Turnover increases by 25%
The commercial result increases by 37%
Group net income up 20%
The equity ratio improves from 46% to 56%
Today, Weng Fine Art AG (WFA) presents its audited consolidated financial statements for the financial year 2021. These can be viewed at https://wengfineart.com/uploads/Konzernabschluss_2021.pdf.
According to the press release, the group income increased by 25.2%, from 10,433 kEUR (2020) to 13,062 kEUR. At the same time, in an overall very positive year for the art market, Gross margin (calculated as margin rate) increased again from 71.8% to 84.6%. As a result, trading profits increased by 37.2% from 4,360 kEUR to 5,984 kEUR.
Whereas in the comparable period of the previous year, income from financial assets increased sharply due to the one-time distribution of ArtXX shares (2020: EUR 3,165 k), only EUR 1,498 k of income from financial assets was realized in 2021.
That of the group costs grew at a significantly lower rate than revenue, growing only 15.1% to EUR2,051k (2020: EUR1,783k).
EBIT was 5,011 kEUR (2020: 5,921 kEUR, including the exceptional income of 3,165 kEUR). The bottom line remained almost unchanged at EUR 238,000 (2020: EUR 236,000). Group net income for the year amounted to 4,246 kEUR (2020: 5,272 kEUR including the special income of 3,165 kEUR), and consolidated net profits amounted to 6,400 kEUR compared to 5,312 kEUR in 2020, although 1,210 kEUR (2020: 95 kEUR) have already been allocated to reservations before.
From the profits made, the Swiss company ArtXX AG intends to pass on a dividend of CHF 1,085k and the German company WFA AG a dividend of EUR 865k to its shareholders.
It should be noted that during the 2021 financial year, despite significant investments in stakes in several companies, amounting to nearly 5 million euros, Passives could be reduced from 16.8 million euros to 16.2 million euros. This was possible thanks to the strong increase in equity from 15,044 kEUR to 22,249 kEUR (+47.9%). A large part of the profits generated in 2020 was reinvested, as in previous years, and an additional 3,851 kEUR was generated by the sale of treasury shares, which were credited tax-free to the equity account. The equity ratio is now at a comfortable ratio of 56.5% (2020: 46.4%), which gives the company room to maneuver even in the current difficult environment. In total, Weng Fine Art AG can rely on equity and credit lines around 50 million euros. Some of the financing banks have stated that they may provide additional funds beyond this amount in the event of investments or acquisitions that may develop the operational activities of the WFA Group. WFA is probably at this stage one of the best funded art dealers in Europe and should easily be able to survive a downturn in the global economy and art market.
Management will present further information on results and performance in 2021 during the annual general meetingwhich will be held in Düsseldorf on June 28, 2022. Management also intends to provide information on the Group’s plans for 2022/23 on this occasion.