Quam Announces 2010/11 Annual Results

Jun 20, 2011 11:20 JST

Source: Quam Limited

HONG KONG, Jun 20, 2011 - (ACN Newswire) - Quam Limited ("Quam" or the "Group", Stock Code: 00952.hk), a Hong Kong-based financial services group, today announced its audited annual results for the year ended 31 March 2011 ("the Year").


Financial Highlights (For the year ended 31 March)

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(HK$ million)                 2011           2010     
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Revenue                      306.6          286.6   
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Profit attributable 
to equity holders 
of the company                 7.7           19.5
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Basic earnings  
per share (cents)             0.81           2.30
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Total dividend per 
share (cents)                 0.50           1.00 
----------------------------------------------------

During the Year, Quam recorded revenue of HK$306.6 million (2010: HK$286.6 million), representing an increase of 7.0% compared to last year. The Group's net profit was HK$7.7 million (2010: HK$19.5 million). Basic earnings per share were HK0.81 cent (2010: HK2.30 cents).

The Group's Board of Directors recommends the payment of a final dividend of HK0.50 cent per ordinary share for the year ended 31 March 2011 (2010 final dividend: Nil).

Mr Bernard Pouliot, the Chairman of Quam, said, "It is excited to have an encouraging performance during the Year, which reflected the rebounding but still volatile in Hong Kong market. We turned around from a mid-year loss of HK$3.7 million given various business units have performed well and been growing steadily. The outlook of the Group is actually stronger than it seems, though the Group's Dubai investment in McMillen Advantage Capital Limited ("MAC") experienced a share of loss during the Year, with appropriate measurements, losses of MAC have been reduced since last December. We are well positioned to capture the benefits from China's expansion and to assist Chinese clients to meet their objectives."

During the Year, particularly the second half, the securities and futures business had expanded its sales force and product range, coupled with the improved market sentiment, the performance was steady. While the securities and futures dealing commissions decreased by 10.6% to HK$185.7 million (2010: HK$207.8 million), ECM placement and underwriting fee income, however, was substantially increased to HK$22.0 million (2010: HK$6.5 million). With the increased market activity and new clients, securities margin lending book grew rapidly in the second half which stood at HK$329.9 million as at 31 March 2011 (2010: HK$152.9 million).

Corporate finance and advisory services revenue for the Year was HK$40.1 million (2010: HK$24.1 million). Quam Capital expanded its services to include a dedicated China/European desk and the team was also expanded to service new mandates. During the Year, Quam Capital closed 35 transactions and commenced several more of IPO sponsorship that are expected to be completed in the coming year. It also closed a US$100 million placement in the energy sector for an overseas listed client.

Revenue generated from asset management for the Year amounted to HK$10.6 million (2010: HK$13.0 million). Performance below expectations led to investment of new management to refocus on the on the long-fund business and to establish new funds. The total Assets under Management (AUM) stands at close to US$78.5 million as at 31 March 2011. During the year, new funds were added, including a Quam Middle East Fund, which is co-managed by Invest AD (the subsidiary of Abu Dhabi Investment Council) and Quam BRIC EDCA Fund. A Mongolian dedicated fund will also be launched in June 2011. In addition, two funds of hedge funds have produced steady returns and increased AUM.

Revenue generated from Quamnet (www.quamnet.com) and Quam IR was HK$25.3 million (2010: HK$22.1 million). During the Year, Quamnet had cooperated well with China content distribution partners including QQ.com, iFeng.com, Hexun.com, Baidu and Sina.com. The new subscription services with high-profile investment advisors had also attracted a number of subscribers. In addition, Quamnet was more effective in China by hosting several financial investment seminars in Shenzhen and Shanghai. As for investor relations business, the client base was broadened, in particular among resource-related companies listed on markets around the world.

Mr Pouliot concluded, "China's expansion has brought us vast number of opportunities. In face of ever-changing market, we strive to take every opportunity and challenge ahead, including internationalization of RMB, increase overseas acquisitions by Chinese companies and individuals, expansion of the financial services industry overseas, and the development of green technologies and environmental friendly industries. We will expand the Group's capital base and staffing levels to benefit from this exciting trend, we are optimistic about our future profits continuing to grow."

Contact:

Quam IR
Ms Anita Wan      	
Tel: +852-2217-2811
E-mail: anita.wan@quamgroup.com

Ms Sharon Au 	
Tel: +852-2217-2812 	
E-mail: sharon.au@quamgroup.com

Ms Venus Lam	
Tel: +852-2217-2813	
E-mail: venus.lam@quamgroup.com

Source: Quam Limited
Sectors: Daily Finance, Daily News