Revenues affected by low stock market volumes
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ Significant strengthening of human resourcesGrowth strategy in Asset Management confirmedOptimization of equity capitalWrite-off of goodwill and intangible fixed assetsStrong starting point for resumption of steady revenuesThe Board of Directors and the Executive Board of Bellevue Groupdecided today to inform its shareholders, clients and employees ofthe following:Three years ago a decision was made to invest the proceeds from thesale of the Private Banking operations in the expansion of the AssetManagement segment. This strategy has been systematically pursuedand, as a result, Bellevue Group's workforce has grown byapproximately 50% and its operational capacity has increasedaccordingly. Meanwhile, however, the downturn in stock marketturnover has had a greater than planned impact on company earnings.The inflow of new money has fallen short of expectations andperformance fees will be modest. Bellevue Group did not suffer fromany write-offs on its own books during the recent financial crisis.The Group is expected to break even in 2009, before any extraordinaryamortization of goodwill and intangible assets (see below).The measures that are being taken due to the lower level of businessvolumes and earnings center on the optimization of equity capital.Bank am Bellevue and Bellevue Asset Management had deliberatelymaintained a very high amount of equity capital in the midst of thefinancial crisis and, looking ahead, their required equity capital isexpected to be lower. Bellevue Group will maintain its dividendpolicy and share buyback program.There is no question that the anti-cyclical strategy will bemaintained and the increased level of human resources will not bereduced. Bellevue Group will pursue the path of increasing recurringrevenues with the expansion of Asset Management, even if the fullpayback of these investments will only come in a few years down theroad.Based on these recent developments we have adjusted our assessment offuture revenues. As a result, the item "Goodwill and other intangibleassets" will be written down by about CHF 100 million at the end ofthe reporting year in accordance with IFRS. This has no effectwhatsoever on the company's solid cash position or its equityrequirements as stipulated by Swiss law and regulations.The Board of Directors and the Executive Board believe that theseactions take into account today's changed environment and that thesemeasures will help to lead Bellevue Group to renewed growth andearnings momentum. In this respect, internal growth is clearlyfavored over acquisition-led growth.Investor calendar 2010:Tuesday, 2 March 2010 Press and analyst conference on 2009resultsMonday, 29 March 2010 Annual General Meeting of BellevueGroup AGFriday, 23 July 2010 Half-year results 2010For further information:Media / Investor Relations: Daniel Koller, CFO and Martin Bisang, CEOTelephone +41 44 267 67 77, Fax +41 44 267 77 78, dak(at)bellevue.chThe Bellevue Group is an independent Swiss financial group domiciledin Küsnacht. The parent company Bellevue Group AG is listed on theSIX Swiss Exchange.Bank am Bellevue is a provider of research and brokerage services inSwiss equities and selected international stocks as well as corporatefinance services.Bellevue Asset Management manages specialized equity investmentvehicles focused on selected sector and regional strategies andprovides selected institutional asset management services.http://hugin.info/137269/R/1359363/331315.pdf --- End of Message ---Bellevue Group AGSeestrasse 16, Postfach Küsnacht/Zürich SwitzerlandWKN: A0LG3Z; ISIN: CH0028422100; Index: SPI, SPIEX, SSCI;;
Datum: 04.12.2009 - 17:58 Uhr
Sprache: Deutsch
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