Deutsche Beteiligungs AG: Good start to new financial year
First-quarter net income of 6.9 million euros
Frankfurt am Main, 13 March 2012. Deutsche Beteiligungs AG (DBAG) started its 2011/2012 financial year (1 November to 31 October) by posting a profit for the first quarter (ended 31 January 2012), with net income totalling 6.9 million euros. Net asset value per share increased by 0.49 euros to 17.96 euros per share; after deducting the proposed dividend payment of 0.80 euros per share, this equates to a gain of 2.9 percent. In the preceding financial year, Deutsche Beteiligungs AG recorded first-quarter net income of 10.0 million euros and a 3.9 percent rise in net asset value per share. DBAG regularly draws attention to the fact that individual quarterly results are of limited significance for a conclusive assessment of the Company’s performance, due to the long-term nature of private equity investments and the variability of external influential factors, such as valuation ratios in the stock markets; this holds particularly true for comparisons of individual quarters.
Similar to past quarters, the first-quarter result derives from the portfolio companies’ very satisfactory performance. DBAG’s investee businesses started 2012 with good levels of order intake and sizeable order backlogs. Most have budgeted increased revenues and earnings for the current year. The stock markets’ recovery also had a positive effect: valuation multiples were higher than at the previous reporting date, which thereby led to value appreciation. The rise in the share price of Homag Group AG, the largest investment in DBAG’s portfolio, contributed 3.3 million euros towards the first-quarter result.
DBAG agreed two new investments in the first quarter: Spheros, a manufacturer of bus air management systems, and Brötje-Automation, a provider of machines and lines for the production of aircraft. The Spheros acquisition has meanwhile been completed, and the first quarter saw an initial outflow of funds.
Upon completion of these most recent investments and the dividend payment on 30 March 2012 (recommended dividend: 0.80 euros per share), DBAG will have liquid assets of some 120 million euros at its discretion. “With these assets and commitments of another 240 million euros to our funds, we are strongly placed to complement the portfolio with further attractive companies,” said Wilken von Hodenberg, Spokesman of the Board of Management, when presenting the first-quarter results today.
Given stable equity market conditions and a persistent favourable business climate, DBAG expects to achieve positive net income in the coming quarters as well.