+++ Press release +++
SGT German Private Equity – Profitable again in the fiscal year 2022
with net earnings of roughly 16 cents per share
Frankfurt/Main, 8 February 2023 – SGT German Private Equity (SGF), a listed private equity asset manager, provides preliminary financial insight into the fiscal year 2022.
The company is expecting 2022 net earnings of roughly 16 cents per share (preliminary unaudited estimates, IFRS Group), after one-off extraordinary effects from the revaluation of a purchase price liability and from the mark down mentioned below, amounting to 13 cents per share in total. The 2022 profit comes entirely from the PE Asset Management segment, which earned around 11 cents EBITDA per share, while a negative EBITDA of around 4 cents per share is expected for the Investment segment. The loss in the Investment segment is characterised by final value losses of two VC investments and the stock price loss of a portfolio company from its heritage venture capital portfolio that went public in 2021. The company’s private equity investment, on the other hand, recorded a significant value gain.
While the joint venture with a leading Asian financial services provider remains in place and has even been expanded in volume, the Management Board has resolved with the approval of the Supervisory Board to mark down the joint venture agreement, which had been recognized as an asset under IFRS, at 31.12.2022 significantly, due to enhanced geopolitical risks. This has a negative impact on the income statement in 2022 of around 5.5 million EUR, or 11 cents per share, net of an inverse tax effect. The expected profit from operating activities in 2022 remains unaffected. Starting already with the current fiscal year, the profit and loss statement of the Company will only be affected by an ordinary depreciation of the now devalued asset of 1 cent, instead of 3 cents per share p.a. before. The mark-down is not cash-relevant.
The average number of shares in 2022 amounted to 49.2 million shares.
In 2022, SGT German Private Equity paid a dividend for the first time and also conducted another share buyback. This is also planned for 2023 and will not be impacted by the above mark-down.
Investor Relations Contact
Rosenberg Strategic Communications
+49 170 302 8833
About SGT German Private Equity
SGT German Private Equity is a Germany-based listed private equity asset manager with registered office in Frankfurt/Main. Its 100% subsidiary SGT Capital Pte. Ltd. is a global alternative investment and private equity asset manager headquartered in Singapore.
SGT Capital Fund II, with a geographical focus on Europe and North America (fund lifetime ten years), invests in market leaders and utilizes its proprietary expertice to further globalize the businesses, particularly into Asia markets. SGT has targeted fundraising volume of 2 to 3 billion USD. The management team has many years of senior experience at renowned addresses – global private equity houses, management consultancies and investment banks. SGT Capital currently manages its issued Private Equity Funds, and a joint venture with an Asian financial services provider, in a total volume of more than 800 million USD.
From its origin as a leading German venture capital provider under the German Startups Group brand SGT German Private Equity also holds a heritage portfolio of minority stakes in some promising German Startups.