CapMan Plc Financial Statements Bulletin 5 February 2015 at 8:30 a.m. EET
CapMan Group’s Financial Statements Bulletin for 1 January – 31 December 2014
Performance and main events for the financial year 2014:
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Group turnover totalled MEUR 39.5 (January-December 2013: MEUR 29.8).
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Operating profit was MEUR 6.4 (MEUR 3.3).
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Profit before taxes was MEUR 4.9 (MEUR 2.0) and profit after taxes was MEUR 4.0 (MEUR 1.5).
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Earnings per share for the financial year were 3.4 cents (-1.2 cents).
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CapMan’s service business to external customers is estimated to increase the company’s fee income significantly in the long-term.
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Net debt decreased to MEUR 3.3 (MEUR 14.5) and the cash in hand amounted to MEUR 29.0 (MEUR 17.4) during the financial year.
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The Board of Directors of CapMan Plc will propose a dividend of EUR 0.06 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 2014 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-model-and-financials/result.
Key figures
| 1-12/14 | 1-12/13 | |
| Turnover, MEUR | 39.5 | 29.8 |
| Operating profit, MEUR | 6.4 | 3.3 |
| Profit before taxes, MEUR | 4.9 | 2.0 |
| Profit for the period, MEUR | 4.0 | 1.5 |
| Earnings / share, cents | 3.4 | -1.2 |
| Diluted earnings / share, cents | 3.4 | -1.2 |
| 1-12/14 | 1-12/13 | |
| Return on equity, % p.a. | 6.1 | 2.0 |
| Return on investment,% p.a. | 7.0 | 3.5 |
| Equity ratio, % | 57.8 | 58.9 |
| Net gearing, % | 5.0 | 22.3 |
Heikki Westerlund, CEO:
“We returned to growth path in 2014, improving both our turnover and profit. Concurrently, we further strengthened our financing position and launched strategic initiatives that will create a good foundation for profitable growth in the future.
We succeeded to raise over EUR 600 million in our three latest funds. Out of these, the size of our Nordic Real Estate fund grew to MEUR 266 at the end of the year and the fund has made several new investments in the Stockholm and Copenhagen regions. CapMan Collection, a non-UCITS fund launched by our collaboration partner Elite Asset Management is an example of how private equity is further opening up to smaller investors.
Our goal is to develop a service business alongside our Management Company business. The service business will enable us to more effectively utilise our expertise in fundraising and fund management, for example. Growing fee income will create a stronger foundation for our profit.
Our funds completed 12 exits during the year, generating a significant amount of carried interest income and several funds transferred to carry. The fair value development, on the other hand, was negative. This was impacted by the weaker than anticipated financial development of certain portfolio companies and towards the end of the year, by the weakening of rouble. Value creation in our portfolio companies and real estate will continue to be one of our top priorities in 2015.
Our strong cash position gives us an opportunity to implement selective strategic actions and, for example, repay the hybrid bond at the end of the year. Our strong cash position gives us an opportunity to implement selective strategic actions and, for example, repay the hybrid bond at the end of the year.”
Outlook estimate for 2015:
We estimate our earnings per share to improve from the level achieved in 2014.
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 we expect to exit during 2015. The most significant exits are expected to be completed during the second half of 2015.
The fair value development of our own fund investments 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.
Helsinki, 5 February 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 Group is one of the leading private equity firms in the Nordic countries and Russia, with assets under management of 3.0 billion. CapMan has five key investment partnerships – CapMan Buyout, CapMan Real Estate, CapMan Russia, CapMan Credit and CapMan Public Market – each of which has its own dedicated investment team and funds. Altogether, CapMan employs approx. 100 people in Helsinki, Stockholm, Moscow, Luxembourg and London. CapMan was established in 1989 and has been listed on the Helsinki Stock Exchange since 2001.
