STOCKHOLM, Sweden, Feb. 12, 2002 (PRIMEZONE) -- Hagstromer & Qviberg:
Performance and Financial Position Group
Hagstromer & Qviberg (H&Q) reports for 2001 a profit before tax and minorities of SEK 10 (250) million.
A low level of market activity during large parts of the year has contributed to substantially lower income. Earnings have additionally been affected by income and expenses of a temporary nature.
Cost-reduction programmes were implemented during the second and third quarters, whereby the number of employees has been reduced by around 100 and current expenses, excluding bonuses, have been reduced by almost SEK 130 million on an annual basis in relation to the level at the start of the year.
During the second quarter the business in Oslo was restructured. This has thereafter been consolidated as a subsidiary, instead of an associated company as previously, which has affected income and earnings positively from the third quarter inclusive.
Earnings before tax and minorities for the fourth quarter amounted to SEK 33 (3) million. Earnings have been positively affected by settlement of a dispute with insurance company Zurich and negatively by a writedown of the holding in H&Q New Technology Fund.
In total for the year operating income was SEK 505 (935) million, a decrease of 46 percent. Income from commissions and fees decreased by 41 percent to SEK 384 (651) million. Of the income from commissions and fees, SEK 108 (165) million comprised income from financial advisory services and underwriting.
Net income from financial transactions including dividends decreased by 76 percent to SEK 65 (268) million. Corporate finance-related holdings, including the holding in H&Q New Technology Fund, and divestment of the share holding in Starthouse contributed SEK -80 (5) million.
Other income amounted to SEK 62 (25) million. Of this the divestment of the premium bonds business contributed SEK 66 million and the writedown of a receivable from SPP/Alecta SEK -6 million. The share in profits of associated companies was SEK 2 (6) million.
Operating expenses amounted to SEK 495 (685) million, a decrease of 28 percent. Personnel expenses decreased by 34 percent to SEK 327 (495) million, and other expenses by 13 percent to SEK 167 (191) million. Personnel expenses include non-recurring redundancy costs of SEK 16 million. Other expenses include an allocation for anticipated credit losses of SEK 4 (0) million.
The group's liquid funds amounted to SEK 1,474 (-469 as per December 31, 2000) million. Shareholders' equity amounted to SEK 389 (469 as per December 31, 2000) million, corresponding to SEK 78 (93 as per December 31, 2000) per share. Capital adequacy for the group amounted to 26 (24 as per December 31, 2000) percent.
During the year the number of employees has decreased by 26 percent and as per december 31 was 247 (336 as per december 31, 2000). The average number of employees during the year was 293 (314).
H&Q Technology
Operating income for the year amounted to SEK 170 million, a decrease of 64 percent in relation to the previous year. Lower market activity, fewer completed capital acquisition and advisory assignments, and writedowns mainly explain the decline in operating income compared with the previous year. Earnings were negative.
During the fourth quarter operating income rose by 138 percent in relation to the third quarter, and by 4 percent in relation to the fourth quarter the previous year. The business in Oslo, which conducts financial advisory services with 9 employees, is part of this business unit and is consolidated from the third quarter inclusive.
The number of employees as per December 31 was 71 (84 as per December 31, 2000).
H&Q Private Banking
Operating income for the year amounted to SEK 249 million, a decrease of 42 percent in relation to the previous year. Generally lower market activity and lower market values explain the decline, which has been partly countered by increased sales of guarantee products. Earnings were positive.
During the fourth quarter operating income increased by 31 percent in relation to the third quarter, but decreased by 35 percent in relation to the fourth quarter of the previous year. Total managed capital decreased to SEK 18 (24 as per December 31, 2000) billion as a result of lower market values.
The net flows of new clients and volumes were positive. For the year the net inflow of capital was SEK 2.7 billion, of which SEK 0.4 billion during the fourth quarter.
The number of employees as per December 31 was 102 (150 as per December 31, 2000).
Miscellaneous
As per January 1, 2002, Patrik Enblad took over as the new chief executive officer from Anders Boos.
Annual General Meeting and Dividends
The annual general meeting will be held on Tuesday, April 9 at 3 pm at Vintertradgarden, Grand Hotel, Stockholm, Sweden. The board of directors plans to propose to the annual general meeting a dividend of SEK 5.00 (17.00) for each common and preferred share.
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