In the 1st quarter 2018, MCI Capital S.A. generated a net profit of PLN 67.6 million. The NAV per share was PLN 21.89, 6% up compared to the end of 2017

• The Company recorded a return on investment of PLN 72.6 million, and a net profit of PLN 67.6 million – both of these quarterly results account for over half of annual results in 2017,
• The Company paid PLN 64.3 million out of the MCI funds. The NAV per share reached PLN 21.89 after it grew by over 6% compared to the end of 2017,
• The Company keeps its debt at a low level and it is preparing to diversify its sources of financing.

“The start of this year has been very successful for us. In the 1st quarter 2018, the MCI.EuroVentures (EV, MCI.EV) subfund generated 9.7% rate of return*. As a result of this investment, MCI’s profit in the first quarter accounts for over half of the results obtained throughout 2017, and this period has also been positively assessed by us”, said Tomasz Czechowicz, President of MCI Capital S.A.’s Management Board.

In the 1st quarter 2018, MCI Capital S.A. generated a profit of PLN 72.6 million, mainly thanks to investments in funds. This means that its profit grew by PLN 57.9 million y/y. The greatest contributing factor that has influenced MCI’s result was the MCI.EuroVentures fund. MCI’s net result was PLN 67.6 million, i.e. nearly 2/3 of the net result obtained throughout 2017, which was PLN 104.7 million. It also represents a more than 6-fold increase compared to the result generated in the 1st quarter 2017.

Using the high degree of liquidity of the MCI funds, the Company generated part of the profits as a result of a return on investment in the MCI funds, withdrawing the amount of PLN 64.3 million. Part of the funds were withdrawn to MCI’s subsidiary, MCI Fund Management Sp. z o.o., who holds investment certificates of the MCI.EuroVentures subfund and the MCI.TechVentures subfund.

MCI keeps its debt at a low level – its net-debt-to-assets ratio was 17%, which is much lower than the maximum value for the issued bonds (50%). In February, MCI issued bonds worth PLN 37 million, acquired by institutional investors. The Company has been placing its bonds among investment funds for over 10 years. The Company is preparing to diversify its sources of financing – after a prospectus is approved, it is planning to launch public issuance of bonds targeted at retail investors.

The value of MCI’s equity as at 31 March 2018 was PLN 1 billion and 158 million. The net assets per share was PLN 21.89 at the end of March 2018 – 6.2% more than in the previous quarter. The significant increase in NAV per share resulted from the high net profit.

New share buyback programme

The Company consistently buys back its own shares for the purpose of redemption. After buying back the shares for PLN 57.7 million in 2017, MCI’s Management Board will recommend to the General Shareholders’ Meeting to approve the programme amounting to PLN 50 million, which will be implemented in 2018. The buyback will be financed from the funds generated as a result of the return on investment in the MCI funds.

 

*series A