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DGAP-News: Bancorp Wealth Management New Zealand announces sale of Airport Bus Business

August 8, 2014

DGAP-News: Bancorp Wealth Management New Zealand Limited / Key word(s): Miscellaneous Bancorp Wealth Management New Zealand announces sale of Airport Bus Business 08.08.2014 / 17:30 --------------------------------------------------------------------- Bancorp Wealth Management New Zealand announces sale of Airport Bus Business - Sale of Airport Bus Business underlines the strategic focus on aviation insurance - Expansion in the aviation insurance business via Boston Marks - Strong business year 2013/2014 expected - High liquidity of around 10 million NZD / 6.2m EURAuckland, New Zealand, 08 August 2014 - Bancorp Wealth Management New Zealand Limited (Bancorp), an international holding company specialising in the aviation insurance brokering business, has sold its Auckland Airbus bus service, known as Auckland Airbus ("Airbus"). As the Airbus business contributed revenues of around NZ$ 10 million (EUR 6.3 m) per annum this will reduce group revenues in 2015 but following the sale becoming unconditional on [7] August 2014 a gain on sale of for the 2014 financial year of around $ 2.5 m (EUR 1.55 m) will be recorded. The sale will not affect the revenues and earnings position of the business year 2013/2014 (end of business year: 30 June). Thus 2013/2014 the Management still sticks to the statement, that revenues remain nearly the same as in 2012/2013 with an increase in attributable profitability (2012/2013 Revenues: 30.1 m NZ$ / 19.0 m EUR / Net Profit: 6.4 m NZ$ / 4.0 m EUR with attributable group interest of 4.5m NZ$/ 2.79 m EUR). The sale is consistent with Bancorp's indications to the market that it wishes to narrow its focus and simplify its business streams. Earlier this year it increased its shareholding in Boston Marks and wants to continue investment in the international aviation insurance broking business. With written premium of over 250 m NZ$ per annum, access to 5.000 customers in 30 countries, Boston Marks is the world's leading and largest independent aviation insurance broking specialist and continues to actively pursue acquisition of more like minded aviation broking specialists. Approximately 90% of Bancorp's revenues for 2014/2015 will now come from aviation insurance broking. For the current business year 2014/2015 Bancorp's Management expects that the reduction in revenue from the Airbus Business will be made up by further revenue increases in Boston Marks. Although profitability of the Airbus business was very strong the incremental profitability of Boston Marks grows considerably with increased revenues. Craig Brownie, Bancorp's Managing Director said: "With the sale of the Airport Bus Business, we are one step closer to our overall strategic alignment of the Bancorp-Group. The sale enables us to focus more directly on our core business of aviation and in particular the Boston Marks Aviation insurance business, where we increased our share in July 2014 from around 40% close to 50%. It is planned to expand this business by acquiring smaller aviation insurance brokers and to increase the share in Boston Marks again in the near future. With the operating liquidity and the liquidity from the sale of the Airport Bus Business, our company is in a very comfortable financial situation with free cash realised of around NZ$10million (EUR6.2m) grow organically and by acquiring business." Board of Directors For more information visit: www.bancorp.co.nz About us The Entry Standard listed Bancorp Wealth Management New Zealand Limited (ISIN: NZBWME0001S2) has 12 subsidiaries and is active in two divisions, Aviation and Private Banking. The Group's main strategic focus is on the Aviation division, which holds equity investments in the field of insurance brokerage, aviation financing and aviation-related companies. The primary operational focus is on the Group's main growth driver, the current 49,91% equity investment in Boston Marks Holdings Limited, the world's leading independent specialist for the brokerage of aircraft insurance. The achieved international position shall be expanded continuously by organic and inorganic growth. In its Private Banking division, Bancorp offers an extensive portfolio of banking products, services and investment opportunities in New Zealand. --------------------------------------------------------------------- 08.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 281577 08.08.2014


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Source: DGAP Corporate News


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