Release Date: August 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Taaleri PLC (FRA:295, Financial) reported a 3% growth in continuing earnings, maintaining profitability at a good level.
- The renewable energy segment saw a 22% year-over-year increase in continuing earnings, reaching EUR4.8 million.
- The company successfully advanced international projects in the bioindustry, including a new fund investment and a project development company in Canada.
- Garantia's combined ratio was strong at 26.5%, with insurance results remaining stable at EUR3.5 million.
- Taaleri PLC (FRA:295) maintained a strong liquidity position with EUR23.2 million in cash and equivalents, despite paying EUR28 million in dividends.
Negative Points
- Total income for the quarter decreased significantly to EUR11.9 million from over EUR26 million a year ago, due to the absence of sizable investment income or performance fees.
- Operating profit for the renewable energy segment dropped to EUR1.6 million from EUR8.1 million, primarily due to the previous year's sale of a development portfolio.
- The private equity business segment reported a decrease in continuing earnings to EUR1.2 million from EUR1.7 million, impacted by negative results from associated companies.
- The fundraising market for private equity has been challenging, with a 6% decrease in capital raised globally in the first half of the year compared to the previous year.
- The bioindustry segment is expected to be loss-making for the rest of the year due to increased personnel costs and ongoing investments.
Q & A Highlights
Q: When do you expect to do the next closing for SolarWind III Fund?
A: Peter Ramsay, CEO, stated that they are probably looking at year-end for the next closing, with the final close expected in June 2025.
Q: Does every closing result in higher variable personal costs similar to the second quarter of last year?
A: Peter Ramsay, CEO, confirmed that if the closings are successful, they do result in higher variable personal costs.
Q: Could you give us a rough estimate on what kind of growth do we expect in the number of personnel for both renewable energy and other private assets?
A: Peter Ramsay, CEO, mentioned that in renewable energy, they don't expect much growth as they are done with hiring, but in Bioindustry, they have increased personnel by about five this year and may need more recruits for the Canadian business.
Q: You continue to support the final company during the quarter. Could you describe in ballpark figures how large was the support and how has the business developed?
A: Peter Ramsay, CEO, indicated that the support was roughly EUR5 million. The business has normalized after initial market distortions due to the war in Ukraine, with prices and utilization expected to stabilize.
Q: On the new real estate products, what kind of has the investor feedback been at this point as the real estate market has overall been subdued?
A: Peter Ramsay, CEO, noted that there is still a window for raising a new closed-end fund, although it is closing, and they believe it makes sense to proceed now.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
