DGAP-News: HCI Capital AG: Preliminary figures for 2009 reflect downward sector trend
(firmenpresse) - HCI Capital AG / Preliminary Results
10.03.2010 08:12
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HCI Capital AG: Preliminary figures for 2009 reflect downward sector trend
* Extensive changes implemented successfully
* 2009 cost-cutting target of approximately EUR 10 million achieved
* Sound cash holdings of EUR 23.3 million as at 31 December 2009
* Restructuring safeguards liquidity and long-term prospects
Hamburg, Germany, 10.03.2010 - As expected, the 2009 business figures for
HCI Capital AG - one of the leading independent issuing houses for
closed-end funds - showed a downward trend in line with the overall market
development. At EUR 42.6 million based on preliminary figures, the HCI
Group generated considerably lower revenues than in the previous year.
However, the negative consolidated net result of EUR -55.8 million was
primarily attributable to impairments in the first half of 2009 that had no
effect on liquidity. As a result, the HCI Group had sound cash holdings of
EUR 23.3 million as at 31 December 2009. HCI initiated steps to realign its
asset and fund management a year ago. In addition to this, it has put a
comprehensive restructuring concept in place and consistently worked to cut
costs. By doing this, the Company has significantly reduced the risks it
faces, secured liquidity and set its course for the future despite the
difficult market environment.
Caution among investors in the wake of the financial and economic crisis
has had a major impact on the market for closed-end funds. As a
consequence, the placement volume on the whole market shrank by
approximately 38% in 2009 according to VGF (German Association of
Closed-end Funds) and almost halved within the space of two years. 'The
financial and economic crisis poses a huge challenge for our industry. That
is why we started taking steps early on to provide a sound foundation for
HCI Group's business for the medium and long term,' says Dr. Ralf
Friedrichs, Chairman of the Management Board of HCI Capital AG. 'We will
continue to pursue this approach consistently in 2010.'
High level of liquidity thanks to cost cutting and stable recurring
earnings
In line with the downward industry trend, the HCI Group placed far less
equity capital from private investors than in the previous year, posting a
figure of approximately EUR 125.8 million in the 2009 financial year. As
lower revenues from the placement business were foreseeable, the HCI Group
began implementing an extensive cost-cutting programme at the start of
2009, reducing its material costs and personnel expenses by some EUR 10
million on the previous year. The HCI Group's revenues totalled
approximately EUR 42.6 million in the financial year 2009. At around EUR
21.4 million, revenues in the After-Sales Services segment were largely
stable. After-Sales Services is responsible for the trust management of
investments of some 122,300 HCI clients. Together, these investors have
currently invested roughly EUR 4.9 billion of equity capital in HCI funds.
The negative consolidated net income of EUR -55.8 million was primarily
attributable to impairments totaling approximately EUR 40 million that had
no effect on liquidity. These were largely conducted in the first half of
2009. HCI Groupposted cash and cash equivalents totalling EUR 23.3 million
as at 31 December 2009 despite the difficult business developments.
HCI expands its product portfolio to cater for changing investor
preferences
Given the foreseeable negative industry trends, the HCI Group focused on
innovative product solutions in the 2009 financial year. With an eye on the
increased security needs of investors, the HCI Group primarily placed
products with capital or distribution guarantees and diversified asset
creation plans. Along with exclusive products in the shipping sector and a
solar fund, these were in tune with investors' changing needs.
In 2010, HCI will continue to tailor its business to the current market
conditions: as well as offering renewable energy products, it will further
extend its range of real estate investments. HCI will also continue to
offer a wide range of customised products in the asset class Ship. The
focus here will be on ship types which are less affected or indirectly
affected by the market turbulence, such as bulk carriers, tankers and
platform supply ships.
'We have no doubt that the shipping markets will recover again; initial
signs of this are already visible. The medium and long-term prospects for
ship investments remain positive,' says Dr. Friedrichs.
HCI implements far-reaching measures and adjusts structures to market
conditions
The HCI Group has initiated additional, far-reaching measures in reaction
to the worst crisis the closed-end fund industry has ever seen. The issuing
house negotiated a comprehensive restructuring concept with its creditor
banks last year which is designed to secure HCI Group's financial position
and liquidity in the long term. The banks agreed to this plan in February
2010. In addition to this, HCI has reorganised fund management within its
After-Sales Services division. In doing so, it considerably strengthened
capacity for areas including fund controlling and investor relations.
In sales, HCI launched a communication initiative in 2009. This comprises
regional events, courses about current market and legal issues, ongoing
online presentations and information for sales partners. Some 800 active
sales partners sold HCI Group products in the past financial year.
In its economic outlook, the HCI Group has identified opportunities for an
upturn on the market in 2010 following a sharp two-year downswing.
Nevertheless, it will take some time before investors fully regain
confidence. Furthermore, the industry will experience changes in the years
to come due to altered financial conditions and foreseeable changes to the
regulatory framework. 'Successful fund management and transparent, reliable
communication are crucial, especially during difficult market stages, to
retain and strengthen investors' and sales partners' confidence,' says Dr.
Friedrichs. 'We will play an active role in shaping the industry changes
and capitalise on the opportunities presented by the next upswing.'
The HCI Group will publish its final figures and its 2009 Annual Report on
31 March 2010.
About HCI:
Established in 1985, the HCI Group creates closed-end funds and investments
with a capital guarantee in the areas of Transport and Logistics, Energy
and Commodities, Real Estate and Secondary Life Insurance. Since HCI's
foundation more than 122,300 clients have invested around EUR 5.9 billion
worth of equity capital in 508 issues, with an investment volume of EUR
14.8 billion (figures as at 31 December 2009), making HCI one of the
leading independent issuing houses in Germany. HCI Capital AG has been
listed on the stock exchange since October 2005.
Contact:
HCI Capital AG
Dr. Olaf Streuer
Head of Corporate Communication / Business Development
Tel: +49 40 88 88 1 1100
olaf.streuer(at)hci-capital.de
10.03.2010 08:12 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: HCI Capital AG
Burchardstraße 8
20095 Hamburg
Deutschland
Phone: +49 (0)40 88881-0
Fax: +49 (0)40 88881-199
E-mail: ir(at)hci-capital.de
Internet: www.hci-capital.de
ISIN: DE000A0D9Y97
WKN: A0D9Y9
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in Berlin, München, Hannover, Düsseldorf,
Stuttgart
End of News DGAP News-Service
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