Media | 23 February 2011 07:33
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MLP AG / Key word(s): Finance/
Preliminary results:
– EBIT rises by 11 percent to EUR 47.0 million with slightly lower revenues – Group net profit jumps by 41 percent to EUR 34.1 million – Successful efficiency programme: cost savings target clearly exceeded
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Executive Board proposes a dividend of 30 cents per
– Assets under Management climb further to EUR 19.8 billion
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Outlook: Increase in the operating EBIT margin to 15 percent by
Wiesloch/Frankfurt, 23rd February 2011 – MLP concluded the financial year 2010 with significant growth in earnings – increasing Group net profit by 41 percent to EUR 34.1 million. In this respect, the independent financial services and wealth management consulting company benefited from its successful efficiency programme in which MLP once again surpassed its cost saving targets. Total revenues – considerably affected by weaker interest income but supported by stable development in revenues from commissions and fees – fell only slightly. In the presence of continuingly difficult market conditions for old-age pension provision products, MLP achieved significant growth particularly in the areas of health insurance and wealth management. Assets under Management reached a new record high. Following the conclusion of a successful financial year in 2010, the Executive Board is now proposing a dividend of 30 cents per share. MLP is thereby continuing its dividend policy of distributing almost the entire net profit from continuing operations. ‘MLP performed well in 2010. We efficiently promoted our services, although the framework conditions in the old-age pension provision market remained difficult,’ comments MLP Chief Executive Officer Dr. Uwe Schroeder-Wildberg. ‘Furthermore, we are also harvesting the fruits of our successful cost management programme as well as benefiting from our broad-based consulting approach. Now, at the latest, it has become very clear just how important it was to strengthen our wealth management operations through the acquisition of Feri.’
Revenues from commissions and fees remain at the previous year’s level
In this respect MLP benefited, above all, from the strengthening of its wealth management operations in recent years. Following an increase in revenues by 10 percent to EUR 78.5 million (EUR 71.6 million), this business area now accounts for 17 percent of revenues from commissions and fees. The growth is a result of the positive development both at MLP as well as at its subsidiary Feri. Significant growth was also achieved in the health insurance business: the adoption of new healthcare reform legislation led numerous clients to switch to private healthcare, an aspect which contributed to a rise in revenues by 32 percent to EUR 61.3 million (EUR 46.5 million). The demand for insurance to cover existential risks remains high – revenues from non-life insurance increased by 5 percent to EUR 27.9 million (EUR 26.5 million). However, clients remained hesitant with respect to the conclusion of long-term contracts for old-age pension provision. This was mainly attributable to uncertainties in the aftermath of the financial crisis as well as to the current discussions concerning issues such as the national debt, inflation and the upcoming reduction in the guaranteed yield for life insurance and private pension policies. Against this background, revenues in this area fell by 7 percent to EUR 288.3 million (EUR 311.1 million). ‘We have grown in essential areas and made gains wherever the market conditions permitted,’ comments MLP Chief Financial Officer Reinhard Loose. ‘Our revenue split highlights the importance of a holistic consulting approach – not only to our clients but also for the development of MLP.’
Cost saving target again significantly surpassed
MLP continues to boast excellent key balance sheet figures: At 31st December 2010 the equity ratio stood at 28.5 percent and liquid funds amounted to EUR 223 million (31st December 2009: EUR 210 million).
Executive Board proposes a dividend of 30 cents per share
Q4: EBIT at the previous year’s level
Assets under Management continue to rise
34,000 new clients in 2010
Goal: To increase the operative EBIT margin to 15 percent
In this environment MLP reiterates its goal of further improving the operative EBIT margin and increasing this figure to 15 percent in 2012 (2010: 9.0 percent). The continuation of the successful efficiency management programme will play an important role in the achievement of this goal. For this reason, MLP intends to reduce its fixed costs by a further EUR 20 million by the end of 2012. Additionally, MLP expects to achieve further revenue growth in wealth management and health insurance in both 2011 and 2012. ‘On the other hand there are currently no obvious signs of a significant near-term improvement in the framework conditions within the old-age pension provision market. Here we must await further developments, but from a current perspective we anticipate stable revenues in 2011 and modest growth in the following year,’ explains Uwe Schroeder-Wildberg. ‘Thanks to our strict cost discipline and the additional revenue potential, particularly in wealth management and the corporate client business area, we are on the right track to reach our goals.’ MLP will be publishing its annual report on 24th March 2011. Overview of the key figures
*) Adjustments in Q1 2010
About MLP MLP is Germany’s leading independent consulting company. Supported by comprehensive research, the Group provides a holistic consulting approach that covers all economic and financial questions for private and corporate clients, as well as institutional investors. The key aspect of the consulting approach is the independence from insurance companies, banks and investment firms. The MLP Group manages total assets of more than EUR 19.8 billion and supports more than 774,500 private and over 4,000 corporate clients. The financial services and wealth management consulting company was founded in 1971 and holds a full banking licence. End of Media Release 23.02.2011 Dissemination of a Press Release, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | MLP AG | |
| Alte Heerstraße 40 | ||
| 69168 Wiesloch | ||
| Deutschland | ||
| Phone: | +49 (0)6222-308-1135 | |
| Fax: | +49 (0)6222-308-8351 | |
| E-mail: | investorrelations@mlp.de | |
| Internet: | www.mlp.de | |
| ISIN: | DE0006569908 | |
| WKN: | 656990 | |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München; Terminbörse EUREX | |
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