Frankfurt am Main, April 3rd, 2020 - FinLab AG (WKN 121806, ISIN DE0001218063, Ticker A7A.GR) has again achieved a very good result according to IFRS in the financial year 2019.
FinLab's net profit for the period according to International Financial Reporting Standards (IFRS) improved by EUR 22.6 million to EUR 39.5 million (previous year EUR 16.9 million). By contrast, the company's positive overall result of EUR 36.6 million under IFRS (previous year: EUR -3.7 million) was slightly negatively affected by the performance of the share price of Heliad Equity Partners GmbH & Co KGaA and was thus EUR -2.9 million lower than the net profit for the period.
FinLab's net asset value (NAV) per share showed correspondingly sharp year-on-year growth from EUR 20.44/share to EUR 27.12/share at the reporting date. The company's equity according to IFRS amounts to EUR 142.8 million (previous year: EUR 106.3 million). The equity ratio is 97.9% (previous year: 98.2%).
According to German GAAP (HGB), an annual result of EUR -1.5 million (previous year: EUR 9.1 million) is reported due to updated valuations of portfolio investments, whereby the result in 2018 was also largely influenced by the partial exit from Deposit Solutions and the associated contribution to earnings of EUR 8.5 million. The equity ratio remains at 98.1%.
As of the balance sheet date, the company had cash and cash equivalents of around EUR 11 million and thus is very well positioned to weather the current difficult market conditions caused by the Covid-19 pandemic.
"Our solid cash position ensures that investments from the existing portfolio can be supported with liquidity, if necessary and at the same time take advantage of opportunities for new investments that a market environment like this naturally offers. Even though the majority of investments are not yet acutely affected by the Covid-19 pandemic, it cannot be ruled out that business models will have to be adapted, revised or re-financed in the interim due to the effects on the entire economic and private sectors. However, with our Nextmarkets stake, we already see that there are also always opportunities in the crisis," explains Stefan Schütze, member of the Finlab AG Executive Board. "'With our Blockchain Fund, Finlab EOS VC GmbH& Co. KG, we will continue to invest selectively in blockchain projects in 2020 also."
"We are also very well positioned for stormy times. Particularly in special times, it becomes clear whether you have a balanced portfolio, which can also take advantage of the opportunities that arise in the crisis, of which we at FinLab are convinced," says Juan Rodriguez, member of the Executive Board of Finlab AG.
As a result of the global pandemic, Nextmarkets, one of the most innovative brokers in the market, has been able to significantly increase its customer growth and turnover in recent weeks. An extreme increase in number of trades, as well as an exploding trading volume, were masterfully processed by the platform. In contrast to some of the competitors, there were no technical defaults to report.
The portfolio company AUTHADA has also developed very positively. The KYC solutions offered by AUTHADA, by means of an electronic identity card (eID) and mobile device, offer excellent opportunities to identify customers. Now certified as an identification service provider, AUTHADA has access to markets with different regulatory requirements. The service offering ranges from identification in e-commerce to anti-money laundering-compliant identification of customers.
The portfolio company Deposit Solutions has also developed very positively and was recently able to report the volume of overnight and time deposits brokered at over EUR 20 billion. To this end, additional partner banks were onboarded, and the investment spectrum was expanded.
Vaultoro, the Bitcoin/Gold Exchange, which via its subsidiary Bar9 also enables the purchase of gold via Euro, has doubled its gold trading volume in recent weeks. While almost all gold dealers have closed their shops and online shops, Vaultoro was and is alongside Bar9 one of the few gold dealers in the German-speaking world that trades 24 hours a day without interruption. The physical gold markets have dried up. The largest mints in the world, such as Valcambi, Heraeus and others no longer accept orders. It is currently not possible to buy large quantities of physical gold anywhere. During this time Vaultoro is playing out its unique strength in the market: peer-to-peer trading between Vaultoro customers. This means that while traditional gold investors are currently unable to buy or sell, - with very few exceptions such as Bar9 - Vaultoro customers remain permanently liquid and capable of acting in the midst of the most severe market disruptions.
Kapilendo is a digital banking partner for small and medium-sized businesses and specialises in credit brokerage. In the midst of the coronavirus crisis, Kapilendo is cooperating with regional financial advisors in the allocation of liquidity support and promotional loans. A multi-bank capable business account with credit cards and liquidity management complement the service offering of Kapilendo.
Fastbill is currently helping many small entrepreneurs to strengthen their liquidity, by providing tips on tax deferrals, instructions on how to apply for state aid and ways to speed up the payment of outstanding debts.
Iconic has launched one of the first EU-approved crypto index funds under the Iconic Funds label, which has already collected the first investments from the family office and HNWI environment. Crypto assets, such as Bitcoin, responded negatively at the beginning of the Covid-19 crisis. In the meantime, however, crypto-assets have recovered and have become the focus of professional and private investors alike due to the enormous new amounts of money coming into circulation by governments and central banks.
Awamo, with its digital cloud based microfinance banking & business platform for MFIs and SMEs in Africa, is also currently able to offer credit management solutions for SMEs, even in spite of ongoing restrictions on holding in-person meetings and events.
Cashlink offers companies a blockchain-based infrastructure, making it easy to issue digital securities. With Cashlink, companies benefit from fully digital investment and financing processes, which are becoming increasingly important, especially in times of social distancing as part of the COVID-19 measures. The tokenisation of financial instruments reduces costs for many parties, creates significantly more efficient processes and enables investors to access asset classes that were previously inaccessible in a simple and digital way.
The other investments, such as the fund company Patriarch and Heliad Equity Partners, are primarily affected by the dislocation on the stock markets, which is reflected in Heliad's share price in particular. However, Heliad's largest shareholding, the online broker Flatex AG, has performed very well in terms of both its business activities and its share price. The value of Heliads shareholding on Flatex AG alone amounts to around EUR 50 million at Heliad, excluding the company's other shareholdings in companies such as Springlane, Libify and Magforce. Heliad itself is currently valued at EUR 40 million (based on a share price of around EUR 4,00 / share) on the stock market, which is significantly below its NAV of EUR 7.39 per share. Heliad is only included in the FinLab's NAV with the market price.
The Annual Financial Report 2019 will be published at www.FinLab.de in the Investor Relations section.
About FinLab AG:
Stock market listed company FinLab AG (WKN 121806 / ISIN DE0001218063 / ticker symbol: A7A.GR) is one of the first and largest company builders and investors focused on the Financial Services Technologies ("FinTech") sector in Europe. FinLab focuses on developing German FinTech startups and providing venture capital for their financial needs, whereby in each case the aim is a long-term participation and ongoing support of the investment. FinLab also invests globally, as part of venture rounds, in FinTech companies, primarily in the USA and Asia.
Press contact:
FinLab AG:
investor-relations@finlab.de
www.finlab.de
Phone: +49 69 719 12 80 0
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