DGAP-Adhoc: Corestate publishes new financial outlook for the financial year 2020
DGAP-Ad-hoc: Corestate Capital Holding S.A. / Key word(s): Forecast
Corestate publishes new financial outlook for the financial year 2020
09-Sep-2020 / 09:10 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Corestate publishes new financial outlook for the financial year 2020
- Aggregated revenues between € 185m and € 210m
- EBITDA between € 55m and € 80m
- Adjusted net profit between € 25m and € 50m
Luxembourg, 9 September 2020 - Corestate Capital Holding S.A. withdrew its financial outlook for 2020 on 22 April 2020 in light of the impact of the COVID-19 pandemic. The Company has since gained a significantly better overview of the further business trends and has therefore issued a financial outlook for the current financial year that has been adjusted for the effects of the COVID-19 crisis. Accordingly, the Company expects aggregated revenues and gains between € 185m and € 210m, EBITDA between € 55m and € 80m and adjusted net profit between € 25m and € 50m.
The expectations reflect a reduction in transaction volume and a short-term shift in risk profiles with regard to institutional investors' investment preferences. In terms of revenues, the Company anticipates significantly lower income from transaction fees, success-based compensation elements, warehousing and alignment capital, in comparison to the original targets for the year. A view valuation adjustments on (co-)investments in the retail and serviced apartment sector as well as potential one-off expenses for structural adaptations to the new market conditions will also play a role. The mezzanine business of the private debt subsidiary HFS Helvetic Financial Services AG has so far been affected downstream and to only a very minor extent by the current crisis.
At end of August 2020, the Company had a cash position of around € 63m. The Company once again confirmed its ambition to reduce its net debt on short notice.
The new forecast takes into account the negative impact of the COVID-19 pandemic to the extent foreseeable at the present time. However, the business impact of any potential official measures due to the further development of the pandemic, particularly new supra-regional lockdowns, cannot be fully predicted.
Further details on the performance indicators used are available on our website at https://corestate-capital.com/wp-content/uploads/2019/05/KPI-E-eng.pdf.
Notifying person:
Dr. Kai Gregor Klinger
Chief Markets Officer
T: +49 69 3535630-106
ir@corestate-capital.com
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1129061 09-Sep-2020 CET/CEST