The Board of Directors of Tamburi Investment Partners, an independent investment/merchant bank listed on the Star segment of Borsa Italiana, approved the consolidated interim report as at 30 September 2016. In the first nine months of 2016, the Tip group exceeded 10 million euro revenues, compared to 2,5 million euros in the first nine months of 2015, and 110 million euros in financial income, compared to 25,5 million euros in the same period of 2015, with a consolidated pre-tax profit of 81 million euros, compared to 19,9 million euros as at 30 September 2015. Consolidated shareholders' equity exceeds 405 million euros, after having distributed an interim payment of 78,4 million euros to the minority shareholders of a subsidiary as well as dividends for about 9 million euros.
In the first nine months of 2016, in addition to the significant increase in revenues from the advisory activity, including the fees associated with the launch of Asset Italia SpA, the Tip achieved financial income of 110,6 million euros and incurred financial expenses of over 22 million euros. In July, the allocation to the subsidiary Clubsette Srl of Moncler shares, corresponding to 5,125% of the share capital of Moncler SpA, previously held by Ruffini Partecipazioni Srl Tip, was finalised. With this transaction, regardless of any subsequent transfers of shares to third parties, achieved a capital gain at consolidated level in application of the IFRS standards of around 78 million euro.
Subsequently Clubsette Srl was placed in liquidation and in the months of September and October it distributed Moncler shares to its shareholders. At the moment Tip continues to directly hold more than 2% of Moncler SpA. During 2016, Tip and Tipo finalized important investment transactions. Asset Italia was set up in July with the adhesion, in addition to Tip, of about 30 family offices, for a total endowment of capital equal to 550 million euro. Asset Italia will act as a holding company and will allow its shareholders to evaluate – from time to time – the individual investment opportunities, offering them the possibility of receiving shares correlated to the operation each time they choose. The merger between Asset Italia and Tip SpA will be implemented within five years.
Tip holds 20% of Asset Italia, will participate at least pro rata in all the transactions resolved and will provide support in the identification, selection, evaluation and implementation of investment projects.
In relation to the Asset Italia project and the proposed integration, the shareholders' meeting held on 14 July 2016 assigned the Board of Directors, pursuant to art. 2443 code civ., the delegation to increase the share capital up to a maximum of 1.500.000.000 euros for payment through the issue of ordinary shares having the same characteristics as those in circulation, with the exclusion of the option right pursuant to art. 2441, paragraph 4, first sentence, of the Italian Civil Code civ., being the capital increase to be carried out through contribution in kind by the shareholders of Asset Italia (other than Tip) of the respective Asset Italia shares.
During the period, Tip also significantly increased its position in Hugo Boss shares, reaching over 900.000 shares and lowering the average carrying price of the shares. On 30 September 2016, Tip formalized the subscription of a convertible bond loan for an amount of 15 million euro issued by Furla SpA which will automatically convert into Furla shares when it is listed on the stock exchange. Tip will also be able to subscribe, upon listing on the stock exchange, Furla shares for an additional 15 million euros at the same exact economic conditions that will be offered to the market and will also be able to subscribe and have third parties, identified by you, subscribe to a additional portion of the offer to the public as part of the already envisaged “family & friends” tranche.
The operations carried out by TIPO include both the acquisition of Beta Utensili and an increase in positions in the iGuzzini group. In the current economic context, an aspect of great importance is the further confirmation of the excellent results of the main investees and in fact both the already communicated results for the first half of 2016 recorded further and in some cases significant growth, and those known as at 30 September signal a always positive trend, albeit on the record year 2015.
Tip's revenues in the period, in addition to the aforementioned fees relating to Asset Italia, showed a good performance of the normal advisory activity. From the point of view of costs, everything was in line with previous years except for the charges relating to the remuneration of personnel and executive directors which, for the variable portion, had a significant increase obviously determined both by the amount of revenues than by the size of the pre-tax result. Personnel costs also include over 4 million euros relating to the assignment of no. 2.500.000 options as part of the "Incentive Plan Tip 2014 - 2021".
The economic result for the period was also influenced by the demerger of Ferrari from FCA, completed on 4 January 2016, which generated income in the income statement of around 16 million euros as a result of the accounting entry, in application of IFRS , the value of the Ferrari shares received following the spin-off with an effect equivalent to a distribution of dividends and the negative change in the income statement of 13,8 million euros, equal to the difference between the value of the FCA convertible at 31 December 2015 and the value of the same as at 30 September 2016.
The FCA shares recorded in the financial statements under available-for-sale financial assets at September 30, 2016 also generated a decrease in the fair value reserve of approximately €5,1 million. As already communicated, the result for the period benefited from the proceeds on the sale of the equity investments in Bolzoni SpA and Noemalife SpA which generated total capital gains of 10,3 million euro.
As at September 30, 2016, the consolidated net financial position of the TIP Group - taking into account the outstanding bonds but without considering non-current financial assets considered under the management profile short-term usable liquidity - was negative by approximately 200 million euro.
The price of TIP SpA shares during the year up to the end of October 2016 had a positive performance of around 10% compared to the beginning of the year, while the FTSE MIB lost around 20% in the same period. The graph as at 31 October 2016 of the TIP share over the past five years shows that the performance of the TIP share has been very good, with a +157%; total return for TIP shareholders over the five years was 176%, with an annual average of 35,2%.
