CapMan Plc Stock Exchange Release / 1–3 2021 Interim Report
29 April 2021 at 8.00 a.m. EEST
CapMan Plc 1–3 2021 Interim Report
Results and significant events in January–March 2021:
· 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 on 31.3.2021 (EUR 3.2 billion).
· The first instalment (7 cents/share) of a total of 14 cents/share, to be
distributed for 2020, was paid to shareholders in March. The second instalment
is to be paid around September.
This stock exchange release is a summary of CapMan Plc’s 1 January–31 March 2021
Interim Report. The complete report is available in pdf-format as an attachment
to this release and on the company’s website at
https://www.capman.com/shareholders/financial-reports/.
*) The comparison period figures have been restated following changes to the
composition of reporting segments starting from 1 January 2021.
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 5 cents for the first
quarter of the year.
Our assets under management continued growing and reached a record level of EUR
3.9 billion at the end of March, growing by approx. MEUR 700, or approx. 20 per
cent, in the past year. We expect to see continued growth during 2021 due to
ongoing fundraising projects and CapMan’s expanding product portfolio.
Simultaneously, CapMan’s investor base becomes more diverse and international,
providing an excellent foundation for future growth. At the end of March,
approx. 50 per cent of our assets under management come from outside the Nordic
countries. This percentage has grown significantly over the past three years
from when the share of international fund investors was around 10 per cent.
Management Company turnover was MEUR 9 in the first quarter of the year, growing
approx. 15 per cent from the comparison period. Turnover grew due to new assets
under management. The operating profit of the Management Company business was
MEUR 2.5, growing by approx. 30 per cent from the comparison period due to both
strong fee growth and cost control.
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 14
cents/share to shareholders as dividend and equity repayment. The distribution
is to be implemented semi-annually and the first instalment was paid in March.”
Sincerely,
Joakim Frimodig
CEO, CapMan Plc
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
% 31.3.21 31.3.20
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 Management Company and Service businesses
is more than 10 per cent p.a. on average. The objective for return on equity is
more than 20 per cent p.a. on average. CapMan’s equity ratio target is more than
60 per cent.
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 Management
Company and Service businesses. These estimations do not include possible items
affecting comparability.
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 9.00 a.m. EEST
CapMan’s management will present the result for the review period in a webcast
to be held at 9.00 a.m. EEST. Please access the webcast at
https://capman.videosync.fi/2021-04-29-q1/. The conference will be held in
English. A replay of the webcast will be available on the company’s website
after the event. Due to the ongoing Covid-19 pandemic, CapMan will not arrange
an in-person conference.
Helsinki, 29 April 2021
CAPMAN PLC
Board of Directors
Further information:
Niko Haavisto, CFO, CapMan Plc, tel. +358 50 465 4125
Distribution:
Nasdaq Helsinki Ltd
Principal media
www.capman.com
Appendix: CapMan Plc 1–3 2021 Interim Report
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 €4 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 Helsinki, Stockholm,
Copenhagen, London and Luxembourg. We are a public company listed on Nasdaq
Helsinki since 2001 and a signatory of the UN Principles for Responsible
Investment (PRI) since 2012. Read more at www.capman.com.