Acta's commitment to future growth and a low investment activity yield a negative revenue effect in the 3rd quarter
Acta Holding ASA is taking measures in order to increase future earnings. The most important growth measures are a substantial recruitment of advisory personnel and growing the company's client pool. Combined with a low investment activity within real estate, a short term negative effect on revenues is experienced.
Third quarter's gross subscription and operating earnings will end at approximately 3.1 billion kroner and 122 million kroner, respectively. Acta is however maintaining its target of 2.7 billion kroner in operating earnings for the period 2005-2007, corresponding to an ambition for operating earnings of about 1 billion kroner for the 2007 financial year. Furthermore, the company aims at keeping dividends at minimum the same level as for the 2006 financial year.
The third quarter is short due to client and advisor summer holidays in July and parts of August. However, demand for Acta's investment and saving products remains strong. Third quarter results are also influenced by the timing of which Acta's real estate companies raise funds through share issues and that neither of the products Infrastructure, Shipping nor Private Equity had any share issues in this quarter. This means that subscriptions of almost 1 billion kroner are not included in the gross subscription number of 3.1 billion kroner, nor is it included in revenues for this quarter.
During the third quarter Acta took on around 65 new employees which will have customer contact. Organisational integration of new advisors is costly on both time and resources, but the integration is proceeding as expected. Employing new investment advisors constitutes important investments in future growth. Throughout the year, Sweden has been a forerunner in attaining new clients. This has also been a priority within the Norwegian organisation in this quarter, affecting results in the short term.
Global macro economic factors, such as reduced liquidity and increased risk premiums, have added to the uncertainty in the financial markets. For Acta Holding ASA, the current situation entails that several interesting investment projects become available. On the other hand, this has also contributed to reduced transaction activity in the third quarter. At the same time, important equity reserves for investments have been built which are expected to be invested in the near future.
CEO Simen Mørdre, +47 90 86 85 62
CFO Christian Tunge, +47 45 06 58 50
Director Public Relations Rune Wangsmo, +47 99 54 15 07
Stavanger, October 5th, 2007
Acta Holding ASA
Christian Tunge
Chief Financial Officer
+47 45 06 58 50
christian.tunge@acta.no