Delivering on strategic goals
- Acquisition of ABGSC Real Estate AS / Inc.
- Acquired investment management mandates within private equity and infrastructure from Swedbank First
- These transactions will increase recurring revenues by 10 % in 2013
- Acquisition and integration of Wunderlich Securities AS
- Corporate Finance with increased deal flow
- Financial performance lagging as costs are incurred in 2012 while revenues will increase in 2013, resulting in an EBIT of NOK -12 million in fourth quarter of 2012
The Agasti Group had an operating profit of NOK -12 million in the fourth quarter of 2012. As in the third quarter of 2012, the financial figures in this quarter have been influenced by the restructuring process, as well as the strategic initiatives being undertaken within the Group.
“We have invested significant resources in establishing our new business model, and are proud to now have in place one of the most experienced teams within the business in which we shall operate. The consequence of having a strong focus on building a new business model is that there is a time lag between costs and revenues, which is also reflected in the fourth quarter. However, at the start of 2013 the outlook is positive and indicates that many of the initiatives we have recently worked with both in Norway and in the USA will materialise and therefore contribute to a profitable business in the future,” says Alfred Ydstebø, CEO of Agasti Holding ASA.
Throughout the second half of 2012, Agasti Holding has established an entirely new business model, where rather than focusing on each business area individually, the Agasti Group offers clients an integrated concept based on:
- Professional investment advice from authorised and experienced advisors, based on an individually developed investment profile and first-class investment recommendations
- Advisory services and the facilitation of capital market transactions for Norwegian and international environments, with good distribution capacity and placing power
- Being a complete manager of all alternative investments our clients have through the Agasti Group
“We have developed a concept that clearly distinguishes us from our competitors. In addition to being perhaps the most attractive distributor of selected equity and fixed income funds, we have established one of the market’s most experienced teams within real estate, shipping and private equity, and through the strategic collaboration with Wunderlich's energy team in Houston, also within energy and oil services. We achieved this in the fourth quarter of 2012 by attracting dedicated individuals with national and international investment banking experience from environments such as ABG, Swedbank First, Pareto, SEB, Morgan Stanley and Deutsche Bank,” says Ydstebø.
For clients of the Agasti Group, this means that in addition to having the opportunity to invest in a proven fund selection business, they will also be regularly presented with attractive investments opportunities we facilitate on behalf of Norwegian and international businesses, such as equity issues where established and recognised investors co-investment together with Agasti’s clients.
Moreover, in the previous quarter Agasti Holding has gone all the way in becoming a complete investment manager of all alternative investments our clients have made through the Agasti Group, which is also in line with our previously communicated long-term strategy.
“We have acquired investment management companies from ABG Sundal Collier Norge ASA, and we therefore now manage all our clients’ investments within real estate and shipping. In addition, we have taken over the management responsibility from Swedbank First of all structures which clients of the Agasti Group have invested in within private equity, infrastructure and renewable energy. These transactions alone entail approximately 10% higher annual recurring revenues for the Agasti Group”, explains Ydstebø.
“Today, the Agasti Group is a complete provider of management services relating to all our clients’ alternative investments, and together we are now in a better position to create clear and future-oriented strategies for the management of the portfolios,” says Alfred Ydstebø.
In February 2013, Agasti purchased the remaining 50 per cent of the shares in securities firm Wunderlich Securities AS, a subsidiary of Wunderlich Investment Company, Inc., thereby becoming the company’s sole owner. Wunderlich Securities has a solid position within the energy and oil services, real estate and private equity sectors, which are among the sectors in which the Agasti Group shall have a leading position. The Agasti Group and Wunderlich Securities have collaborated closely throughout the latter half of the year in order to establish what is now becoming one of the market’s most experienced and competent teams within real estate, private equity, shipping, energy and oil services. Full integration between the companies means that the Agasti Group can now fully utilise the potential and synergies between the two environments when we assist clients with advice on and the facilitation of capital market transactions both in Norway and in the USA.
"With the integration of Wunderlich Securities AS and our strategic alliance with Wunderlich Investment Company in the USA, the Agasti Group is now a serious challenger to the established corporate finance players in Norway. Our ambition is clear – our experienced team within real estate, private equity, shipping, energy and oil services shall implement mandates that will ensure our position as a leading player within corporate finance in the above-mentioned sectors," explains Ydstebø.
“We have now implemented the first stages of the ambitions we set out in August. We have an organisation consisting of some of the market’s most experienced individuals within our selected segments. Every day, we shall work together to create opportunities for our many clients, and therefore continue to be a preferred partner in the future,” says Alfred Ydstebø.
A complete English version of the interim report of the 4th quarter is attached on www.newsweb.no and on Agasti's Investor Relations web pages www.agasti.no.
CEO Alfred Ydstebø, mobile phone: (+47) 908 32 828
CCO, Tor Arne Olsen, mobile phone: (+47) 900 90 470
CFO, Christian Tunge, mobile phone: (+47) 450 65 850
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.