AWD Holding AG / Final Results
26.03.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Corporate release on full-year 2007
AWD achieves record earnings in 2007
- Group revenue up by 4.7% to all-time high of 762.4 million
- New record of 6,439 advisers
- EBIT increases faster than revenue to reach an new record: EBIT margin
of 11.1%
Hanover, 26 March 2008 (AWD Holding AG) The AWD Group, Europes leading
independent financial adviser, posted the best results in its entire
history in the year 2007. In a turbulent market environment with
disruptions in the international financial markets, AWD increased its
consolidated revenue to the record figure of 762.4 million, representing
growth of 4.7% compared with the prior year. At the same time, AWD improved
its earnings before interest and taxes (EBIT), which also reached an
all-time high. Operating profit increased by 8.6% to reach an historical
high of 84.5 million. The EBIT margin improved by 0.4 percentage points
and reached with 11.1% a new record level as well. Due to the ongoing
strength of the Euro the 2007 financial income was lower than in 2006
especially due to this one-time extraordinary effect and thus dampened the
improvement in net profit (+1.1%). 'These strong results show that our
model of independent advice is a recipe for success also in challenging
times,' stated Carsten Maschmeyer, Chairman of the Board of Management
(CEO) and founder of AWD Holding AG.
In all regions with the exception of the UK the AWD Group did grow
profitably in 2007. The German companies of the AWD Group made the main
contribution to total revenue (50%). The revenue of 384.7 million
generated in the Germany region was 3.9% higher than in the prior year, and
thus exceeded the growth rates of the insurance sector and the
investment-fund industry. The revenue trend was particularly pleasing in
the core market of Austria & CEE, where revenue grew by a double-digit rate
once again (+20.6%) to 165.4 million. In Switzerland, revenue grew by 2.5%
to 70.4 million, in Swiss Franc revenue even increased by 7.0%. The
revenue and earnings development of AWD United Kingdom was dominated by the
property and financial market crisis and the resulting customers
investment reticence in the second half of the year. Total revenue in the
UK amounted to 141.9 million in 2007. In all other regions business
developed positively continued in the fourth quarter of 2007. To be
mentioned in particular is the development in the core market Germany. With
revenue growth of 4.9% the Germany operations of AWD Group achieved the
strongest growth rate in the whole of 2007 in the fourth quarter. This
positive development is primarily based on the sales success with
state-supported pension products.
The development of the AWD Groups most important value driver the number
of advisers was particularly pleasing. Following growth of 333 advisers
in 2006, the AWD Group increased its number of advisers in 2007 by a much
higher rate by 399 advisers, to 6,439 by the end of 2007. 'We are proud
of the quality of our training which enabled us even in the year that the
EU Insurance Mediation Directive with its enhance training requirements to
increase the number of advisers to a new record,' said Carsten Maschmeyer.
The high productivity of the advisers is proofed by the increase in the
number of new brokered contracts to a new record level of 1.16 million
contracts in 2007.
A total of 487,600 customers (+5.0%) sought the advice of the AWD Group on
planning needs-oriented solutions for pensions, risk protection and asset
formation in 2007, more than ever before in one year.
Evidence of the AWD Groups strong profitability is provided by the high
operating cash flow, which amounted to 104.1 million in 2007, thus
surpassing the prior-year figure by 21.9%. And return on equity once again
reached an exceptional level for the industry of 47.6%.
On the basis of the record profit the AWD Group will continue its
attractive dividend policy. At the Annual General Meeting to be held on 4
June 2008, the Board of Management and the Supervisory Board will propose
the distribution of a record dividend of 1.50 per share.
The results of the first quarter of 2008 will be published on 14 May.
A presentation and the Annual Report 2007 can be downloaded at
www.AWD-Group.de/ir.
If this publication contains any forecasts or if our statements refer to
the future, such statements can involve risks and uncertainties. We
therefore cannot guarantee that the expectations will prove to be correct.
Actual events and developments can differ significantly from the
expectations and assumptions expressed herein. The factors that can cause
such deviations include changes in the general economic situation and the
competitive situation, particularly in the core business areas and markets,
exchange-rate and interest-rate fluctuations, changes in national and
international legislation, especially pertaining to tax regulations, and
changes in investment or business strategy. The company does not assume any
obligations to update the statements made in this publication.
DGAP 26.03.2008
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Language: English
Issuer: AWD Holding AG
AWD-Platz 1
30659 Hannover
Deutschland
Phone: +49 (0)511 9020-5120
Fax: +49 (0)511 9020-5121
E-mail: investor.relations@awd.de
Internet: www.awd.de
ISIN: DE0005085906
WKN: 508590
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover;
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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DGAP-News: AWD Holding AG: AWD achieves record earnings in 2007
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