Corporate | 31 August 2009 08:00
ARAGON AG / Miscellaneous
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- Revenues remaining stable despite the ongoing difficulties in the
market environment
- Return to profitability after a successful cost optimisation programme
- Positive outlook thanks to a lower cost base, successful acquisitions
and improving market conditions
Despite market conditions remaining difficult, Aragon AG, one of Germany's
leading financial services companies, was able to keep its revenues stable
in the second quarter. Having implemented a successful cost optimisation
programme, the company managed to return to profitability, before taking
account of non-recurring items, in the second quarter. Its low cost base,
recently completed transactions as well as the increase in assets under
administration indicate a positive outlook for the year.
In a market environment that remains difficult in the second quarter of
this year, income, at EUR 14.3 million, was stable compared to the previous
quarter (Q1 2009: EUR 14.3 million). Compared to the first half of the
previous year, income is lower at EUR 28.6 million (H1 2008: EUR 38.6
million). In the second quarter, adjusted earnings before interest and
taxes (EBIT) developed positively to EUR 0.05 million (Q1 2009: EUR -0.48
million). Compared to the first half of 2008, adjusted EBIT comes to EUR
-0.44 million (H1 2008: EUR 9.49 million). In the first half of 2009,
adjusted EBITDA stood at EUR 0.4 million.
Reduction in costs has a positive impact on the divisions' results
At EUR 7.1 million, adjusted personnel expenses and operating costs are
25.4% lower year-on-year.
The Broker Pools division, which generates the most sales revenue in the
Aragon Group, was unable to escape the financial crisis in the first half
of 2009 with sales of EUR 23.7 million. The reasons for this year-on-year
decline lie above all in the historically low sales of closed-end funds and
investment funds and the significant drop - caused by the fall in market
prices - in commission on existing portfolios in investment business.
However, revenues remained stable compared with the first quarter of 2009,
which is attributable above all to the rapid year-on-year increase in sales
of insurance products. EBIT stands at EUR -1.46 million (H1 2008: EUR 0.8
million).
In the Financial Consulting division, the Compexx Finanz Group held its own
relatively well compared to the market. With relatively stable sales of EUR
4.4 million year-on-year and a positive result of EUR 0.39 million, the
Compexx Finanz Group has positioned itself well for future growth.
The Institutional Sales division performed satisfactorily, particularly in
the current highly volatile markets for institutional investors. The sales
achieved by Fundmatrix AG shrank very slightly to EUR 0.59 million. At 25%,
the EBIT margin remains gratifyingly high.
biw Bank für Investments und Wertpapiere AG, which is shown in the Holding
division, performed very positively in the first half of 2009. Compared to
the end of financial year 2008, biw increased the number of accounts by 31%
to 91,541 (70,032). At 1.94 million, the number of securities orders
executed exceeds the figure for the previous year (1.78 million).
The cost-saving measures initiated at Aragon AG, which is also shown in the
Holding division, led to an EBIT contribution of EUR -0.25 million (H1
2008: EUR 7.6 million).
'We have continued to pursue our cost-savings policy consistently. Despite
the ongoing difficulties in the market, Aragon AG has managed to turn its
business round and return to profitability. A slow revival in the market
during the second year should have a positive impact on us so we are
adhering to our target of a positive result for the year' declares Dr.
Sebastian Grabmaier, CEO of Aragon AG.
Acquisitions successfully implemented - planned consolidation of the
Austrian financial market
To date, we have added assets under administration of over EUR 280 million
from the DVV and IMB transactions announced in the first half. In
combination with the recently concluded strategic partnership with Ertrag &
Sicherheit, Austria and the planned acquisition of MLP Austria, Aragon's
results should develop positively despite the weakness in the markets. Wulf
Schütz, COO at ARAGON AG, adds: 'We have successfully implemented our buy
and build strategy. By the beginning of the new year, at the latest, the
acquisitions and partnerships will be reflected on a sustained basis in our
results. We remain open to attractive additions to our business model.'
The interim report can be downloaded from now on from www.aragon.ag.
The disclosure of the results for the third quarter of 2009 is planned for
30 November 2009.
About Aragon AG
Aragon is a broadly diversified financial services company, with the
divisions: Broker Pools, Financial Consulting, Institutional Sales and
Holding. Aragon is active in the marketplace with multiple independent
subsidiaries. The company's aim is to integrate various distribution models
under one roof, without disturbing the individual identity of each sales
company. The result is a wide diversification across various asset classes
and distribution types, which generates a high stability in corporate
earnings. Further information about the company and its subsidiaries can be
viewed on the website: www.aragon.ag.
Contact:
Aragon Aktiengesellschaft
Ralf Funke
Investor Relations
Tel.: +49(0)611 890 575-0
Fax: +49(0)611 890 575-99
E-Mail: ir@aragon.ag
31.08.2009 Financial News transmitted by DGAP
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