United Bankers (HLSE) H1 2024 earnings summary

Executive summary

• Achieved record half-year results, with revenue up 33.5% to EUR 33.0 million and adjusted operating profit nearly doubling to EUR 13.8 million compared to the same period last year.

• Strong performance driven by successful forestry strategy, notably the sale of UB Nordic Forest Fund II LP, which generated a EUR 10.6 million performance fee.

• Assets under management increased 4.3% to EUR 4.8 billion, with positive net fund subscriptions and strong discretionary asset management sales.

• Major IT system overhaul completed, streamlining operations and supporting future digital service development.

• Oversubscribed share issue increased employee ownership, with internal ownership rising to over 75%.

Financial highlights

• Revenue rose 33.5% year-over-year to EUR 33.0 million; adjusted EBITDA up 86.5% to EUR 15.0 million.

• Adjusted operating profit increased 97.6% to EUR 13.8 million; profit for the period up 93.5% to EUR 10.5 million.

• Delivered a 13.3% IRR to investors from the divestment of Nordic Forest Fund II.

• Record high after-tax result, driven by performance fees from the forest fund sale.

• Earnings per share climbed 91.2% to EUR 0.96; cost-to-income ratio improved to 0.59.

Outlook and guidance

• Guidance for 2024 reiterated: adjusted operating profit expected to increase significantly from 2023 levels.

• Confident in continued demand for alternative investments, especially forestry and energy.

• Predictable management fee income expected to support future results.

• Growth strategy to continue, focusing on international sales of real asset funds and leveraging expertise in alternatives.

• Market environment expected to improve with anticipated interest rate cuts and gradual economic recovery.