2009-02-16 Press Release: Year-end Report for the financial year 2008
Very positive development and growth in the portfolio companies during 2008 despite weaker economic climate
The Group’s net income amounted to MSEK -90.7 (4.7) corresponding to SEK -2.4 (0.13) per share. Equity as at December 31 2008 amounted to MSEK 331.1 (421.8), corresponding to SEK 8.9 (11.3) per share. Cash and cash equivalents amounted to MSEK 47.9 (53.4).
Novestra has a portfolio mainly consisting of mature growth companies, with good profitability, in a broad range of industries. The portfolio companies had combined sales amounting to approximately MSEK 2 050 during 2008, with a combined EBITDA amounting to approximately MSEK 100.
Sales in 2008 for MyPublisher amounted to approximately MSEK 210, a growth rate of approximately 56 percent, in Qbranch sales amounted to approximately MSEK 440, corresponding to a growth rate of 20 percent and sales in Strax amounted to approximately MSEK 770, corresponding to approximately 2 percent. Explorica expects sales of approximately MSEK 580 for the financial year 2008/2009, corresponding to a growth rate of approximately 15 percent.
The value of the private portfolio has been written down by a total of MSEK 78.4 during 2008. The value adjustment is not related to the development in the individual companies but reflects the changes in valuation multiples in publicly traded companies in the current financial climate.
“We have had an exceptionally strong development in the portfolio companies and conclude that many of the strategic decisions made during the last two years started to show results during 2008. While we noticed a slight deceleration in growth during the fourth quarter, most of the portfolio companies started 2009 with strong balance sheets and expectations for continued growth even in a tougher economic climate.
Despite the very positive growth and earnings trend in the portfolio companies during 2008, we have made downward value adjustments, and therefore report a negative result for the year. The reason for the value adjustment is the substantial revaluation which has taken place in the financial markets due to the uncertainty of the economic climate as well as the lowered future expectations. Novestra has therefore written down its values accordingly” says Novestra’s Managing Director, Johan Heijbel.
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