Interim report January-September 2020

  • Net asset value was SEK 230.6 per share compared to SEK 196.6 at the beginning of the year, corresponding to an increase of 17.3 per cent.
  • Bure’s net asset value was SEK 17,096M compared to SEK 13,563M at the beginning of the year.
  • Total return on the Bure share was 33.9 per cent compared to the SIX Return Index which increased 8.2 per cent.
  • Consolidated profit after tax amounted to SEK 2,536M (1,641). Earnings per share amounted to SEK 35.7 (23.8).

Third quarter 2020

  • Net asset value was SEK 230.6 per share compared to SEK 195.8 at the beginning of the quarter, corresponding to an increase of 17.7 per cent.
  • Bure purchased 137,000 shares for SEK 32.3M in Xvivo Perfusion’s directed share issue.
  • Bure Growth acquired 25,000 shares in Yubico for SEK 9.0M.

Subsequent events

  • Net asset value amounted to SEK 217.2 per share on 4 November 2020, corresponding to an increase of 10.4 per cent since the beginning of the year.
  • Bure Growth acquired 0.3 million shares in BioLamina for SEK 53.2M and increased its holding to 44.8 per cent.
  • Atle Investment Management signed an agreement on the acquisition of Humle Småbolagsfond and Humle Sverigefond.

Comments from the CEO

During the third quarter, the majority of our portfolio companies registered robust increases in value despite the ongoing pandemic, continued restrictions, and reduced economic activity. The listed portfolio increased in value by approximately SEK 2,500M, or 22 per cent. This increase was also reflected in Bure’s net asset value per share, which registered an overall increase of 17.7 per cent during the quarter.

The stock market’s recovery from the heavy losses of February and March continued into the third quarter. The Six Return Index increased 12.9 per cent, and in September – perhaps surprisingly – returned to the same high levels seen prior to the outbreak of corona.

During the quarter, portfolio company Xvivo Perfusion acquired Dutch company Organ Assist. Similar to Xvivo, Organ Assist is present in the transplant segment, although is primarily focused on organs such as kidneys and the liver. Xvivo currently has products and solutions for heart and lung transplants, and with the acquisition, it will be the first company in the world that has products in all the major organ groups. This transaction was partly financed by Xvivo making a directed rights issue totalling SEK 500M in which Bure invested around SEK 32M.

At the time of writing, we are seeing a considerable and partly unforeseen increase in the number of people infected with corona. This increase has, amongst other things, resulted in new restrictions and lockdowns in many large European cities. Unfortunately, this means that it is too early to say that we are past the worst and that we are returning to a normalised market situation. It is reasonable to assume that corona will continue to have a negative impact going forward. However, our portfolio companies have so far shown great skill in managing the crisis and thereby adapting to prevailing market conditions.

Bure Equity AB (publ)

Total return on the Bure share was 34.4 per cent

January – September 2019

  • Net asset value was SEK 159.2 per share compared to SEK 137.1 at the beginning of the year, which corresponds to an increase of 16.1 per cent.
  • Bure’s net asset value was SEK 10,978M compared to SEK 9,454M at the start of the year.
  • Total return on the Bure share was 34.4 per cent compared to the SIX Return Index that increased 23.0 per cent.
  • Consolidated profit after tax amounted to SEK 1,641M (997). Earnings per share amounted SEK 23.80 (14.39).

Third quarter 2019

  • Net asset value per share was SEK 159.2 compared to SEK 153.5 at the start of the quarter, which corresponds to an increase of 3.7 per cent.
  • Yubico conducted a directed share issue during the third quarter. In conjunction with this Bure Growth acquired 140,000 shares in Yubico from existing shareholders for

    SEK 50.2M.

  • Bure Growth concluded the acquisition of 24.4 per cent of shares in ScandiNova Systems for SEK 70.9M.

Subsequent events

  • Net asset value amounted to SEK 186.1 per share on 6 November 2019, which corresponds to an increase of 35.7 per cent since the beginning of the year.

Comments from the CEO
At the end of August, portfolio business Yubico carried out a USD 25 million directed share issue to US investment company Meritech Capital Partners. This transaction involved Bure acquiring shares from existing shareholders valued at some SEK 50M. As a result of this transaction and in accordance with IFRS 9, Bure adjusted upwards the value of its total holding in Yubico by SEK 507M. Following the transaction, the book value of Bure’s total holding in Yubico amounted to SEK 989M, making this Bure’s third largest holding. Yubico continues to grow strongly. During the year, we have focused on broadening the company’s customer base away from leading internet giants such as Google, Facebook, Amazon etc., as well as increasing market share in Europe.

Bure’s net asset value increased during the third quarter by 3.7 per cent, outperforming the 2.0 per cent increase of the SIX Return Index. During the first nine months of the year, net asset value per share increased 16.1 per cent.

The stock market continues to be surprisingly resilient. So far this year, the SIX Return Index is up 30 per cent despite flagging economic activity, various sources of uncertainty around the world and generally weaker growth in corporate earnings. However, Swedish industry has been buoyed by the weakness of the Swedish krona. It is interesting to note the so-called rotation that has occurred on the capital markets from smaller to larger companies. In the past three months, the OMX Stockholm 30 has risen some 12.5 per cent, while the OMX Small Cap has only edged about 0.4 per cent higher in the same period.

Out of the portfolio companies that have reported results for the third quarter, Mycronic, Vitrolife and Xvivo stand out. Orders for both Mycronic’s business units remain very robust, which has pushed its share price to new record highs. Both Vitrolife and Xvivo continued to deliver double-digit growth and excellent gross margins, which is also impressive.

Bure Equity AB (publ)