Helsinki, 2016-08-25 07:30 CEST (GLOBE NEWSWIRE) --
Taaleri Group 1 January–30 June 2016
The Group's income for the period grew by 12.4 percent to EUR 33.7 million (1-6/2015: EUR 30.0 million).
The Group’s assets under management grew by 8.3 percent to EUR 4.2 billion (EUR 3.9 billion).
The Group's adjusted operating profit was EUR 11.7 million (1-6/2015: EUR 11.8 million).
The Group's operating profit was EUR 11.7 million (1-6/2015: EUR 39.1 million, including EUR 27.3 million resulting from the Garantia acquisition), comprising 34.9% of turnover.
The Group’s results include EUR 2.5 million in expenses, i.e. from the brand reform, the move to the Nasdaq Helsinki main market and the sale of Finsilva.
Earnings per share: EUR 0.32 (1-6/2015: 1.35) and adjusted earnings per share: EUR 0.32 (1-6/2015: 0.35).
Estimate of future development
Taaleri's objectives are an equity ratio of more than 30 percent and an operating profit margin of more than 15 percent. The long term objective for return on equity is 15 percent.
In addition to these, the company aims to increase the amount of dividends distributed and annually distribute competitive dividends, taking into account the company's economic position and financing situation. Despite the challenging financial environment, we are aiming for controlled, profitable growth, and we expect that the company's financial objectives for 2016 will be achieved.
Review by CEO Juhani Elomaa
We have managed well in the varying market conditions. Taaleri's income grew by 12 percent year-on-year. The market has been tormented by the continued zero interest environment and the various threatening images and individual market incident situations, such as Brexit. The development has lowered the willingness of customers to shoulder risks, which, in turn, has made the operating environment of the wealth management segment more challenging than previously.
Operatively, the start of Taaleri's year was positively characterised by our move from the First North marketplace maintained by Nasdaq Helsinki to the Nasdaq Helsinki main market from the beginning of April. The listing on the stock exchange enables the effective acquisition of capital for the growth needs of the company. To clarify our ownership the company's two share series were combined, and the parent company purchased a minority holding from Taaleri's private equity fund company. With its EUR 260 million market capitalization, Taaleri settles among the mid cap companies.
In January, Taaleri implemented a brand reform, in connection with which the name of the company was changed from Taaleritehdas to Taaleri. The Group has expanded through its partnerships to new areas of capital markets. Cooperation is becoming a new ecosystem of ownership. As a new opening, we purchased a 40 percent share of Inderes Oy, which produces share analyses and media content to investors. As a part of the ecosystem being built, we are able to offer our customers diversified new services and find new business opportunities. In the spring, we sold our share of the forest-owning Finsilva Oyj to Etera Mutual Pension Insurance Company.
In the wealth management segment, the administered funds rose to EUR 4.2 billion, and the number of our customers grew to 3,600. Our business operations have remained at a sound level, even though the market and the competitive situation have created challenges for income and profitability.
The business operations of private equity funds has expanded and succeeded well. In March, we established the first private equity fund focusing on circular economy in the world, and in June we opened a third wind power fund, which was quickly completely subscribed. The sale of Biotehdas, developed by us, to Gasum also occurred during the first half of the year.
The Financing segment succeeded according to our expectations. The result of our subsidiary Garantia Insurance Company Ltd for the first half of the year was good. In particular, the 22 percent increase of premiums written can be regarded as a success. Our business operations have grown in commercial bonds and residential mortgage guaranties, in particular. Fellow Finance, which facilitates online peer-to-peer lending, has continued to expand to new markets, and its business operations have grown.
In June, we announced that we will open a new Energy business segment. Our plan is to utilise the expertise we have acquired in renewable energy projects, and expand our resources for international investments. During the autumn, we will tell more about our plans related to our energy business.
Events after the review period
During the second half of the year, we will invest in developing the business of Taaleri Energy. Taaleri Energy will channel Finnish holdings to renewable energy, such as wind and solar power, but also to existing energy sources and networks. Energy offers a natural expansion to Taaleri's operations as the company has strong expertise in the area. The energy business is also partly associated with Taaleri's internationalisation objective.
In addition, Taaleri Kapitaali was established after the period under review. Its mission is to support brokerage operations of the Wealth Management segment and to expand the services offered to customers.
Taneli Hassinen, head of communications, will step down from the Group's Executive Management Team starting from 1 October 2016. He continues to be responsible for Taaleri's communications and media and investor relations.
Board of Directors
Analyst and media meeting
Analyst and media meeting will be organised 25 August at 10.30 at Taaleri HQ, Kluuvikatu 3, 00100 Helsinki.
Head of Communications and IR
tel. 358 40 504 3321
Taaleri in brief
Taaleri is a Finance House, whose parent company Taaleri Plc is listed on Nasdaq Helsinki’s main market. The Taaleri Group consists of three business areas: Wealth Management, Financing and Energy. Taaleri provides services to institutional investors, companies and private individuals. The Group's subsidiaries engaging in business are: Taaleri Wealth Management and its subsidiaries, Taaleri Private Equity Funds Ltd Group, Taaleri Investments Ltd Group, Taaleri Energia Oy and Garantia Insurance Company Ltd. In addition, Taaleri has associated companies Fellow Finance Plc, which offers peer-to-peer lending services, and Inderes Oy, which produces analyses and media content for investors.
At the end of June 2016, Taaleri had EUR 4.2 billion of assets under management and 3,600 asset management customers. Taaleri Plc has approximately 2,600 shareholders. The operations of Taaleri are supervised by the Finnish Financial Supervisory Authority.
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