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CapMan Group’s Interim Report for 1 January – 31 March 2014

08/05/2014

CapMan Plc Interim Report – 8 May 2014 at 8:30 a.m. EEST

CapMan Group’s Interim Report for 1 January – 31 March 2014

Performance and main events during the review period:

  • Group turnover totalled MEUR 7.0 (January-March 2013: MEUR 6.8).
  • Operating profit was MEUR 1.7 (MEUR 2.0).
  • Profit before taxes was MEUR 1.2 (MEUR 2.7) and profit after taxes was MEUR 1.2 (MEUR 2.6).
  • Earnings per share for the review period were 1.1 cents (2.3 cents).
  • Capital under management as of 31 March 2014 totalled MEUR 3,084.6 (31 March 2013: MEUR 3,250.1).
  • CapMan’s financing position remained strong.
  • The size of the CapMan Buyout X and CapMan Nordic Real Estate funds increased by approx. 14% due to new fund commitments.   

 

This stock exchange release is a summary of CapMan Plc’s January-March 2014 Interim Report. The complete interim report 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

  1-3/14 1-3/13
Turnover, MEUR 7.0 6.8
Operating profit, MEUR 1.7 2.0
Profit before taxes, MEUR 1.2 2.7
Profit for the period, MEUR 1.2 2.6
Earnings / share, cents 1.1 2.3
Diluted earnings / share, cents 1.1 2.3
     
  1-3/14 1-3/13
Return on equity, % p.a. 7.3 12.6
Return on investment,% p.a. 6.9 10.7
Equity ratio, % 56.8 63.0
Net gearing, % 17.3 26.7

 

Heikki Westerlund, CEO:

“Our development was positive in the early part of 2014. Slower than anticipated growth in Europe, however, is still reflected as caution in many sectors. There are also clear differences in the market mood between the Nordic countries, as Finland continues to develop at a slower pace than Sweden and Norway. The crisis in the Ukraine has slowed down some projects in our Russia investment area. However, interesting opportunities are created by decreasing competition. Investors’ interest in real estate and debt investments generating a steady cash flow based return has increased.

We continued active value creation work in our portfolio companies. We successfully achieved our goal of developing the Norwegian-based Espira to become a market leader in its sector. Our exit from the company, when complete, will bring a good cash flow to the fund investors, including CapMan itself. Action programmes in the more challenging portfolio companies have slowly started to bear fruit, and we are expecting a clear improvement in their performance in the next 12 months.

There are currently many interesting investment opportunities in the market that we have already been monitoring for a long time, and our funds have been active on the investment front in the beginning of the year. Our latest Buyout investment Harvia is a good example of cooperation between family-owned companies and private equity investors that generates growth opportunities. Our Nordic Real Estate fund has also continued investment activities in line with its strategy, especially in Sweden and Denmark.

Our strong financial position creates a good basis for strategy implementation.”

CapMan maintains its outlook estimate for 2014:

We estimate our earnings per share to improve significantly from the level achieved in 2013 primarily due to increasing operating profit. 

Basis for outlook:

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, 8 May 2014

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 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.