CAPMAN OYJ CapMan Plc Stock Exchange Release / 1-3 2021 Interim Report
Results and significant events in January-
- Group turnover was MEUR 11.3 1 Jan-
31 Mar 2021 (MEUR 11.9 -
1 Jan-
31 Mar 2020 ), a decrease of 5 per cent from the comparison period. - Operating profit was MEUR 10.1 (MEUR -6.0).
Management Company business turnover was MEUR 9.0 (MEUR 7.9). Operating profit was MEUR 2.5 (MEUR 1.9).*)- Service business turnover was MEUR 2.3 (MEUR 4.1). Operating profit was MEUR 1.2 (MEUR 2.9).*)
- Investment business operating profit was MEUR 7.9 (MEUR -8.4).
-
Diluted earnings per share were
4.7 cents (-5.3 cents ). -
Capital under management was
EUR 3.9 billion on31.3.2021 (EUR 3.2 billion). -
The first instalment (
7 cents /share) of a total of14 cents /share, to be distributed for 2020, was paid to shareholders in March. The second instalment is to be paid around September.
This
*) The comparison period figures have been restated following changes to the composition of reporting segments starting from
CEO comment:
"Efforts over recent years to grow our fee base and improve value creation of investments are reflected in the strong development over the first months of 2021. Operating profit was MEUR 10 and earnings per share
Our assets under management continued growing and reached a record level of
The remaining Service business turnover was MEUR 2.3 and operating profit MEUR 1.2 in the first quarter of 2021. The Service business includes CapMan's procurement service CaPS and reporting and analytics service JAY Solutions following the changed segment reporting practice. Both business areas demonstrated strong development during the first quarter of 2021. CaPS's turnover continued growing and the business was very profitable. The growth in turnover of JAY Solutions was significant.
The fair value changes of our investments were MEUR +8.2 in the first quarter of 2021. This reflects the accelerated positive development in our funds over the past few quarters, supported by the overall market recovery. In the comparison period, fair values decreased significantly due to the market disruption brought on by the Covid-19 pandemic.
The strong start for 2021 is a continuation of the positive result development in the final quarter of last year. Our fee base is strong and growing and the recurring income support the development of fee-based profitability. Successful value creation in our investment business is reflected in our results as positive fair value development. Following value creation work, many of our funds hold significant carried interest potential. Many funds have ongoing exit processes which, when completed, would help realise this carried interest potential.
Our balance sheet is strong, and our liquidity is good. At the end of the year, our equity ratio was 45 per cent and liquid assets were close to MEUR 50. CapMan's objective is to pay an annually increasing dividend to our shareholders. The 2021 Annual general Meeting decided to distribute
Sincerely,
CEO,
Key figures
| MEUR | 1-3/21 | 1-3/20 |
| Operating profit (loss) | 10.1 | -6.0 |
| Result for the period | 7.8 | -7.4 |
| Earnings per share, cents | 4.8 | -5.4 |
| Earnings per share, diluted, cents | 4.7 | -5.3 |
| % | ||
| Return on equity, % | 29.2 | -26.0 |
| Equity ratio, % | 45.5 | 47.4 |
Financial objectives
CapMan's objective is to pay an annually increasing dividend to its shareholders.
The combined growth objective for the
CapMan maintains outlook estimate for 2021
CapMan expects to achieve these financial objectives gradually and key figures are expected to show fluctuation on an annual basis considering the nature of the business. CapMan estimates capital under management to continue growing in 2021. Our objective is to improve the aggregate profitability of
Carried interest income from funds managed by CapMan and the return on CapMan's investments have a substantial impact on CapMan's overall result. In addition to portfolio company and asset-specific development and exits from portfolio companies and assets, various factors outside of the portfolio's and CapMan's control influence fair value development of CapMan's overall investments as well as the magnitude and timing of carried interest.
CapMan's objective is to improve results in the longer term, taking into consideration annual fluctuations related to the nature of the business. For these and other above-mentioned reasons, CapMan does not provide numeric estimates for 2021.
Items affecting comparability are described in the Tables section of this report.
Result webcast today at
CapMan's management will present the result for the review period in a webcast to be held at
Board of Directors
Further information:
Distribution:
Principal media
www.capman.com
Appendix:
About CapMan
CapMan is a leading Nordic private asset expert with an active approach to value creation. We offer a wide selection of investment products and services. As one of the Nordic private equity pioneers, we have developed hundreds of companies and real estate assets and created substantial value in these businesses and assets over the past 30 years. With close to E4 billion in assets under management, our objective is to provide attractive returns and innovative solutions to investors. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover Private Equity, Real Estate and Infra. We also have a growing service business that includes procurement services, wealth management, and analysis, reporting and back office services. Altogether, CapMan employs around 150 people in
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