2012-02-14 Press release: Year-end report for the financial year 2011

Exits in difficult market shows the values in the portfolio 

The Group’s result amounted to MSEK -15.6 (-5.3) corresponding to -0.42 (-0.14) per share. Equity, as at December 31, 2011 amounted to MSEK 317.8 (335.0) corresponding to SEK 8.55 (9.01) per share. The Group’s cash and holdings in listed shares amounted to MSEK 30.8 (77.4). Interest-bearing debt was amortized during the period by MSEK 65.8 and the company has no outstanding interest-bearing debt as per December 31, 2011.

Novestra’s portfolio company Qbranch was sold to Imtech from Holland during September. The purchase price for Novestras shares in Qbranch, including expected earn-out, amounted to MSEK 121.3 in addition to a dividend of MSEK 4.7 distributed prior to the sale. The sale corresponds to approximately SEK 3.4 per Novestra share.

Novestra’s portfolio company Netsurvey was acquired in June by Wise Group AB, a company listed on First North. The transaction was made to a value which exceeded Novestra’s carrying value with approximately 14 percent.

The business situation for the portfolio companies is very strong and prospects for significantly improved growth and increased profitability during 2012 are deemed as very good. Currently, there is no need for additional funding in any of the portfolio companies.

Valuation of the private portfolio in 2011 was negatively affected by the sharp decline in the stock market despite positive development in the companies. The market has been more positive since the beginning of 2012 and provides opportunities for increased values.

The Extraordinary General Meeting held on February 8, 2012 resolved to authorize the Board of Directors to purchase the company’s own shares. The Board resolved that the company shall commence purchase of own shares and that acquisition shall be executed in intervals until the Annual General Meeting 2012.

The total return on the Novestra share since 2002 including dividends amounts to 204.7 percent, corresponding to an annual return of 11.8 percent. The total return index for the Stockholm stock exchange during the same period gave a return of 5.5 percent per year.

Comments from the Managing Director 

“The divestment of Netsurvey and Qbranch at good values in a generally very tough market confirms that the long-term work in the portfolio companies has been the right strategy and proves that the ability to do business with quality companies exists regardless of market conditions. The completed divestments have been very good value-wise, at the same time it can be concluded that companies with the greatest potential in creating value remain in the portfolio. While the result was positively affected by the realized values it was negatively impacted by the unrealized down turn in value due mainly to the holding held in the listed company WeSC, where we can simultaneously observe the positive value development since the start of 2012” says Johan Heijbel.

For further information, please contact Johan Heijbel, Managing Director AB Novestra, +46 (0) 8 545 017 50

The information provided in this report is such that AB Novestra is obliged to make public according to the Securities Market Act (sv. lagenomvärdepappersmarknaden). The information has been released to the media for publication on February 14, 2012 at 8.55 am (CET).

About AB Novestra
Novestra is an independent investment company with a portfolio of investments in a number of privately held growth companies including Diino Systems AB, Explorica, Inc., MyPublisher, Inc., and Strax Group GmbH. In addition, Novestra has an investment corresponding to approximately 6 percent of the shares in WeSC AB, listed on First North.

The Novestra shares are listed on the Nasdaq OMX Stockholm, under the symbol NOVE, in the Small Cap section. For further information regarding AB Novestra, reference is made to www.novestra.com

Download year-end report (PDF)

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