Sievi Capital Plc’s Half-Year Report 1 January–30 June 2021
Sievi Capital Plc
Stock exchange release 17 August 2021 at 8:00 am EEST
Sievi Capital Plc’s Half-Year Report 1 January–30 June 2021
Record-breaking result for the first half of the year, Indoor Group and KH-Koneet Group show strong development
This is the summary of the Half-Year Report for January–June 2021. The full Half-Year Report is attached to this release and is also available on the company’s website at www.sievicapital.fi.
April–June 2021
- Operating profit was EUR 9.4 (2.1) million
- Net profit for the period was EUR 7.6 (1.6) million
- Earnings per share (undiluted and diluted) were EUR 0.13 (0.03)
January–June 2021
- Operating profit was EUR 13.1 (-2.5) million
- Net profit for the period was EUR 11.0 (-2.1) million
- Earnings per share (undiluted and diluted) were EUR 0.19 (-0.04)
- Net asset value per share at the end of the review period was EUR 1.48 (1.13)
- Return on equity for rolling 12 months was 30.4% (10.9%)
- Gearing at the end of the review period was -5.7% (-18.8%)
- Logistikas and Nordic Rescue Group signed agreements on acquisitions
- Sievi Capital paid its shareholders dividends a total of EUR 0.04 per share
Figures in parentheses are figures from the corresponding period in the previous year, unless indicated otherwise. Information in the Half-Year Report is unaudited. Sievi Capital does not consolidate the data of its subsidiaries into Group-level calculations line item by line item but recognises investments in the companies at fair value through profit or loss.
CEO Päivi Marttila:
“During the first half of 2021, strong development could be seen in our largest target companies Indoor Group and KH-Koneet Group. The companies successfully implemented their strategies and the results of both companies improved significantly in January–June compared to the comparison period. The financial development of Logistikas and Nordic Rescue Group, acquired last year, was not as strong during the review period, partly due to the challenges posed by their operating environments. Logistikas and Nordic Rescue Group also made good progress in implementing their strategies, and during the review period, both companies signed agreements on acquisitions to expand their business operations.
As a result of the good development of our largest target companies Indoor Group and KH-Koneet Group, the value development of our investments was very positive. Driven by changes in value of investments, Sievi Capital’s result for January–June was very strong and return on equity for rolling 12 months was 30.4%. I am very pleased with the results we have achieved.
The M&A market continued to be active. As for new investments becoming available, the usual pre-holiday season slowdown could be seen, but we believe activity will be at a good level in the coming months. Our target is to make investments in 1–2 new target companies per year and we trust that we are well placed for achieving this target this year, too.”
Future outlook
Sievi Capital will continue to explore new investment opportunities in line with its strategy. The company plans to make an average of 1–2 new investments per year but the number of investments made may vary from year to year. For existing investments, the active development of the companies’ business operations will continue. Exit planning and the assessment of exit opportunities will also continue.
Sievi Capital does not consolidate the data of its subsidiaries into Group-level calculations line item by line item but recognises investments in the companies at fair value through profit or loss. Changes in the fair values of the investments have a material impact on Sievi Capital’s results. In addition to the target companies’ own development, factors that influence the development of the fair values of the investments include, for instance, the general development of different sectors and national economies as well as changes in their outlooks, the development of stock market and interest rates and other factors beyond Sievi Capital’s control. Furthermore, the coronavirus pandemic increases uncertainty when it comes to anticipating development.
Sievi Capital’s financial target is a return on equity of at least 13%, the achievement of which the company considers to be realistic in the long term. Due to the nature of the business, the company’s short-term result development is subject to volatility that is difficult to predict. Therefore, Sievi Capital does not provide an estimate of the result development in 2021.
Results presentation webcast
Sievi Capital will organise a webcast in Finnish for analysts, investors and the media on 17 August 2021 at 10:00 am EEST. You can follow the live webcast at https://sievicapital.videosync.fi/2021-08-17-sievicapital-q2.
A recording of the webcast and the presentation materials will be available later on the same day on Sievi Capital’s website.
SIEVI CAPITAL PLC
Päivi Marttila
CEO
FURTHER INFORMATION:
CEO Päivi Marttila, tel. +358 400 285 358
DISTRIBUTION:
Nasdaq Helsinki Ltd
Major media
www.sievicapital.fi
Sievi Capital is a partner for Finnish entrepreneurs. We support the growth, performance and value creation of small and medium-sized companies and concurrently build national competitiveness. We believe that we succeed together as co-entrepreneurs. Sievi Capital’s share is listed on Nasdaq Helsinki.
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