17.04.2020
TAALERI PLC INSIDE INFORMATION 17 APRIL 2020 AT 12:45 (EET)
Taaleri Group’s January-June 2020 income and operating profit is estimated to fall short of last year’s corresponding period, due to the negative fair value development of investment operations
Taaleri's business was twofold at the beginning of the year. Despite the challenging market situation, Taaleri's operational development has been positive and in line with the company’s expectations. Garantia’s and Other business investment operations have, however, suffered due to changes in the stock and money market investment caused by the COVID-19 pandemic, resulting in fair value changes.
In addition, contract negotiations for the Truscott-Gilliland wind power project developed by Taaleri Energia in Texas have not yet been completed. If the valuation levels of the stock and money markets remain at the current level or decrease, the Group estimates that investment and project investment return for the first half of the year is falling short compared to the corresponding period in 2019.
In this exceptional market situation, Taaleri Plc’s Board of Directors has decided to comment on the first quarter's earnings development, although the company traditionally publishes financial information only on half year basis.
The Group's continuing earnings increased by 26 percent to EUR 14.6 (11.5) million, as all business segments grew. The market drop has decreased the Group’s assets under management by 8 percent to EUR 6.5 (end of 2019: 7.1) billion at the end of March 2020. The Group's performance fees were EUR 1.1 (-0.5) million. Net income from Taaleri Group’s investment operations totalled EUR -9.2 (4,2) million during the first quarter in 2020, of which Garantia’s investments operations accounted for EUR -7.4 million. Operating profit excluding investment operations was 26 per cent in January-March 2020.
Taaleri’s liquidity position is strong. The Group’s cash and cash equivalents totalled EUR 42 million at 31.3.2020 and interest-bearing liabilities EUR 83 million, of which EUR 18 million are payable during 2020.
The ultimate impact of the COVID-19 pandemic on Taaleri’s business depends on its development, duration and impact on the global economy, investment markets and the functioning of society among other things.
Taaleri’s long-term targets are continuing earnings growth of at least 15 per cent, operating profit of at least 20 per cent of income, return-on-equity of at least 15 per cent, and an equity ratio of at least 30 per cent.
Taaleri Plc will publish its half-year financial report for January-June 2020 on 13.8.2020.
Taaleri Plc
Communications
For more information, please contact:
CEO Robin Lindahl, Taaleri Plc, tel. 358 50 595 9616, robin.lindahl@taaleri.com
CFO Minna Smedsten, Taaleri Plc, tel. 358 40 700 1738, minna.smedsten@taaleri.com
Taaleri in brief
Taaleri is a Finnish financial services company, whose parent company, Taaleri Plc, is listed on Nasdaq Helsinki main market. The Taaleri Group comprises three business areas: Wealth Management, Financing, and Energy. In addition, the Group makes investments from its own balance sheet.
At the end 2019, Taaleri had assets under management totalling EUR 7.1 billion and 5,500 wealth management customers. Taaleri Plc has some 4,700 shareholders. Taaleri’s operations are supervised by the Finnish Financial Supervisory Authority.
More information about our company and services:
www.taaleri.com/en
www.taalerivarainhoito.com/en
www.taalerienergia.com
www.taalerikapitaali.com/en
www.garantia.fi/en
www.fellowfinance.fi/en
Sophie Jolly, Head of Communications and IR, tel. 358 40 828 7317, sophie.jolly@taaleri.com