MLP AG / Key word(s): Finance/
MLP AG: MLP starts the new financial year with significant growth in
earnings
DGAP-Media / 10.05.2012 / 07:32
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MLP starts the new financial year with significant growth in earnings
- Q1 Group net profit doubles from EUR 4.7 million to EUR 9.4 million
- EBIT rises by 44 percent to EUR 12.4 million - efficiency programme
continues to bear fruit
- Total revenues decrease slightly to EUR 121.5 million (Q1 2011: EUR
130.8 million) as anticipated
- Assets under Management climb to EUR 20.5 billion
- Guidance reiterated - operating EBIT margin to rise to 15 percent
Wiesloch, 10th May 2012 - MLP, the independent financial services and
wealth management consulting company, started the financial year 2012 with
significant growth in earnings, doubling net profit in the first quarter to
EUR 9.4 million. Compared to the previous year's quarter, earnings before
interest and taxes (EBIT) rose by 44 percent to EUR 12.4 million, with
operating EBIT (EBIT before one-offs) increasing by 5 percent. In this
respect, MLP continued to benefit from the successful progression of its
efficiency programme. Following strong performance in the same quarter of
the previous year, total revenues in Q1 2012 decreased as anticipated to
EUR 121.5 million.
'Also after completion of the first quarter, MLP remains fully on course
and we confirm our target for this financial year,' comments Chief
Executive Officer Dr. Uwe Schroeder-Wildberg. 'In view of our strong
performance in the same quarter last year, we are satisfied with the
revenue development in Q1. With respect to earnings, we continue to reap
the benefits of our successful efficiency management programme.'
Revenues from commissions and fees decreased following a strong performance
in the same quarter of the previous year
Total revenues in the period from January to March decreased by 7 percent
to EUR 121.5 million (Q1 2011: EUR 130.8 million). Revenues from
commissions and fees accounted for the largest portion of this figure and
amounted to EUR 108.9 million (EUR 118.6 million). Interest income rose to
EUR 7.3 million (EUR 6.9 million); other revenues stood at EUR 5.2 million
and were thus at the level of the previous year (EUR 5.3 million).
The breakdown into the individual consulting areas reveals that the
decrease in total revenues was primarily due to strong private health
insurance revenues in the corresponding quarter of the previous year.
Legislation changes which came into effect from 1st January 2011 enabled
employees to more easily switch to private health insurance and led to a
catch-up effect in the first quarter of 2011. Revenues from health
insurance amounting to EUR 19.1 million in the first quarter of 2012 were
thus below the previous year (EUR 28.0 million) but still significantly
above the first quarters of 2009 and 2010 (Q1 2009: EUR 13.7 million, Q1
2010: EUR 12.9 million). Following the strong final quarter in 2011,
revenues in old-age provision fell by 3 percent to EUR 48.9 million (EUR
50.5 million). In wealth management, revenues amounted to EUR 19.2 million
and thus remained at the level of the previous year (EUR 19.3 million).
Non-life insurance grew by 7 percent to EUR 17.9 million (EUR 16.8
million). Loans and mortgage revenues decreased to EUR 2.9 million (EUR 3.1
million); additional earnings from the joint venture company MLP Hyp
amounted to EUR 0.2 million (EUR 0.2 million).
Significant rise in earnings
In the first quarter, EBIT increased by 44 percent to EUR 12.4 million (EUR
8.6 million). As one-off exceptional costs of EUR 3.2 million were incurred
in the corresponding quarter of the previous year, the rise in operating
EBIT thus amounted to 5 percent. Due to the acquisition of the remaining
shares in Feri AG and the consequent absence of a dividend payment to the
former shareholders of this MLP subsidiary, the financial result improved
to EUR 0.2 million (EUR -1.0 million). Group net profit rose to EUR 9.4
million (EUR 4.7 million).
The increase in earnings reflects the benefit of MLP's early implementation
of the efficiency programme: during the period from January to March alone,
MLP reduced administration costs by almost EUR 8 million; after
consideration of the one-off exceptional costs in the same period of the
previous year, operating fixed costs decreased by nearly EUR 5 million. The
balance sheet strength of MLP is demonstrated by an equity ratio of 28
percent and liquid funds of approximately EUR 184 million at 31st March
2012 (31st December 2011: EUR 171 million).
Assets under Management climb to EUR 20.5 billion
In the first quarter, Assets under Management - supported by successful
business development at the MLP subsidiary Feri - continued to rise and
amounted to EUR 20.5 billion at 31st March 2012 (31st December 2011: EUR
20.2 billion). Following the strong final quarter in 2011, the premium sum
in old-age provision amounted to EUR 0.7 billion (Q1 2011: EUR 0.9 billion)
and was thus below the previous year. Occupational pensions accounted for
13 percent of this figure (full year 2011: 13 percent).
6,500 new clients
In the first quarter MLP welcomed 6,500 new clients (Q1 2011: 7,800). The
total number of clients rose to 799,100 (31st December 2011: 794,500). The
number of consultants decreased slightly to 2,121 (31st December 2011:
2,132).
MLP accredited as a training provider for the qualification of Certified
Financial Planner
In January the Financial Planning Standards Board Deutschland e. V.
accredited MLP as a provider of training for the qualification of Certified
Financial Planner (CFP). The CFP qualification is the highest
internationally-recognised training standard for financial consultants. In
securing this status, MLP Corporate University has now become one of just
three accredited training institutes in Germany - the other two being the
European Business School in Oestrich-Winkel and the Frankfurt School of
Finance & Management.
In February, MLP presented its new wealth management fee structure.
Accordingly, clients in new business are credited with all trailer
commissions that MLP receives from investment companies for the brokerage
of their products. Unlike most intermediaries and banks in the market,
which retain trailer commissions as well as levying additional fees, MLP
charges its wealth management clients a blanket annual fee.
Guidance: Operating EBIT margin to rise to 15 percent
In the full year 2012 MLP expects to achieve moderate revenue growth in
old-age provision and in health insurance as well as stronger growth in
wealth management. As already communicated in February, the situation
remains somewhat uncertain due to a continuingly challenging market
environment. At the same time, MLP still intends to reduce fixed costs to
EUR 249 million in 2012 - some EUR 30 million less than 2010 and EUR 24
million less than 2011.
Furthermore MLP confirms its goal for the year of increasing the operating
EBIT margin to 15 percent (2011: 9.6 percent). 'Our efficiency programme
remains on schedule,' comments Chief Financial Officer Reinhard Loose. 'At
the same time, we are confident that MLP will continue to pick up momentum
during the coming months and that we will be able to grow our revenues.'
Overview of the key figures
Continuing operations (in EUR million) Q1/ Q1/ Change
2012 2011 in %
Revenues 116.3 125.5 -7
Revenues from commissions and fees 108.9 118.6 -8
Interest income 7.3 6.9 6
Other revenues 5.2 5.3 -2
Total revenues 121.5 130.8 -7
Operating EBIT (before one-off exceptional 12.4 11.8 5
costs)
Earnings before interest and tax (EBIT) 12.4 8.6 44
Earnings before tax (EBT) 12.6 7.6 66
Net profit 9.4 4.6 > 100
Group net profit (including discontinued 9.4 4.7 100
operations)
Diluted earnings per share (including 0.09 0.04 > 100
discontinued operations) in EUR
Clients 799,1 794,5 1
00 00*
Consultants 2,121 2,132* -1
*) 31st December 2011
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 20.5
billion and supports more than 799,000 private and 5,000 corporate clients
or employers. The financial services and wealth management consulting
company was founded in 1971 and holds a full banking licence.
The concept of the founders, which still remains the basis of the current
business model, is to provide long-term consulting for academics and other
discerning clients in the fields of provision, financial investment, health
insurance, non-life insurance, loans and mortgages and banking. Private
individuals with assets above EUR 5 million and institutional clients
benefit from extensive wealth management and consulting services as well as
receiving economic forecasts and ratings provided by the subsidiaries of
the Feri Group. Supported by its subsidiary TPC and the joint venture
HEUBECK-FERI Pension Asset Consulting GmbH, MLP also provides companies
with independent consulting and conceptual services in all issues
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