United Bankers (HLSE) H2 2023 earnings summary

Executive summary

• Revenue and operating profit reached record highs in 2023; adjusted operating profit rose 2.2% YoY to €16.9m and net profit increased 7.5% to €13.8m.

• AUM grew 3.9% to €4.6bn, with €186.5m in net fund subscriptions; new forest-industry and renewable-energy funds broadened the growth platform.

• Recurring fund management fees advanced 12.1% YoY, while total wealth-management sales fell short of target at €501m, down from €514m.

Financial highlights

• FY revenue was €52.1m, up 7.4% YoY; adjusted EBITDA rose 3.5% to €19.1m and adjusted operating profit rose 2.2% to €16.9m.

• FY operating profit was €17.0m versus €16.5m; net profit was €13.8m versus €12.9m, and EPS was €1.24 versus €1.19.

• H2 revenue increased 8.8% YoY to €27.4m; adjusted EBITDA was €11.1m and adjusted operating profit €9.9m, each above the prior-year period.

• Group expenses included €19.0m personnel costs, up 8.5%, and €7.0m other administrative costs, up 5.3%; costs reflected inflation, new funds and international sales investment.

Outlook and guidance

• FY 2024 adjusted operating profit is expected to increase from 2023 levels.

• Long-term objectives for 2028 are AUM above €10bn and adjusted operating profit margin above 40%; international fundraising is a key requirement.

• UB Forest Industry Green Growth Fund I aims to raise €300m in commitments through continued fundraising in 2024.

• The first phase of the largest systems reform is targeted for completion in H1 2024, supporting simpler infrastructure and more efficient operations.