Skanditek Interim Report January-June 2000

Skanditek Interim Report January-June 2000 * Income before tax amounted to MSEK 3.2 (loss 16.3). This figure includes net depreciation of goodwill amounting to MSEK 25.2 (7.8) including asso- ciated companies. * Net sales for the period amounted to MSEK 557.0 (31.5), the greater part of which is attributable to newly acquired companies. * Skanditek has acquired all the shares in Vellinge Electronics. * The merger of Fermentech Medical and Vitrolife has been completed. This is Skanditek Skanditek is an industrial holding company owning stock in listed and un- listed Swedish companies. Our business concept is to be an active stock- holder and to contribute to the development process at these companies by providing industrial and financial competence at board and management level. Our aim is to generate long-term capital growth for stockholders. The portfolio comprises some twenty investments within the fields of elec- tronics, information technology, biotechnology and services. Investment activities During the period, Skanditek invested a total of MSEK 368 in portfolio companies, of which MSEK 199 relates to existing portfolio companies, pri- marily Vellinge Electronics AB. Divestments during the period amounted to MSEK 151, and mainly related to Fermentech Medical Ltd. Skanditek sold its holding in this company to Vi- trolife AB in return for newly issued shares in Vitrolife, which corre- spond to 48.1 percent of its capital. The transaction did not generate any income for Skanditek, as the booked value remains unchanged. The total in- vestment in Vitrolife amounts to MSEK 161, of which MSEK 10 is in the form of a convertible loan. Theducation AB is also new to the portfolio. This company develops, mar- kets and runs training programs via virtual classrooms on the Internet - known as e-learning - as a means of providing flexible and interactive learning. In connection with a new issue, Skanditek invested MSEK 8 for a 19 percent interest. The Group's net investments in tangible fixed assets amounted to MSEK 4.6 (1.7). Consolidated net sales and income During the January-June period, the Group's net sales amounted to MSEK 557.0 (31.5), most of which is attributable to newly acquired Group compa- nies. Besides CMA Microdialysis and Mydata Automation, Vellinge Electron- ics has also joined the Group with effect from the second quarter. The consolidated income before tax amounted to MSEK 3.2 (loss 16.3). This includes a net charge of MSEK 25.2 (7.8) for depreciation of goodwill and reversal of negative goodwill, including associated companies. Skanditek's policy is to depreciate goodwill over five years. Associated companies are stated using the equity interest method. The Group has received a MSEK 8.9 refund of surplus funds from the SPP pension insurance scheme, of which MSEK 7.0 has been taken into the re- sult. Shares in earnings of associated companies includes a refund of MSEK 6.0. In connection with the merger of Fermentech Medical and Vitrolife, a MSEK 4.5 valuation reserve for biotechnology holdings was brought back, which had a positive effect on the result. Consolidated net income was a loss of MSEK 5.5 (loss 16.3), which corre- sponds to a loss of SEK 0.10 per share (previous year: loss of SEK 0.33 based on the number of shares at the time). Consolidated income excluding depreciation of goodwill and the reversal of negative goodwill amounted to MSEK 19.7 (loss 8.4), which corresponds to SEK 0.34 per share (loss 0.17). The parent company's net result for the period was a loss of MSEK 1.5 (in- come of 2.6). In view of Skanditek's character as an industrial holding company, the ac- counts should be analyzed with caution. The object of the business is to create value. The percentage interest in the companies in the portfolio varies, as does the mix of Group companies, associated companies and other portfolio companies. Liquid funds, equity/assets ratio and number of shares At the end of the period, the Group's liquid funds amounted to MSEK 60.7 (30.3). In addition, the Group had short-term placements in listed equi- ties of MSEK 39.3 (18.9). Interest-bearing liabilities amounted to MSEK 51.0 (0). The Group's visible equity ratio was 62 percent (82), while that of the parent company was 98 percent (99). The Group's equity per share amounted to SEK 12.45 (6.80). Following the issue of 2,995,968 new shares in connection with the acqui- sition of Vellinge Electronics in April, the number of shares in issue is now 58,039,888. Human resources The Group had an average number of 549 (80) employees at June 30, 2000. The increase is attributable to the acquisitions of Mydata Automation and Vellinge Electronics, which joined the Group in November 1999 and April 2000 respectively. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/30/20000830BIT00840/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/30/20000830BIT00840/bit0002.pdf The full report