Interim report no. 2 for the financial year 2001/2002 referring to the period july 1 - december 31, 2001
INTERIM REPORT NO. 2 FOR THE FINANCIAL YEAR 2001/2002 REFERRING TO THE
PERIOD JULY 1 - DECEMBER 31, 2001
* Shareholders' equity as of December 31, 2001 amounted to MSEK
375.3 (593.2) corresponding to SEK 16.0 (25.4) per share. Solidity
amounted to 98.3% (91.9).
* Cash and cash equivalents amounted to MSEK 113.7 (229.7)
corresponding to SEK 4.9 (9.8) per share.
* The result was MSEK -69.0 (-70.1) or SEK -3.0 (-3.0) per share.
* During the period, B2 Bredband concluded its capitalization of
* Novestra has increased its ownership in Strax by 7% to 16.5%.
SEK thousands unless otherwise indicated.
SIGNIFICANT EVENTS DURING THE PERIOD
During the period, B2 Bredband's private placement provided SEK 2.4
billion. The capitalization is expected to finance the company through
to positive cash flow.
In the beginning of October, the company's holding in Skandia Mäklarna
was divested at a profit.
During the period, Novestra has made additional investments in existing
portfolio companies totalling 37,800 (73,719), including 27,500 in
Qbranch and 3,000 in Netsurvey.
In the last quarter, Novestra has taken a number of measures with regard
to the companies having immediate capital needs, in accordance with
Novestra's previous interim report. The costs associated herewith have
burdened the result and lies within the frame of the previously
communicated exposure to such companies.
As has many other IT companies, Iquity Systems has experienced
difficulties in carrying through additional raising of capital and, in
connection with Target Investment AB's offer on Iquity Systems, Novestra
has made substantial write-downs of, in total, MSEK 25.9.
In December, Novestra sold its shares in Blokks to Industrifonden, its
shares in Multilet to Ericsson and its shares in Evestra to the
founders, all at a loss.
SIGNIFICANT EVENTS AFTER THE END
OF THE PERIOD
Novestra has acquired additional shares in Strax after which the average
acquisition price of Novestra's holding of 16.5% corresponds to a
company value of approx. MUSD 13.6, to be compared with a forecasted
turnover in 2002 of MUSD 60. Novestra has options to increase its
ownership further in 2002.
After the measures taken, Novestra's portfolio mainly consists of
companies in the post-venture phase with substantial revenues, growth
and with limited capital needs.
The sales in the unlisted companies are expected to show strong growth
and, on average, increase by approx. 80% in 2002 compared with 2001.
The number of industrial holdings now amounts to 6 of which particularly
Strax, Qbranch, Netsurvey and myPublisher have developed especially
well. Among the investment holdings, B2 Bredband and Continuum have all
the requirements to yield good returns to their shareholders.
myPublisher has developed very well recently and is now on its way
towards a commercial break-through in the U.S. where the company's
product category has been given much attention in connection with the
recent launch of Apple's iPhoto. The company has ensured the capital
needed to reach positive cash flow expected by the end of the current
Several portfolio companies showed positive cash flows and, most of
them, are fully financed with current business plans.
Facing 2002, Novestra has a solid basis after having sold or written
down most of its holdings with immediate capital needs, in accordance
with Novestra's previous interim report. However, Novestra will focus on
supporting those companies which have the competence and the
qualifications to develop its business and to create growth in revenue
and result. With the latest write-downs, the part of the book values
relating to holdings with capital needs or which have had a negative
development in 2001 is limited.
Novestra has reduced its relatively low administrative expenses further
and they now amount to approx. MSEK 15 annually. In addition, Novestra
expects to obtain other revenues which could further lower operating
Novestra intends to continue to increase its ownerships in companies
that develop well, as was done in Qbranch and Strax. New investments
will mainly be evaluated and made through existing companies, however,
occasionally, investments in new portfolio companies will be made in the
Novestra is well positioned to take part in a restructuring of the
industry during 2002.
With its present business focus, Novestra has no further capital needs
for the next few years.
RESULT AND FINANCIAL POSITION
JULY 1 - DECEMBER 31, 2001
Novestra reports a result, according to the equity method, of -69,018 (-
70,055). The result includes gross profit from investment activities
amounting to -57,404 (-59,813), of which
-19,680 (-3,097) is the result from shares and participations, -25,872 (-
47,841) pertains to write-downs and -11,852 (-8,875) is share of
earnings of associated companies. The result also includes gross profit
from other operations totalling -5,589 (-1,802). The Group's cash and
cash equivalents amounted to 113,663 (229,721).
The net result in the parent company amounted to -55,768 (-52,487). The
result includes gross profit from investment activities amounting to -
50,028 (-43,594), administrative expenses -7,591 (-11.354) and net
financial items 1,851 (2,461). Total assets as of December 31, 2001
amounted to 415,856 (657,536), of which shareholders' equity was 410,240
(607,373) corresponding to a solidity ratio of 98.6% (92.4). Cash and
cash equivalents amounted to 109,614 (222,353).
During the period, investments in tangible fixed assets amounted to 61
(734) and investments in financial fixed assets amounted to 64,690
This interim report has been prepared in accordance with Sweden's Annual
Accounts Act and the recommendations of the Swedish Financial Accounting
Standards Council. There has been no change to the accounting and
valuation principles used in the latest annual report. As of July 1,
2001, Novestra applies the new recommendations from the Swedish
Financial Accounting Standards Council which came into force January 1,
2001. The new recommendations have not had any impact on the Group or
Parent company accounts. This interim report differs from the report for
the corresponding period last year in that holdings in associated
companies are reported in accordance with the equity method.
Consequently, the corresponding figures for last year have been revised.
Interim report July - MarchApril 23, 2002
Interim report July - June August 20, 2002
The company's financial year will henceforth cover the period from
January 1 to December 31 and, therefore, the current financial year will
cover the period July 1, 2001 - December 31, 2002 (i.e. 18 months).
This report has not been subject to any audit by the company's auditor.
Stockholm January 22, 2002.
For further information please contact:
Thomas Åkerman Phone: +46 8 545 017 50
Cecilia Janson Phone: +46 8 545 017 50
The company's address:
SE-111 43 STOCKHOLM
Corporate identity number: 556539-7709
Registered Office: Stockholm, Sweden