DGAP-Media: MLP AG: MLP concludes financial year 2010 with significant growth in earnings
(firmenpresse) - DGAP-Media: MLP AG / Key word(s): Finance/
MLP AG: MLP concludes financial year 2010 with significant growth in
earnings
23.02.2011 / 07:33
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Preliminary results:
MLP concludes financial year 2010 with significant growth in earnings
- EBIT rises by 11 percent to EUR 47.0 million with slightly lower
revenues - Group net profit jumps by 41 percent to EUR 34.1 million
- Successful efficiency programme: cost savings target clearly exceeded
- Executive Board proposes a dividend of 30 cents per share (2009: 25
cents)
- Assets under Management climb further to EUR 19.8 billion
- Outlook: Increase in the operating EBIT margin to 15 percent by the end
of 2012
Wiesloch/Frankfurt, 23rd February 2011 - MLP concluded the financial year
2010 with significant growth in earnings - increasing Group net profit by
41 percent to EUR 34.1 million. In this respect, the independent financial
services and wealth management consulting company benefited from its
successful efficiency programme in which MLP once again surpassed its cost
saving targets. Total revenues - considerably affected by weaker interest
income but supported by stable development in revenues from commissions and
fees - fell only slightly. In the presence of continuingly difficult market
conditions for old-age pension provision products, MLP achieved significant
growth particularly in the areas of health insurance and wealth management.
Assets under Management reached a new record high. Following the
conclusion of a successful financial year in 2010, the Executive Board is
now proposing a dividend of 30 cents per share. MLP is thereby continuing
its dividend policy of distributing almost the entire net profit from
continuing operations.
'MLP performed well in 2010. We efficiently promoted our services, although
the framework conditions in the old-age pension provision market remained
difficult,' comments MLP Chief Executive Officer Dr. Uwe
Schroeder-Wildberg. 'Furthermore, we are also harvesting the fruits of our
successful cost management programme as well as benefiting from our
broad-based consulting approach. Now, at the latest, it has become very
clear just how important it was to strengthen our wealth management
operations through the acquisition of Feri.'
Revenues from commissions and fees remain at the previous year's level
In the financial year 2010 total revenues declined slightly by 2 percent to
EUR 522.6 million (2009: EUR 532.1 million). This reduction was mainly
attributable to lower interest income which fell by 20 percent to EUR 25.2
million (EUR 31.4 million). However, revenues from commissions and fees
remained resilient and amounted to EUR 472.2 million (EUR 472.4 million).
In this respect MLP benefited, above all, from the strengthening of its
wealth management operations in recent years. Following an increase in
revenues by 10 percent to EUR 78.5 million (EUR 71.6 million), this
business area now accounts for 17 percent of revenues from commissions and
fees. The growth is a result of the positive development both at MLP as
well as at its subsidiary Feri. Significant growth was also achieved in the
health insurance business: the adoption of new healthcare reform
legislation led numerous clients to switch to private healthcare, an aspect
which contributed to a rise in revenues by 32 percent to EUR 61.3 million
(EUR 46.5 million). The demand for insurance to cover existential risks
remains high - revenues from non-life insurance increased by 5 percent to
EUR 27.9 million (EUR 26.5 million). However, clients remained hesitant
with respect to the conclusion of long-term contracts for old-age pension
provision. This was mainly attributable to uncertainties in the aftermath
of the financial crisis as well as to the current discussions concerning
issues such as the national debt, inflation and the upcoming reduction in
the guaranteed yield for life insurance and private pension policies.
Against this background, revenues in this area fell by 7 percent to EUR
288.3 million (EUR 311.1 million). 'We have grown in essential areas and
made gains wherever the market conditions permitted,' comments MLP Chief
Financial Officer Reinhard Loose. 'Our revenue split highlights the
importance of a holistic consulting approach - not only to our clients but
also for the development of MLP.'
Cost saving target again significantly surpassed
MLP's earnings benefited from its successful efficiency management
programme. Following comprehensive cost reductions in the financial year
2009, MLP succeeded in lowering its fixed costs in 2010 by a further EUR
16.4 million - thereby once again significantly exceeding its cost saving
target of EUR 10 million. Against this background earnings before interest
and tax (EBIT) rose by 11 percent to EUR 47.0 million (EUR 42.2 million),
EBIT margin increased to 9.0 percent (7.9 percent). Net profit from the
continuing operations climbed by 25 percent from EUR 27.2 million to EUR
34.1 million, Group net profit also rose to EUR 34.1 million (EUR 24.2
million). The diluted earnings per share amounted to 31 cents and were
thus 41 percent above the previous year (22 cents).
MLP continues to boast excellent key balance sheet figures: At 31st
December 2010 the equity ratio stood at 28.5 percent and liquid funds
amounted to EUR 223 million (31st December 2009: EUR 210 million).
Executive Board proposes a dividend of 30 cents per share
In view of the company's successful earnings development and its
considerable financial strength, the Executive Board is proposing a
dividend increase of 20 percent to 30 cents per share (2009: 25 cents).
Subject to approval by the Supervisory Board and the shareholders at the
Annual General Meeting, the total payout would thus rise to EUR 32.4
million (EUR 27.0 million) - corresponding to 95 percent of net profit from
the continuing operations. As announced three years ago the dividend is
tax-free.
Q4: EBIT at the previous year's level
The fourth quarter once again proved to be the strongest period of the
year, in which total revenues amounted to EUR 173.7 million (Q4 2009: EUR
186.8 million). EBIT totalled EUR 30.0 million (EUR 30.5 million) and
remained at the previous year's level. MLP thus generated around 64 percent
of its EBIT in the months from October to December. Net profit from the
continuing operations in this period amounted to EUR 22.2 million (EUR 23.0
million).
Assets under Management continue to rise
Primarily driven by positive new business development with both private and
institutional clients, Assets under Management continued to grow. At 31st
December 2010 they stood at EUR 19.8 billion (30th September 2010: EUR 19.3
billion) thus representing a new record high. In old-age pension provision
the premium sum amounted to EUR 5.0 billion (2009: EUR 5.1 billion),
slightly lower than the previous year. The occupational pension business
area accounted for 9 percent (10 percent) of this figure.
34,000 new clients in 2010
In the financial year 2010 MLP welcomed a total of 34,000 (2009: 34,500)
new clients. The fourth quarter proved to be the strongest period in this
respect with 9,500 new clients. The total number of clients rose to 774,500
(30th September 2010: 771,000). At the end of the year the number of
consultants stood at 2,273 (30th September 2010: 2,317).
Goal: To increase the operative EBIT margin to 15 percent
Despite the lower level of growth momentum, the economic situation in the
financial year 2011 remains positive. At the same time, there are risks to
macroeconomic development mainly due to the huge national deficits. In
addition, the German private client business is currently being influenced
by discussions about inflation and the upcoming reduction in the guaranteed
yield for life insurance and private pension policies.
In this environment MLP reiterates its goal of further improving the
operative EBIT margin and increasing this figure to 15 percent in 2012
(2010: 9.0 percent). The continuation of the successful efficiency
management programme will play an important role in the achievement of this
goal. For this reason, MLP intends to reduce its fixed costs by a further
EUR 20 million by the end of 2012. Additionally, MLP expects to achieve
further revenue growth in wealth management and health insurance in both
2011 and 2012. 'On the other hand there are currently no obvious signs of a
significant near-term improvement in the framework conditions within the
old-age pension provision market. Here we must await further developments,
but from a current perspective we anticipate stable revenues in 2011 and
modest growth in the following year,' explains Uwe Schroeder-Wildberg.
'Thanks to our strict cost discipline and the additional revenue potential,
particularly in wealth management and the corporate client business area,
we are on the right track to reach our goals.'
MLP will be publishing its annual report on 24th March 2011.
Overview of the key figures
Continuing Q4/ Q4/ Change 12 months 12 months Change.*) Adjustments in Q1 2010
operations (in EUR 2010 2009 in % 2010 2009 in %
million)
Revenues 165 173 -5 497.3 503.8 -1
.1 .5
Revenues from 158 166 -5 472.2 472.4 -
commissions and .8 .9
fees
Interest income 6.3 6.6 -5 25.2 31.4 -20
Other revenue 8.7 13.3 -35 25.3 28.4 -11
Total revenues 173 186 -7 522.6 532.1 -2
.7 .8
Earnings before 30.0 30.5 -2 47.0 42.2 11
interest and tax
(EBIT)
Earnings before tax 30.1 29.0 4 47.1 39.7 19
(EBT)
Net profit 22.2 23.0 -3 34.1 27.2 25
Group net profit 21.6 26.5 -18 34.1 24.2 41
Private clients 774,500* 771,000 -
**
Consultants 2,273 2,317** -2
**) 9/30/2010
About MLP
MLP is Germany's leading independent consulting company. Supported by
comprehensive research, the Group provides a holistic consulting approach
that covers all economic and financial questions for private and corporate
clients, as well as institutional investors. The key aspect of the
consulting approach is the independence from insurance companies, banks and
investment firms. The MLP Group manages total assets of more than EUR 19.8
billion and supports more than 774,500 private and over 4,000 corporate
clients. The financial services and wealth management consulting company
was founded in 1971 and holds a full banking licence.
End of Media Release
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Language: English
Company: MLP AG
Alte Heerstraße 40
69168 Wiesloch
Deutschland
Phone: +49 (0)6222-308-1135
Fax: +49 (0)6222-308-8351
E-mail: investorrelations(at)mlp.de
Internet: www.mlp.de
ISIN: DE0006569908
WKN: 656990
Listed: Regulierter Markt in Frankfurt (Prime Standard),
Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg,
Hannover, München; Terminbörse EUREX
End of News DGAP-Media
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Datum: 23.02.2011 - 07:33 Uhr
Sprache: Deutsch
News-ID 33274
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