Alantra generated revenues of €43.5m (+18.4%) and attributable net profit of €4.5m (-13.5%) in the first quarter of 2020

Date 4 June 2020

Type Financial Results

  • Financial results: strong revenue growth (+18.4%) driven by the financial advisory business (+44.8%).
    • Net revenues from the advisory business grew both in the Corporate Finance & Capital Markets (+30.5%) and the Credit Portfolio Advisory (+193.9%) businesses. The Asset Management division’s net revenues decreased to €5.8m (-45.2%), mainly due to (i) the absence of performance fees during this first quarter (in Q1 2019 they amounted to €2.7m) and (ii) a change in the consolidation perimeter by which Alantra Wealth Management is consolidated under the equity method since June 2019.
    • Operating expenses grew to €37.9m (+23.4%), mainly due to higher personnel expenses related to the international expansion of the Credit Portfolio Advisory business.
    • The Group generated €4.5m of attributable net profit (-13.5%), of which €3.9m derived from the fee business and €0.5m from the investment portfolio.
  • The Board of Directors has approved the 2019 annual accounts and decided to propose to the Annual Shareholders’ Meeting, that will take place in October, the payment of a €0.44 per share dividend[1]. This implies the full pay out of the 2019 consolidated profits.
  • The Group’s response to COVID-19:
  • Protect the health of all Alantra stakeholders and ensure business continuity. During the confinement, the Group’s robust IT infrastructure allowed all professionals to work remotely. As a consequence, we have been able to preserve the health of our professionals and stakeholders, while at the same time ensuring business continuity. Several teams (Germany, Switzerland, and China) are already returning to normal work at the offices, while the rest are making progress in their respective deconfinement plans.
  • Preserve the solid balance sheet. The Group maintains a strong balance sheet, with €211.6m of shareholders equity attributable to the parent, €98.0m in cash and cash equivalents, and no financial leverage. The Group’s solvency ratio substantially exceeds the regulatory requirements.

The transaction with Grupo Mutua (see below), which was closed during May[2], has further strengthened the Group’s balance sheet.

  • Impact on financial results. The results for the first quarter of the year do not yet reflect a significant impact of the COVID-19 crisis. The Group expects a relevant impact during the second and third quarters of the year, while business activity should resume in the last quarter of 2020. As a consequence, we estimate to deliver profitability this year but not reaching last year’s results.
  • Commitment to society in light of the COVID-19 crisis. Alantra, its professionals, and the members of its Board of Directors have donated €305,000 for the acquisition of two high-performance robots for molecular diagnosis. The Group has launched another project aimed at fighting COVID-19 across Europe, with the goal to raise up to €200k.
  • Successful closing of the transaction by which Grupo Mutua becomes a partner of reference of Alantra Asset Management to accelerate its growth plan

Grupo Mutua has contributed €45m to finance the growth plan of Alantra Asset Management and, in return, will obtain a 20% stake in the division.

Additionally, Alantra and Grupo Mutua have agreed to create a €100m investment pool aimed at investing in funds and products managed by Alantra Asset Management.

[1] This payment is made up of a €0.18 per share complementary dividend on 2019 results, and an interim dividend of €0.26 per share on 2020 profits.

[2] The impact of the transaction is not yet reflected in the Q1 results.