Helsinki, 2017-08-22 08:00 CEST (GLOBE NEWSWIRE) --
TAALERI PLC HALF YEAR FINANCIAL REPORT 22.8.2017 AT 9:00 EET
Taaleri’s profitability improved significantly in January–June
TAALERI GROUP 1 JANUARY–30 JUNE 2017
Continuing earnings increased by 46.7 per cent to EUR 31.5 million (1–6/2016: 21.5)
Income increased by 15.0 per cent to EUR 38.7 (33.7) million
Assets under management grew by 10.4 per cent to EUR 5.3 billion (12/2016: 4.8)
Income increased by 32.8 per cent to EUR 15.6 (11.7) million
Operating profit amounted to 40.3 (34.9) per cent of income
Earnings per share were EUR 0.44 (0.32)
Guidance for the full year has changed from the full year 2016 report on 28 February 2017 but remained unchanged from profit forecast given on 20 June 2017:
The Group’s largest single risk is the dependence of business profits on changes in the external operating environment and the financial situation in Finland. The company management estimates that the positive development in Finland will continue through the rest of the year, although national and international political risks may reduce outlooks. The Wealth Management segment enjoyed good development in the first half of the year, and the company has succeeded in gathering more capital through various private equity fund projects as well as through the success of mutual funds. The development of the Financing segment has been positive, both in relation to premiums written and claims incurred. The company believes that, through active sales and high-level risk management, significant growth can be achieved also in future. It is expected that the Group’s expansion into the energy sector will significantly increase the assets managed by the company’s private equity funds in the long term.
Financial targets related to growth are growth of more than 15 per cent per annum in assets under management for the Wealth Management segment and growth of more than 15 per cent per annum in gross premiums written for the Financing segment. Taaleri’s operating profit target is at least 20 per cent of income and, thanks to the strong first half of the year, the operating profit of the whole year is estimated to amount to over 25 per cent of income. Taaleri’s target for return on equity in the long term is at least 15 per cent, and the equity ratio target is at least 30 per cent. In addition to these, the company aims to increase the amount of dividend to be distributed, and annually to distribute a competitive dividend, taking into account the company’s financial and financing situation as well as the capital adequacy requirements and future investment plans. The company management estimates that the income and the operating profit will increase from the previous year.
CEO Juhani Elomaa on the half year result
Our financial performance was strong during the first half of the year. I am especially pleased with the fact that the strong positive development has been visible in all of our three business segments. We recorded robust growth figures in Wealth Management and Financing. The income from Wealth Management grew by a third. The income was increased by the successful launch of new private equity funds and the favourable development of mutual funds, which reflected in wealth management fees. At the same time, we have been able to keep the increase in costs under control.
In one year, Taaleri’s assets under management have increased by over EUR 1 billion to more than EUR 5 billion, which speaks of customers’ interest for our innovative products. For example, the Africa Fund and the Solar Wind Fund that focuses on renewable energy have raised significant capital. On the other hand, our mutual funds have also performed very well. For example, the Micro Markka Equity Fund, which focuses on small Finnish listed companies, is constantly among the top funds.
The Financing segment, where income consists of Garantia’s business operations, has continued to improve its profit performance commendably. The segment’s income doubled thanks to the strong growth of premiums written and low claims incurred as well as profits from investment operations. The operating profit of the Financing segment more than tripled from the corresponding time period last year.
The Energy segment founded in the autumn has also taken off well. Our first private equity fund that leverages the expertise of the energy team raised almost EUR 90 million of assets under management, and we are already in the process of launching the first projects. We are pursuing projects in North America, India, East-ern Europe and Africa.
Political turns of events have on a continuous basis caused market disturbances. However, the economic growth figures have exceeded the projections of economists. The expansion of Taaleri’s business operations into financing and energy in recent years as well as the growing interest in private equity funds and co-investment projects have diversified the business risk and created attractive new business opportunities. Mattiovi Oy, which we sold in June, is a demonstration of the opportunities provided by co-investment cases for creating jointly investment profits for both our customers as well as for Taaleri’s own investments.
Our strategy has already proved its effectiveness, and I believe that we can build the Energy segment into a globally growing business alongside Wealth Management and Financing.
Board of Directors
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Taaleri in brief
Taaleri is a Finnish financial service company, whose parent company Taaleri Plc is listed on Nasdaq Helsinki's main market. The Taaleri Group comprises three business areas: Wealth Management, Financing, and Energy. Taaleri provides services to institutional investors, companies and private individuals. The Group’s operational subsidiaries are: Taaleri Wealth Management Ltd and its subsidiaries, Taaleri Private Equity Funds Group, Taaleri Investments 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 market information for investors.
At the end of June 2017, Taaleri had assets under management totaling 5.3 billion euro and 4,300 wealth management customers. Taaleri Plc has some 3,200 shareholders. Taaleri's operations are supervised by the Finnish Financial Supervisory Authority.
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