Interim report January – September 2016

Interim period January – September 2016

  • Net asset value per share was SEK 116.54, compared to SEK 87.40 at year-end 2015, which represents an increase of 33.3 per cent.
  • Bure’s net asset value was SEK 8,080M, compared to SEK 6,060M at year-end 2015.
  • Total return on the Bure share was 50.6 per cent, compared to the SIX Return Index which rose by 6.0 per cent.
  • Consolidated profit after tax was SEK 2,178M (1,053). Earnings per share amounted to SEK 31.41 (14.99).

Third quarter 2016

  • Net asset value per share was SEK 116.54, compared to SEK 90.29 at the beginning of the quarter, which corresponds to an increase of 29.1 per cent.
  • Total return on the Bure share was 40.9 per cent, compared to the SIX Return Index which rose by 10.1 per cent during the quarter.

Subsequent events

  • Net asset value per share was SEK 100.25 on 10 November 2016, which corresponds to an increase of 14.7 per cent since year-end 2015.

Bure’s net asset value per share rose by 29.1 per cent in the third quarter, compared to an increase of 10.1 per cent for the SIX Return index.

Despite relatively mediocre macroeconomic conditions, the capital market has continued to show exceptional development during the year and we have experienced many IPOs with rising valuations, particularly for small and mid-sized companies. But
at the same time, it’s difficult to find low-risk investment alternatives that provide any return whatsoever. This has resulted in a volume-driven market where abundant access to capital has to some extent put normal valuation principles out of play.

How is this affecting Bure’s investment opportunities? Bure’s investment philosophy is based on two main pillars; the right investment situation and a long-term approach. The right situation for Bure is one where we can clearly identify Bure’s role and significance for the target company’s success. In the current market, my assessment is that we should proceed with great caution. The hunt for returns and shortage of investment alternatives are creating major fundamental mispricings. We are therefore focusing considerable effort our own in-house research in the investment process to ensure that we find and choose the right situation for Bure.

At 30 September 2016, Bure had investable funds of approximately SEK 700M.

After the end pf the period Bure’s two largest portfolio companies, Mycronic and Vitrolife, released their third quarter reports. Although the companies are continuing to perform well and have presented solid earnings, both have unfortunately been traded down by the market. From the peak at the turn of the month September/October, Vitrolife is down by 26 per cent and Mycronic by 13 per cent.

Henrik Blomquist

For additional information contact
Henrik Blomquist, CEO +46 (0)8 614 00 20
Max Jonson, CFO +46 (0)8 614 00 20

The information in this interim report is subject to the disclosure requirements of Bure Equity AB under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on 11 November 2016, 08:30 a.m. CEST.

The full report (PDF)