Business Update - First nine months of the 2018/2019 financial year
In addition to the publication of half-year and annual results, Gimv provides an update of its activities and of the most important developments on a quarterly basis. The figures below (IFRS, consolidated, unaudited) cover the period from 1 April 2018 to 31 December 2018.
Managing Director Koen Dejonckheere:
"In the third quarter, we continued our growth: Gimv invested over EUR 100 million in promising new participations and some portfolio companies realised strategic buy-and-build acquisitions. This resulted in a further expansion of our young and promising portfolio. The IFRS valuation of the portfolio was impacted by lower market multiples due to a weak stock market evolution at the end of 2018."
NAV: EUR 1 253.6 million
In the first nine months of the current financial year, the shareholders’ equity increased from EUR 1 210.7 million (adjusted for the dividend payout) to EUR 1 253.6 million on 31 December 2018 or, per share, from EUR 47.6 to EUR 49.3.
Investments: EUR 181.4 million in 9 months - Active investment period
Gimv realised 4 new investments in the third quarter, for a total amount of over EUR 100 million:
- La Comtoise (Connected Consumer): French company, develops and supplies tailor-made cheese solutions for the food industry.
- Groupe Claire (Sustainable Cities): French group, specialist in connections, metering and fittings for drinking water supply. Also develops tailored and innovative products and solutions for network monitoring and control.
- Medi-Markt (Health & Care): German service provider in incontinence care.
- Camel-IDS (Health & Care): Belgian biotech company, develops radio-immunotherapeutic drugs for breast cancer patients. One of the biggest financing rounds in European biotech in 2018.
Divestments: EUR 142.1 million in 9 months
In the third quarter, Gimv realised the successful exit of Walkro, producer of high-quality substrate for mushroom growers around the world. Walkro's stake was sold to the Irish Monaghan Mushrooms - the sole shareholder - with activities in the full range of fresh mushrooms.
Portfolio: Increase from EUR 960 million to EUR 1 060 million (+10%) in 9 months
Value creation via buy-and-build
In line with our strategy of sustainable value creation by building strong companies, several of our portfolio companies realised significant add-on acquisitions in the past quarter, in some cases financed with an additional capital injection from Gimv.
La Croissanterie marked a strategic step by merging with Groupe Rush (Maison Pradier and Roberta), Wemas realised its second add-on in 2018 through the acquisition of Landwehr Schilderfabrik, Summa completed the acquisition of CadCam Technology and finally also Snack Connection was very active in the field of buy-and-build.
Strong portfolio growth
Both the intensive investment activity, the persistent value creation through buy-and-build and the good portfolio performance resulted in a strong growth of the portfolio by 10% in the first nine months of the financial year to EUR 1 060 million. On the other hand, the weak stock market evolution at the end of 2018 had a negative impact on the IFRS valuation of the portfolio through the lower market multiples. The negative valuation impact amounted to approximately EUR 28 million in the third quarter.