According to the preliminary unaudited framework data, publity AG was below its original expectations in the 2017 financial year both in terms of profit and sales. The reason for this is called the Leipzig asset manager unexpected shift of property sales and the slower pace due to market in the purchase of objects for customers.
The actual profit lagged behind its own forecasts by more than 12 million euros. Nonetheless, publity has completed the financial year on a positive note and achieved the last profit level announced. Overall, the net income for the year was 11.2 million euros, compared with 23.1 million euros the year before. The surplus per share was 1.87 euros (2016: 3.89 euros).
According to preliminary figures according to HGB accounting, the turnover in 2017 was approx. EUR 25.6 million, EUR 16 million below the previous year’s level. EBIT came to EUR 14.8 million in the past year after EUR 35.5 million in 2016. On the other hand, assets under management increased: from EUR 3 billion in 2016 to around EUR 4.6 billion at the end of 2017,
This year should be better
Due to the current negotiating situation with market participants, the Executive Board assumes that the planned sale of properties in the volume of approx. EUR 280 million can be realized in the coming months. Therefore, significantly higher profits are expected in the current year. Thus, a profit after taxes of 15 to 20 million euros is forecast. As a precautionary measure, there is no increase in assets under management in this forecast.
„Of course, we are not satisfied with the development in 2017 despite the 11.2 million euros in profit after tax. On the other hand, as an asset manager in the interests of our clients, we are also unwilling to make short-term considerations in terms of price and yield expectations when buying and selling real estate. Therefore, some developments have taken longer than expected and have lasted beyond the reporting period. I can assure our shareholders that, based on the current situation, we are working hard on implementing the targets for 2018, „explains Thomas Olek, CEO of publity AG.