Alantra reports first quarter net profit of €0.4m (-94.3%) and advances with the strategic transformation of the Group

Date 28 April 2023

Type Financial Results

Financial Results, Balance Sheet and Dividend Payment

  • The Group’s Q1 net revenues came in at €32.5m (-40.7% YoY), primarily due to significantly lower net revenues in Investment Banking (€19.4m, -46.8% YoY) and Credit Portfolio Advisory (€5.3m, -53.2% YoY), reflecting a significant decline in industry-wide completed M&A transactions. According to Refinitiv, European mid-market M&A volume fell by 51% and global mid-market M&A volume by 40%.

    Despite a challenging fundraising environment, Asset Management revenues increased by 5.3% to €7.2m.
  • Operating expenses in Q1 decreased to €35.3m (-20.6%) due to the decline in variable compensation (-88.6% YoY), partially offsetting the revenue drop.
  • Q1 net profit attributable to the parent company stood at €0.4m (-94.3% YoY).
  • As of 31 March 2023, the Group maintained a solid balance sheet with a net treasury position of €111.6m[1] and €31.0m of an attributable portfolio of investments in products managed by the Group[2] (consolidated portfolio of €61.9m of which Alantra owns 50.1%).
  • Shareholders’ equity amounted to €300.9m. The Group has no financial leverage.
  • The AGM approved the distribution of €0.50 per share to be paid on 12 May, equal to a c. 60% pay-out ratio over FY 2022 ordinary net profit, continuing last year’s pay-out practice.

Strategic transformation

  • As presented at yesterday’s Annual General Meeting (AGM), Alantra has made important progress on its strategic transformation aimed at promoting stronger integration across the Firm. This is a critical step in becoming a more efficient organization and developing more sophisticated and innovative solutions.
    • Alantra has executed a broad management reorganization across its corporate services and businesses.
    • In Investment Banking, the Firm has renewed its leadership team and expanded its sector-specialized offering, including the launch of the global FIG vertical.
    • Alantra is scaling and developing the international reach of its four key pillars in Asset Management: energy transition, specialized debt, private equity, and active funds.
    • In addition, the Firm announced the launch of two new transversal businesses: the Energy Transition Group and the Technology Advisory Group.
  • As anticipated in the 2022 FY results presentation, the retained profits will increase the Group’s cash resources to continue investing in growth opportunities in a market environment that might offer particularly attractive options.
  • These strategic changes are expected to impact the Group’s mid-term P&L.

[1] (i) €119.2m of cash and cash equivalents and (ii) €30.1m invested in a monetary fund included under non-current financial assets, deducting €19.3m in dividend payments and €18.4m in outstanding bonuses

[2] Included under non-current financial assets