Strong operational development and growth in the portfolio companies, but downward adjustment
due to turbulent market conditions
The Group’s net income amounted to MSEK -81.3 (-9.5) corresponding to SEK -2.18 (-0.25) per share. Equity as at September 30 2008 amounted to MSEK 340.6 (407.7), corresponding to SEK 9.16 (10.96) per share. Cash and cash equivalents including liquid investments amounted to MSEK 49.4 (38.5).
The powerful decline in the financial markets during the third quarter has resulted in Novestra making a downward adjustment of the carrying value for the unlisted portfolio to the amount of MSEK 76. The adjustment is not made due to the development in any individual company but solely due to how the type of company, in general, is valued in the current market conditions.
Novestra believe five of the six portfolio companies will achieve record sales this year, as well as showing positive cash flow and increased margins.
Development in the portfolio companies has in general been strong during the first nine months of 2008. MyPublisher has shown an increased growth in sales of approximately 70 percent, Qbranch 22 percent and Strax 2 percent.The growth in sales for Explorica for the financial year 2008/2009 is expected to amount to approximately 20 percent with improved profitability.
Diino continues to see a strong increase in regard to the number of registered users. The company has more than doubled the number of users and has exceeded 1.3 million users during the period while continuing to work on increasing the revenues and strengthening the cash flow.
“The current market condition and the continued turmoil in the financial markets shows that the risk premiums have significantly increased, while at the same time it is obvious at the moment that the market does not value growth. This is seen by the decrease in value of comparable companies for Novestras holdings, which has resulted in Novestra making downward adjustments. Considering the market situation I am very happy with the development in our portfolio companies, where five of the six companies will achieve record sales this year, and show positive cash flow. I am very optimistic to the long term development in the value potential for the portfolio, regardless of the current market situation and the unrealized downward adjustments. ” Says Johan Heijbel, Managing Director at Novestra.
The information provided in this interim report is such that AB Novestra is obliged to make public according to the Securities Market Act. The information has been released to the media for publication on November 11, 2008 at 8.55 am.
Download Interim Report (PDF)