Aurelius Equity Opportunities generated consolidated revenues of EUR2,892.3 million based on initial provisional annual figures in fiscal 2016, an increase of 44 per cent compared to the prior year’s revenue of EUR2,013.3 million.
The annualised consolidated revenues increased to EUR3,066.3 million.
Overall, Aurelius Equity Opportunities achieved EBITDA for the combined group of EUR148.4 million (2015: EUR266.1 million). The decrease can be largely attributed to the lower income from the reversal of negative goodwill from capital consolidation ("bargain purchase") compared to the prior year.
Operating EBITDA reached EUR114.0 million (2015: EUR123.2 million) despite the acquisition of yet unprofitable and the sale of profitable group entities and reflects the good operating performance of the group entities.
Aurelius Equity Opportunities acquired a total of eight group entities in the 2016 fiscal year. Reuss-Seiffert & Hammerl, a manufacturer of consumables for the concrete construction industry, and Conaxess Trade, an exclusive distributor for consumer goods, were acquired effective 1 January 2016.
The purchases of Calumet, a multi-channel retailer for all things related to photography, as well as Working Links, the leading provider of professional and social rehabilitation services, were carried out in June 2016.
Four of the eight acquisitions were effected as part of the strategic add-on acquisitions to strengthen existing subsidiaries: the cloud business CMC (Colt Managed Cloud) of Colt Group, the commercial activities of the Abelan Group, the British Hospital Group, and the BSB Group.
Income from the reversal of negative goodwill from capital consolidation from the eight business acquisitions amounted to a total of EUR69.7 million (2015: EUR100.2 million).
"With four transactions completed by our subsidiary in the United Kingdom in 2016 alone, we have also established ourselves as a valuable partner in complex pan-European corporate spin-offs,” says Dr Dirk Markus, chairman of the executive board of Aurelius Equity Opportunities. "The broad regional positioning of our investments, and our presence in various markets offer good diversification and limit the risk for the combined group."
With a total of seven company sales, including fidelis HR, a provider for the outsourcing of human resource services, the Tavex Group, the Berentzen Group AG, and Dutch brightONE IT Services BV, income was generated in the 2016 fiscal year from sales in excess of the carrying amount of EUR43.9 million (2015: EUR29.4 million) as well as cash allocations in an amount considerably more than EUR100 million.
The executive board will recommend to the supervisory board that the base dividend be raised once again to EUR1.00 per share (prior year: EUR0.90 per share) for the annual general meeting to be held on 21 June 2017, as well as the payment of a special dividend from the sales proceeds since the last annual general meeting in the amount of EUR1.00 per share (prior year: EUR1.55 per share). The amount of the special dividend would be increased correspondingly in the event of additional successful company sales before the 2017 annual general meeting.
At year-end 2016, Aurelius Equity Opportunities had cash and cash equivalents in the amount of EUR416.4 million (31 December 2015: EUR550.2 million) at its disposal. The consolidated equity ratio was 27 per cent as of the reporting date 31 December 2016 (31 December 2015: 33 per cent).
"Owing to our solid financial resources, we are very well-equipped for additional transactions in the current fiscal year. We once again expect at least six company acquisitions in 2017,” says Markus. "We also set up two share buyback programs in the past year and at the beginning of 2017 with which we will repurchase Aurelius shares worth up to EUR52 million. A large portion of our profits will thereby remain in the company and dividends will be distributed to fewer shares."
With the acquisition of the European business of Office Depot as of 1 January 2017, the first acquisition in fiscal year 2017 and at the same time the largest takeover in the company's history has already been completed. The annualised revenues of the Aurelius Group increased to around EUR4.5 billion. Office Depot Europe operates in 14 European countries with its three main activities and brands Viking, Contract, and Retail.
