Corporate | 10 March 2008 09:16
HCI Capital AG / Final Results/Final Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Press Release HCI Capital AG: Net Income of EUR 30.6 million - Net income target reached if last-minute special effects are eliminated - Continuing diversification with innovative product concepts - Strategic orientation lays solid foundation for further growth - Proposed dividend of EUR 0.70 (Hamburg, March 10, 2008) –HCI Capital AG, one of the leading non-bank-affiliated issuing houses for closed-end funds and structured products, placed EUR 810.6 million in equity during the past fiscal year. In so doing, the Company surpassed the EUR 800 million mark for the first time in its history and increased its operating result by 26%. Consolidated net income was influenced by unexpected special effects, including tax expenses, and stood at EUR 30.6 million, thus falling short of the forecast amount of EUR 35.0 million. The Management Board and the Supervisory Board will propose that shareholders approve a dividend of EUR 0.70 per share. With placed equity of EUR 810.6 million, the HCI Group finished 2007 with a record level of placements. This reflects a 25.9% increase in placements over the previous year. During the year, the company increased its number of customers by 16.2%, from 87,700 to 101,900, while the number of sales partners rose by 52% to 1,583. 'As it continues to diversify its offering to include innovative products, the HCI Group has provided for future growth by tapping new levels of investors for itself and its sales partners,' said Wolfgang Essing, Chairman of the Management Board of HCI Capital AG. 'We have refocused our internal sales structure and have significantly enhanced the services we offer to our sales partners. This will provide a solid foundation for continuing our growth in dynamic markets in the medium and long term,' said Essing. On the earnings side, the strategic change in the HCI Group’s product offering led to a significant shift in commission structures during the past year. Upfront sales commissions were partly replaced by regularly recurring (and thus ongoing) trustee, service and management fees, part of which will not have an effect until the coming years. This resulted in a decrease in revenues during the reporting period from EUR 145.6 million to EUR 137.3 million, or a 5.7% decrease from the prior year. The percentage of recurring revenues was up from 20.6% to 22.4%. EBIT (earnings before interest and taxes) fell by 21.1% in 2007, from EUR 51.1 million to EUR 40.3 million. The other operating income in the amount of EUR 13.2 million was below last year’s figure of EUR 21.3 million, which was influenced by exceptionally high income from the brokerage of ships. The consolidated net income of EUR 30.6 million was affected by unexpected effects. These included tax expenses in connection with an audit in the amount of around EUR 2.6 million, which did not become apparent until the consolidated financial statements at December 31, 2007 were prepared. They also included expenses of EUR 1.8 million from including HCI Real Estate Finance I GmbH & Co. KG in the balance sheet. This had to be included in the IFRS consolidated financial statements at December 31, 2007 because of the lack of marketability resulting from the downturn in the real estate markets in the United States. If these effects are eliminated, the targeted earnings of EUR 35 million were achieved. HCI’s Management Board and Supervisory Board will propose that shareholders approve a dividend of EUR 0.70 per share (prior year: EUR 1.40 per share). This proposed dividend reflects the Management Board’s goal of taking advantage of growth opportunities in the industry even in the midst of the change of conditions on the financial markets. The turmoil on the international financial markets, triggered by the subprime mortgage crisis in the United States, have made it more difficult to design closed-end investment models and structured products. As a result, banks have stepped up their requirements to finance fund projects for the entire industry. Outlook HCI will continue to grow its sales structures and expand them to include new sales channels, to lay an even more solid foundation for success and take its existing potential to the next level. HCI Capital AG has set the goal for 2008 of increasing its placement results by approximately 10%, to around EUR 880 million. After expanding its structured product offerings, the Company will tap additional new asset classes for itself and its partners. Thus, for example, in 2008 HCI will offer a closed-end aircraft fund for the first time, and will penetrate a brand new market segment with the HCI Deepsea Oil Explorer. Another of HCI’s goals is to increase its business with institutional and international investors. Here the Company will initially concentrate on Ships and Real Estate. Following the successful placement of HCI Hammonia Shipping AG, there is additional potential for capital market investments in ships. This will be accompanied by a further decoupling of revenues from placement volumes. Although the income streams will initially decrease in the short term, they will increase in favor of recurring income over the long term. On the basis of these strategic goals and given the current situation on the financial markets, the Management Board expects consolidated net income for 2008 on the level of approximately EUR 33 million.Result 2007 2006 Change Revenues in million EUR 137.3 145.6 -5.7% Total operating performance in million EUR 149.8 166.9 -10.2% EBIT in million EUR 40.3 51.1 -21.1% EBT in million EUR 40.8 55.2 -26.1% Consolidated net income in million EUR 30.6 39.5 -22.5% EBIT margin as a % 29.4 35.1 -5.7% points Earnings per share in EUR* 1.27 1.64 -22.6%* on the basis of 24 million shares following IPOBalance Sheet 2007 2006 Change Total assets in million EUR 239.9 227,1 5.6% Equity in million EUR 118.0 123,3 -4.3% Equity ratio as a percentage 49.2 54,3 -5.1% pointsEmployees 2007 2006 Change Average number of employees 286 238 20.2% Personnel expense in million EUR 28.0 23.2 17.2% Personnel expense ratio as a percentage 20.4 16.4 4.0% pointsAbout HCI: The HCI Group was founded in 1985 and creates closed-end funds and structured products in shipping, real estate, private equity funds of funds and the secondary life insurance market, as well as asset creation plans. As of December 31, 2007, over 100,000 clients have invested close to EUR 5.2 billion in 468 issues, with an investment volume totaling more than EUR 13.27 billion, making HCI one of the leading non-bank-affiliated issuing houses in Germany. HCI Capital AG has been listed on the stock exchange since October 2005. It has been listed on the SDAX since December 19, 2005 and on the Hamburg Regional Index HASPAX since September 1, 2006. Contact Public Relations: Ingo Pfeil HCI Capital AG Head of Public Relations Tel.: +49 40 88 88 1 236 ingo.pfeil@hci-capital.de Contact Investor Relations: Dr. Olaf Streuer HCI Capital AG Head of Investor Relations Tel.: +49 40 88 88 1 125 olaf.streuer@hci-capital.de 10.03.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: HCI Capital AG Bleichenbrücke 10 20354 Hamburg Deutschland Phone: +49 (0)40 88881-0 Fax: +49 (0)40 88881-109 E-mail: ir@hci-capital.de Internet: www.hci-capital.de ISIN: DE000A0D9Y97 WKN: A0D9Y9 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg; Freiverkehr in Berlin, Düsseldorf, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------