MPC Capital - Portfolio reorientation on track

MPC Capital expanded its assets under management in FY19 to €4.5bn from €4.3bn in FY18, with the largely inorganic growth in institutional business offsetting the legacy retail business decline. Consequently, the share of higher-margin institutional business is now nearing 80% (vs 60% at end-December 2018). The improved quality of the portfolio resulted in a 9.6% y o y increase in revenues to €46.8m, as well as lower impairments compared to 2018. According to management, the recurring income will not be sufficient to fully offset the decline in retail operations in FY20, and therefore it expects a marginal decline in sales. However, thanks to cost-cutting measures launched in 2019, the pre-tax profit is expected to improve further.