The recent selling pressure on Publity's (DE:PBYG) shares (price down 48% ytd) was accompanied by negative newsflow in January, including a profit warning and missed AUM guidance for FY17. The negative sentiment might have also resulted from the ongoing discussions with bondholders around the modification of convertibles’ terms and conditions. Management now guides to FY18 net profit in the range of €15-20m (implying c 34-80% y-o-y growth) based on a cautious assumption of no AUM growth this year (vs previous guidance of €7.0bn).
Lower earnings and missed AUM guidance
publity reported a preliminary FY17 net income of €11.2m, c 52% below the previous year’s number. This is in line with the profit warning released in January, when the company indicated that post-tax profit should reach at least €10m, but will be below FY16 levels (€23.1m). The company cited delays in property disposals and lower than expected AUM growth as key reasons behind the poor results. Disposals worth c €280m could not be reflected in FY17 earnings and are now expected to be completed in the coming months. publity reached €4.6bn in AUM, missing its FY17 guidance of €5.2bn.
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