Impressive growth performance of our companies leads to strong result
CEO Koen Dejonckheere:
After demonstrating their resilience in the exceptional year 2020, the Gimv companies showed an impressive power in the past year. Both the turnover (+24%) and the profitability (+38%) of our companies experienced a very strong growth. Thanks to this exceptional performance, we again achieved a portfolio return of over 20% for the financial year 2021-22. This result was also supported by the realised capital gains on a number of exits, proof of successful value creation processes over the past years.
The strong growth in our companies, combined with a continued high investment level - both in promising new companies and through a series of bolt-on acquisitions in our portfolio companies - has resulted in a significant growth of our portfolio to almost EUR 1.5 bln. The value of our private equity portfolio has never been so high and offers considerable potential for future value creation. Combined with our net profit (EUR 6.6 per share) and our solid balance sheet, this strengthens our confidence to propose an increase of the dividend to EUR 2.6 per share.
Chairman Hilde Laga adds:
Our businesses face exceptional challenges: after the pandemic, there is now the war in Ukraine. The human suffering touches us deeply, but the situation also leads to an unstable global economy. All this is taking place in a context in which digitalisation is accelerating, the importance of sustainability is growing and international trade rules are being rewritten. As an active and experienced shareholder, we want to support our portfolio companies at the moments that really matter.
In addition, we take our responsibility as a sustainable investor. We want to build leading companies that deliver strong results and growth, offer the highest quality, are top employers for their teams and optimise their digital processes, while at the same time minimising the impact of their activities on the climate and the environment. In short, we are very proud of our companies that work with impressive dedication towards a better economy and a more sustainable society.
The results for the 2021-2022 financial year cover the period from 1 April 2021 to 31 March 2022.
- Impressive growth realised by our portfolio companies in 2021: 24% revenue and 37.6% EBITDA increase.
- This exceptional performance, combined with capital gains realised on several successful exits, results in a strong portfolio return and a solid net result.
- Portfolio result: EUR 251.3 million, or a portfolio return of 20.4%.
- Net result (group share): EUR 174.3 million (or EUR 6.6 per share)
Investments / Exits
- A high investment level of EUR 193.8 million, spread over a number of new participations and a growing number of bolt-on acquisitions within our portfolio companies (26 add-on acquisitions in the past financial year 2021-22).
- Total cash proceeds from divestments: EUR 218.9 million, with a realised money multiple of 3.2x compared to the total invested amount.
Balance sheet and portfolio
- A continued high investment rhythm and the strong performance of the Gimv companies result in a further growth of the investment portfolio by 17.5% to a new record level of EUR 1 449 million (invested in 59 companies).
- Liquidity remains substantial, with a cash position of EUR 377.8 million (of which EUR 350 million financed by LT-bonds, resulting in net cash of EUR 27.8 million).
- Value of equity (group share): EUR 1 413 million (or EUR 53.0 per share).
- Proposal to increase the dividend to EUR 2.6 gross (EUR 1.82 net) per share for the financial year 2021-22 (compared to EUR 2.50 gross (EUR 1.75 net) per share over the previous year), subject to approval by the general meeting of 29 June 2022.
- Payment via an optional dividend, which will enable Gimv to further strengthen its liquidity with a view on the continued growth of its portfolio.