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)

Interim report January-March 2020

  • Net asset value was SEK 146.7 per share compared to SEK 196.6 at the beginning of the year, which corresponds to a decrease of 25.4 per cent.
  • Bure’s net asset value was SEK 10,117M compared to SEK 13,563M at the beginning of the year.
  • Total return on the Bure share was -25.8 per cent compared to the SIX Return Index which fell 18.2 per cent.
  • Consolidated profit after tax amounted to SEK -3,460M (1,919). Earnings per share amounted to SEK -50.2 (27.8).
  • Bure acquired 0.65 million shares in Cavotec for SEK 11.2M, increasing its holding to 27.8 per cent.

Subsequent events

  • Net asset value amounted to SEK 180.8 per share on 27 April 2020, which corresponds to a decrease of 8.1 per cent since the beginning of the year.
  • In April, Bure acquired 1.2 million shares in Mentice for SEK 51.7M, increasing its holding to 15.1 per cent.

Comments from the CEO

The Covid-19 epidemic threw much of the western world into crisis during the quarter. Many countries shut their borders as well as schools, universities, and workplaces. Large numbers of people were forbidden from going out or were encouraged not to leave their homes. Such measures created a dramatic step-change for financial markets all over the world. Following a strong start to the year in January, with many stocks achieving all-time-high valuations, the SIX RX fell 18 per cent during the quarter.

Bure’s net asset value was also negatively affected during the period as all listed portfolio companies were hit by the fall in the market. Net asset value per share fell 25 per cent to SEK 146.7 per share at the end of March. The decrease in net asset value of some SEK 3.4 billion is entirely due to falls in share prices of listed portfolio companies. It is therefore with some relief that we have seen a recovery in share valuations in April.

In addition to stock market falls, the day-to-day economic consequences of the epidemic are likely to be considerable for many. Lost income and a fixed cost base is a challenging combination. The majority of Bure’s portfolio companies have global market positions and their products typically have a high technological content, which increases the likelihood that potential income losses will be more a case of income delays. Demand for these types of products and services should recover once the spread of the virus has been contained.

Furthermore, Bure has adopted a conservative view of financial risk for many years, which has resulted in portfolio companies being generally well-capitalised.

Initially, drastic measures may be needed to adapt the businesses to the new conditions they face. As owners, it is also important to look ahead. Crises do not last forever. My ambition is that Bure can help the portfolio companies to be proactive, maintain perspective, think long-term, and ensure that this crisis makes them stronger.

Bure Equity AB (publ)

Year-end report January-December 2019

Total return on the Bure share was 97.9 per cent

January – December 2019

  • Net asset value was SEK 196.6 per share compared to SEK 137.1 at the beginning of the year, which corresponds to an increase of 43.5 per cent.
  • Bure’s net asset value was SEK 13,563M compared to SEK 9,454M at the beginning of the year.
  • Total return on the Bure share was 97.9 per cent compared to the SIX Return Index that increased 35.0 per cent.
  • Consolidated profit after tax amounted to SEK 4,229M (1,821). Earnings per share amounted to SEK 61.3 (26.3).

Fourth quarter 2019

  • Net asset value per share was SEK 196.6 compared to SEK 159.2 at the start of the quarter, which corresponds to an increase of 23.5 per cent.
  • Bure divested shares in Mercuri to the company’s management team at book value which corresponds to reported net asset value. Mercuri also acquired ProSales, a leading Swedish research and consultancy firm specialising in B2B sales training. In conjunction with this transaction, the ProSales management team acquired new-issue shares in Mercuri. Bure’s holding in Mercuri amounted to 90.4 per cent following these transactions.
  • Bure Growth acquired additional shares in ScandiNova Systems for SEK 10M increasing its holding to 27.8 per cent.

Subsequent events

  • Net asset value amounted to SEK 187.5 per share on 19 February 2020 which corresponds to a decrease of 4.7 per cent since the beginning of the year.
  • The Board of Directors proposes that the Annual General Meeting approve an ordinary dividend of SEK 2.00 per share (2.00) and an extra dividend of SEK 0.50 per share (0.00).

Comments from the CEO

2019 was another successful year for Bure. Net asset value per share increased 43.5 per cent to end the year at around SEK 13.5 billion. Despite economic uncertainty, the majority of our portfolio companies achieved sales growth and improvements in profitability. Bure’s two largest holdings, Mycronic and Vitrolife, accounted for the two single largest increases in net asset value in 2019, which is fantastic. The unlisted segment of the portfolio also contributed to net asset value growth during the year. Our holding in cyber security company Yubico was Bure’s third largest holding at the end of the year following a revaluation under IFRS 9.

The year included several changes to the portfolio. Firstly, Cavotec and Ovzon conducted rights issues in which Bure increased its holding. During the first quarter, we also launched a new focus on active asset management under the new-old name Atle. Today, Atle is part-owner of a number of successful asset management funds and was, for example, involved in the launch of the year’s perhaps most high-profile fund, TIN Fonder. In the beginning of March, a modest amount of our holding in Mycronic and Vitrolife was divested. This was done to create financial scope for new investments. During the second quarter, we invested in two exciting growth companies. Bure was a so-called anchor investor for the stock market listing of Mentice and acquired a large minority holding in Scandinova.

Similar to the previous year, 2019 ended in dramatic fashion. But in contrast to the steep falls we experienced in 2018, the stock market jumped a record 10 per cent in the fourth quarter of 2019. Bure’s share price increased 47.2 per cent in the last quarter alone, which resulted in a total return for the year of 97.9 per cent. Naturally, this is extremely reassuring, and taken together with growth in net asset value, I believe this reinforces our conviction that a long-term approach, presence in and commitment to the portfolio companies ensures that Bure is a good owner.

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)

Bure Equity: Interim report January-June 2019

Total return on the Bure share was 47.9 per cent

January – June 2019

  • Net asset value was SEK 153.5 per share compared to SEK 137.1 at the beginning of the year, which corresponds to an increase of 12.0 per cent.
  • Bure's net asset value was SEK 10,591M compared to SEK 9,454M at the beginning of the year.
  • Total return on the Bure share was 47.9 per cent compared to the SIX Return Index that increased 20.7 per cent.
  • Consolidated profit after tax amounted to SEK 1,273M (1,132). Earnings per share amounted to SEK 18.46 (16.33).

Second quarter 2019

  • Net asset value per share was SEK 153.5 compared to SEK 165.0 at the start of the quarter, which corresponds to a decrease of 6.9 per cent.
  • Bure acquired 2.45 million shares in Mentice for SEK 120M in connection with the company's stock market launch, corresponding to a shareholding of 10.1 per cent.
  • Bure Growth signed an agreement regarding the acquisition of 24.4 per cent of shares in ScandiNova Systems.
  • In line with the decision taken at the Annual General Meeting, an ordinary dividend of SEK 2.00 per share was paid, with payments totaling SEK 138M.

Subsequent events

  • Net asset value amounted to SEK 156.2 per share on 15 August 2019, which corresponds to an increase of 14.0 per cent since the beginning of the year.
  • Bure Growth completed the acquisition of shares in ScandiNova Systems.

Comments from the CEO

Bure's high level of activity continued apace in the second quarter. In June, we announced new investments, in two growth companies in the tech sector. Mentice, which develops simulation programmes for endovascular surgery, was listed in June and Bure was one of its anchor investors. Scandinova is an unlisted company based in Uppsala. The company develops so-called pulse generators that are key components in, for example, radiation equipment used for cancer treatment. Technology-driven companies with an international focus are attractive to us, and this is an area in which we have extensive experience. The development potential of companies that have proven business models, and that have established market positions, are extremely exciting. Our hope is that we are able to support the companies' continued long-term development.

Global indicators continue to be negative overall – numerous indicators point to lower levels of economic activity globally and in Europe. Despite this, the stock market was up during the first months of the summer. During the first six months of the year, Bure's total return amounted to +47.9 per cent compared to the SIX RX that increased 20.7 per cent.

Following a strong start in first quarter, Bure's net asset value per share softened slightly in the second quarter by -6.9 per cent. The main reason for this were falls in our two largest listed portfolio companies, Vitrolife and Mycronic, which both fell by around 14 per cent during the period. However, since the beginning of the year, net asset value has increased 12 per cent.

Several of our portfolio businesses booked strong quarterly results. Mycronic reported its strongest quarter ever in terms of sales, which was a great start for newly appointed CEO Anders Lindqvist. Mycronic's share jumped more than 20 per cent on the release of the results. Finally, I would like to express my sincere gratitude to Lena Olving. Her efforts as CEO have been a major contributor to Mycronic's successful development.  

Bure Equity AB (publ)

For more information contact:

Henrik Blomquist, CEO
Tel. +46 (0)8-614 00 20

This information is information that Bure Equity AB is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:30 SET on 16 August 2019.

Interim report January-march 2019

January – March 2019

  • Net asset value per share was SEK 165.0 compared to SEK 137.1 at the end of the previous year, which represents an increase of 20.4 per cent.
  • Bure’s net asset value was SEK 11,379M compared to SEK 9,454M at year-end 2018.
  • Total return on the Bure share was 43.5 per cent, compared to the SIX Return Index that rose 13.2 per cent.
  • Consolidated profit after tax amounted to SEK 1,919M (495). Earnings per share amounted to SEK 27.83 (7.13).
  • Cavotec conducted a rights issue valued at SEK 204M in January 2019. Bure net purchase of shares was SEK 74M. Bure’s holding increased to 27.1 per cent following the rights issue.
  • Ovzon conducted a rights issue valued at SEK 748M in January 2019. Bure purchased shares valued at SEK 113M. Bure’s holding increased to 14.3 per cent after the rights issue.
  • Bure divested 2 million shares in Mycronic for SEK 262M, which generated an exit result of SEK 237M in February 2019. Bure’s holding amounted to 27.9 per cent after the transaction.
  • Bure divested 2 million shares in Vitrolife for SEK 384M which generated an exit result of SEK 370M in March 2019. Bure’s holding amounted to 19.0 per cent after the transaction.

Subsequent events

  • Net asset value amounted to SEK 160.2 per share on 24 April 2019, which corresponds to an increase of 16.8 per cent since year-end 2018.

Comments from the CEO

The first quarter of the year was unusually eventful. At the start of the quarter, two portfolio companies, Ovzon and Cavotec, raised capital. Ovzon’s rights issue provided some of the necessary financing to launch the company’s first satellite. Additional capital was needed in Cavotec primarily to support its ongoing restructuring programme. Bure participated in both these rights issues with SEK 113M and SEK 76M respectively.

In February we changed the name of Bure Financial Services to Atle. This was joyful because Atle is a name that is closely associated with Bure as its sister company. Atle Investment Management now constitutes the foundation of Bure’s activities within active capital management. With Atle, we are seeking to gather leading active fund managers under one roof and give them the resources they need to develop their investment strategies. Today, Atle is a proud partner of Alcur Fonder, Finland-based Fondita, Meetoo Kapitalförvaltning and recently-established TIN Fonder. In February, TIN Fonder launched its technology fund Core Ny Teknik that, after just two months, had more than 30,000 customers. Read more at www.atle.se.

At the end of February/beginning of March, Bure divested shares in Mycronic and Vitrolife. These are Bure’s two single largest holdings that have delivered fantastic growth and constitute 70 per cent of Bure’s total net value after the disposals. The sales, which yielded approximately SEK 650M, were made with the aim of creating financial scope for new investments. Following these disposals, Bure’s investable funds amount to around SEK 1 billion, which currently corresponds to around nine per cent of net asset value.

In summary, Bure’s net asset value per share increased 20 per cent and amounted to SEK 165 per share at the end of the quarter, which is a new record. Total yield was also positive, with the share price increasing 44 per cent during the quarter, compared to the SIX Return Index that increased 13 per cent.

Bure Equity AB (publ)

For more information contact:

Henrik Blomquist, CEO
Tel. +46 (0)8-614 00 20

This information is information that Bure Equity AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:30 CET on 25 April 2019.

Year-end report January-december 2018

Correction in press release: In this press release, reference to legislation has been corrected.

January – December 2018

  • Net asset value amounted to SEK 137.1 per share compared to SEK 111.7 at year-end 2017, which corresponds to an increase of 22.7 per cent. Net asset value per share including dividends paid of SEK 2.0 per share increased 24.5 per cent in 2018.
  • Bure’s net asset value was SEK 9,454M compared to SEK 7,743M at the start of the year.
  • Total return on the Bure share was 12.7 per cent. The SIX Return Index fell 4.4 per cent in 2018.
  • Consolidated profit after tax was SEK 1,821M (834). Earnings per share amounted to SEK 26.3 (12.0).

Fourth quarter 2018

  • Net asset value per share was SEK 137.1 compared to SEK 125.2 the start of the quarter, which corresponds to an increase of 9.5 per cent.

Subsequent events

  • Net asset value amounted to SEK 156.4 per share on 21 February 2019, which corresponds to an increase of 14.1 per cent since the beginning of the year.
  • Cavotec conducted a rights issue valued at SEK 204M in January 2019. Bure subscribed for SEK 76M of shares. Bure’s shareholding in Cavotec amounted to 27.1 per cent following the rights issue.
  • Ovzon carried out a rights issue valued at SEK 748M in January 2019. Bure subscribed for SEK 113M of shares. Bure’s shareholding amounted to 14.3 per cent following the rights issue.
  • Bure divested 2 million shares in Mycronic for SEK 262M for an exit gain of SEK 237M i February 2019. Bure’s shareholding amounted to 27.9 per cent following the transaction.
     

Comments from the CEO

In 2018, Bure’s net asset value climbed to SEK 9,454M, which is equivalent to an increase of 24.5 per cent or SEK 1,850M including dividends paid. Bure has thus increased net asset value for seven consecutive years!

The majority of portfolio companies contributed positively to the increase in Bure’s net asset value. Listed portfolio companies accounted for the lion’s share of the improvement with an increase of SEK 1,662M. The strong trend for listed companies was a reward for their successes during the year with many of the companies reporting record results. Sales as well as profit growth in Mycronic, Vitrolife, Medcap and Xvivo was extremely impressive. During the year, the unlisted companies also contributed with SEK 353M. This was primarily due to the revaluation of the value of Yubico in accordance with IFRS 9.

Ovzon joined our portfolio of companies during the year. Having followed the company for a number of years, Bure was a so-called anchor investor when the company listed in May. The company, whose business idea is to provide mobile broadband via satellite, is poised for an exciting future. The company’s ambition is to launch its own geo-positioned satellite in 2021, and thereby further develop its unique communication services. The year also saw additional investments made in, notably, Cavotec, Yubico and Bure Financial Services.

Intensifying concern over global economic conditions made for a dramatic conclusion to the year. The financial markets fell sharply in general, and Nasdaq Stockholm lost more than 18 per cent from its peaks in the fourth quarter. One year ago, I wrote here that we found ourselves in the latter stages of the economic cycle. In the event, however, 2018 turned out to be a strong year for the majority of the portfolio companies. Uncertainty surrounding future economic conditions persists, but for the time being there are few signs of deteriorating market conditions among the portfolio companies. I therefore look ahead with continued cautiousness tempered, however, with increased readiness.
 

Bure Equity AB (publ)
 

For more information contact:

Henrik Blomquist, CEO
Tel. +46 (0)8-614 00 20
 

This information is information that Bure Equity AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:30 SET on 22 February 2019.

Interim report January-september 2018

Interim period January–September 2018

  • Net asset value amounted to SEK 125.2 per share, compared to SEK 111.7 at the beginning of year, which corresponds to an increase of 12.1 per cent. Net asset value per share increased 13.9 per cent including dividends paid.
  • Bure’s net asset value was SEK 8,664M compared to SEK 7,743M at the beginning of the year.
  • Total return on the Bure share was 18.3 per cent compared to the SIX Return Index that increased 11.3 per cent. • Consolidated profit after tax was SEK 997M (1,864). Earnings per share amounted to SEK 14.39 (26.88).

Third quarter 2018

  • Net asset value per share was SEK 125.2 compared to SEK 127.1 at the start of the quarter, which corresponds with a decrease of 1.5 per cent.
  • Bure Growth invested SEK 9M in My Driving Academy, increasing its shareholding to 32.0 per cent.
  • Bure Financial Services completed the acquisition of 32.5 per cent of Alcur Fonder AB.

Subsequent events

  • Net asset value amounted to SEK 144.0 per share on 7 November 2018, which corresponds to an increase of 29.0 per cent since the beginning of the year. Net asset value per share has increased by 30.7 per cent including dividends paid.

Comments from the CEO

Activity in Bure’s portfolio companies continued to progress well, and several of the group’s companies presented robust reports for the third quarter. Mycronic in particular continued to impress. Compared to the previous year, Mycronic’s sales jumped by more than 120 per cent with an operating margin of 40 per cent (13). It is worth noting the improvement by the Assembly Solutions business unit which reported strong order growth but above all an underlying operating margin of 10 per cent. In August, train operator Railcare started shipments of iron ore on behalf of Kaunis Iron between Pitkäjärvi and Narvik. It is thus extremely encouraging to see Bure’s locomotive leasing operation, which last year signed a leasing agreement for four locomotives with Railcare, operating again and profitably so.

During the third quarter, the Stockholm stock exchange increased by almost 7 per cent. Bure’s share price increased more than this during the quarter, posting a +12 per cent increase. However, net asset value per share decreased marginally. Overall, this resulted in a considerable decrease in the so-called discount to net asset value. Bure’s total return for the year amounted to 18 per cent at the end of the quarter, including dividends paid.

Since the end of the period, we have seen dramatic falls on many of the world’s stock markets. The S&P 500 fell by up to 9 per cent, primarily due to falls in the tech sector, while the SIX RX is down 7 per cent. Many factors are in play here, but overall the reporting period appears to be suggesting that we are possibly approaching the end of the economic cycle. Forward looking key indicators have therefore dropped considerably, for example the P/E ratio for the Stockholm index in October went from 18 to around 14. Bure’s share price has, however, faired markedly better than the index, and it is my hope that the uncertain market conditions may create some interesting business opportunities going forward.

Bure Equity AB (publ)

For more information contact:

Henrik Blomquist, CEO
Tel. +46 (0)8-614 00 20

The information contained herein is subject to the disclosure requirements of Bure Equity AB (publ) under the Swedish Securities Market Act. The information was publicly communicated on 8 November 2018, 8:30 a.m. CET.

Interim report January-june 2018

Interim report January–June 2018

  • Net asset value was SEK 127.1 per share, compared to SEK 111.7 at the beginning of the year, which corresponds to an increase of 13.8 per cent. Net asset value per share increased 15.5 per cent including dividends paid.
  • Bure’s net asset value was SEK 8,792M compared to SEK 7,743M at the beginning of the year.
  • Total return on the Bure share was 5.2 per cent compared to the SIX Return Index that increased by 4.1 per cent.
  • Consolidated profit after tax was SEK 1,132M (312). Earnings per share amounted to SEK 16.33 (4.49).

Second quarter 2018

  • Net asset value per share was SEK 127.1, compared to SEK 120.0 at the start of the quarter, which corresponds to an increase of 5.9 per cent.
  • Bure acquired an additional 4.2 million shares in Cavotec for SEK 104M, increasing its shareholding in the company to 25.4 per cent.
  • During the quarter the holding in Yubico was revalued by SEK 212M in accordance with IFRS 9 following Bure Growth's acquisition of shares for SEK 26M.
  • Bure Growth acquired additional shares in Yubico for SEK 26M.
  • Bure divested 0.3 million shares in Xvivo Perfusion for SEK 30M. The entry value of the shares was SEK 6M, and the exit gain amounted to SEK 24M.
  • In line with the decision taken at the Annual General Meeting, an ordinary dividend of SEK 1.50 per share was paid, along with an extra dividend of SEK 0.50 per share, with payments totalling SEK 139M.

Subsequent events

  • Net asset value amounted to SEK 122.7 per share on 15 August 2018, which corresponds to an increase of 9.9 per cent since the beginning of the year. Net asset value per share increased 11.7 per cent including dividends paid.

Comments from the CEO

All Bure’s listed portfolio companies registered increases in share prices during the first six months of the year. MedCap and Xvivo stand out with jumps of 97 and 31 per cent, respectively. The value of Bure’s holding in Yubico also increased. Revaluation of this unlisted company is a consequence of a transaction that was conducted during the quarter when, among others, a US venture fund increased its share in the company. Bure participated in this transaction, thereby maintaining its ownership stake. Overall, Bure’s net asset value per share increased during the period by 13.8 per cent, comparing favourably with the SIX Return Index that increased 4.1 per cent. At the end of the period, Bure’s net asset value amounted to a total of SEK 8,792M, which corresponds to SEK 127.1 per share.

A number of transactions were conducted during the quarter. Bure increased its holding in Cavotec to 25.4 per cent through the acquisition of shares for SEK 104M. In May, satellite communications company Ovzon was listed. Bure was a so-called anchor investor for the transaction, and Ovzon thereby became Bure’s tenth portfolio company. Ovzon has a world-leading technology and a profitable business model for the mobile satellite communications market. Bure has followed Ovzon for some time and the hope is that Bure can contribute to the company’s continued development through our experience of developing technology-intensive companies.

During the quarter, Bure Financial Services signed an agreement to acquire 32.5 per cent of Alcur Fonder AB – a transaction that is expected to close during the third quarter. Alcur Fonder is an alternative asset manager that has successfully managed the absolute return fund Alcur for more than 11 years. We believe that interest in active investment strategies will grow going forward.
 

Bure Equity AB (publ)
  

For more information contact:

Henrik Blomquist, CEO
Tel. +46 (0)8-614 00 20
  

The information contained herein is subject to the disclosure requirements of Bure Equity AB (publ) under the Swedish Securities Market Act. The information was publicly communicated on 16 August 2018, 8:30 a.m. CET.

Interim report January-March 2018

Interim report January – March 2018

  • Net asset value per share was SEK 120.02, compared to SEK 111.69 at the end of the previous year, which represents an increase of 7.5 per cent.
  • Bures net asset value was SEK 8,321M, compared to SEK 7,743M at year-end 2017.
  • Total return on the Bure share was -6.5 per cent, compared to the SIX Return Index which fell by 0.5 per cent.
  • Consolidated profit after tax was SEK 495M (13). Earnings per share amounted to SEK 7.13 (0.19).
  • The introduction of IFRS 9 Financial Instruments has resulted in an increase in net asset value of SEK 56M.
  • The reversal of a prior period write-down of the subsidiary Mercuri International has increased net asset value by a further SEK 50M.

Subsequent events

  • Net asset value per share at 25 April 2018 was SEK 124.50, which corresponds to an increase of 11.5 per cent since year-end 2017.

Comments from the CEO

During the first quarter of the year, Bure’s net asset value per share increased 7.5 per cent, compared to a decrease of 0.5 per cent for the SIX Return Index. The surge in value of Mycronic accounted for the majority of this increase. A strong finish to 2017, and continued positive guidance for 2018, contributed to a rise in the Mycronic share price of more than 25 per cent during the period. Bure’s total return, however, decreased during the period by 6.5 per cent. Unfortunately, this resulted in an increase in so-called net asset discount. Since the end of the period, however, the share price has recovered somewhat.

This quarterly report is the first to include Bure’s unlisted holdings in the market value section of the net asset value table (on page 2). This is due to a change in accounting regulations. Previously, Bure has always used the purchase value to provide an indication of the value of unlisted assets, but following the introduction of IFRS 9, the market value of unlisted assets shall also be assessed.

The method for reaching a valuation is based on International Private Equity and Venture Capital valuation guidelines (IPEV). The total effect in the quarter amounts to SEK +56M. In addition, we have reversed a previous write-down of the holding in Mercuri by a total of SEK 50M. In the past two years, Mercuri has returned to growth, stabilised earnings and made considerable improvements to its financial position.

During the quarter, the various nomination committees completed their tasks. Adding the right skill sets and identifying a good composition for portfolio company boards is a key element of Bure’s governance model. Although not all portfolio company annual general meetings have yet been held, and formal decisions have been taken, I would like to take this opportunity to thank the outgoing board members for the work they have done.

Bure Equity AB (publ)

For more information contact:
Henrik Blomquist, CEO
Tel. +46 (0)8-614 00 20

The information contained herein is subject to the disclosure requirements of Bure Equity AB (publ) under the Swedish Securities Market Act. The information was publicly communicated on 26 April 2018, 08:59 a.m. CET