Weng Fine Art AG increases pre-tax profits by 112% to EUR 2.38 million for FY 2012/2013

Most successful year ever: Weng Fine Art AG increases pre-tax profits by 112% to EUR 2.38 million for FY 2012/2013

- Turnover grew by almost 20% to EUR 7.75 million despite challenging market environment

- Gross margin remains at high levels

- Significant increase in average price underscores successful entry into higher-end segments of the market

- Expansion of the company into an integrated art business is moving forward

Based on preliminary, unaudited figures Weng Fine Art AG (WFA) concluded the 2012/2013 financial year at new record levels in line with forecasts. Contrary to the overall slight weakness of the art market prevailing in the past year, the art trader, listed since the start of 2012, not only generated a double-digit increase in turnover, but also expanded its profits to new highs: Turnover rose by 19% to 7.75 million. Profits before tax, which had been at EUR 1.12 million in the previous year, rose by 112% to EUR 2.38 million. Net income for the year rose by 135% to EUR 1.82 million supported by positive tax effects.

This considerable growth in profits underscores the operational leverage of the business model. The average sales price per artwork rose by 37% as a result of the expansion into higher-end market segments, whilst at the same time the gross margin remained steady. Despite an increase in turnover, the company managed to reduce its costs. Successful investment transactions also contributed to the rise in EBIT to EUR 2.65 million as for example, the equity stake in Berlin-based Artnet AG was sold at a profit of approximately EUR 200,000.

In conjunction with the capital increase concluded in June 2012, these record results have also contributed to additional improvements in the company's already-healthy balance sheet quality. As of 31 January 2013, the WFA shareholder equity was EUR 9.18 million compared to EUR 4.41 million in the previous year; the shareholder's equity rose from 40.4% to 54.0%. As a result of this growth and bolstered by credit facilities provided by renowned banks (recently expanded to more than EUR 17 million), WFA has exceptional funding available for further expansion and is currently one of the best capitalised art dealing companies on the European continent.

'We had three primary goals for the past year: Expanding the equity base, entry into higher-end market segments and improving our market position through increased awareness both in the art and financial markets. We were able to achieve all three of these goals,' reflects WFA CEO Rüdiger K. Weng with regard to the results of the past financial year and emphasises, 'The fact that we have been able to realise such significant growth in profits, despite a challenging market environment which has seen many competitors and partners struggle with falling profits or even losses, is a strong confirmation of our growth strategy.'

'From the 4th Quarter on, we increased investments in strategic business development - otherwise profits would have been even stronger,' explains Weng and states, 'Our commercial business is the perfect nucleus for the integrated art business we want to create in the coming years. Expanding our B2B art dealership value chain to include the e-commerce, auctions, editions and advisory segments is at the top of our agenda for 2013 and the following years and is expected to generate significant positive scale effects.'

The company will publish audited figures for the period until 31 January 2013 based on final inventory valuations on 31 July 2013 at the latest along with the financial report.

ABOUT WENG FINE ART AG

Weng Fine Art AG (www.wengfineart.com) is one of the most dynamic and financially strongest art dealing companies on the European continent. The company focuses on works of internationally renowned artists from the 20th century and, in its core business, exclusively supplies commercial addresses (B2B) including leading international auction houses as well as art dealers and galleries. The expertise and market positioning gained over more than 18 years serves as a basis for new business segments such as e-commerce and editions. Weng Fine Art AG shares have been traded on the Frankfurt Stock Exchange (Entry Standard) since the beginning of 2012.

INVESTOR RELATIONS CONTACT

edicto GmbH, Axel Mühlhaus
Eschersheimer Landstr. 42 | D-60322 Frankfurt a.M.
Phone +49 (0)69 905505-52 | Fax +49 (0)69 905505-77
E-mail amuehlhaus@edicto.de

This release was published on openPR.