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MPC Capital publishes 2020 first half report

  • Revenue growth and improved operating profitability in challenging market environment
  • Container shipping burdened by COVID-19 pandemic, positive momentum in third quarter emerging
  • Other asset areas only affected selectively so far
  • Forecast for full year remains suspended due to continuing market uncertainty

Hamburg, 27 August 2020 – MPC Capital AG (Deutsche Börse Scale, ISIN DE000A1TNWJ4), an international real asset and investment manager, today publishes its 2020 Interim Financial Report.

Diversification of asset base contributes to resilience of MPC Capital’s business model

The course of the first half-year has shown that the multi-asset strategy of MPC Capital AG has so far proven to be comparatively resistant to the economic effects of the COVID-19 pandemic. With the asset base’s high level of diversification and the steadily growing spread within the asset areas, the impact on the business of the MPC Capital Group has so far been modest.

At the same time, MPC Capital has broadened the basis of its shipping activities in recent years, so that in the first half of 2020 the weaker container business was largely compensated by a strong tanker market.

Solid growth in asset management and transaction business

Revenue for the MPC Capital Group rose to EUR 24.8 million in the first half of 2020 (H1 2019: EUR 20.0 million). The increase substantially reflects the integration of the equity investment in the tanker specialist Albis Shipping & Transport conducted in Q4 2019.

Management fees amounted to EUR 20.0 million, some 12 % up on the prior-year period (EUR 17.8 million). Transaction fees of EUR 2.4 million were around EUR 0.6 million higher than the weak first half of the previous year (EUR 1.8 million). They related primarily to transactions in the Real Estate unit.

Other revenue for the first half of the year came to EUR 2.4 million (H1 2019: EUR 0.4 million). This item is essentially made up of one-off, non-recurring income from the Shipping unit, for which there is a comparable amount in cost of purchased materials.

EBIT rises thanks to focusing and savings – COVID-19-related write-downs erode EBT

The operating result (EBIT) was improved substantially from EUR -4.2 million in the prior-year period to EUR 1.2 million in the first half of 2020 as a result of the focus on profitable, high-growth business areas and cost savings implemented.

In the previous year, high investment income led to positive earnings before taxes (EBT) in the amount of EUR 1.8 million. In the first half of 2020, impairment adjustments of EUR 2.5 million had to be made to MPC Capital’s co-investment portfolio due to the impact of the pandemic on container shipping. EBIT for the first half of 2020 of EUR 1.2 million was consequently around EUR 0.6 million down on the prior-year period.

Overall, MPC Capital AG posted a consolidated profit after tax of EUR 0.1 million for the first half of 2020 (H1 2019: EUR 1.2 million).

EUR 4.3 billion assets under management

The assets under management of the MPC Capital Group as at 30 June 2020 totalled EUR 4.3 billion, around EUR 0.2 billion down on the level as at 31 December 2019 (EUR 4.5 billion). New business brought in asset additions of EUR 0.3 billion. On the other side of the equation there were asset disposals amounting to EUR 0.2 billion. The measurement and currency effects came to EUR -0.3 billion.

Financial assets, which primarily comprise co-investments by MPC Capital, fell from EUR 74.6 million as at 31 December 2019 to EUR 68.0 million as at 30 June 2020. The decline stems mainly from an impairment adjustment on the shares held indirectly in MPC Container Ships ASA as well as from the sale of shares in the BMG portfolio. The cash position declined to EUR 15.4 million (31 December 2019: EUR 20.6 million) substantially as a result of the scaling-back of liabilities as at 30 June 2020. The equity ratio improved from 70.9 % to 76.3 %.

Forecast for 2020 full year remains suspended

Given the economic impact of the COVID-19 pandemic, in May 2020 the Management Board of MPC Capital AG decided to suspend a forecast for the current financial year of 2020 in view of the uncertainty surrounding further business development.

In particular the risk of further waves of infection and the corresponding tightening of restrictions on economic and social activity continues to lead to delayed investment decisions. Furthermore, uncertainties remain with regard to the development of asset valuations in MPC Capital’s core markets.

If the economic conditions become more predictable and visibility for the financial year in progress improves, the Management Board will resume forecasting for the 2020 financial year and communicate its view to the capital market.

Key Group figures for H1 2020

 

01/01 – 30/06/2020

 01/01 – 30/06/2019

Revenue

24,758

19,977

of which from management services

20,012

17,778

of which from transaction services

2,374

1,802

of which miscellaneous

2,372

396

Other operating income

4,442

3,929

Operating result (EBIT)

1,193

-4,180

Earnings before taxes (EBT)

1,218

1,814

Consolidated net profit

137

1,198

Employees (as at June 30)

278

292

 

 

30/06/2020

31/12/2019

Assets under management (EUR billion)

4.3

4.5

Total assets

126,859

139,623

Financial assets

67,953

74,635

Liquid funds*

15,408

20,640

Equity

96,802

98,968

Equity ratio (%)

76.3%

70.9%

* Cash in hand and bank balances; unless otherwise stated, all figures in thousand euros