PR: Announcement of Annual Financial Results 2019

PR: Announcement of Annual Financial Results 2019

The Hellenic Corporation of Assets and Participations (HCAP) boosted earnings in 2019 to reach € 57.1 million, versus € 13.1 million in 2018.

Distributed dividend to the Greek State expected closely to € 42 million.

The Hellenic Corporation of Assets and Participations (“HCAP”) published its Q4 2019 report, on activities and company financial statements, including also the full year 2019 financial results. These results represent a significant increase on revenue and profitability for the company.

It is worth noting that along with the strong financial performance, the company has implemented important initiatives regarding the promotion of best practices for management accountability, transparency as well as corporate governance principles, in a series of companies of the broader public sector, exercising the role of an active shareholder for its portfolio of companies. Within the context of this management approach, and in order to achieve its overall objectives, HCAP has also recently announced the establishment of an Innovation Network aiming to promote innovation in SOE’s. The scope is for SOEs to become more competitive through the mapping of new technologies, and the analysis of international best practices, business models and innovation standards.

Operating Results

The year 2019 is the first period where HCAP’s active management approach tangible results became obvious.

The maturity of the structure of a newly established corporation like HCAP, led to improved efficiency and to the creation of added value in a number of subsidiaries in HCAPs’ portfolio. That resulted in enhanced profitability and dividends distributed to HCAP and ultimately to the Greek State. It is worth noting that in the midst of the benefits of this management strategy lies the achievement of profit distribution by companies that for many years in the past had not managed to distribute dividends.

In this context, revenues in 2019 more than tripled and amounted to € 61.9 million, while profits more than quadrupled and amounted to € 57.1 million. The company’s cash position amounted to € 72 million. HCAP’s key figures for the last three years are presented below:

HCAP’s financial data overview (parent company figures)
amounts in thousands € 2017 2018 2019
Revenue 0 16.998 61.945
EBITDA 3.435 12.653 56.507
Net Profits/Losses -3.143 13.060 57.179

Following the improved profitability, a significant increase for the dividend distributed to the Greek State in 2020 is expected. The estimation for the full amount is close to € 42 million, not including funds that HCAP will retain to implement its investment policy.

«HCAP, implements a series of actions, aiming to enhance the professional and independent management of public assets in its portfolio. In a short period of time since its establishment, it has achieved to increase the profitability of a series of State – Owned Enterprises (SOEs) and to improve their capital structure and financial management. The strong profitability of 2019 highlights the importance of active management for companies in the broader public sector in order to enhance public revenues. The increase in dividends that will be distributed to the State will serve the enhancement of fiscal space, will strengthen the economy in specific sectors and will contribute to the Public Investment Program. »

Ourania Ekaterinari,

Chief Executive Officer, HCAP