Restructuring progressing as planned

  • Advisory services and Investment centres established in Navigea Securities AS
  • New concepts for financial services developed
  • Total revenues of NOK 100 million in the quarter
  • Operating earnings of NOK - 41 million in the quarter
  • One-off costs and provisions of NOK 34 million in the quarter, NOK 26 million without cash effect in the quarter

The restructuring of the Acta Group and the continuation of client engagements in a new management company is progressing as planned. The new structure and new client concepts are strengthening the Acta Group in important areas. The full effect of the programme to cut costs is expected to be seen from the third quarter.

The Group’s results in the first quarter are to a great extent characterised by the current restructuring process. Important and necessary measures have been taken in order to strengthen quality, solidity and risk management.

Provisions have been made for a programme to reduce costs within the Group. A number of costs in all parts of the organisation have been reviewed, and annual savings of up to NOK 120 million have been identified. The implementation is progressing as planned, and the cost reduction programme’s full effect is expected to be seen as early as the third quarter of 2012.

During the first quarter, and subsequently, there has been an extremely high level of activity within the Group’s client work in a number of areas. Intensive work to develop and standardise new client concepts is underway, and extensive work to achieve a dialogue with all of the Group’s clients has made significant progress.

“We have a clear plan regarding how we shall shape the Group and further develop ourselves and what we can offer our clients. I am proud of the commitment our competent employees have shown throughout the winter, and simultaneously humbled by the trust our clients have placed in us during this process. The restructuring of the Group is progressing as planned, and despite the circumstances, the Group’s future development looks positive”, says Alfred Ydstebø, Chairman of the Board in Acta Holding ASA.

In accordance with the notification in February, the Financial Supervisory Authority of Norway decided to revoke the licences of management company Acta Asset Management AS, a subsidiary of Acta Holding ASA. The Board of the relevant company disagrees with the Financial Supervisory Authority’s understanding of the facts on individual points and legal evaluations. The company has therefore appealed the Financial Supervisory Authority’s decision.

“Even though the Board of Acta Asset Management AS strongly disagrees with the legal basis for a large proportion of the criticism, we take this extremely seriously and are working to ensure that the organisation conforms to the requirements”, says Alfred Ydstebø.

More than ten thousand Norwegian advisory service clients have been contacted in recent weeks and i.a. offered the option of transferring their engagements to Navigea Securities AS, which has all necessary licenses and is a solid and profitable company. Navigea Securities AS will offer a broad spectrum of financial advisory and management services. Clients are offered two main categories of services – investment advisory services, or order execution through the Group’s investment centres.

The response from clients during the introductory phase has been extremely gratifying and in line with our expectations. Large clients in particular have been positive in moving their engagements to Navigea, and most of our retail clients also wish to maintain contact regarding the possible continuation of their client relationship through the new company. Navigea Securities AS has been built up in accordance with the Financial Supervisory Authority’s guidelines.

Advisory services in Sweden will continue to be offered by the subsidiary Acta Finans AB.

“Despite the turbulence surrounding the Group, we feel certain that we are currently implementing the correct measures to provide clients with security and good advice, and provide the Group with competitiveness, profitability and solidity”, says Ydstebø.

A complete English version of the interim report and the presentation of the 1st quarter of 2012 are attached on and on Acta's Investor Relations web pages

Alfred Ydstebø, Chairman of the Board

Contact details:
Alfred Ydstebø, Chairman of the Board, +47 908 32 828
Mirja Herrdin, CCO, +47 948 82 370

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.