Quam Announces 2011/12 Interim Results

Nov 29, 2011 10:30 JST

Source: Quam Limited

Expands The Scope Of Securities Trading & Corporate Finance Business

HONG KONG, Nov 29, 2011 - (ACN Newswire) - Quam Limited ("Quam" or the "Group", SEHK:0952), a Hong Kong-based financial services group, today announced its unaudited interim results for the six months ended 30 September 2011 (the "Period").

During the Period, Quam recorded revenue of HK$197.0 million (2010: HK$127.3 million), representing an increase of 54.8% compared to the corresponding period of last year. The Group came around from a net loss of HK$3.7 million the same period last year to a net profit of HK$0.2 million during the Period. Basic earnings per share were HK0.02 cent (2010: loss per share of HK0.38 cent).

The Group's Board of Directors did not recommend the payment of an interim dividend for the six months ended 30 September 2011 (2010 interim dividend: Nil).

Mr Bernard Pouliot, the Chairman of Quam, said, "Amidst volatile market conditions in Hong Kong and around the world, most of the Group's segments achieved increase in revenue. The Group's result was actually stronger than it appears as the profit was partly affected by the impairment of interest in McMillen Advantage Capital Limited ("MAC") and a share of loss in MAC largely due to the closing of its securities operation in Dubai. Without adjustment, the actual net profit before tax was approximately HK$5.3 million."

During the Period, the securities and futures business' revenue amounted HK$124.9 million (2010: HK$78.3 million). The business had expanded its sales force and subsequently expanded its client base. The securities margin lending grew rapidly with a significant increase in interest income of HK$16.6 million (2010: HK$ 7.6 million) while ECM business activity declined to HK$5.0 million (2010: 6.3 million). The margin loan book at the end of the Period stood at HK$358.4 million (31 March 2011: HK$329.9 million).

Quam Capital achieved significant increase in revenue for the Period of HK$27.3 million (2010: HK$17.7 million). The growth was mainly attributable to the completion of a number of IPOs and several advisory mandates. Meanwhile, the newly formed China Europe Desk which, in partnership with members of our M&A International Alliance, captures PRC/European M&A deal flow, is gaining traction.

With the setting up of new funds such as the Silkroad Mongolia Fund and the BRIC EDCA Fund, the Asset Management business recorded a revenue of HK$5.1 million (2010: HK$4.2 million). Total Assets under Management ("AUM") at the Period end totaled US$67.6 million. Despite the fund performance was suffered from market volatility, the end results are better than benchmark index. The positive performance could in turn encourage the flow of new funds in the near future.

Quamnet and Quam IR contributed revenue of HK$13.9 million (2010: HK$12.4 million), which was mainly attributable to the increase in revenue from website management and related services such as subscriptions for research and columnists. The segment has further developed its footprint in China by hosting financial investment seminars in Shenzhen and Shanghai while making broader use of Quamnet TV. The investor relations business has further strengthened its client base with listed companies in Hong Kong and around the world.

On 30 September 2011, a fund raising exercise was completed, giving rise of new capital of HK$58.1 million, which would be used to support its expanded securities and private equity business.

Following the end of the Period, Mr Kenneth Lam has been appointed as Chief Executive Officer of Quam with effective 17 October 2011.

Mr Pouliot concluded, "The unresolved European crisis is expected to have prolonged effect on the global economy, and many countries started to see slow-down in economic development. Yet the Asian Market where our business lies stays in a rather stable position. We will strive to ride out volatility by focusing on business with immediate benefits and postpone any future commitments that result in long pay-out times. With appropriate expansion, the securities trading and corporate finance business are expected to bring further income to the Company. We believe Quam will continue to deliver satisfactory performance in the remains of the year."

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