QUEST FOR GROWTH
Business update 31 March 2023
PRESS RELEASE
27 April 2023 / 5.40 PM
The enclosed information constitutes regulated information as defined in the | Royal Decree |
of 14 November 2007 regarding the duties of issuers of financial instruments | which have been |
admitted for trading on a regulated market |
MANAGER'S
REPORT
VALUATION QUEST FOR GROWTH
Stock Price | Net asset value/share | ||||
31/03/2023 | 31/12/2022 | 31/12/2021 | |||
31/03/2023 | |||||
5.60 EUR | 7.98 EUR | 7.93 EUR | 10.71 EUR | ||
Number of shares | 18,733,961 | 18,199,212 | 16,774,226 | ||
Discount of the share price versus Net Asset Value: 29.85%
Source: Estimate by Capricorn Partners NV
Results
Quest for Growth closed the first quarter of its financial year with a net profit of € 5.3 million. € 2.8 million of this can be used for dividend distribution. Return on equity was +3.67%. Quest for Growth's share price decreased by 6.7% over the first three months of the year, reaching a closing price of € 5.60 on 31 March 2023. The discount of the share price in relation to the net asset value rose to 29.8% at the end of the quarter, compared to 24.3% at the end of 2022.
Simplified capital structure, increased number of ordinary shares and reduced rights for preference shares
The Extraordinary General Meeting of 30 March 2023 has made the following unanimous decisions:
- The preferred class of shares A and the preferred class of shares B are merged into one class of preference shares.
- Of the 1,000 existing preference shares, 500 will be divided into 535,249 ordinary shares and lose their rights as preference shares. As a result, 535,249 ordinary shares will be added without increasing capital, which means the intrinsic value of each ordinary share is diluted by 2.86%.
- These additional 535,249 ordinary shares are subject to a lock-up obligation. Every six months, 25% of the non-transferability will be eliminated so that the shares are fully marketable as from 30 March 2025.
- Another 500 preference shares remain which continue to be reserved as variable incentive for the active management and on which a purchase option rests to the benefit of the Managing Company.
- The 500 preference shares are entitled to propose two candidate directors of the board of directors of QfG.
- The surplus share of the dividend that is distributed to the preferred shareholders will no longer be calculated based on the share of the net profit which exceeds the amount necessary to pay all shareholders a reimbursement which is equal to a nominal value of 6% on an annual basis, but will be calculated based on the share of the dividend which exceeds the amount necessary to pay the shareholders a reimbursement equal to a nominal value of 6% cumulative and recoverable for previous years in which there were insufficient or no dividend distributions; this is to be calculated from 1 January 2023.
- The surplus preferential dividend entitlement is reduced from 20% to 10% so that the fraction of the surplus share of the dividend credited of all shareholders is raised from 80% to 90%.
Market Environment
The European stock market index STOXX Europe 600 Net Return rose by 8.4% during the first quarter of 2023. The STOXX Europe Small 200 Net Return increased by 6.1%. The American S&P 500, converted to EUR, achieved a total return of 6%. Despite the global rally of the stock markets, the prices remained volatile during the first quarter. Especially the banking sector had a difficult period towards the end of the first quarter. In the United States, the regulator had to intervene to protect account holders of Silicon Valley Bank and Signature Bank. In Europe, the major Swiss bank UBS had to hastily take over its largest competitor Credit Suisse. After a series of scandals, Credit Suisse had completely lost the trust of its shareholders and industry peers. Despite all the messages of doom, the European banking sector was able to perform with a positive return of 5% over the first quarter.
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Investments in quoted equities
The estimated gross performance of the listed shares stands at about +8%, and therefore held up well on the European stock market indices. Stars of the portfolio were Melexis, (+31%), TKH (+29%) and Steico (+25%). The annual results of these three companies surpassed analysts' overly pessimistic expectations.
The German Stratec (-23%) and the Belgian Umicore (-9%) were the biggest losers in the portfolio. Stratec, a producer of machines for medical diagnostics, is still struggling with the declining demand for COVID tests. For Umicore, 2023 is proving to be a transition year.
During the first quarter, Quest for Growth bought one new position in SII (Société pour l'Informatique Industrielle) and withdrew from the Swiss company Gurit, a wind energy sector supplier which saw its profitability decrease substantially over the past two years. The French service provider SII provides technological support and IT consultancy to businesses in diverse sectors, including in aviation and the telecom and utilities sectors. In recent years, SII has achieved an above-average growth, mainly through geographic expansion in Eastern Europe. SII's founders are still on board and opt for a decentralised structure with a focus on local entrepreneurship to expand the business further. SII has a considerable net cash position and despite the strong growth, the share is valued low.
Investments in venture and growth capital
The Liege-based company Miracor Medical, specialised in interventional cardiology, was unable to attract new investors. The company has halted the pre-marketing of its PiCSO device and let go some of its employees. The value of Miracor Medical was already fully written off at the end of the 2022 financial year.
Investments in venture and growth funds
Confo Therapeutics was able to conclude two successful agreements at the Capricorn Health-Tech Fund. Confo Therapeutics, which has developed a platform for the discovery of medicines focused on G-protein-linked receptors (GPCRs), announced a global licensing agreement with Eli Lilly to finance the further phases of the clinical development of a medicine for treating pain due to nerve damage. The company subsequently also announced a collaboration with the large Japanese pharma company Daiichi Sankyo for the development of medicines to combat neurological illnesses. For both agreements, Confo Therapeutics will receive an advance payment and milestone payments.
On Friday 10 March, Silicon Valley Bank (SVB) in California was declared bankrupt after a run on the bank. This bank, although little known in Belgium, is globally one of the key money lenders for the tech industry in the United States. Moreover, the balances of many innovative start-ups and scale-ups - often after rounds of capital - were held at this bank. Several portfolio companies of the Capricorn venture capital funds were also customers at SVB. Because of the bailout by the American government, the bank will continue under the name Silicon Valley Bridge Bank and the immediate danger has passed. There is no direct danger for our portfolio companies. The companies have adjusted their cash management strategies.
Indirectly, however, the SVB incident has had an impact on venture capital by attracting attention to the fragility of the ecosystem - and this, after the succession of the pandemic, global supply chain
EVOLUTION SHARE PRICE AND NET ASSET VALUE
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
PERFORMANCE PER SHARE IN QUOTED PORTFOLIO SINCE 31/12/2022
40 | ||||||||||||||||||||||||
30 | ||||||||||||||||||||||||
20 | ||||||||||||||||||||||||
10 | ||||||||||||||||||||||||
% | ||||||||||||||||||||||||
0 | ||||||||||||||||||||||||
-10 | ||||||||||||||||||||||||
-20 | ||||||||||||||||||||||||
STRATEC SE | EQUASENS | MAYR-MELNHOF KARTON AG | SII* | ABO WIND AG | FINANCIERE DE TUBIZE | STOXX Europe 600 NR | DATRON AG | KERRY GROUP PLC-A | LEM HOLDING SA-REG | THERMADOR GROUPE | B&C SPEAKERS SPA | STEICO SE | -30 | |||||||||||
UMICORE | ROCHE HOLDING AG-GENUSSCHEIN | NEXUS AG | EVS BROADCAST EQUIPMENT S.A. | NEDAP N.V. | STOXX Europe Small 200 NR | CEWE STIFTUNG & CO KGAA | QfG quoted (e) | WOLTERS KLUWER | JENSEN-GROUP NV | TKH GROUP NV-DUTCH CERT | MELEXIS NV |
- sinds 2/2/23, dag van de eerste aankoop in Quest for Growth Bron: Bloomberg, Capricorn Partners
QfG Quoted (e): estimate excluding costs and cash
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Financial assets breakdown at 31 march 2023
QUOTED EQUITIES | |||||||
Number of | Change since | In % of Net | |||||
Company | Market | shares | 31/12/2022 | Currency | Share Price | Valuation in € | Asset Value |
Cleantech | |||||||
ABO WIND | Deutsche Börse (Xetra) | 35,047 | -25,740 | € | 79.2000 | 2,775,722 | 1.86% |
FRX INNOVATION | TSXV (Canada) | 493,842 | 0 | CAD | 0.2798 | 93,761 | 0.06% |
JENSEN GROUP | Euronext Brussels | 135,876 | -17,000 | € | 32.4000 | 4,402,382 | 2.94% |
KERRY GROUP | Euronext Dublin | 44,250 | 2,750 | € | 91.8400 | 4,063,920 | 2.72% |
MAYR-MELNHOF KARTON | Deutsche Börse (Xetra) | 22,500 | 0 | € | 153.0000 | 3,442,500 | 2.30% |
STEICO | Deutsche Börse (Xetra) | 63,333 | 0 | € | 54.1000 | 3,426,315 | 2.29% |
THERMADOR | Euronext Paris | 35,444 | 0 | € | 98.3000 | 3,484,145 | 2.33% |
UMICORE | Euronext Brussels | 95,000 | 20,000 | € | 31.2100 | 2,964,950 | 1.98% |
24,653,696 | |||||||
Digital | |||||||
B&C SPEAKERS | Borsa Italiana | 165,004 | 0 | € | 14.5000 | 2,392,558 | 1.60% |
CEWE STIFTUNG | Deutsche Börse (Xetra) | 55,309 | -9,986 | € | 95.0000 | 5,254,355 | 3.51% |
DATRON | Deutsche Börse (Xetra) | 119,000 | 0 | € | 11.6000 | 1,380,400 | 0.92% |
EVS | Euronext Brussels | 151,125 | 17,500 | € | 21.9500 | 3,317,194 | 2.22% |
LEM HOLDING | SWX Swiss Exchange | 1,446 | 0 | CHF | 1.966.0000 | 2,851,962 | 1.91% |
MELEXIS | Euronext Brussels | 51,289 | 0 | € | 106.4000 | 5,457,150 | 3.65% |
NEDAP | Euronext Amsterdam | 93,148 | 0 | € | 58.0000 | 5,402,584 | 3.61% |
SII | Euronext Paris | 57,746 | 57,746 | € | 50.2000 | 2,898,849 | 1.94% |
TKH GROUP | Euronext Amsterdam | 143,570 | 10,000 | € | 47.9400 | 6,882,746 | 4.60% |
WOLTERS KLUWER | Euronext Amsterdam | 42,500 | -7,500 | € | 116.3500 | 4,944,875 | 3.31% |
40,782,673 | |||||||
Health | |||||||
EQUASENS | Euronext Paris | 67,330 | 0 | € | 71.7000 | 4,827,561 | 3.23% |
NEXUS | Deutsche Börse (Xetra) | 59,401 | 0 | € | 54.8000 | 3,255,175 | 2.18% |
ROCHE | SWX Swiss Exchange | 16,500 | 0 | CHF | 260.9500 | 4,319,497 | 2.89% |
STRATEC | Deutsche Börse (Xetra) | 36,003 | 6,000 | € | 62.6000 | 2,253,788 | 1.51% |
TUBIZE | Euronext Brussels | 67,588 | 3,000 | € | 76.2000 | 5,150,206 | 3.44% |
19,806,227 | |||||||
85,242,596 | 57.00% |
VENTUREDURF- ANDGROEIKAPIGROWTHAALCAPITAL
Change since | In % of Net | |||||||
Equity | 31/12/2022 | Currency | Valuation in € | Asset Value | ||||
DMC | Cleantech | $ | 1,581,608 | 1.06% | ||||
ECLECTICIQ | Digital | € | 1,275,922 | 0.85% | ||||
FINQUEST | Digital | $ | 1,839,080 | 1.23% | ||||
FRUITCORE ROBOTICS | Diversified | € | 2,000,327 | 1.34% | ||||
NGDATA | Digital | € | 1,283,965 | 0.86% | ||||
QPINCH | Cleantech | € | 2,137,498 | 1.43% | ||||
REIN4CED | Cleantech | € | 1,378,020 | 0.92% | ||||
SENSOLUS | Digital | € | 1,877,021 | 1.26% | ||||
13,373,442 | 8.94% | |||||||
Debt | ||||||||
FINQUEST | Digital | 300,000 | $ | 275,862 | 0.18% | |||
275,862 | 0.18% | |||||||
Lei 19 | | 3000 Leuven | | Belgium | | T: +32 16 28 41 00 | www.questforgrowth.com | | quest@questforgrowth.com | 3 | |||
VENTURE AND GROWTH FUNDS | ||||||
Change since | Last valuation | In % of Net | ||||
31/12/2022 | Currency | date | Valuation in € | Asset Value | ||
Capricorn Partners | ||||||
CAPRICORN CLEANTECH FUND | Cleantech | € | 31/03/2023 | 957,780 | 0.64% | |
CAPRICORN DIGITAL GROWTH FUND | Digital | € | 31/03/2023 | 6,567,948 | 4.39% | |
CAPRICORN FUSION CHINA FUND | Diversified | € | 31/03/2023 | 2,545,012 | 1.70% | |
CAPRICORN HEALTH-TECH FUND | Health | € | 31/03/2023 | 11,461,833 | 7.66% | |
CAPRICORN ICT ARKIV | Digital | € | 31/03/2023 | 5,675,057 | 3.79% | |
CAPRICORN SUSTAINABLE CHEMISTRY FUND | Cleantech | € | 31/03/2023 | 11,625,062 | 7.77% | |
Third party funds | ||||||
CARLYLE EUROPE TECHNOLOGY PARTNERS II | Diversified | -78.891 | € | 30/09/2022 | 8,000 | 0.01% |
LIFE SCIENCES PARTNERS III | Health | € | 30/09/2022 | 138,309 | 0.09% | |
LIFE SCIENCES PARTNERS IV | Health | € | 31/12/2022 | 555,000 | 0.37% | |
39,534,000 | 26.44% | |||||
PORTFOLIO OVERVIEW | ||||||
Quoted equities | 85,242,596 | 57.00% | ||||
Venture & Growth capital | 13,649,304 | 9.13% | ||||
Venture & Growth capital Funds | 39,534,000 | 26.44% | ||||
Change in valuation in Venture and Growth capital | 0 | 0.00% | ||||
Financial Assets | 138,201,350 | 92.56% | ||||
Cash | 11,063,474 | 7.40% | ||||
Other net assets & liabilities | 60,693 | 0.04% | ||||
Net Assets Value | 149,550,067 | 100.00% | ||||
Net Assets Value per share (€) | 7,98 | |||||
Stock price (€) | 5,60 | |||||
Discount % | -29,85% |
Cleantech | Cash & other net | |
32% | Venture & Growth | assets & liabilities |
8% | ||
capital Funds | ||
Health | 26% | |
23% |
Digital | Venture & Growth capital | Quoted equities | |
Diversified | 9% | 57% | |
43% | |||
2% |
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PORTFOLIO COMPOSITION AND MARKET CAPITALISATION AT 31 MARCH 2023
€ 160,000,000 | 26.44% | ||||||||||||
€ 140,000,000 | |||||||||||||
€ 120,000,000 | 9.13% | ||||||||||||
€ 100,000,000 | 57.57% | ||||||||||||
€ 80,000,000 | |||||||||||||
€ 60,000,000 | |||||||||||||
€ 40,000,000 | |||||||||||||
€ 20,000,000 | 7.44% | ||||||||||||
€ 0 | |||||||||||||
Cash + | Quoted Equities Venture & Growth | Venture & Growth | Market cap | ||||||||||
Other net assets | Capital | Funds |
TOTAL SHAREHOLDERS RETURN (SINCE 31 MARCH 2013)
RESULTS FROM 1 JANUARY 2013 TO 31 MARCH 2023
DISTRIBUTION BY COUNTRY
US Canada Singapore
1.1% 0.1% 1.5% Italy
Switzerland 1.7% 5.2%
Ireland | Belgium |
2.9% | 48.3% |
France
8.1%
United Kingdom
0.0%
Netherlands
13.9%
Germany
17.2%
DISTRIBUTION BY CURRENCY
USD 2.47%
EUR 92.56%
CAD 0.06%
CHF
4.90%
160,000,000
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
.
7.9 %
17.4 %
12.43%
20.3%
14.02%
34.5 %
-0.3 % -18.35%
12.43%
3.67%
-14.70%
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
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Disclaimer
Quest for Growth NV published this content on 27 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2023 15:54:51 UTC.