Selected highlights from the Copenhagen Stock Exchange's annual accounts include the following:
- The consolidated accounts for 2002 show a profit after tax of DKK 63.5 million, down from DKK 64.9 million in 2001, corresponding to a fall of 2 per cent.
- Return on equity including undistributable reserves was 23 per cent in 2002 compared with 29 per cent in 2001. The operating margin before depreciation and amortisation is 45 per cent as against 43 per cent in 2001.
- The profit is relatively unchanged compared with 2001, which is a consequence of a generally unchanged revenue and unchanged costs.
- Total revenue came to DKK 236.2 million, a decrease of 1 per cent on 2001. Total operating costs in 2002 amounted to an unchanged DKK 155.0 million.
- The Supervisory Board recommends that DKK 40 per share be paid in dividend as against DKK 30 per share in 2001.
- Consolidated revenue for 2003 is estimated to be in the region of DKK 235 to 255 million. The operating profit is expected to reach between DKK 75 and 85 million and the net profit for the year between DKK 55 and 65 million.
- Total securities trading grew by 3 per cent compared with 2001 and amounted to DKK 6,340 billion including trading in investment certificates on both the stock market and the XtraMarked. Furthermore, the number of traded derivatives contracts rose by 9 per cent to just under 537,000.
- Foreign member firms have increased their share of trading on the equity market from 7 per cent to 16 per cent.
- The XtraMarked, the Copenhagen Stock Exchange's new authorised marketplace for non-listed investment funds, opened as planned on 1 March. The interest in the XtraMarked both in terms of number of investment funds and trading is positive. By the end of 2002, 31 of the Exchange's members were also members of the XtraMarked.
- In mid-May 2002, the Copenhagen Stock Exchange opened its own TV and webcast studio from which the listed companies may present their company, strategic cooperation agreements, financial information or other news. From the studio a total of 55 commercial webcasts and teleconferences were produced. The Exchange has used the studio 11 times for own purposes in connection with press conferences and the presentation of Focus.
- At the beginning of June, the Exchange adopted a new surveillance system - SMARTS. The system provides the Exchange with much better possibilities of monitoring the market and ensuring that the high market quality is maintained to the benefit of all market participants.
- The Copenhagen Stock Exchange will be a partner in the future equity derivatives exchange, EDX London. This may contribute significantly to the continued development of the Danish derivatives market. EDX London was announced in December by the London Stock Exchange and OM, which is a majority shareholder in Stockholmsbörsen.
President and CEO Hans-Ole Jochumsen said: "Neither the Danish equity market nor the large foreign equity markets have had a good 2002. The equity markets have been characterised by falling prices and lacking new introductions. Nevertheless, the Danish shares have for the third consecutive year outperformed many of the foreign markets. And even in a year with falling market rates, the listed companies have stepped up their supply of risk capital through the Exchange compared with 2001.
In April, the marketplace will launch two new plus segments, SmallCap+ and MidCap+, which will put focus on the small and medium-sized companies that make a special effort to increase liquidity in their shares. A new website is in the pipeline, and we are presently examining how we can improve the marketplace for bonds.
We generally expect to see a certain increase in activities in 2003. But, compared with before, there are now many more uncertain factors which we must take into account when assessing the development in activities for the coming year in the financial sector."
To read the Annual Report please click here.
