Newcap Holding
Q3: Organisational adaptation and adjustment of strategy; cost reductions proceed as planned
Capinordic A/S / 17.11.2009 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. --------------------------------------------------------------------------- Summary: Organisational adaptation and adjustment of strategy; cost reductions proceed as planned July-September 2009 Q3: Net interest and fee income amounted to DKK 39m (DKK 76m). Q3: EBTDA came to a negative DKK 35m (a negative DKK 31m). Q3: Loss before tax was DKK 41m (a loss of DKK 88m) Q3: Recurring revenue/cost ratio of 74% (84%) Q3: AUM of DKK 16.4bn (DKK 18.1bn) Q1-Q3: Net interest and fee income amounted to DKK 127m (DKK 291m). Q1-Q3: Loss before tax of DKK 650m (a loss of DKK 68m) Consolidated results - During the third quarter of 2009, Capinordic completed the process of adapting the Group's organisation and adjusting its strategy. - The execution of the identified cost reductions of approx. DKK 110m proceeds as planned. By the end of Q3 2009, approx. 90 per cent of the cost reductions had been executed. The Group maintains its focus on continued reduction of its overheads. - As a consequence of the cost reductions, 74 per cent of the Group's recurring costs is now covered by recurring revenue. The Group still aims to raise this ratio to 100 per cent in the short term. - During Q3, the Group sold its Private Banking activities, while negotiations on the sale of the Group's Private Equity and Property Management are still ongoing. The Group's Danish asset management activities will cease by the end of 2009 at the latest. - The Group recorded a loss before tax of DKK 41m for Q3 2009 (a loss of DKK 88m). The Group's Banking activities remain the absolutely predominant cause of the negative consolidated Q3 results. The Q3 2009 results were affected by the following: o Low level of activity within the Banking business area, which remained focused on the execution of the adopted cost reductions and on the development and structuring of a number of 'green investment products' expected to be offered for sale in Q4 2009 or in Q1 2010. o Loan impairment losses and loan loss provisions of DKK 13m (DKK 35m). o Costs of DKK 4m (DKK nil) for participating in the State Guarantee Scheme. - After the end of the quarter, the Group has noted a substantial change in the composition of shareholders and has been notified of two new major shareholders in that connection. Capinordic's business areas Banking, Q3 EBTDA of negative DKK 35m (negative DKK 21m) and Q1-Q3 EBTDA of negative DKK 165m (DKK 6m) - In Q3, the Group's Banking division focused on the execution of the structural adaptations and reduction of the cost level. In that connection, the Group's Private Banking activities and other activities were divested on 9 September 2009. - Recurring costs for the Banking division were reduced by a further 30 per cent from Q2 to Q3 as a result of the cost reductions implemented. The cost reductions will have full impact as from the financial year 2010. - At the end of Q3, total consolidated loans and advances amounted to DKK 869m (DKK 975m). During Q3 2009, the loan volume was reduced by DKK 60m, equalling a reduction of 6 per cent. - The Group's Banking division experienced a continued low level of activity in Q3 and realised net interest and fee income of DKK 6m (DKK 42m), corresponding to a decrease of 86 per cent compared with the same period last year. - During Q3, the Investment Banking division worked on the development and structuring of a number of 'green investment products' expected to be offered for sale in Q4 2009 or in Q1 2010. - The loss before tax for Q3 2009 amounted to DKK 34m (a loss of DKK 55m). Results were affected by the following: o Loan impairment losses and loan loss provisions of DKK 13m (DKK 22m). o Costs of DKK 4m (DKK nil) for participating in the State Guarantee Scheme. Asset Management, Q3 EBTDA of DKK 3m (DKK 4m) and Q1-Q3 EBTDA of DKK 4m (DKK 32m) - Within the Asset Management business area, the Group maintained the same level of activity in Q3 2009 as in the preceding quarter. - Total assets under management (AUM) amounted to DKK 16.4bn and remained largely unchanged during Q3 2009. The Group continues to see an inflow of AUM from Swedish pension customers, and the Group thereby maintained the same AUM despite the sale of the Group's High Net Worth Individual (HNWI) customers. - At the end of Q3, the return on the assets under management remained above benchmark for the year for a majority of the funds. However, the return for Q3 was affected by a defensive portfolio composition. Private Financial Services, Q3 EBTDA of DKK 3m (DKK 8m) and Q1-Q3 EBTDA of DKK 12m (DKK 20m) - Private Financial Services realised an increase in net interest and fee income of 1 per cent to DKK 20m for Q3 2009 as compared with the same period last year (DKK 19m). - The Group continues to have a high gross inflow of PPM customer agreements to Private Financial Services and also maintains its focus on a continuous improvement of the percentage of PPM customer renewals. Post-period events - After the end of the quarter, the Group has noted a substantial change in the composition of shareholders and has been notified of two new major shareholders in that connection. - Ole Vagner retired from the Supervisory Board of Capinordic A/S on 23 October 2009. Lasse Lindblad, CEO: 'The Group is undergoing a restructuring process which has taken up substantial resources during Q3, and as an element of this process we will today publish a separate press release describing our revised strategy and organisational adaptations. There is no doubt that the Group will continue to face a number of challenges that will demand focus and energy, also in future, but it is satisfactory to note that the restructuring process has already substantially reduced our costs. After the end of the quarter, Capinordic A/S has had the pleasure of welcoming a number of major financial investors. Despite difficult financial conditions, the new shareholders have chosen to back the Group, trusting that the Company management is able to create future value for the owners.' Additional information: Lasse Lindblad CEO Mobile: +45 4094 0708 Tel.: +45 8816 3000 E-mail: ir@capinordic.com News Source: NASDAQ OMX 17.11.2009 Financial News 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 ---------------------------------------------------------------------------
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found