- Net asset value was SEK 287.0 per share compared to SEK 239.6 at the beginning of the year, corresponding to an increase of 19.8 per cent.
- Bure’s net asset value was SEK 21,278M compared to SEK 17,763M at the beginning of the year.
- Total return on the Bure share was 26.6 per cent compared to the SIX Return Index, which increased 22.4 per cent.
- The Bure investment entity’s earnings after tax amounted to SEK 3,679M (21). Earnings per share amounted to SEK 49.5 (0.3).
Interim report April – June 2021
- Net asset value was SEK 287.0 per share compared to SEK 236.1 at the beginning of the quarter, corresponding to an increase of 21.6 per cent.
- Bure divested 1 million shares in Mycronic for SEK 258.9M, which resulted in an exit gain of SEK 246.4M.
- Bure Growth acquired an additional 0.04 million shares in BioLamina for SEK 8.0M, increasing its holding to 46.7 per cent.
- In line with the decision of the Annual General Meeting, an ordinary dividend of SEK 2.0 per share was paid, amounting to a total of SEK 148.3M.
Subsequent events
- Net asset value amounted to 323.8 per share on 18 August 2021, corresponding to an increase of 35.2 per cent since the beginning of the year.
- Vitrolife entered into an agreement to acquire 100 per cent of shares in Igenomix S.L. for EUR 1,250M. Igenomix is a global leader in female health and tests for reproductive genetics for IVF clinics. The transaction will be financed with rights issues, cash and cash equivalents, and bank credits. In July, Vitrolife conducted a directed rights issue in which Bure acquired 0.11 million shares for SEK 40.1M. Bure also entered into an agreement to acquire 0.83 million shares in Vitrolife from the sellers of Igenomix for SEK 305.0M.
Comments from the CEO
Bure’s net asset value per share jumped 21.6 per cent in the quarter. Substantial increases in Mycronic and Vitrolife, (26.0 and 38.7 per cent, respectively), were the key reasons for the strong growth in net asset value. In the first half of the year, Bure’s net asset value per share increased 19.8 per cent, compared to the SIX RX which increased by 22.4 per cent in the same period.
The portfolio companies generally reported good results for the second quarter of the year. However, it is important to remember that the comparative figures for the majority of companies are extremely low. Especially encouraging was that the two portfolio companies that were hardest hit by covid - Vitrolife and Mercuri - are now back at pre-covid levels.
During the quarter, Cavotec announced plans to increase investment in the electrification and automation of ports. The company sees strong growth potential for its sustainability-orientated products and solutions for ports and vessels that want to improve the environment by reducing their emissions. Cavotec recently won an order, inter alia, from Port of Kapellskär that will install Sweden’s first automated mooring system.
After the end of the period, Vitrolife entered into an agreement to acquire Spain’s Igenomix for EUR 1.25 billion. Igenomix provides reproductive genetics tests for IVF clinics. The merger will create a global leader in reproductive healthcare. Bure provided some of the financing that made the acquisition possible.
In the past 18 months, extensive support measures have been implemented to stimulate the economy and limit the negative effects of covid. This has created a strong economic recovery, which among other things has caused the prices of many assets to increase sharply. The SIX RX, for example, is up just over 30 per cent to date, raising questions over whether the stock market has become excessively overvalued.
Bure Equity AB (publ)