Corporate | 13 August 2008 07:07
HCI Capital AG / Half Year 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.
----------------------------------------------------------------------
HCI Capital AG records double-digit growth in fund sales
• Placement volume up strongly: a 15% rise
• EUR 880 million placement target affirmed
• HCI could not escape the impact of the financial markets crisis
• Corporate structure stabilised, new senior management team completed
Hamburg, 13 August 2008 – HCI Capital AG, one of the leading issuing houses
for closed-end funds and structured products, boosted sales of investment
fund products by 15 per cent during the first half of 2008. With EUR 340.5
million (H1 2007: EUR 296.2 million) in equity capital placed, HCI's sales
force delivered very positive results, clearly outperforming the overall
closed-end fund market, which declined during the first six months – by 14
per cent, according to a survey by Feri Research & Rating AG, or 11.6 per
cent according to an analysis by Scope. Relying on the strength in its
operating business and on its well-stocked product pipeline, the company
affirmed its target of EUR 880 million in aggregate placements for the
current financial year.
Placement volume up strongly, by 15%
HCI Group's operating performance during the first half of 2008 clearly
demonstrated the strength of its product range and distribution network:
total sales of fund products amounted to EUR 340.5 million, up EUR 44.3
million or 15 per cent year-on year. Placements of real estate funds of
funds posted the highest growth rate, up 123 per cent from the EUR 35.9
million recorded in the previous year. With EUR 80.1 million placed during
the first six months of 2008, this product segment is HCI’s second
strongest after ship investments, where placements were up 4.6 per cent, to
EUR 197.8 million (H1 2007: EUR 189.2 million). Business in the secondary
life assurance product segment with EUR 59.8 million in equity capital
placed (-4.2 per cent), sales almost matched the previous year's figures.
In this segment, placements of secondary life assurance market funds and
asset creation plans developed positively: at EUR 58.7 million, this
represented a 19.2 per cent increase over the previous year's figure of EUR
49.2 million. As expected, sales of private equity funds of funds were
significantly lower than in 2007, totalling EUR 2.7 million during the
first half of 2008. 'We benefit from a very strong product pipeline, with
currently 12 fund products and two certificates in the distribution phase',
emphasised Dr Ralf Friedrichs, Chairman of the Management Board of HCI
Capital AG: 'We are thus on course for continued growth, affirming our
placement target of EUR 880 million.'
Financial markets crisis influences results
Given that the fund placement structure during the reporting period was, as
planned, dominated by products with lower initial commissions and margins,
revenues of EUR 61.7 million (H1 2007: EUR 63.4 million), were only
slightly below the previous year's level. Obviously, HCI Group was unable
to escape the impact of the crisis affecting financial markets. The Group
had to take an exposure backed by investments in US commercial real estate
loans onto its own books: an exposure originally designed for sale as an
investment fund product. Given the continued difficulties in the US real
estate market, HCI Group was forced to recognise a significant EUR 24.8
million write-down on this investment: an unexpected (and non-recurring)
effect that will materially burden the Group's results of operations for
2008.
Accordingly, six-month earnings before interest and taxes (EBIT) and the
result after taxes were both negative, at EUR -18.2 million (H1 2007: EUR
+19.0 million) and EUR -18.5 million (EUR +24.4 million), respectively.
Excluding this write-down (plus further unexpected one-off effects), both
figures would have been positive, in excess of EUR 10 million each.
Due to the impact of this adjustment, the company now anticipates a
breakeven result after taxes for the 2008 financial year. An earlier
earnings forecast had projected net profit of EUR 33 million.
'The Management Board and Supervisory Board believe that this write-down on
an investment in a loan portfolio is as necessary as it is painful', said
Dr Ralf Friedrichs, Chairman of the Management Board of HCI Capital AG: 'We
are convinced that, on the back of our strong operating business, this step
will allow HCI Group to benefit from its full profitability in the years to
come.'
Structure stabilised
The takeover offer made by MPC Capital AG resulted in various changes to
the executive bodies of HCI Capital AG during the first half of 2008. The
new shareholder structure has stabilised, comprising two major shareholders
– MPC Capital AG (40.8 per cent) and the Döhle Group (20.1 per cent), with
39.1 per cent of the share capital in free float. In a related development,
the size of the Supervisory Board was increased from three to six members.
Three new Supervisory Board members were elected: Dr John Benjamin
Schroeder, Jochen Döhle and Stefan Viering. The Supervisory Board elected
Dr Schroeder as its chair on 9 June 2008. There were also changes to the
composition of the Management Board. With Dr Ralf Friedrichs as the new
CEO, Dr Oliver Moosmayer as member of the Management Board responsible for
product development, and Dr Andreas Pres appointed as the new CFO, the
Management Board has once again reached its full complement, with a
management team that is in an excellent position to lead HCI into the
future.
Following these fundamental changes to the shareholder group, Supervisory
Board and Management Board of HCI Capital AG, the company is now in a good
position going forwards, with a stable structure. This stability is a key
aspect in ensuring that the HCI Group can develop further as an independent
company and as a strong brand. 'It is our belief that the HCI Group, with
its product quality, innovative character and sales strength, is
excellently positioned to further consolidate its position among the
leading providers of closed-end investment models in Germany', said Dr
Friedrichs.
Established in 1985, the HCI Group creates closed-end funds and structured
investments in shipping, real estate, private equity funds of funds, and in
the secondary life insurance market, as well as asset creation plans. Since
1985, more than 112,000 clients have invested EUR 5.5 billion in 478
issues, with an investment volume totalling more than EUR 13.97 billion
(figures as at 30 Jun 2008), making HCI one of the leading issuing houses
in Germany. HCI Capital AG has been listed on the stock exchange since
October 2005, and has been included in the SDAX index since 19 December
2005.
Investor Relations contact:
Dr. Olaf Streuer
HCI Capital AG
Head of Investor Relations
Phone: +49 40 88 88 1 125
olaf.streuer@hci-capital.de
Press contact:
Ingo Pfeil
HCI Capital AG
Head of Public Relations
Phone: +49 40 88 88 1 236
ingo.pfeil@hci-capital.de
13.08.2008 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 88881-199
E-mail: hci@hci.de
Internet: www.hci.de
ISIN: DE000A0D9Y97
WKN: A0D9Y9
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in Berlin, Hannover, Stuttgart, München,
Düsseldorf
End of News DGAP News-Service
---------------------------------------------------------------------------