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Quam Announces 2013/14 Interim Results
Back to Black Core Growing and Asset Management Reversed Losses
HONG KONG, Nov 24, 2013 - (ACN Newswire) - Quam Limited ("Quam" or the "Grou", Stock Code: 00952.hk), a Hong Kong-based financial services group, announces its unaudited interim results for the six months ended 30 September 2013 (the "Period").
During the Period, revenue of Quam amounted to HK$202,865,000 (2012: HK$157,425,000) reflecting an increase of 28.9% compared to the corresponding period last year. The Group recorded an after tax profit of HK$14,287,000 (2012: after tax loss of HK$4,424,000), a return to profitability for the Group for the Period, which is the result of much hard work in business restructuring including costs, adjustments to revenue models and restructure of our operations in the asset management business.
Quam's Board of Directors declare the payment of an interim dividend of HK0.5 cent for the period ended 30 September 2013 (2012 interim dividend: Nil).
Mr Kenneth LAM, the Chief Executive Officer of Quam, said, "During the Period, all businesses were doing well and have contributed to the pleasing results. Our market share in equities business maintained, futures trading business steady and securities margin loan book stayed healthy. In particular, the asset management unit has returned to black after years' losses, with fund performance and Asset Under Management ("AUM") both yielding satisfactorily results. We expect this momentum to continue in the coming years. In addition, corporate finance business was able to maintain its velocity with strong deal flow given the difficult economic climate."
During the Period, revenue of securities and futures business amounted to HK$124,314,000 (2012: HK$94,969,000), an increase of 30.5% over the same period last year, which was mainly attributable to a growing margin lending book and robust futures business. ECM business increased to HK$5,708,000 (2012: HK$4,418,000) as fees arisen from placement and underwriting activities continue to rise. Margin loan book at the end of the Period stood at HK$674,020,000 (31 March 2013: HK$533,131,000) and was well supported by banking facilities.
Corporate finance and advisory services revenue for the Period amounted to HK$21,538,000 (2012: HK$24,900,000). Deal flow continues to be strong, of the transactions completed during the Period, two (2012: one) were IPOs, and thirteen (2012: ten) were corporate advisory and M&A mandates. The situation is to remain in the second half especially few delayed mandates are expected to complete during the Period.
Revenue generated from management fees of Asset Management increased to HK$17,205,000 (2012: HK$3,564,000), as a result of good performance on the largest fund Quam China Focus Fund as well as the jointly advised Quam Middle East Fund. Total AUM in all funds stood over US$86,956,000 (2012: US$57,200,000) at the end of the Period. However, as market volatility continues, two of the funds of funds were decided to close due to the subdued performance and redemption.
Meanwhile, Quamnet's revenue for the Period decreased to HK$10,010,000 (2012: HK$11,334,000), which was due to the market sentiment and the directionless securities markets in Hong Kong during most of the Period. The Group also completed the cost restructuring that had commenced since last year with streamlining the services and changing the business model.
The plans to divest non-core assets will continue. The Group has disposed entire stake of Seamico Securities Public Company Limited at the beginning of the Period and received a partial payout of return of capital to shareholders following the disposal of its subsidiary within MAC group.
Mr Bernard POULIOT, the Chairman of Quam concluded, "In coming days, we will continue to focus on and build our core businesses in the immediate term. In spite of the lukewarm responses we have during the Period when testing market for fund, we will continue to find other alternatives to boost our capital in order to support our expansion needs and to meet regulatory requirements. In particular, in the asset management business, our Quam China Focus Fund will hopefully provide further catalyst for new fund flows into this and other initiatives."
Contact:Ms Anita Wan of QuamIR at 9191-7504 or anita.wan@quamgroup.com
Source: Quam Limited
Sectors: Daily Finance, Daily News
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