TAALERI PLC STOCK EXCHANGE RELEASE 19 AUGUST 2021 AT 8:00 (EEST)
Taaleri Plc’s Half-Year Financial Report 1 January–30 June 2021: A strong growth of 27% in Taaleri’s continuing earnings in the second quarter – a record result of
On
The development of the Group's continuing operations is mainly described according to segment reporting, where the costs related to the sale of wealth management operations have been allocated to discontinued operations.
April–June 2021, segment reporting, continuing operations
- The income in accordance with segment reporting grew by 10.4% to
EUR 14.3 (13.0) million. - Continuing earnings grew by 27.2% to
EUR 11.2 (8.8) million. The continuing earnings of the Private Asset Management segment grew by 37.1% toEUR 5.6 (4.1) million, and the continuing earnings of the Strategic Investments segment by 25.4% toEUR 4.6 (3.6) million. - Performance fees were
EUR 0.0 (0.0) million and investment operations generatedEUR 3.2 (4.2) million. - The operating profit in accordance with segment reporting was
EUR 4.4 (5.9) million, corresponding to 30.9% (45.2) of income. - The operating profit of discontinued operations for April was
EUR -0.2 (1.7) million, includingEUR 1.3 million in costs related to sales. - The assets under management in the Private Asset Management segment grew by 27.5% to
EUR 2.1 (1.7) billion.
April–June 2021, IFRS reporting, continuing operations
- Income from continuing operations in accordance with IFRS grew by 40.6% to
EUR 17.0 (12.1) million, and operating profit wasEUR 2.7 (5.7) million. A total ofEUR 1.8 million in non-recurring expenses were attributed to the divestment of the wealth management operations. - The operating profit of discontinued operations totalled
EUR 112.1 (2.2) million, which consists of a profit ofEUR 111.1 million from the sale of the wealth management operations andEUR 1.0 million of net operating profit from the wealth management operations in April. - The result was
EUR 114.1 (7.1) million due to the divestment of the wealth management operations. - Earnings per share were
EUR 0.08 (0.17) for continuing operations,EUR 3.95 (0.07) for discontinued operations andEUR 4.03 (0.25) for the result of the period. - The Extraordinary General Meeting decided on
28 May 2021 to pay an additional distribution of assets ofEUR 1.00 per share.
January–June 2021, segment reporting, continuing operations
- The income in accordance with segment reporting more than doubled to
EUR 28.0 (12.2) million mainly due to fair value changes in investment operations. - Continuing earnings grew by 16.6% to
EUR 20.1 (17.2) million. The continuing earnings of the Private Asset Management segment grew by 13.6% toEUR 9.9 (8.7) million, and the continuing earnings of the Strategic Investments segment by 17.8% toEUR 8.2 (6.9) million. - Performance fees were
EUR 0.8 (0.0) million and investment operations generatedEUR 7.1 (-5.0) million. - The operating profit in accordance with segment reporting was
EUR 9.5 (-1.7) million, corresponding to 34.1% of income. - The operating profit of discontinued operations for January–April was
EUR 3.3 (January–June 2020 3.9) million, includingEUR 1.6 million in costs related to sales.
January–June 2021, IFRS reporting, continuing operations
- Income from continuing operations in accordance with IFRS amounted to
EUR 29.2 (9.9) million and operating profit toEUR 7.5 (-2.4) million. A total ofEUR 2.1 million in non-recurring expenses were attributed to the divestment of the wealth management operations. - The operating profit of discontinued operations totalled
EUR 116.1 (5.2) million, which consists of a profit ofEUR 111.1 million from the sale of the wealth management operations andEUR 5.0 million of net operating profit from the wealth management operations in January–April. - Earnings per share were
EUR 0.21 (-0.12) for continuing operations,EUR 4.06 (0.17) for discontinued operations andEUR 4.27 (0.04) for the result of the period.
There are differences in the figures in the Group's consolidated income statement and segment reporting due to the application of IFRS 5. In the consolidated income statement (p. 23), intra-group income and expenses between discontinued and continuing operations have been eliminated. In segment reporting, income and expenses between discontinued and continuing operations are presented as transactions outside the Group. The earnings figures in the explanatory section in this half-year financial report represents the Group's continuing operations according to segment reporting, unless otherwise stated. The chosen presentation will improve the comparability of segment reporting in the coming years.
This half-year financial report has been prepared in accordance with IAS 34. The information in the half-year financial report has not been audited. See page 19 for further information of the accounting policies of this half-year financial report.
REVIEW BY CEO
The most significant event of the second quarter of 2021 was, of course, the divestment of the wealth management operations, which was completed at the end of April for the sales price of
We implemented our renewed strategy in the second quarter by investing in private equity funds focused on renewable energy and other alternative investments as planned. Through our operations, we towards economically profitable undertakings that have a lasting positive impact on the environment and society.
I am particularly pleased with the excellent 27% increase in second-quarter continuing earnings, which reflects the progress of our strategy. Continuing earnings grew in both
In the Private Asset Management segment, in line with our strategy, we are strongly focused on business growth and development, which is reflected in the segment’s second quarter results. Operating profit decreased from the corresponding period, mainly due to investments in business growth. The ramp-up of the new and developing operations will affect the segment’s result throughout the strategy period due to the nature of private asset management business.
The largest business of Private Asset Management, i.e. the renewable energy business, successfully completed the last closing of the SolarWind II fund in the second quarter. The fund reached total investment commitments of
Real estate business experienced major changes in the second quarter. The business expanded to external portfolio management mandates as Aktia outsourced its portfolio management and property management functions to
The bioindustry business is preparing to launch its first private equity fund towards the end of the year. We are a pioneer in private asset management business in investments focused on bioindustry, and we believe that the fund will attract a lot of interest. During the review period, our bioindustry team, together with
The infrastructure team transferred to
In our Strategic Investments segment, Garantia continued its solid business operations in accordance with its own strategy. Net income from guaranty insurance operations grew 25.4% to
We will continue to implement our determined strategy during the rest of the year in both the private asset management business and
I would like to thank our employees and partners for the tremendous work they have done, both in the divestment of the wealth management operations and in the launch of the new
GROUP
Group key figures, continuing operations in segment reporting | 4–6/2021 | 4–6/2020 | Change, % | 1–6/2021 | 1–6/2020 | Change, % | 2020 |
Earnings key figures | |||||||
Continuing earnings, MEUR | 11.2 | 8.8 | 27.2% | 20.1 | 17.2 | 16.6% | 35.9 |
Income, MEUR | 14.3 | 13.0 | 10.4% | 28.0 | 12.2 | 129.9% | 40.0 |
Operating profit, MEUR | 4.4 | 5.9 | -24.7% | 9.5 | -1.7 | n/a | 9.1 |
Operating profit, % | 30.9% | 45.2% | 34.1% | neg | 22.8% | ||
Profit for the period in consolidated income statement, MEUR | 114.1 | 7.1 | >100% | 120.9 | 1.4 | >100% | 13.1 |
Return on equity*, % | 262.7% | 24.3% | 138.2% | 2.4% | 10.1% | ||
Balance sheet key figures | |||||||
Equity ratio, % | 72.3% | 46.0% | 72.3% | 46.0% | 49.7% | ||
Group’s capital adequacy ratio, % | 349.6% | 161.5% | 349.6% | 161.5% | 181.5% | ||
Other key figures | |||||||
Cost/income ratio excluding investment operations | 83.7% | 80.4% | 85.6% | 79.9% | 83.6% | ||
Cost/income ratio | 65.2% | 54.4% | 63.8% | 113.0% | 77.0% | ||
Number of full-time employees in continuing operations, average | 108 | 88 | 23.7.% | 106 | 86 | 22.4% | 92 |
Assets under management in Private Asset Management segment, BEUR | 2.1 | 1.6 | 2.1 | 1.6 | 1.7 | ||
Guaranty insurance portfolio, MEUR | 1,725 | 1,847 | 1,725 | 1,847 | 1,817 |
*Annualised
OUTLOOK AND FINANCIAL TARGETS
Taaleri’s long-term targets include:
- Continuing earnings growth at least 15 per cent
- Operating profit at least 25 per cent of income
- Return on equity at least 15 per cent.
The company’s goal is to distribute to its shareholders at least 50 per cent of the profit for the financial year as well as the capital that the company does not need for growth investments or to fulfil its targets for solvency.
THE SALE OF WEALTH MANAGEMENT OPERATIONS
On
The sale of the wealth management business will have significant effects on the strategy, regulation, administration and earnings development of the entire
WEBCAST PRESENTATION FOR ANALYSTS AND MEDIA
A live webcast for analysts and the media will be held on
Board of Directors
For further information, please contact:
CEO
CFO
Head of Communications and IR Siri Markula, +358 40 743 2177, siri.markula@taaleri.com
Distribution:
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Key media
www.taaleri.com
www.taaleri.com
Attachment
- TAALERI HALF-YEAR FINANCIAL REPORT 2021
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