Strong results on the back of a resilient portfolio

19/11/2020 - 07:00 | Financial

CEO Koen Dejonckheere:

Following the significant negative correction at the end of the previous financial year due to the pandemic crisis, Gimv achieved a 12% return on its portfolio in the first half of the 2020-21 financial year. This reflects not only the resilience of the portfolio and a recovery on the stock markets, but also a strong capital gain on a small number of exits.

Even in today’s challenging times, in which competition to invest in strong growth companies has certainly not diminished, Gimv has confirmed its investment ambition by investing over EUR 100 million, both in new participations and in the further strategic development of the existing portfolio.

In combination with the revaluation, this produced a significant 12% growth of the total investment portfolio to EUR 1.14 billion. Gimv's balance sheet remains solid, with more than EUR 300 million in liquid assets available for expanding the portfolio and strengthening our businesses.

The ongoing Covid crisis continues to confront us with a high degree of uncertainty and exceptional challenges. It is clear that not all sectors and companies are affected in the same way. Today it is difficult to estimate how drastically the second phase of the pandemic will affect the activities of our diversified portfolio. Even if some of our businesses are going to take longer than originally expected to recover lost ground, the decisiveness and agility we observe right across our portfolio enable us to state with confidence that they are set to come strong out of these testing times

The results for the first half of FY 2020-2021 cover the period from 1 April 2020 to 30 September 2020.

Key elements

Results

  • The portfolio has demonstrated its resilience. The impact of Covid-19 varied considerably from one sector to another, but was overall less negative than originally estimated.
  • Since the start of FY 2020-21, stock markets have recovered, with a direct positive impact on the valuation multiples used. Combined with a resistant portfolio, this results in a significant unrealised upward revaluation of our portfolio.
  • Portfolio result: EUR 122.4 million
  • Portfolio return: 12.0% (not annualised)
  • Net result (share of the group) EUR 94.0 million (EUR 3.67 per share)

Investments / Divestments

  • Total investments : EUR 105.5 million in 3 new portfolio companies, plus a number of strategic add-on acquisitions
  • Total cash proceeds from divestments:1 EUR 103.4 million

Balance sheet and portfolio

  • Investment portfolio grows 12.1% to EUR 1 140.4 million with new investments and a positive valuation result
  • Young and promising portfolio of 55 portfolio companies, with 80%+ of the portfolio invested in the last 4 years
  • Balance sheet total: EUR 1 457.4 million
  • Cash position: EUR 302.9 million (of which EUR 250 million from the LT bond issue in June 2019)

Equity

  • Equity value (group’s share): EUR 1 163.6 million (EUR 44.7 per share)

Dividend

  • Gimv seeks to maintain its long-term dividend policy

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[1] Excluding the non-cash The Babyshop Group - Melijoe transaction

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