CapMan's New Reporting Structure: A Strategic Shift in Financial Transparency
March 31, 2025, 10:42 am
CapMan Plc is making waves in the financial waters. The company has announced a significant change in its financial reporting structure. This move is not just a tweak; it’s a strategic overhaul. The old ways of segment reporting are being cast aside. In their place, a streamlined approach will take center stage. This shift reflects CapMan's current operations and future ambitions.
The decision comes on the heels of divestments. CapMan sold JAY Solutions in February 2023 and CapMan Procurement Services (CaPS) in October 2024. These moves left the company without active operations in its Service business segment. The Investment business segment now mirrors the fair value changes that are evident in the Group Income Statement. This is a clear signal that CapMan is evolving.
As of January 1, 2025, the Board of Directors will take on a new role. They will now serve as the chief operating decision maker under IFRS 8. This is a pivotal change. Previously, the Management Group held this responsibility. The Board will now oversee resource allocations and strategic decisions. They will evaluate CapMan’s financial performance based on the Group Income Statement. This shift indicates a more centralized approach to decision-making.
To maintain clarity, CapMan is introducing a new Alternative Performance Measure. This measure, dubbed ‘Fee profit before Group costs,’ will help preserve the information related to Group costs. It’s a smart move. It ensures that stakeholders can still access vital financial data, even as the reporting structure changes.
Despite these changes, CapMan's long-term financial targets remain intact. The company aims for revenue growth exceeding 15% per annum, a return on equity above 20%, and an equity ratio exceeding 50%. These targets are ambitious but achievable. They reflect CapMan's commitment to growth and value creation.
The new reporting structure will be implemented in the first quarter of 2025. This is not just a cosmetic change; it’s a fundamental shift in how CapMan presents its financial health. The key figures based on the Group Income Statement will be available for comparison for the years 2023 and 2024. This transparency is crucial for investors and stakeholders alike.
CapMan is not just a financial entity; it’s a leader in the Nordic private asset market. With €6.1 billion in assets under management, the company has a robust presence. It has developed hundreds of companies and assets over three decades. This history of value creation is a testament to its expertise.
The company is also committed to sustainability. CapMan has set greenhouse gas reduction targets in line with the Science Based Targets initiative. They aim for net-zero GHG emissions by 2040. This commitment to environmental responsibility is commendable. It aligns with global efforts to combat climate change.
CapMan's investment strategies are diverse. They cover real estate, infrastructure assets, and natural capital. The company also engages in minority and majority investments in portfolio companies. This breadth of focus allows CapMan to adapt to changing market conditions.
The recent organizational meeting of CapMan's Board of Directors further solidifies its governance structure. Joakim Frimodig has been elected Chair, with Mammu Kaario as Vice Chair. The Board has established two key committees: the Audit and Risk Committee and the People and Remuneration Committee. This structure enhances oversight and accountability.
The independence of Board members is also a focal point. All members, except for Frimodig, are deemed independent. This is crucial for maintaining integrity and trust in the company’s governance. The committees meet the independence requirements of the Finnish Corporate Governance Code 2025. This adherence to standards is vital for listed companies.
CapMan’s commitment to transparency and accountability is evident. The company is taking steps to ensure that its stakeholders are well-informed. This is not just about compliance; it’s about building trust. In a world where financial integrity is paramount, CapMan is positioning itself as a leader.
The changes in reporting and governance are not merely administrative. They reflect a deeper understanding of the market landscape. CapMan is adapting to the realities of its operations. This agility is essential in today’s fast-paced financial environment.
In conclusion, CapMan's shift in financial reporting is a bold move. It signals a new era of transparency and strategic focus. The company is not just changing how it reports; it’s redefining its approach to governance and accountability. As CapMan steps into this new chapter, stakeholders can expect a clearer view of its financial health and strategic direction. The future looks promising for this Nordic private asset expert.
The decision comes on the heels of divestments. CapMan sold JAY Solutions in February 2023 and CapMan Procurement Services (CaPS) in October 2024. These moves left the company without active operations in its Service business segment. The Investment business segment now mirrors the fair value changes that are evident in the Group Income Statement. This is a clear signal that CapMan is evolving.
As of January 1, 2025, the Board of Directors will take on a new role. They will now serve as the chief operating decision maker under IFRS 8. This is a pivotal change. Previously, the Management Group held this responsibility. The Board will now oversee resource allocations and strategic decisions. They will evaluate CapMan’s financial performance based on the Group Income Statement. This shift indicates a more centralized approach to decision-making.
To maintain clarity, CapMan is introducing a new Alternative Performance Measure. This measure, dubbed ‘Fee profit before Group costs,’ will help preserve the information related to Group costs. It’s a smart move. It ensures that stakeholders can still access vital financial data, even as the reporting structure changes.
Despite these changes, CapMan's long-term financial targets remain intact. The company aims for revenue growth exceeding 15% per annum, a return on equity above 20%, and an equity ratio exceeding 50%. These targets are ambitious but achievable. They reflect CapMan's commitment to growth and value creation.
The new reporting structure will be implemented in the first quarter of 2025. This is not just a cosmetic change; it’s a fundamental shift in how CapMan presents its financial health. The key figures based on the Group Income Statement will be available for comparison for the years 2023 and 2024. This transparency is crucial for investors and stakeholders alike.
CapMan is not just a financial entity; it’s a leader in the Nordic private asset market. With €6.1 billion in assets under management, the company has a robust presence. It has developed hundreds of companies and assets over three decades. This history of value creation is a testament to its expertise.
The company is also committed to sustainability. CapMan has set greenhouse gas reduction targets in line with the Science Based Targets initiative. They aim for net-zero GHG emissions by 2040. This commitment to environmental responsibility is commendable. It aligns with global efforts to combat climate change.
CapMan's investment strategies are diverse. They cover real estate, infrastructure assets, and natural capital. The company also engages in minority and majority investments in portfolio companies. This breadth of focus allows CapMan to adapt to changing market conditions.
The recent organizational meeting of CapMan's Board of Directors further solidifies its governance structure. Joakim Frimodig has been elected Chair, with Mammu Kaario as Vice Chair. The Board has established two key committees: the Audit and Risk Committee and the People and Remuneration Committee. This structure enhances oversight and accountability.
The independence of Board members is also a focal point. All members, except for Frimodig, are deemed independent. This is crucial for maintaining integrity and trust in the company’s governance. The committees meet the independence requirements of the Finnish Corporate Governance Code 2025. This adherence to standards is vital for listed companies.
CapMan’s commitment to transparency and accountability is evident. The company is taking steps to ensure that its stakeholders are well-informed. This is not just about compliance; it’s about building trust. In a world where financial integrity is paramount, CapMan is positioning itself as a leader.
The changes in reporting and governance are not merely administrative. They reflect a deeper understanding of the market landscape. CapMan is adapting to the realities of its operations. This agility is essential in today’s fast-paced financial environment.
In conclusion, CapMan's shift in financial reporting is a bold move. It signals a new era of transparency and strategic focus. The company is not just changing how it reports; it’s redefining its approach to governance and accountability. As CapMan steps into this new chapter, stakeholders can expect a clearer view of its financial health and strategic direction. The future looks promising for this Nordic private asset expert.