Interim Report January - June 2001

Interim Report January - June 2001 STRONG FINANCIAL POSITION - GOOD OPPORTUNITIES FOR ACQUISITION IN A TURBULENT MARKET The Shareholders received SEK 19.50 per share through the distribution of Observer and a cash dividend The net asset value amounted to SEK 40 per share after dividends and value adjustments Profit after tax amounted to SEK 127M for the six month period. Write- downs and an absence of exits generated a negative result for the parent company in the second quarter of SEK -311M The investments increased to SEK 296M in the second quarter compared with the first quarter (SEK 99M) The development of the hub companies is satisfactory in a difficult market Many potential acquisition objects are being evaluated Bure implemented a buy-back of one million own shares during the second quarter and of two million shares after the end of the reporting period. Events after the end of the reporting period Bure acquired Propello and Journalistgruppen to create a leading group within business communication Introduction Following a period of consolidation, successful exits and substantial dividends to the shareholders, Bure is currently in an investment phase. We continue our work based on our successful proven strategy. We have a well-tested model for building up market leading companies within fragmented knowledge and growth sectors. During 2000, we have tightened up our organisation, increased our sector focusing still further, and continue our investments within IT Solutions, IT Services & Logistics, InfoMedia and Training & Education. Bure will continue to create strategic hub companies within these business areas. The continued fall in value on the stock market for shares in the IT sector has meant that Bure has adjusted the portfolio values in accordance with EVCA's recommendations. Together with implemented dividends, this has affected the net asset value. Bure has a continued strong financial position that enables a high investment rate and freedom to act. Increasingly attractive company valuations have created a favourable environment for new investments. Bure's organisation is well equipped for this. Group Results Consolidated profit after financial items for the second quarter amounted to SEK -339M (560) and to SEK 109M (2,403) for the six months of 2001. Parent company Results The parent company's profit after tax for the second quarter amounted to SEK -311M (346) and to SEK 127M (1,677) for the six month period. Exit gains amounted to SEK 570M in the second quarter. Write-downs of SEK 315M affected the quarter as follows: -listed holdings SEK 161M -unlisted holdings SEK 112M -receivables SEK 42M Dividends of SEK 44M (60) were received during the second quarter and totalled SEK 44M (60) during the six-month period. Administrative costs amounted to SEK 57M (35) for the second quarter and to SEK 86M (72) for the six-month period. Of this approximately SEK 12M constitutes one-off costs. Interest income and expenses amounted to SEK 17M (-8) in the second quarter and to SEK 35M (-16) for the six-month period, which is the result of the positive net loan liability. Financial position On 30 June, the parent company's total assets amounted to SEK 3,823M compared with SEK 4,690M at the start of the year. In the second quarter, dividends to the shareholders affected total assets by SEK 940M. On 30 June, shareholders' equity amounted to SEK 3,467 and the equity ratio was 91 per cent compared with 92 per cent at the start of the year. At the period end, the positive net loan liability amounted to SEK 822M which means a reduction of SEK 858M during the quarter. The majority of this related to cash dividend and investments. At the turn of the year, the positive net loan liability amounted to SEK 1,149M. The stock portfolio, which is managed by Bure Kapital and is included in the positive net loan liability, amounted to SEK 627M. The yield was approximately 8 per cent during the quarter compared with the General Index which was approximately 4 per cent. Divestments and exit results All of Bure's shares in Observer were distributed to Bure's shareholders during the second quarter. One share in Observer was received for every six shares in Bure. The acquisition value for the Observer share has not yet been established but will be announced as soon as the National Tax Board's decision is available. Bure also divested its holding in Chematur during the quarter. In recent years, the company has reported substantial losses and Bure participated in a financial reconstruction in connection with the sale. In previous accounts, Bure has allocated funds which are deemed to cover Bure's undertaking for this reconstruction. In total, divestments of SEK 770M were implemented during the six months with a total exit result of SEK 570M. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/21/20010821BIT01340/bit0003.doc Full report http://www.waymaker.net/bitonline/2001/08/21/20010821BIT01340/bit0003.pdf Full report