Interim report January-June 2020

  • Net asset value was SEK 195.8 per share compared to SEK 196.6 at the beginning of the year, corresponding to a decrease of 0.4 per cent.
  • Bure’s net asset value was SEK 14,521M compared to SEK 13,563M at the beginning of the year.
  • Total return on the Bure share was -4.2 per cent compared to the SIX Return Index that fell 4.1 per cent.
  • Consolidated profit after tax amounted to SEK 21M (1,273). Earnings per share amounted to SEK 0.3 (18.5).

Second quarter 2020

  • Net asset value was SEK 195.8 per share compared to SEK 146.7 at the beginning of the quarter, corresponding to an increase of 33.5 per cent.
  • Bure conducted a SEK 1 billion directed share issue for institutional investors. Following the issue of 5.175 million shares, the total number of shares in Bure amounts to 74.147 million.
  • Bure acquired 8.5 million shares in Cavotec for SEK 136.7M, increasing its holding to 36.2 per cent.
  • Bure acquired 1.2 million shares in Mentice for SEK 51.7M, increasing its holding to 15.1 per cent.
  • Bure subscribed its holding equivalent to SEK 17.5M in Ovzon’s rights issue.
  • Bure Growth acquired shares in BioLamina’s rights issue for SEK 13.2M, increasing its holding to 30.6 per cent.
  • In accordance with the annual general meeting’s decision, an ordinary dividend of SEK 1.0 per share was paid, with payments totalling SEK 69M.

Subsequent events

  • Net asset value amounted to SEK x.x per share on 18 August 2020, corresponding to an increase of 3.7 per cent since the beginning of the year.

Comments from the CEO

During the second quarter of the year, we faced a global health crisis in which the Covid-19 pandemic affected the world’s economy extremely negatively. Uncertainty related to the market effects of Covid-19 was close to its peak in March and April, which resulted in exceptionally large fluctuations between the two quarters. The fall in Bure’s net asset value in the first quarter -25.4 per cent – was as dramatic as its second quarter recovery, when it jumped 33.5 per cent, equivalent to approximately SEK 3.5 billion.

During the first six months of the year, growth in Bure’s net asset value per share was marginally negative at -0.4 per cent. In the same period, the Six Return Index fell 4.1 per cent. Several of Bure’s portfolio companies have so far experienced a limited corona effect, but uncertainty remains around the pandemic’s continued development. In those companies that have been impacted, however, we are encouraged to see a cautious recovery. In the most recent quarter, Bure invested around SEK 210 million in existing portfolio companies. In particular, we increased our holdings in Cavotec and Mentice. Following these transactions, Bure’s holdings in these companies stand at 36.2 per cent and 15.1 per cent, respectively.

In June, we conducted a new issue of Bure shares. My role as CEO is to continually attempt to develop Bure and to take advantage of business opportunities we see. Bure has a long history of successfully developing businesses and to ensure our existing management and investment structures have the capacity to expand their operations, we conducted a SEK 1 billion share issue. With the help of this capital injection, our ambition is to accelerate Bure’s growth and thereby create value for our shareholders. The share issue was in line with Bure’s calculated net asset value which is also extremely gratifying as this entails no value dilution for existing shareholders.

Bure Equity AB (publ)