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

The full report (PDF)