German Startups Group Berlin GmbH & Co. KGaA - Net profit more than doubled in 2015
As stated by the audited IFRS consolidated financial statement for the fiscal year 2015, German Startups Group recorded a consolidated net profit of 3.8 million euros in the reporting period, following 1.4 million euros in the fiscal year 2014 (IFRS individual financial statement). Thereof, 0.2 million euros are allotted to the minority shareholders of the fully consolidated majority investment Exozet Berlin GmbH ("Exozet"), which has been consolidated for the first time from 30 June 2015, and 3.6 million euros to the shareholders of German Startups Group. This corresponds to an increase in profit of more than 150% when compared to the IFRS individual financial statement of 2014.
At an average number of 7,515,382 shares in the fiscal year 2015, this corresponds to earnings per share after tax of 0.49 euros and an increase of 50% compared to the fiscal year 2014 (0.32 euros).
The positive development is attributed to an increase in value of 19 out of 25 minority holdings that were of particular significance to German Startups Group in 2015 and is thus contributed by the breadth of the portfolio, not just by individual holdings or events. Shortly before the end of the year 2015, the company made three additional investments that are of particular significance to it, so that it now holds 28 holdings of particular significance to it. The 28 holdings that are of particular significance to German Startups Group together comprise 96% of the value of all 42 active minority holdings. The 10 core holdings alone account for 64% of the value of all 42 active minority holdings. German Startups Group determines the fair value of the company stakes held by it predominantly on the basis of prices paid by third parties for the same or similar shares. This is the case for 24 of 28 holdings that are of particular signifiance to German Startups Group, although there are individual cases in which it even determines a lower valuation.
The majority holding Exozet reached profitability in the second half of 2015 with a profit of 289k euros. The first half of the year still incurred a loss, but balanced out over the entire year the profit amounted to 36k euros. Due to its group consolidation, the turnover of German Startups Group increased from 72k euros in 2014 (IFRS individual financial statement) to 5.6 million euros in 2015 (IFRS consolidated financial statement). Exozet recorded a turnover of 9.4 million euros in 2015, of which the partial amount realised in the period from 30 June to 31 December 2015 was consolidated.
The return on equity, which puts the profit in relation to the average equity and therefore constitutes an important return indicator for German Startups Group, also increased considerably in 2015 to 19.7% (2014: 15.7%).
The long-term gross performance of the average capital invested in shareholdings since mid-2012 attained by German Startups Group after the conclusion of the fiscal year 2015 amounts to approximately 28% p.a., according to preliminary calculations. In 2015, the company even realised a gross performance of 36% of the average capital employed in shareholdings.
German Startups Group is confident that it can continue this profitable growth in the fiscal year 2016.
The shares of the company are listed on the Entry Standard of the Frankfurt Stock Exchange since mid-November 2015. Of the 11,114,750 shares in total, 88% are in free float and the rest are in the hands of the Management, Supervisory Board, their family members, and their companies.
Comment field – Explanation that is published alongside the announcement:
Christoph Gerlinger, founder and CEO of German Startups Group, comments on the development and is optimistic for 2016, "German Startups Group has been profitable since its first full fiscal year, i.e. 2013, and this at an increasing rate. We are pleased that we could continue this trend in the 2015 fiscal year. The renewed profit increase represents the continued very positive development of our portfolio companies and therefore the success of our investment strategy. This confirms our hypothesis that the strength of German innovation can create value even in turbulent times, irrespective of the low interest rates, Euro crisis, economic cycle, Central Bank policy, commodity prices, and the capital market environment. With our successful listing on the stock exchange, we offer private and institutional investors access to the asset class <German startups> and thus the opportunity to participate in the increase in value of these dynamic, young companies.
German Startups Group Berlin GmbH & Co. KGaA
German Startups Group is a listed investment company based in Berlin that focuses on young, fast-growing companies, so-called startups. The company acquires majority and minority shareholdings mainly by providing venture capital. The portfolio companies that German Startups Group holds also stand to benefit from German Startups Group's expertise, experience and network with respect to strategy development, financing rounds, restructuring necessities, M&A transactions or selling the company, including a possible IPO. According to its own assessment, German Startups Group provides startups with so-called "smart money" by acquiring a shareholding. Its focus is on companies whose products or business models represent a disruptive innovation, allow for a high degree of scalability to be expected, and in which it has a great deal of trust in the entrepreneurial abilities of the founders to whom it feels that it obtains early access to due to its close relationships to relevant players in the startup scene. The geographical focus is on the German-speaking region. Since it commenced with operations in 2012, German Startups Group has in its opinion built up a diversified portfolio of investments in young companies and become the second most active venture capital investor in Germany since 2012 (CB Insights, Germany Venture Capital Overview). 28 of the 42 minority stake holdings in operationally active companies are of particular significance to German Startups Group and together comprise 96 of the total value of all 42 active minority stake holdings. According to German Startups Group, its investment portfolio reflects a crosssection of extremely promising German startups of various maturity stages ("Seed," "Early" and "Growth Stage," by German Startups Group's own definition) and includes some of the most successful and best known German startups.
More information is available on our website at www.german-startups.com.