DGAP-News: Weng Fine Art AG: Most successful year ever: Weng Fine Art AG increases pre-tax profits by 112% to EUR 2.38 million for FY 2012/2013
(firmenpresse) - DGAP-News: Weng Fine Art AG / Key word(s): Miscellaneous
Weng Fine Art AG: Most successful year ever: Weng Fine Art AG
increases pre-tax profits by 112% to EUR 2.38 million for FY 2012/2013
02.04.2013 / 08:45
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PRESS RELEASE | 2 APRIL 2013
Most successful year ever: Weng Fine Art AG increases pre-tax profits by
112% to EUR 2.38 million for FY 2012/2013
- Turnover grew by almost 20% to EUR 7.75 million despite challenging
market environment
- Gross margin remains at high levels
- Significant increase in average price underscores successful entry into
higher-end segments of the market
- Expansion of the company into an integrated art business is moving
forward
Based on preliminary, unaudited figures Weng Fine Art AG (WFA) concluded
the 2012/2013 financial year at new record levels in line with forecasts.
Contrary to the overall slight weakness of the art market prevailing in the
past year, the art trader, listed since the start of 2012, not only
generated a double-digit increase in turnover, but also expanded its
profits to new highs: Turnover rose by 19% to 7.75 million. Profits before
tax, which had been at EUR 1.12 million in the previous year, rose by 112%
to EUR 2.38 million. Net income for the year rose by 135% to EUR 1.82
million supported by positive tax effects.
This considerable growth in profits underscores the operational leverage of
the business model. The average sales price per artwork rose by 37% as a
result of the expansion into higher-end market segments, whilst at the same
time the gross margin remained steady. Despite an increase in turnover, the
company managed to reduce its costs. Successful investment transactions
also contributed to the rise in EBIT to EUR 2.65 million as for example,
the equity stake in Berlin-based Artnet AG was sold at a profit of
approximately EUR 200,000.
In conjunction with the capital increase concluded in June 2012, these
record results have also contributed to additional improvements in the
company's already-healthy balance sheet quality. As of 31 January 2013, the
WFA shareholder equity was EUR 9.18 million compared to EUR 4.41 million in
the previous year; the shareholder's equity rose from 40.4% to 54.0%. As a
result of this growth and bolstered by credit facilities provided by
renowned banks (recently expanded to more than EUR 17 million), WFA has
exceptional funding available for further expansion and is currently one of
the best capitalised art dealing companies on the European continent.
'We had three primary goals for the past year: Expanding the equity base,
entry into higher-end market segments and improving our market position
through increased awareness both in the art and financial markets. We were
able to achieve all three of these goals,' reflects WFA CEO Rüdiger K. Weng
with regard to the results of the past financial year and emphasises, 'The
fact that we have been able to realise such significant growth in profits,
despite a challenging market environment which has seen many competitors
and partners struggle with falling profits or even losses, is a strong
confirmation of our growth strategy.'
'From the 4th Quarter on, we increased investments in strategic business
development - otherwise profits would have been even stronger,' explains
Weng and states, 'Our commercial business is the perfect nucleus for the
integrated art business we want to create in the coming years. Expanding
our B2B art dealership value chain to include the e-commerce, auctions,
editions and advisory segments is at the top of our agenda for 2013 and the
following years and is expected to generate significant positive scale
effects.'
The company will publish audited figures for the period until 31 January
2013 based on final inventory valuations on 31 July 2013 at the latest
along with the financial report.
[in KEUR] FY 2011/2012 FY 2012/2013 % YoY* the final value will be determined in July 2013
(audited) (preliminary)
Sales revenues 6,513 7,750 19 %
Cost of sales - 3,701 - 4,476 21 %
Depreciable goods - 90 * - 13 -86 %
Other income 184 ** 709 285 %
Gross profit 2,906 3,970 37 %
Overall costs - 1,508 - 1,323 -12 %
EBIT 1,398 2,647 89 %
Net interest - 276 - 266 -4 %
Profit before tax 1,122 2.381 112 %
Taxes - 347 - 559 61 %
Profit after tax 775 1,822 135 %
EPS 0.31 0.66 113 %
Gross margin 76.0% 73.2% -4 %
EBIT margin 21.5% 34.2% 59 %Net return on sales 11.9% 23.5% 97 %
Equity 4,410 9,182 108 %
Total assets 10,924 17,016 56 %
Equity ratio 40.4% 54.0% 34%
** of which income from investment transactions of KEUR 655.
ABOUT WENG FINE ART AG
Weng Fine Art AG (www.wengfineart.com) is one of the most dynamic and
financially strongest art dealing companies on the European continent. The
company focuses on works of internationally renowned artists from the 20th
century and, in its core business, exclusively supplies commercial
addresses (B2B) including leading international auction houses as well as
art dealers and galleries. The expertise and market positioning gained over
more than 18 years serves as a basis for new business segments such as
e-commerce and editions. Weng Fine Art AG shares have been traded on the
Frankfurt Stock Exchange (Entry Standard) since the beginning of 2012.
INVESTOR RELATIONS CONTACT
edicto GmbH, Axel Mühlhaus
Eschersheimer Landstr. 42 | D-60322 Frankfurt a.M.
Phone +49 (0)69 905505-52 | Fax +49 (0)69 905505-77
E-mail amuehlhaus(at)edicto.de
End of Corporate News
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Language: English
Company: Weng Fine Art AG
Kimplerstraße 294
47807 Krefeld
Germany
Phone: 02151 937130
Fax: 02151 93713-29
E-mail: art(at)wengfineart.com
Internet: www.wengfineart.com
ISIN: DE0005181606
WKN: 518160
Listed: Frankfurt in Open Market (Entry Standard)
End of News DGAP News-Service
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