Sales and earnings continued to increase significantly in trading business in 2021 - high income from partial sale of treasury stock

14 Feb. 2022 / Pressemitteilungen

• Sales increased by approximately 20%
• Gross profit increased by more than 30%
• Equity ratio over 50%
• Almost 4 million tax-free income from partial sale of treasury stock

According to preliminary figures, the B2B trading business concentrated in the Monheim-based parent company Weng Fine Art AG (WFA) increased by around 20% year-on-year (EUR 5,333,000) in fiscal year 2021, with revenues of approximately EUR 6,400,000. In the two years since the outbreak of the pandemic, WFA has been able to increase its art trading revenues by almost 70%, although the focus of the corporate group during this time has been on building up the token business and expanding the e-commerce business of the subsidiary ArtXX AG.

Due to price increases in many areas of the international art market, specific valuation allowances are expected to decrease compared to the previous year. Therefore, the management expects gross profit to have increased disproportionately to sales by around 30% to just under EUR 2,200,000 (2020: EUR 1,662,000).

Income from investments decreased by EUR 433,000 in 2021 compared to the previous year (EUR 826,000), as ArtXX AG had reduced its dividend for 2020 and WFA AG's shareholding in its subsidiary decreased as part of the distribution in kind to its shareholders. The investment income will be consolidated out in the consolidated financial statements.

Gains from financial transactions amounted to approximately EUR 1,500,000 in 2021 - in contrast, EUR 3,275,000 in income from the distribution in kind to shareholders was recognized in December 2020 in the same period of the previous year.

Operating costs were reduced in 2021, despite the increased volume of business. In contrast, financing costs increased by around 10% due to the slight increase in credit volume.

Pre-tax profit for fiscal year 2021 is expected to be close to EUR 3 million. In addition, Weng Fine Art AG generated a tax-free gain of almost EUR 4 million from the partial placement of the treasury stock, which will not appear in the income statement but will be booked directly to equity.

As a result of the increased income and the partial sale of the treasury stock, which is recognized in the balance sheet, the equity ratio of Weng Fine Art AG has increased to approximately 53% as of December 31, 2021 (2020: 45.8%).

The consolidated results of Weng Fine Art AG for the fiscal year 2021 are expected to be announced in March 2022. The Annual General Meeting of the Company is expected to take place in June 2022 as an attendance event in Düsseldorf.