eQ Plc’s interim report Q3 2021 – record quarter
eQ Plc interim report26 October 2021 at 8:00 AM
January to September 2021 in brief
- The Group's net revenue during the period was EUR 57.8 million
(EUR 36.6 million from 1 Jan. to 30 Sept. 2020).
- The Group’s net fee and commission income was EUR 52.1 million
(EUR 37.3 million).
- The Group’s net investment income from own investment
operations was EUR 5.7 million (EUR -0.6 million), including the
return from private equity and real estate fund investments and
liquid fixed income funds.
- The Group’s operating profit grew by 82% to EUR 35.0 million
(EUR 19.2 million).
- The Group’s profit was EUR 28.0 million (EUR 15.4
million).
- The consolidated earnings per share were EUR 0.71 (EUR
0.40).
- The net revenue of the Asset Management segment increased by
40% to EUR 48.5million (EUR 34.6 million) and the operating profit
by 45% to EUR 30.2 million (EUR 20.8 million).
- The net revenue of the Corporate Finance segment was EUR 3.7
million (EUR 2.7 million) and the operating profit was EUR 1.1
million (EUR 0.7 million).
- The net cash flow from the Group’s own private equity and real
estate fund investment operations was EUR 3.7 million (EUR -0.2
million).
July to September 2021 in brief
- In the third quarter, the Group’s net revenue totalled EUR 20.9
million (EUR 12.7 million from 1 July to 30 Sept. 2020).
- The Group’s net fee and commission income was EUR 18.9 million
(EUR 12.9 million).
- The Group’s net investment income from own investment
operations was EUR 2.1 million (EUR -0.2 million), including the
return from private equity and real estate fund investments and
liquid fixed income funds.
- The Group’s operating profit grew by 84% to EUR 13.8 million
(EUR 7.5 million).
- The Group’s profit was EUR 11.1 million (EUR 6.0 million).
- The consolidated earnings per share were EUR 0.28 (EUR
0.16).
Key ratios |
1–9/21 |
1–9/20 |
Change |
7–9/21 |
7–9/20 |
Change |
1–2/20 |
Net
revenue, Group, M€ |
57.8 |
36.6 |
58% |
20.9 |
12.7 |
65% |
56.7 |
Net revenue, Asset Management, M€ |
48.5 |
34.6 |
40% |
17.6 |
11.9 |
48% |
52.8 |
Net revenue, Corporate Finance, M€ |
3.7 |
2.7 |
34% |
1.3 |
1.0 |
27% |
4.1 |
Net revenue, Investments, M€ |
5.5 |
-0.7 |
928% |
2.0 |
-0.3 |
748% |
-0.1 |
Net revenue, Group administration |
|
|
|
|
|
|
|
and eliminations, M€ |
0.0 |
-0.1 |
|
0.0 |
0.1 |
|
0.0 |
|
|
|
|
|
|
|
|
Operating profit, Group, M€ |
35.0 |
19.2 |
82% |
13.8 |
7.5 |
84% |
30.8 |
Operating profit, Asset Management, M€ |
30.2 |
20.8 |
45% |
11.8 |
7.8 |
51% |
32.1 |
Operating profit, Corporate Finance, M€ |
1.1 |
0.7 |
60% |
0.5 |
0.4 |
32% |
1.1 |
Operating profit, Investments, M€ |
5.5 |
-0.7 |
928% |
2.0 |
-0.3 |
748% |
-0.1 |
Operating profit, Group administration, M€ |
-1.9 |
-1.6 |
|
-0.4 |
-0.3 |
|
-2.4 |
|
|
|
|
|
|
|
|
Profit for the period, M€ |
28.0 |
15.4 |
82% |
11.1 |
6.0 |
84% |
24.6 |
Key ratios |
1–9/21 |
1–9/20 |
Change |
7–9/21 |
7–9/20 |
Change |
1–2/20 |
Earnings
per share, € |
0.71 |
0.40 |
78% |
0.28 |
0.16 |
75% |
0.64 |
Equity
per share, € |
1.76 |
1.50 |
17% |
1.76 |
1.50 |
17% |
1.74 |
Cost/income ratio, Group, % |
39.3 |
47.3 |
-17% |
33.8 |
40.9 |
-17% |
45.6 |
|
|
|
|
|
|
|
|
Liquid
assets, M€ |
40.7 |
23.0 |
77% |
40.7 |
23.0 |
77% |
36.3 |
Private
equity and real estate fund investments, M€ |
17.6 |
15.8 |
11% |
17.6 |
15.8 |
11% |
15.7 |
Interest-bearing liabilities, M€ |
0.0 |
0.0 |
0% |
0.0 |
0.0 |
0% |
0.0 |
|
|
|
|
|
|
|
|
Assets
under management excluding reporting services, € billion |
8.8 |
7.2 |
21% |
8.8 |
7.2 |
21% |
7.5 |
Assets under management, € billion |
11.0 |
8.7 |
27% |
11.0 |
8.7 |
27% |
9.0 |
Mikko Koskimies, CEO
In the third quarter of 2021, the strong recovery of economies
continued above all in the US but in Europe as well, as COVID-19
restrictions were being removed. At the same time, inflation has
speeded up. In China, the central government intervened strongly in
the manner in which large Chinese companies operate in different
industries, and new restrictions were introduced for risk-taking in
the real estate sector, for instance. This drove the
country’s second largest property developer Evergrande to an acute
debt crisis.
The increasing inflation and improving employment situation
alerted central banks. The Fed stated that it had reached its goal
regarding inflation and that the labour market was going to the
right direction. Trimming the purchase programme has been discussed
for several months now, but at the end of September the Fed
confirmed that it would shortly start cutting the purchase
programme. The ECB also confirmed that it would begin reducing the
support purchases, but ECB’s message remained more careful that the
Fed’s and there were still no indications of interest rate
raises.
In the equity market, the third quarter began in a positive
tone, but towards the end of the quarter, the statements of central
banks led to a small pressure on interest rate, which, together
with the problems in the Chinese real estate sector, lead to a fall
of shares prices. This was not long-lived, however. In the first
three quarters, equity market returns were very good, and the
return of the global index exceeded 19%. Small-caps have given even
clearly better returns than this. The fear for inflation raised
interest rates, and the interest returns in the first part of the
year were negative as for euro government bonds and investment
grade loans. High yield loans, on the other hand, benefited from
the narrowing of the interest rate spread and gave a return of
almost 4% since the beginning of the year.
eQ’s growth very strong
eQ’s growth was very strong in the first nine months. The net
revenue of the Group during the period under review was EUR 57.8
million and the operating profit EUR 35.0 million. Net revenue grew
by 58% and operating profit by more than EUR 15 million, which is
an increase of 82% on the previous year.
eQ Asset Management’s growth accelerated
The result of eQ Asset Management was once more excellent. The
net revenue of eQ Asset Management increased by 40% on the
corresponding period last year to EUR 48.5 million. Operating
profit grew by 45%, almost EUR 10 million, and was EUR 30.2 million
during the period under review. The management fees of traditional
asset management as well as performance fees experienced the
strongest growth. Part of the performance fees (EUR 2.9 million)
accrued from the Amanda IV private equity fund.
The returns of client portfolios were excellent during the first
nine months. As much as 85% of the funds that eQ manages itself
exceeded their benchmark indices, and during a three-year period
the corresponding figure was 67%. Within the discretionary asset
management portfolios, both absolute and relative returns were also
exceptionally good. The excellent returns from traditional asset
management were complemented by the good real estate and private
equity returns.The first nine months period was also very good with
regard to sales, above all for real estate and private equity asset
management. Net subscriptions in the eQ Community Properties and eQ
Commercial Properties funds were almost EUR 240 million, and the
size of the eQ Residential Fund grew to its target of EUR 100
million. The investment operations of the fund advanced well. In
2021, private equity assets are raised to the eQ PE XIII US Fund,
which already reached a record size of USD 315 million in its
October closing. The assets raised to the US PE funds since 2015
exceed USD 700 million. In addition, we have launched three new
private equity asset management programmes at the beginning of the
year, and the size of three old, renewed programmes has grown
markedly. During the third quarter, we decided to establish a new
Venture Capital fund, which will invest in the best Venture Capital
funds in the US.
Advium’s fee income and profit grew
Advium’s net revenue was EUR 3.7 million (EUR 2.7 million) and
operating profit EUR 1.1 million (EUR 0.7 million) during the
period under review.
The high activity in M&As, both in Finland and globally,
continued in the third quarter. The volumes of real estate
transactions also began to rise in the third quarter from a low
level. The growing activity of the transaction market can also be
seen at Advium as growth of executed transactions and received
assignments.
During the nine-month period, Avdium acted as advisor in eight
transactions. Among these eight transactions, two were real estate
transactions and six M&As. In the major transactions, Advium
acted as financial advisor to Alma Media, Berner and Rettig. In
September, we acted as advisor when Virala Acquisition Company
(”VAC”) and Purmo Group announced their merger. As a result of the
merger, VAC became the first SPAC company in the Nordic countries
that executed a merger with another company.
The operating profit of the Investments segment
excellent
The operating profit of the Investments segment was EUR 5.5
million (EUR -0,7 million) and the net cash flow was EUR 3.7
million. The balance sheet value of the private equity and real
estate fund investments was EUR 17.6 million at the end of
September. eQ Plc made an investment commitment of USD 1 million to
the eQ PE XIII US private equity fund in January. The considerable
increase in the M&A activity of unlisted companies had a
positive impact on the portfolio’s cash flow, value changes and
realised profits.
Outlook
The strong market development during the first nine months
supports eQ’s business operations.
The outlook for the financial year is still unaltered, and we
expect the net revenue and operating profit of the Asset Management
segment to grow from the previous year.
***
eQ’s interim report 1 January to 30 September 2021 is enclosed
to this release and it is also available on the company website at
www.eQ.fi.
eQ Plc
Additional information: Mikko Koskimies, CEO,
tel. +358 9 6817 8799Antti Lyytikäinen, CFO, tel. +358 9 6817
8741
Distribution: Nasdaq Helsinki, www.eQ.fi,
media
eQ Group is a group of companies that concentrates on asset
management and corporate finance business. eQ Asset Management
offers a wide range of asset management services (including private
equity funds and real estate asset management) for institutions and
private individuals. The assets managed by the Group total
approximately EUR 11.0 billion. Advium Corporate Finance, which is
part of the Group, offers services related to mergers and
acquisitions, real estate transactions and equity capital markets.
More information about the Group is available on our website
www.eQ.fi.
- eQ Plc Interim Report Q3 2021
Eq Oyj (LSE:0DK7)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Eq Oyj (LSE:0DK7)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024