Divestments produce half-year profit of EUR 21.0 million and a net asset value of EUR 40.42 per share - High investment activity across all platforms - Gimv moves into higher gear with infrastructure joint venture DG Infra

21/11/2013 - 07:00 | Financial

The results for the first half of the 2013-2014 financial year relate to the period from 1 April 2013 to 30 September 2013.

Key elements (limited consolidation)

Results

  • Net result (group's share): EUR 21.0 million (or EUR 0.85 per share)
  • Net realised capital gains: EUR 15.2 million
  • Net unrealised capital gains: EUR 0.7 million

Equity (at 30.09.2013)

  • Equity (group's share): EUR 999.3 million (or EUR 40.42 per share) - up slightly from 31 March 2013, after offsetting the cash dividend with the capital increase via the optional dividend

Dividend

  • Gimv strives to maintain its current dividend policy

Balance sheet (at 30.09.2013)

  • Balance sheet total: EUR 1 032.6 million
  • Net cash position: EUR 138.0 million
  • Financial assets: EUR 855.6 million

Investments

  • Total investments (on balance sheet): EUR 70.9 million. Additional investments by Gimv co-investment funds: EUR 13.7 million Total investments (on balance sheet & via co-investment funds): EUR 84.6 million

Divestments

  • Total divestment revenues (on balance sheet): EUR 50.8 million
    Additional revenues from divestments by Gimv co-investment funds: EUR 17.5 million. Total divestments (on balance sheet & via co-investment funds): EUR 68.3 million
  • Divestment revenues: 42.9% above carrying value at 31 March 2013, and at a multiple of 1.0 x original acquisition value

Commentary

Managing Director Koen Dejonckheere on the results of the past half-year: "In the first half Gimv reaped the fruits of its sustained long-term investments in the biotech and medtech sector. A number of attractive divestments freed up resources for new investments in these innovative areas, which are a cornerstone of the investment strategy of the Health & Care platform.
As well as our permanent concern for value creation within the existing portfolio, we began to see the first concrete results of the platform strategy Gimv launched last year. The intensified and more focused activity resulting from this has already produced a number of concrete investments on all platforms. With these Gimv is committed to helping a number of promising new partners build long-term growth trajectories. At the same time, certain of our companies are still being held back by a fragile financial and economic context, as is reflected in their results and, by extension, in the valuation of these investments."

"Over the past twelve months, we have laid the foundations for a successful rollout of the new strategy. We are pleased to observe that the new approach, with a large pro-activity to carefully-chosen growth companies, is bearing fruit. Our knowledge of these sectors and our understanding of how value can be created are creating a fruitful dialogue with the entrepreneurs and companies involved," says Gimv Chairman Urbain Vandeurzen. "In our Sustainable Cities platform, we have decided to move into higher gear with our infrastructure franchise. Alongside its fund manager activity, the DG Infra joint venture will be developing its own infrastructure projects with a view to subsequent profitable divestments. As well as an increased allocation from the JV's sponsors, we shall also be looking at how additional funds from outside investors can be deployed. This will allow DG Infra to invest in the coming years in local infrastructure projects in Belgium and neighbouring countries. These funds, in conjunction with the savings assets coming from our financial partners, will enable us to complete major projects with a significant multiplier effect," he concludes.

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