DGAP-News: 9-month group results of MWB Wertpapierhandelshaus AG: Improved results despite write-off
2002-10-18 08:00
Administrative expenses cut by 28%/secure equity ratio at 89%
Despite a constantly deteriorating capital market environment, the Munich-based MWB Wertpapierhandelshaus AG achieved a clearly improved trading result in the first nine months of the current financial year, up to EUR 2,117,000, following EUR -310,000 as of the third quarter in 2001. In line with the decline in turnover of foreign stocks in Germany, which reached a record low in September, the commission result decreased from EUR 1,645,000 in 2001 to EUR 628,000. In contrast, thanks to consistent cost saving measures, administrative expenses were cut by 28% to EUR 5,593,000 (2001: EUR 7,803,000).
As of the third quarter 2002, MWB wrote down its only major investment, in XCOM AG, by EUR 3,572,000. This write-off is the result of continuing economic uncertainty and the complicated environment for software firms in Germany, which makes it very difficult to forecast future revenue development. Despite this write-off, the group managed to improve the result from ordinary activities year-on-year, from EUR - 6,175,000 to EUR - 5,702,000.
At EUR 15.8 m as of September 30, 2002, the liquidity situation of the Munich-based securities trading house can still be regarded as secure. With an equity ratio of 89% and equity totalling EUR 21.0 m, the company is well positioned to preserve value in the future.
Information and explanations of the issuer of this ad-hoc announcement:
In the third quarter of 2002, the market for foreign stocks in Germany again suffered a dramatic slump in turnover. In September 2002, turnover dropped to a record low of EUR 12.2 billion. The poor general economic situation and political risks will make it difficult to assess future market development, and the loss of confidence, particularly among private investors, will continue to cause low turnover levels. Therefore, the company will intensify its efforts to shift its business focus from risk orientation to commission orientation.
Also in the fourth quarter of 2002, MWB will keep a close eye on the development of XCOM and the market, and, if necessary, critically assess the valuation again as of December 31, 2002.
MWB AG has been listed on the SMAX since April 1999. It is a leading specialist and market maker for both domestic and international stocks. MWB has seats on the Munich, Berlin, Frankfurt, Düsseldorf and Stuttgart stock exchanges. It is also active in the IPO business, capital market consultancy for small and mid caps and asset management with its 100% subsidiary MWB Wertpapierhandelsbank.
Despite a constantly deteriorating capital market environment, the Munich-based MWB Wertpapierhandelshaus AG achieved a clearly improved trading result in the first nine months of the current financial year, up to EUR 2,117,000, following EUR -310,000 as of the third quarter in 2001. In line with the decline in turnover of foreign stocks in Germany, which reached a record low in September, the commission result decreased from EUR 1,645,000 in 2001 to EUR 628,000. In contrast, thanks to consistent cost saving measures, administrative expenses were cut by 28% to EUR 5,593,000 (2001: EUR 7,803,000).
As of the third quarter 2002, MWB wrote down its only major investment, in XCOM AG, by EUR 3,572,000. This write-off is the result of continuing economic uncertainty and the complicated environment for software firms in Germany, which makes it very difficult to forecast future revenue development. Despite this write-off, the group managed to improve the result from ordinary activities year-on-year, from EUR - 6,175,000 to EUR - 5,702,000.
At EUR 15.8 m as of September 30, 2002, the liquidity situation of the Munich-based securities trading house can still be regarded as secure. With an equity ratio of 89% and equity totalling EUR 21.0 m, the company is well positioned to preserve value in the future.
Information and explanations of the issuer of this ad-hoc announcement:
In the third quarter of 2002, the market for foreign stocks in Germany again suffered a dramatic slump in turnover. In September 2002, turnover dropped to a record low of EUR 12.2 billion. The poor general economic situation and political risks will make it difficult to assess future market development, and the loss of confidence, particularly among private investors, will continue to cause low turnover levels. Therefore, the company will intensify its efforts to shift its business focus from risk orientation to commission orientation.
Also in the fourth quarter of 2002, MWB will keep a close eye on the development of XCOM and the market, and, if necessary, critically assess the valuation again as of December 31, 2002.
MWB AG has been listed on the SMAX since April 1999. It is a leading specialist and market maker for both domestic and international stocks. MWB has seats on the Munich, Berlin, Frankfurt, Düsseldorf and Stuttgart stock exchanges. It is also active in the IPO business, capital market consultancy for small and mid caps and asset management with its 100% subsidiary MWB Wertpapierhandelsbank.