Year-end report 2013

Full year January – December 2013

  • Net asset value per share at the end of 2013 amounted to SEK 33.47, compared to 27.06 at the previous year-end. Adjusted for dividends, this is equal to an increase of 25.5 per cent since year-end 2012.
  • Bure’s net asset value was SEK 2,545M (2,195).
  • The Parent Company’s profit after income tax was SEK 503M (128).
  • The Parent Company’s earnings per share amounted to SEK 6.40 (1.58).
  • Total return on the Bure share amounted to 21.0 per cent. The six return index rose by 28. per cent.
  • The Board proposes that the AGM approve an ordinary dividend of SEK 0.50 per share and an extraordinary dividend of SEK 0.50 per share.

Fourth quarter 2013

  • Net asset value per share increased by 3.5 per cent during the quarter. The Six Return Index rose by 9.2 per cent.
  • The Parent Company’s profit after income tax was SEK 85M (-61).
  • The value of the listed associated companies grew by SEK 189M.
  • Value growth from Bure’s short-term investments amounted to SEK 11M in the fourth quarter.
  • In the fourth quarter Bure recognised impairment losses for a total of SEK 119M, of which the bulk refers to Mercuri International (SEK 79M) and RushRail (SEK 21M).
  • Bure repurchased 1,000,000 treasury shares in October 2013. Bure’s holding thereafter amounts to a total of 5,050,475 treasury shares, which is equal to 6.2 per cent of the total number of shares outstanding in the company.

Subsequent events

  • Bure’s net asset value per amounted to SEK 35,46 on 20 February 2014.
  • At an ordinary board meeting held 20 February 2014, the Board of Directors of Bure Equity appointed Henrik Blomquist as Chief Executive Officer. Henrik Blomquist is Acting CEO of Bure Equity since April 2013 and prior to that Executive Vice President since 2010.

2013 was a good year for the stock market. In spite of a watchful global economy, the market has been driven by high expectations for future corporate profits and the SIX Return Index climbed by a full 28 per cent. Bure’s listed holdings also enjoyed a successful year. All in all, our listed portfolio companies rose by over 61 per cent in 2013. The largest contributors were Vitrolife, Micronic Mydata and Xvivo. This has naturally affected Bure’s net asset value in a positive direction. Adjusted for dividends, net asset value per share grew by 25.5 per cent in 2013.

The composition of the portfolio changed somewhat during 2013. A new portfolio company is MedCap, in which Bure is the single largest shareholder since the first quarter. Furthermore, in the past year we divested most of our holdings in Theducation. This sale marks the end of Bure’s nearly 15-year involvement in the independent school sector.

During the year Bure set up an investment committee whose task is to generate a return on Bure’s net cash, at a low risk, until new portfolio company investments are made. The investments consist mainly of fixed income funds and liquid listed shares. Despite a cautious strategy, it is encouraging to see that this management has produced a return of more than 13 per cent.

We have also experienced negative developments in 2013, which has led to the recognition of impairment losses. Mercuri’s drop in earnings is a disappointment. In the second half of the year additional measures were taken to turn this loss around. Leasing of locomotives to Trätåg’s timber transports was started during the year. The transport system is developing according to plan, although the train operator RushRail, in which we have a non-controlling interest, is having financial difficulties.

Finally, the portfolio company Micronic Mydata’s board has proposed that the AGM will approve an extraordinary dividend for the year. In the Board’s opinion, part of this dividend should be distributed to Bure’s shareholders. Against this background, and in addition to the ordinary dividend of 0.50 SEK per share, the Board intends to propose that the AGM of Bure approve an extraordinary dividend of SEK 0.50 per share.

Henrik Blomquist

For additional information contact
Henrik Blomquist, CEO +46 8 614 00 20
Max Jonson, CFO +46 8 614 00 2
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 21 Februari 2014, 8.30 a.m. CET.

Year-end report 2013