25.02.2016
MLP AG DE0006569908
MLP AG: MLP accelerates strategic transformation
DGAP-Media / 25.02.2016 / 07:31
MLP accelerates strategic transformation
- FY 2015: MLP has achieved growth in all consulting fields - sole
exception is old-age provision due to poor market conditions
- Total revenue rose by 4.9 percent to EUR 557.2 million and to EUR 535.0
million (EUR 531.1 million) adjusted for acquisition effects.
- Pro forma EBIT (before acquisitions) is EUR 32.5 million (EUR 39.0
million)
- The Group net profit including profits generated by DOMCURA as of
January 1, 2015 was EUR 23.3 million (EUR 29.0 million) - Executive
Board recommends dividend per share of 12 cents (17 cents)
- In order to increase the level of earnings against a background of
ongoing difficult framework conditions in old-age provision, MLP will
again tighten its cost management
- Potential for further inorganic growth continuously reviewed -
continuation of successful growth initiatives
- Sustainable EBIT level to once again show considerable growth from the
financial year 2017
Wiesloch, February 25, 2016 - The MLP Group has achieved growth in almost
all fields of consulting in the financial year 2015. MLP has thus continued
to successfully implement its strategy of considerably broadening the
revenue basis in order to cushion declines in old-age provision caused by
difficult market conditions. Total revenue rose by 4.9 percent up to EUR
557.2 million, while earnings before interest and tax adjusted for
acquisitions effects (pro forma EBIT) were EUR 32.5 million compared to EUR
39.0 million in the previous year. Based on an assumed acquisition of the
new subsidiary DOMCURA with effect from January 1, 2015, net profit is EUR
23.3 million (2014: EUR 29.0 million). MLP purchased DOMCURA in July 2015,
but is entitled to a share in profits of 100 percent of the shares as of
the beginning of 2015. On the basis of this net profit, the Executive Board
proposes a dividend per share of 12 cents (17 cents).
In order to sustainably improve the earnings level in spite of the ongoing
difficult market conditions in the field of old-age provision, MLP will
further accelerate the strategic transformation of the previous years.
Initiated and successful growth initiatives will be continued to this end.
In addition, MLP is looking into possibilities for further inorganic growth
and will further tighten the cost management of the previous years. To this
end, the Executive and Supervisory Board have agreed a package of measures
yesterday. MLP will already reap the full benefit of the reduced costs in
the coming year, which means that earnings before interest and tax (EBIT)
should enjoy significant growth from 2017.
"MLP also generated solid profits in 2015. This is by no means a matter of
course considering the extremely difficult market conditions, above all in
the area of old-age provision. Nevertheless, we are obviously not satisfied
with this level of earnings. But our consultants and employees achieved the
best results possible under these market conditions in 2015," comments
Chief Executive Officer Dr. Uwe Schroeder-Wildberg. "We have realigned MLP
over the past ten years. In addition, we have reduced the cost level by
around EUR 60 million and significantly broadened our strategic portfolio.
Among other measures, we have expanded other business areas such as wealth
management and non-life insurance and established new fields of consulting,
for instance real estate brokerage. With a broad base of growth, the
financial year 2015 is further proof that we are on the right path. We will
further accelerate this strategic transformation in order to achieve
sustainable increases in the level of earnings, even in the further
declining old-age provision market."
FY 2015: Total revenue increases to EUR 557.2 million
Total revenue rose from EUR 531.1 million to EUR 557.2 million in the
financial year 2015. When broken down by consulting areas, increases have
been achieved in almost all consulting areas: with revenue of EUR 166.0
million (EUR 147.0 million) and assets under management of EUR 29.0 billion
(December 31, 2014: EUR 27.5 billion), the MLP Group set new records in
wealth management. Both the subsidiary FERI and the private client business
at MLP have made an important contribution to this development. In the
non-life insurance segment, revenue grew from EUR 34.6 million to EUR 54.9
million; this figure includes revenue of EUR 19.2 million generated by the
new subsidiary DOMCURA as of August 1, 2015. Despite continuously difficult
market conditions, in health insurance MLP grew by 5.5 percent to EUR 45.9
million (EUR 43.5 million). Demand remains high in the real estate sector.
Against this background, revenue generated from the loans and mortgage
business increased by 19.1 percent to EUR 16.2 million (EUR 13.6 million).
At EUR 15.6 million (EUR 8.4 million), other commission and fees, which
include the brokerage of real estate, almost doubled. In old-age provision,
on the other hand, MLP was unable to buck the general trend in the sector,
which continues to be dominated by discussions regarding life insurers and
their products. As a result, revenue declined to EUR 215.7 million (EUR
239.7 million). As expected and announced, the fourth quarter in particular
fell significantly short of the strong previous year with revenues of EUR
87.8 million (Q4 2014: EUR 106.6 million).
Pro forma EBIT (before acquisitions) is EUR 32.5 million (2014: EUR 39.0
million). The EBIT - including the DOMCURA acquisition - stands at EUR 30.7
million (EUR 39.0 million). This is due to the seasonal nature of the
DOMCURA business model described on other occasions, whereby the subsidiary
achieves a very strong result in the first quarter of the year, but then
makes an arithmetic loss in quarters two to four. Overall, the result is,
as anticipated, highly positive. This effect is also reflected in the net
profit of EUR 19.8 million. Based on an assumed acquisition of DOMCURA with
effect from January 1, 2015, net profit is EUR 23.3 million (2014: EUR 29.0
million).
Dividend proposal: 12 cents per share
As announced, this figure also forms the basis for the dividend proposal of
the Executive Board. The amount proposed is 12 cents per share (17 cents).
This corresponds to a payout ratio of 56 percent and therefore falls within
the announced corridor. MLP continues to plan a payout ratio of 50 to 70
percent for the coming year.
27,500 new clients acquired
In 2015, MLP acquired 27,500 new clients (gross) (2014: 27,900). The number
of consultants increased to 1,935 at the end of the year (September 30,
2015: 1,914). The number of consultants has therefore increased slightly
for two consecutive quarters and the measures for attracting consultants
initiated in the second quarter of 2015 are beginning to bear fruit.
MLP accelerates strategic transformation
MLP will further accelerate its strategic transformation in the financial
year 2016. To this end, the company will continue its growth initiatives:
the recruitment of new consultants, the implementation of the
digitalisation strategy and the further broadening of the revenue basis.
In 2016, these initiatives will be supported on the one hand by examining
the possibilities for additional inorganic growth through acquisitions. On
the other hand, MLP will continue to tighten its efficiency measures. MLP
already lowered administrative costs by around EUR 60 million between 2008
and 2012. The objective of the measures approved yesterday is to again
significantly reduce costs in the financial year 2017 and the following
years to achieve a positive effect on EBIT of around EUR 15 million
compared to the year 2015. This will incur one-off expenses of
approximately EUR 15 million in the financial year 2016.
The savings predominantly relate to material costs. In addition, MLP will
abstain from the reoccupation of job vacancies and make even better use of
synergies between the Group companies in the back office. This will lead to
workforce adjustments to a very small extent.
Outlook: EBIT level to rise again significantly as of 2017
Compared to 2015 the EBIT should noticeably benefit from the introduced
cost-saving measures from the financial year 2017 onwards. "MLP will
continue to be active in challenging markets in the coming years. Our
mission is to increase the level of earnings in this environment, too. MLP
will benefit in full from the additional efficiency measures as early as
2017," says Chief Financial Officer Reinhard Loose.
MLP will today present details on the strategy for 2016 and the following
years within the scope of its annual press and analyst conference.
An overview of key figures
MLP Group Q4/ Q4/ Cha- 12 12 Cha- (in EUR million) 2015 2014 nge months months nge in % 2015 2014 in % Revenue 178.4 177.8 0 535.7 509.7 5 Commission income 173.2 172.0 1 514.3 486.9 6 Revenue from the interest rate 5.3 5.8 -9 21.4 22.9 -7 business Other revenue 9.3 8.6 8 21.5 21.4 0 Total revenue 187.7 186.4 1 557.2 531.1 5 Pro forma EBIT (before 24.2 29.6 -18 32.5 39.0 -17 acquisitions) Earnings before interest and tax 23.3 29.6 -21 30.7 39.0 -21 (EBIT) Earnings before tax (EBT) 22.9 28.4 -19 28.0 37.6 -26 Net profit for the period 16.1 21.8 -26 19.8 29.0 -32 Net profit based on an assumed - - - 23.3 29.0 -20 acquisition of DOMCURA with effect from January 1, 2015 Earnings per share (basic/diluted) 0.15* 0.20 -25 0.18* 0.27 -33 in euros Clients 858,7 854,9 0 00 00** Client consultants 1,935 1,914 1 ***) Based on the average number of shares in the financial year of 108,484,800 **) As at September 30, 2015 About MLP: The MLP Group is the partner for all financial matters - for private clients as well as for companies and institutional investors. With our four brands, each of which enjoy a leading position in their respective markets, we offer a broad range of services: - MLP Finanzdienstleistungen AG: The dialogue partner for all financial matters - FERI AG: The investment expert for institutional investors and high net-worth individuals - DOMCURA AG: The underwriting agency focusing on private and commercial non-life insurance products - TPC GmbH: The specialist in occupational pension provision management for companies The views and expectations of our clients always represent the starting point in each of these fields. Building on this, we then present our clients with suitable options in a comprehensible way so that they can make the right financial decisions themselves. For the implementation, we examine the offers of all relevant product providers in the market. Our product ratings are based on scientifically substantiated market and product analyses. Manfred Lautenschläger and Eicke Marschollek founded MLP in 1971. Just under 2,000 client consultants and around 1,800 employees work at MLP. End of Media Release --------------------------------------------------------------------------- Issuer: MLP AG Key word(s): Finance 25.02.2016 Dissemination of a Press Release, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: MLP AG Alte Heerstraße 40 69168 Wiesloch Germany Phone: +49 (0)6222-308-8320 Fax: +49 (0)6222-308-1131 E-mail: [email protected] Internet: www.mlp-ag.de ISIN: DE0006569908 WKN: 656990 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich; Terminbörse EUREX End of News DGAP Media --------------------------------------------------------------------------- 439959 25.02.2016
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