were -1.2 cents (0.3 cents).
- Capital under management as of 31 December 2013 totalled MEUR 3,098.2 (31 December 2012: MEUR 2,126.7).
- The funds managed by CapMan exited 11 portfolio companies in total during the financial year and as a result CapMan received a total of MEUR 19.2 (MEUR 9.2) in cash flow from funds.
- The Group’s fees and expenses were in balance in the second half of the year. Fees grew by 5.5% compared to the previous year.
- CapMan repaid its MEUR 29 hybrid bond and issued a new package of debt securities with 40% lower financing costs.
- The Board of Directors of CapMan Plc will propose a dividend of EUR 0.04 per share.
This stock exchange release is a summary of CapMan Plc’s financial statements bulletin. The complete financial statements bulletin for the financial year 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
| 1-12/13 | 1-12/12 | |
| Turnover, MEUR | 29.8 | 27.3 |
| Operating profit, MEUR | 3.3 | 2.6 |
| Profit before taxes, MEUR | 2.0 | 3.3 |
| Profit for the period, MEUR | 1.5 | 2.7 |
| Earnings / share, cents | -1.2 | 0.3 |
| Diluted earnings / share, cents | -1.2 | 0.3 |
| 1-12/13 | 1-12/12 | |
| Return on equity, % p.a. | 2.0 | 3.2 |
| Return on investment,% p.a. | 3.5 | 4.3 |
| Equity ratio, % | 58.9 | 61.9 |
| Net gearing, % | 22.3 | 32.2 |
Heikki Westerlund, CEO:
“We succeeded in significantly improving the profitability of our Management Company business. In addition to balancing our fees and expenses, we also accomplished a good financing position and flexibility in our capital structure. The lower financing costs as a result of the repayment of the 2008 hybrid bond will be reflected in our earnings per share starting from 2014.
The general market outlook was more positive in the Nordic countries as well as in Europe at large. However, the economic slowdown in some of our home markets, namely Finland and Russia, had a negative impact especially on the fair value changes of our own fund investments in the second half of 2013. Different sectors also continued their diverging development. The weakest development was seen in companies linked to industrial production, where the ongoing structural changes have had the most impact. Many of these investments were made before the onset of the financial crisis and therefore the completion of the value creation work in these companies is taking longer than expected.
We were active in the exit market during 2013, although the exits we aimed to complete by the end of last year have been postponed to this year. Further realised exits would result in excellent positive cash flow through distributions from our own fund investments.”
Estimate for 2014:
We estimate our earnings per share to improve significantly from the level achieved in 2013 primarily due to increasing operating profit.
Outlook for 2014:
Our fees will cover our expenses before possible non-recurring expenses related to acquisitions or larger development projects.
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 we are ready to exit during 2014.
The fair value development of our own fund investments will have a substantial impact on our overall result in 2014. We expect disparity in the development of individual portfolio companies and real estate also during 2014 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, valuation multiples of peer companies and exchange rates.
Helsinki, 6 February 2014
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 3.1 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.100 people in Helsinki, Stockholm, Oslo, Moscow and Luxembourg. CapMan was established in 1989 and has been listed on the Helsinki Stock Exchange since 2001.
