COMPAGNIE FINANCIÈRE TRADITION SA
PRESS RELEASE
Lausanne,
Date
Adjusted revenue of CHF 981.2m in 2020,
growth of 2.4% at constant exchange rates
Adjusted operating profit before exceptional items
of CHF 111.0m
Net profit Group share up 24.4% to CHF 70.9m
Cash dividend of CHF 5.0 per share;
exceptional distribution of treasury shares
(1:75 from capital contribution reserve)
Variation Variation
at current at constant
exchange exchange
CHF m 2020 2019 rates rates
------------------------------------ ----------- ----------- ----------- ------------
Reported (IFRS)
------------------------------------ ----------- ----------- ----------- ------------
Revenue 903.0 924.0 -2.3% +3.4%
------------------------------------ ----------- ----------- ----------- ------------
Operating profit 84.1 65.5 +28.4% +35.9%
------------------------------------ ----------- ----------- ----------- ------------
Operating margin 9.3% 7.1%
------------------------------------ ----------- ----------- ----------- ------------
Profit before tax 86.9 72.4 +20.0% +27.3%
------------------------------------ ----------- ----------- ----------- ------------
Net profit Group share 70.9 60.4 +17.4% +24.4%
------------------------------------ ----------- ----------- ----------- ------------
Adjusted*
------------------------------------ ----------- ----------- ----------- ------------
Revenue 981.2 1'012.4 -3.1% +2.4%
------------------------------------ ----------- ----------- ----------- ------------
Operating profit before exceptional
items 111.0 107.9 +2.9% +8.6%
------------------------------------ ----------- ----------- ----------- ------------
Operating margin before exceptional
items 11.3% 10.7%
------------------------------------ ----------- ----------- ----------- ------------
* with proportionate consolidation method for joint ventures
("Adjusted")
Overview
Business activities in 2020 took place against an unfolding health
crisis caused by the COVID-19 pandemic, with strong divergences from one
period to the next. Indeed, after a first half-year showing strong
growth with an increased volatility in the financial markets driving
business volumes, notably in March. The Group subsequently observed a
decrease in activity during the summer months, and more particularly in
August. There was a renewed activity in November and December, with the
prospect of the US elections which has not created additional volatility
as could have been expected.
In response to the health crisis, the Group has opted for a regional
approach depending on the spread of the pandemic and national measures,
prioritising both the health of its employees and maintaining services
to clients. The work of adaptation to this new environment by our teams
has been remarkable; we would like to thank them. Teleworking
nonetheless remains a challenge given the nature of our activities,
restraining team dynamics and their interaction on the trading floor.
Against this backdrop, the Group's adjusted consolidated revenue reached
CHF 981.2m compared with CHF 1,012.4m in 2019, nonetheless increasing by
2.4% at constant exchange rates with the interdealer broking business
(IDB) up 2.6% at constant exchange rates to CHF 946.8m while the forex
trading business for retail investors in Japan (Non-IDB) was down 3.0%
to CHF 34.4m.
Adjusted operating profit before exceptional items was CHF 111.0m
against CHF 107.9m in 2019, a rise of 8.6% at constant exchange rates,
for an operating margin of 11.3% and 10.7% respectively. Net exceptional
costs represented CHF 10.5m against CHF 24.1m during the previous year.
Reported revenue and operating profit
The Group reported consolidated revenue (IFRS) was CHF 903.0m against
CHF 924.0m in 2019, yet up 3.4% at constant exchange rates. Reported
operating profit for the year was up 35.9% at constant exchange rates to
CHF 84.1m compared with CHF 65.5m in 2019, for an operating margin of
9.3% and 7.1% respectively.
Net profit
Net financial expense was CHF 14.0m for the year compared with CHF 11.0m
in 2019. Net foreign exchange results due to exchange rate fluctuations
negatively impacted the Group's financial income and represented a loss
of CHF 3.8m for the year against CHF 1.7m in 2019. Interest expense on
bank borrowings and bonds, net of interest income from short-term cash
investments, totalled CHF 7.6m against CHF 6.4m in the previous year.
The share in the results of associates and joint ventures was CHF 17.2m
against CHF 17.9m in 2019 stable at constant exchange rates.
Profit before tax was CHF 86.9m compared with CHF 72.4m in 2019. The
Group's tax expense amounted to CHF 12.3m against CHF 8.1m in 2019 for
an effective tax rate of 18% against 15% in the previous year, which
benefitted from the recognition of tax losses in the United States.
Consolidated net profit was CHF 74.6m compared with CHF 64.3m in 2019
with a Group share of CHF 70.9m against CHF 60.4m in 2019, an increase
of 24.4% at constant exchange rates.
Balance sheet
The Group maintained its sound balance sheet with a strong capital
position while keeping a low level of intangible assets and a
significant net cash position. Before deduction of treasury shares of
CHF 17.3m, consolidated equity amounted to CHF 425.0m at 31 December
2020 with increased adjusted cash to CHF 194.7m, including Group share
of net cash held by joint ventures (31 December 2019 : CHF 174.8m).
At 31 December 2020, consolidated equity stood at CHF 407.7m (31
December 2019: CHF 416.5m) of which CHF 389.3m was attributable to
shareholders of the parent (31 December 2019: CHF 396.9m). Total cash,
including financial assets at fair value, net of financial debt, was up
to CHF 99.4m at 31 December 2020 against CHF 77.4m at 31 December 2019.
Dividend
At the Annual General Meeting to be held on 19 May 2021, the Board will
be seeking shareholders' approval to pay a cash dividend of CHF 5.0 per
share (yield of 4.4%(1) ). In addition, an exceptional distribution of
treasury shares will also be proposed with one share distributed for
each 75 shares held from capital contribution reserve (yield of 1.5%).
Outlook
The average level of activity for the months of January and February
shows a slight increase at constant exchange rates compared to the same
period last year. However, we should see an important base effect in the
month of March given the exceptional volume of activity in the same
period in 2020. The optimal work environment in our businesses remains
that of a pre-COVID 19 world which allows close collaboration between
employees fostering a dynamic essential to the activity.
Furthermore, in line with prior years, the Group will pursue its
development strategy to further enhance its product portfolio across its
geographic footprint.
Annual report
The 2020 annual report of Compagnie Financière Tradition SA will be
available on 28 April 2021 on the Company's website at
http://tradition.com/financials/reports.aspx
(1) Indicative value based on 11 March 2021 closing share price of CHF
113.0 per share
Compagnie Financière Tradition SA is one of the world's largest
interdealer brokers in over-the-counter financial and commodity related
products. Represented in over 30 countries, Compagnie Financière
Tradition SA employs more than 2,300 people globally and provides
broking services for a complete range of financial products (money
market products, bonds, interest rate, currency and credit derivatives,
equities, equity derivatives, interest rate futures and index futures)
and non-financial products (energy and environmental products, and
precious metals). Compagnie Financière Tradition SA (CFT) is listed
on the SIX Swiss Exchange.
For more information, please visit www.tradition.com.
Patrick Combes, President Rohan Sant
Compagnie Financière Tradition
SA Voxia communication
+41 (0)21 343 52 87 +41 (0)22 591 22 63
mailto:actionnaire@tradition.ch mailto:rohan.sant@voxia.ch
actionnaire@tradition.ch rohan.sant@voxia.ch
Anhang
-- CFT - Communiqué des résultats FY 2020 - EN_VF
https://ml-eu.globenewswire.com/Resource/Download/51ccde2a-2998-4de4-b0aa-edcd3819048c(END) Dow Jones Newswires
March 12, 2021 01:00 ET (06:00 GMT)
