Newcap Holding
Q1: Turbulent period, changed composition of Management, the subsidiary Capinordic Bank A/S declared bankrupt
Capinordic A/S / 17.05.2010 16:20 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Translation This text has been prepared in Danish and in English. In case of discrepancies, the Danish text will prevail. Company announcement no. 17/2010 17 May 2010 Summary: Turbulent period, changed composition of Management, the subsidiary Capinordic Bank A/S declared bankrupt January-March 2010 - Q1: Net interest and fee income amounted to DKK 31m (DKK 31m) - Q1: EBTDA came to a negative DKK 58m (a negative DKK 2m) - Q1: Loss before tax was DKK 65m (a loss of DKK 9m) - Q1: Recurring revenue/cost ratio of 92% (89%) - Q1: AuM of DKK 17.1bn (DKK 16.1bn) Consolidated results - The first quarter of 2010 was a very turbulent period for the Capinordic Group as the Parent Company Capinordic A/S changed its Management, and the subsidiary Capinordic Bank A/S was declared bankrupt. - At an extraordinary general meeting on 12 January 2010, Mogens de Linde and Ulrik Finnemann were elected to the Board of Directors of the Company. - Lasse Lindblad resigned as CEO on 19 January 2010 with immediate effect by common agreement. At the same time, the Board of Directors resolved to engage Henrik Vad as the new CEO of Capinordic A/S. - On 28 January 2010 Claus Ărskov resigned from the Board of Directors. - Capinordic Bank A/S failed to meet its individual minimum capital requirement at the beginning of 2010. Despite its efforts, the Group did not succeed in implementing the necessary initiatives to restore the solvency required of Capinordic Bank A/S within the very short time-limits granted by the Danish Financial Supervisory Authority. Capinordic Bank A/S therefore filed for suspension of payments on 10 February 2010, whereupon the Danish Financial Supervisory Authority filed a bankruptcy petition against Capinordic Bank A/S on 11 February 2010. - In connection with the bankruptcy of Capinordic Bank A/S, the Parent Company Capinordic A/S provided a guarantee totalling DKK 75m to all customers of the Swedish branch of Capinordic Bank A/S whose deposits exceeded SEK 500,000 and who were therefore not covered by the Swedish or Danish deposit guarantee schemes. The guarantee, subsequently calculated at SEK 50m, has been recognised in full in the income statement for Q1 2010 as a loss. - The loss before tax was DKK 65m for Q1 2010 (a loss of DKK 9m). The loss is attributable in part to the deposit guarantee recognised in the income statement, but also to extraordinary expenses for termination benefits and salary during notice periods, including for the former CEO. Capinordic's business areas Broker Services, Q1 EBTDA of DKK 7m (DKK 3m) - The net interest and fee income of Broker Services increased to DKK 18m for the first quarter of the year compared with last year's income of DKK 14m. The increasing level of activity is related mainly to new products launched in the period under review. - Broker Services continued to see an inflow of new customers, although the inflow was smaller than in previous periods. Broker Services recorded a net outflow of customers in the period under review for which reason the Group maintains focus on restoring confidence in Capinordic among customers and partners. Private Financial Services, Q1 EBTDA was a loss of DKK 2m (DKK 0m) - Private Financial Services recorded net interest and fee income of DKK 7m in the first quarter (DKK 6m) and maintained the same activity level as in the corresponding period last year. - Private Financial Services saw the largest inflow of new customers since Q1 2009, reaching a total of 110.000 Swedish PPM investment customers at 31 March 2010. The Group continues to focus on increasing the percentage of PPM customer renewals, thereby reducing customer outflow. Asset Management, Q1 EBTDA of DKK 1m (DKK 0m) - The business area of Asset Management recorded net interest and fee income of DKK 7m in the first quarter (DKK 12m). The reduction in income on Q1 2009 relates to the activities sold and discontinued in 2009. - Total assets under management (AuM) increased in Q1 2010 due to the return on assets managed and the development in exchange rates, totalling DKK 17.1bn (16.1bn) at the end of the period. - In the period under review, the return on assets managed was positive, and a number of the Group's funds achieved high ratings on Morningstar based on the preceding three years' performance. The return for Q1 is the outcome of a neutral portfolio composition. Banking, Q1 EBTDA was a loss of DKK 44m (DKK 0m) - As a consequence of the bankruptcy of Capinordic Bank A/S, the Group wrote off all values related to the Bank in the 2009 consolidated financial statements due to impairment, and so far the Group has received no accounting figures for 2010 from the Bank. As a result, Capinordic Bank A/S has not been recognised in the consolidated financial statements for the period ended 31 March 2010. - Results of the business area of Banking were affected by the deposit guarantee to customers of Capinordic Bank A/S who were not covered by the Swedish or Danish deposit guarantee scheme. The guarantee, calculated at SEK 50m, has been recognised in full in the income statement for Q1 2010 as a loss. - Capinordic's business area of Banking is being closed down. Attempts will be made to liquidate or realise the remaining assets related to the business area of Banking, whereupon this business area will have no activities. Post-period events - Capinordic A/S held its Annual General Meeting on 21 April 2010. The General Meeting elected a new member to the Board of Directors: Peter Steen Christensen. Lennart Andersson and Ulrik Finnemann did not stand for re-election. - It was announced by Michael Henriksen Holding A/S on 23 April 2010 that the company now owns less than 5 per cent of the shares in the Company. Yours sincerely Henrik Vad Group CEO Additional information Group CEO Henrik Vad +45 8816 3000, info@capinordic.com News Source: NASDAQ OMX 17.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Capinordic A/S Denmark Phone: Fax: E-mail: Internet: ISIN: DK0010212570 WKN: End of News DGAP News-Service ---------------------------------------------------------------------------
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