Catella AB - Interim Report January-March 2019
Business activity was high in the first quarter, with normal seasonal variations in our entities within the property segment. We’re continuing to work towards increasing assets under management throughout the group to broaden our base in fixed earnings, thus also increasing the potential for variable earnings.
Catella Group, January - March 2019
- Total income SEK 454 M (442)
- Net sales SEK 447 M (411)
- Operating profit/loss SEK 62 M (81)
- Profit/loss before tax SEK 45 M (86)
- Profit for the period from remaining operations SEK 23 M (86)
- Profit for the period from disposal group held for sale SEK 110 M (-21)
- Profit for the period SEK 133 M (42), of which SEK 111 M (22) attributable to Parent Company shareholders
- Earnings per share* SEK -1.32 (0.26)
- Equity* SEK 1,604 M (1,626)
- Equity per share* SEK 19. 07 (19.86)
- Assets under management SEK 196.0 Bn (161.0)
- Accrued, non-chargeable (not recognized for profit), variable earnings** in Systematic Funds totalled SEK 0 M at the end of the period
In the quarter, fixed earnings increased significantly in year-on-year terms, which contributed to achieving income in line with the previous year despite lower variable earnings, mainly in Mutual Funds. The growth in fixed earnings was mainly derived from increased assets under management, but also from an improved product mix, which creates potential for increased variable earnings. This will improve the stability of Catella while also increasing the potential for future performance fees.
Operating profit decreased from SEK 81 M to SEK 63 M, mainly due to higher personnel expenses from recruitment, which is in line with our growth focus and strategy for asset management.
The wind-down of the Banking business area is proceeding according to plan. In the first quarter, we completed the divestment of Banking’s three operations: Wealth Management in Sweden and Luxembourg, and the Card Issuing operations. Realized income from these divestments was recognized in Q1 2019 and totalled SEK 254 M. Profit in the quarter was burdened by expenses related to the wind-down which are a share of the previously communicated cost of winding down the Banking operations. We’re continuing the migration of as many card customers as possible with the aim of maximizing the additional purchase consideration.
* Attributable to Parent Company shareholders. Includes disposal group held for sale. ** Variable earnings calculated on Systematic Macros’ performance-based management fee. In order for the performance-based management fee to be settled at year end, and recognized for profit/loss, returns must be higher than comparative indices and the most recent level settled (High watermark). Accordingly, actual settlement at year end may be higher, lower or entirely absent relative to the indicated amount. Amounts can never fall below zero. *** Remaining operations
Invitation to presentation of the Interim Report
Catella will be presenting the Interim Report and answering questions in a teleconference today 10 May 2019 at 9 a.m. CET. The presentation will be in English and will be made by Catella’s CEO and President Knut Pedersen and CFO Marcus Holmstrand. To participate in the teleconference, go to www.catella.com or call +46 (0)8 566 42 704.
For more information, please contact:
Marcus Holmstrand, CFO
Telephone: +46 8 463 32 52
Niklas Bommelin, IR
Telephone: +46 8 463 34 26
This is information that Catella AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 7 a.m. CET on 10 May 2019.
About Catella: Catella is a leading specialist in property investments and advisory and fund management, with operations in 15 countries. The group manages assets of SEK 200 billion. Catella is listed on Nasdaq Stockholm in the Mid Cap segment. Read more at catella.com.