Corporate | 9 March 2009 11:16
HCI Capital AG / Final Results
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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HCI Capital AG achieves market leadership in 2008
Results for FY 2008 dominated by non-recurring effects
* No. 1 in placements of closed-end funds in 2008
* Positive results posted in HCI's operative business
* Non-recurring effects dominate consolidated results for 2008
* Adjustments to reflect the changed market environment
* Cost reductions in excess of EUR 7 million planned for 2009
Hamburg, 09 Mar 2009 - HCI Capital AG, one of the leading independent
issuing houses for closed-end funds, boosted placements of equity capital
to around EUR 600 million in the 2008 financial year, moving to the number
one position in the industry. Despite being profitable in its operative
business, HCI Group posted a consolidated net loss of EUR 16.8 million for
2008. This was due to non-recurring effects which were essentially
attributable to write-downs on equity investments.
To adequately position itself for the challenges ahead in an extremely
difficult market environment, HCI Group has realigned its corporate
structure - particularly regarding its financial, asset, and fund
management functions - and plans cost savings of more than EUR 7 million
for 2009.
Strong placement results achieved in a challenging market environment
During the 2008 financial year the HCI Group placed EUR 598.6 million of
capital with private investors, becoming the market leader in its industry.
Even though this represents a decline of 8.7 per cent, compared with EUR
655.5 million of retail placements during the previous year, this must be
seen in the context of the crisis affecting financial markets and the
economy: in a very weak overall market (which, according to market data by
VGF, the German Association of Closed-end Funds, declined by 25.3 per cent
year-on-year), HCI Group gained market share, positioning itself at the top
of the industry. HCI expanded its customer base from 101,900 to 119,400 (up
17.2 per cent year-on-year), with the number of active sales partners up
8.4 percent, to 1,726. 'Thanks to our strong sales network, and our
broadly-diversified product range, we further strengthened our position as
an industry leader, taking the top spot during challenging times', said Dr
Ralf Friedrichs, Chairman of the Management Board of HCI Capital AG. Solid
operating profit - consolidated net income burdened by non-recurring
effects HCI Group's consolidated results for the 2008 financial year were
influenced by various factors. Despite the more difficult market
conditions, the Group posted solid results in its operating business:
revenues of EUR 120.0 million were lower than the EUR 137.3 million
generated during the previous year, reflecting the overall decline in
placements. The consolidated net loss of EUR 16.8 million (2007: profit of
EUR 30.6 million) was essentially due to non-recurring effects, in
particular the full write-down of HCI's equity investment in NY Credit
Operating Partnership LP. Dr Friedrichs explained: 'Writing off our
investment in NY Credit Operating Partnership LP was a painful step to
take, but a necessary one - having taken the full charge, potential burdens
on future results have now been reduced.' Adjusted for non-recurring
effects, profit before taxes was approx. EUR 20 million. This figure
denotes the full operative strength demonstrated by HCI Group during the
2008 financial year. Major challenges ahead in 2009: structural changes and
cost reductions Economic trends and financial markets developments in the
year 2009 are subject to great uncertainty. The continued economic weakness
which is on the cards for this year holds major challenges for HCI
Group,and for the closed-end fund sector as a whole. Against this backdrop,
HCI Group took various initiatives designed to strengthen its asset and
fund management operations, and to secure medium to long-term funding for
the Group and its product pipeline. Specific steps taken include a
realignment of the product conception process, and the establishment of a
centralised
Finance unit. Furthermore, strict budgeting discipline has been imposed for
2009, involving reductions in costs which will lead to savings in excess of
EUR 7 million per annum. In parallel, HCI significantly strengthened its
sales activities, to build long-term trust in closed-end fund investments
in view of widespread uncertainty amongst sales partners and investors. As
many as 140 regional sales presentations were held during January and
February 2009, addressing more than 3,000 sales partners. In addition, HCI
will expand the training offers of its in-house HCI Academy; during 2008
more than 1,200 sales partners benefited from this training programme,
which is unique in the industry.
'In today's market environment, the role of issuing houses is clearer than
ever - going beyond the function of intermediary and trustee for closed-end
funds, to assume the role of an active asset manager for investments in
business', said Dr Friedrichs, adding that 'nowadays, a professional
approach to managing assets and finance is just as crucial as a solid
network and experience in the relevant markets. At HCI, we have embarked
upon the key measures to keep the company on course in troubled waters.'
About HCI:
Established in 1985, the HCI Group creates closed-end funds and investments
with a capital guarantee, in the areas of Transport & Logistics, Energy &
Commodities, Real Estate, and Secondary Life Insurance. More than 119,000
clients have invested approx. EUR 5.8 billion in 494 issues, with an
investment volume totalling more than EUR 14.6 billion (figures as at 31
Dec 2008), making HCI one of the leading independent issuing houses in
Germany. HCI Capital AG has been listed on the stock exchange since October
2005.
Dr. Olaf Streuer
Head of Corporate Communications and Business Development
Tel.: +49 40 88881 125
Olaf.Streuer@hci-capital.de
09.03.2009 Financial News transmitted by DGAP
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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
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in Berlin, Hannover, Stuttgart, München,
Düsseldorf
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