Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on INVESTOR AB-B SHS. We currently have 3 research reports from 1 professional analysts.
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INVESTOR AB-B SHS
INVESTOR AB-B SHS
Continuing execution on strategy
23 Aug 16
In H1 16, the consolidated net loss amounted to SEK-6,288m compared to a net profit of SEK25,542m for the same period in 2015. A high amount of unrealised changes in value characterised this result as in every year, but this time the changes were negative (SEK-12,857m). Except for this item, the net result was SEK6,566m for the group share (-2% yoy), including SEK5,560m for dividends received (SEK6,266m in 2015), almost all from the listed holdings. The negative value changes were related to the Listed Core investments of Investor’s portfolio. The contribution to the NAV was negative from Skandinaviska Enskilda Bank, Sobi, AstraZeneca, Ericsson and Wärtsilä. Concerning the sub-holding Patricia Industries, the contribution to Investor’s NAV was in contrast positive for all the subsidiaries, the highest performance coming from Mölnlycke Health Care. During the half year, Investor acquired further shares in two listed holdings for a total of SEK0.4bn: Atlas Copco: 750,000 shares for SEK125m (+0.1% of the share capital, raising its stake to 16.9%); Wärtsilä: 700,000 shares for SEK247m (+0.5% raising its stake to 17.5%). In its interim reports, Investor now only communicates on the parent company’s net debt – even if the financial accounts allow consolidated net debt to be calculated. Investor’s management considers the reorganisation of the group made last year (see our Latest dated 11/08/2015) leads to a separation of the debt financing of the subsidiaries within Patricia Industries from Investor’s net debt. Investor’s net debt increased slightly from SEK15,892m at the end of 2015 to SEK17,430m at 30/06/2016, but this debt seems to be usually higher at the end of the half year. It corresponds to a leverage ratio (net debt/total assets) of 6.3% after respectively 6.7% in H1 15 and 5.5% at the end of 2015. For its part, Patricia Industries continued to divest financial investments to release capital for a total amount of SEK1,375m, while several subsidiaries made complementary acquisitions for SEK310m. Patricia Industries also made an internal transfer of SEK1,259m to Investor. All the subsidiaries performed well, recording sustained organic growth, with particular mention of Mölnlycke Health Care. Investor’s investments in the private equity group EQT contributed positively to the NAV during H1 16. Investor’s total outstanding commitments to EQT funds increased by c.SEK3bn to SEK11.6bn, boosted by the successful closure of two new funds: EQT Mid Market Credit and EQT Ventures.
In good shape to celebrate its centenary
08 Mar 16
The 2015 consolidated net result decreased to SEK17.4bn, including a lower amount of unrealised change in value than in previous years (SEK8.5bn, compared with SEK42bn in 2014). Except for this item, the group’s net result amounted to SEK8.9bn (+2.3%), of which SEK7,681m was dividends received from the listed holdings (SEK6,227m in 2014). During the year, Investor invested SEK12bn, of which about SEK6bn was used to acquire further shares in two listed holdings (ABB and Wärtsilä). The strong cash flow generation also allowed Investor to reduce its net debt. The parent company’s net debt amounted, consequently, to SEK15.9bn (after about SEK20bn at 30/06/2015), leading to a leverage ratio debt (net debt/total assets) of 5.5% (after respectively 6.7% in H1 15 and 7.3% at the end of 2014). The average maturity of Investor’s debt was 10.3 years at year-end (11.3 years in 2014), excluding the debt of the companies consolidated via the holding Patricia Industries. In Q4 15, Moody’s upgraded Investor’s long-term credit rating from “A1” to “Aa3”. Standard & Poor’s current rating is “AA–“. For 2015, a dividend of SEK10 per share (+11%), in line with our estimate, will be proposed.
Start of the functioning of the new organisational structure
12 Aug 15
In H1 15, consolidated net profit increased to SEK25.5bn compared to SEK23.7bn for the same period in 2014, characterised by a high amount of unrealised change in value (SEK18.8m), as in every year. Except for this item, the net result was SEK6.7m for the group share (-13%), including SEK6.3bn for dividends received (-7%), almost all from the listed holdings. The parent company‘s net debt amounted to SEK19,975m, corresponding to a leverage ratio (net debt/total assets) of 6.7% after respectively 9.5% at 30/06/2014 and 7.3% at the end of 2014. The reported leverage has been reduced by both the increase in NAV and the reorganisation of the group. In Q2 15, Investor’s new structure was implemented, with investments within “Listed core investments”, the private equity firm EQT and Patricia Industries. As a consequence of the reorganisation with the constitution of Patricia Industries, cash previously held by Investor Growth Capital (IGC) is now included in Investor’s gross cash. During the first half-year, Investor acquired a further 19.2m shares in ABB for a total of SEK3.5bn, leading it to own 9.5% of the capital and votes in the company. Within Patricia Industries from Q2 15 onwards, Mölnlycke Health Care continued to grow with stable profitability and launched two initiatives in the US wound care market. Aleris reported growth and significantly improved profitability. In Permobil, the ramp-up of new products improved growth. The activities of Grand Hôtel progressed favourably with an increase in the EBITDA margin and the activities and operating results improved for the provider of mobile voice and broadland services: 3 Scandinavia (40% held).
Mobilising the strategy
08 Dec 16
PCF has reported a good set of FY16 figures this morning. Pro forma 12 month adjusted pre-tax profit increased 38% YoY to £4.0m (FY15: £2.9m), 5% ahead of our estimate of £3.8m. Fully diluted return on equity remained broadly stable YoY at 13% but beat our forecast of 12.6%, driven by good loan book growth, up 14% YoY to £122m. Given the strength of the results the board has reinstated a dividend of 0.1p per share. Following Tuesday’s announcement of the approval of a banking licence, we believe that the group now has the capacity to accelerate its growth prospects. While the shares trade at 12.0x earnings and 2.0x reported book value, we do not believe this valuation captures the growth potential of the business.
VPC Speciality Lending Investments PLC – sticking to your knitting pays dividends
05 Dec 16
A 25% discount on a dividend paying vehicle suggests either (a) lack of belief in the NAV, (b) lack of belief in the dividend, (c) concerns over future delivery, (d) a shareholder’s base not normally exposure to “closed end structures” or (e) some combination of (a) to (d). We had a first meeting with the management team and London representative of VPC Speciality Lending to try to better understand why the share price had fallen quite so much.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
Better Capital – A tale of two funds
05 Dec 16
Our gut feel on the results is that BCAP’s Gardner disposal feels viable (albeit as a late Q1 transaction). Post Gardner, the exit profile for BCAP’s portfolio is slanted towards the years 2018/19 and not earlier; we view the market’s current pricing as cautious (14% disc to our estimate of FV). In contrast, BC12’s more consumer facing portfolio remains a work in progress and may well offer further disappointment before turning a corner; the market valuation (51% discount to NAV) is cautious but probably fair given the difficulties.
Panmure Morning Note 07-12-2016
07 Dec 16
PCF today announces that it has succeeded in achieving once its major strategic goals by being granted a UK banking licence. In line with prior guidance, the company aims to begin taking deposits in summer 2017 and will initially focus on lending to its core markets in consumer motor finance and SME asset finance. As well as supporting growth in the loan book, the banking licence will both diversify and reduce the cost of its funding base. More details are expected as part of the FY16 results tomorrow.
Meeting near-term headwinds
06 Dec 16
In its trading update IFG reported that performance has been in line with management expectations. The cooling effect of market uncertainty on growth in James Hay and financial advice client numbers, together with the impact of low interest rates, remain a near-term head wind for revenues. Even so, with Saunderson House continuing to increase profits, IFG expects to match 2015 earnings. The long-term growth opportunity presented by an ageing population and pension freedoms remains in place and to address this IFG is continuing investment to enhance its service and increase operational gearing.