not for releAse, PuBlICAtIon or DIstrIButIon In whole or In PArt, DIreCtlY or InDIreCtlY, In or Into the unIteD stAtes, AustrAlIA, CAnADA, south AfrICA, JAPAn, swItZerlAnD, new ZeAlAnD or AnY other CountrY or JurIsDICtIon to whoM or In whICh thIs woulD Be unlAwful or to AnY nAtIonAl, resIDent or CItIZen thereof. other restrICtIons Are APPlICABle. PleAse see the IMPortAnt notICe At the enD of thIs AnnounCeMent
Privak, public fixed capital investment company established under Belgian Law
schedule for Publication
on 21 January 2016
5.40 PM press release available at www.questforgrowth.com
on 22 January 2016
AM press & analyst meeting, Capricorn Venture Partners NV, Lei 19, 3000 Leuven
This announcement does not constitute, or form part of, an offer or invitation to sell or issue, or any solicitation of an offer to purchase or subscribe for securities or rights. No securities of the Company or rights relating to such securities may be offered or sold in the United States absent registration or an exemption from registration. The securities and rights described in this announcement will be issued and sold only in accordance with all applicable laws and regulations. Neither this announcement nor any part of it shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever. This announcement is not an offer document or a prospectus and investors should not purchase any securities or rights referred to in this announcement except on the basis of information in the prospectus to be published in due course by Quest for Growth NV, subject to the approval of the capital increase by the extraordinary shareholders meeting, when approved by the Belgian Financial Services and Markets Authority in connection with the offering and admission to listing of the securities and rights on Euronext Brussels.
AnnuAl results Quest for Growth
Quest for Growth MADe A ProfIt of € 37.9 MIllIon In 2015ProPoseD net DIVIDenD of € 2.70 Per orDInArY shAre
ProPoseD CAPItAl InCreAse BY IssuAnCe of 1 new orDInArY shAre Per 3 eXIstInG shAres
Key facts:
Return on equity per share: + 34.50 % since 31 December 2014
Net Asset Value per share at December 31st 2015: € 10.81 (December 31st 2014: € 10.28)
Net profit for the fiscal year: + € 37,899,036 (+ € 3.29 per share) against a profit of + € 8,712,147 (+ € 0.76 per share) for the previous fiscal year
Share price at December 31st 2015: € 11.40 (December 31st 2014: € 7.611)
Discount of the share price versus Net Asset Value: 11.04 % at December 31st 2015 (25.98 % at December 31st 2014)
The board proposes to the AGM a gross dividend of € 2.73 per ordinary share (net dividend of € 2,70 per ordinary share)
The board proposes to the AGM a capital increase by issuance of 3,843,316 new ordinary shares, subject to approval of the Financial Services and Markets Authority
Results
In 2015, Quest for Growth achieved a return on equity of 34.5% (2015 profit against net asset value after profit distribution at the end of the previous financial year), making 2015 one of the best years ever in the history of Quest for Growth, with the best performance of any of the past ten years.
Net asset value per share rose to 12.81 euros on 31 December 2015, as against 9.53 euros (after profit distribution) on 31 December 2014. Net profit in 2015 was approximately 37.9 million euros (3.29 euros per share), compared to a profit of 8.7 million euros (0.76 euros per share) in 2014. Net profit in the fourth quarter was 8 million euros (+ 0.69 euro per share).
The share price ended the year at 11.40 euros, as against
7.61 euros at the end of the prior year. Taking account of the dividend, overall performance of the Quest for Growth share during the past year stood at around 63%. The share price discount against asset value was 11% on 31 December 2015, as against 26% on 31 December 2014.
Allocation of the result
Quest for Growth's articles of association specify that it will distribute at least 90% of the realised profits. The board of directors proposes to the General Meeting of Shareholders that the positive balance to be allocated should be distributed in the sum of 37,735,442 euros. This represents a gross dividend for the ordinary stock of 2.73 euros per share (net: 2.70 euros per share). A balance of 163,954 euros is carried forward to the next financial year. After being approved by the General Meeting, the dividend will be paid on 23 March 2016.
Market environment
The European stock markets closed the year with a more than respectable rise for the Stoxx Europe 600 index (+6.8%, or
+9.6% including dividends). Small caps did better with a rise of 13.3% for the Stoxx Europe Small 200 index.
www.questforgrowth.com quest@questforgrowth.com
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Investments in listed companies
An excellent result was once again achieved with the portfolio of listed shares. Performance (before charges) stood at around 33%, which significantly exceeds that of virtually all the other European stock market indices. A number of trends, such as good performance by the sectors in which Quest for Growth invests (IT, healthcare and cleantech) and the outperformance of small caps, produced a good following wind in 2015. In the "Medical Services and Equipment" sector, the outliers were most manifestly present: Fresenius, Gerresheimer, Nexus and UDG Healthcare all rose by more than 40% in 2015. In the same sector, Sartorius went up by over 100% before being removed from the portfolio. In the other sectors, those worthy of mention include USU Software, Nibe and Melexis, given they produced performance of more than 30%. Only two shares in the portfolio closed the year with a negative return: Init and Bertrandt.
In 2015, CFE, Zetes, Cenit and Technotrans were introduced into the portfolio, while seven stocks were sold off completely.
Investments in unlisted companies
Among the unlisted companies, Prosonix stood out the best in 2015. This UK biotech company was taken over in May 2015 by Circassia Pharmaceuticals for 92 million £. The deal had a positive impact on Quest for Growth's intrinsic value, to the tune of approximately 10 million euros.
In addition, Kiadis Pharma was successfully floated in July. Before the IPO, Quest for Growth held 508,799 Kiadis shares, which were valued at around 3.1 million euros. On 31 December 2015, the holding was worth 5.6 million euros, after deduction of a lockup discount.
Investments in venture capital funds
The investments in venture capital funds also had an excellent 2015, particularly thanks to the successful exit of Cartagenia from Capricorn ICT Arkiv. That Leuven company was sold to Agilent for 60 million euros. The gain that the fund realised on the sale was more than seven times the initial investment sum. This deal's impact on Quest for Growth's intrinsic value amounted to approximately 3.7 million euros.
Besides this, the Capricorn Health-tech Fund, Carlyle II and Vertex contributed to the positive result of the venture capital funds in 2015.
Prospects
The economic situation in Europe improved in 2015, with the US economy also continuing to do well. European stocks again became more expensive, with an anticipated price/earnings ratio of around 15.5 for the STOXX 600 index at the end of 2015. Sectors in which Quest for Growth traditionally invests, such as technology and health, are relatively expensive, and certain sub-sectors show extreme valuations. In the Quest for Growth portfolio, we are endeavouring to avoid over-valued shares. Because of the low interest-rate situation, shares continue to
be relatively attractive. The forecast further rise in interest rates in the US in 2016 may nevertheless cause greater volatility in this quarter. Developments in China and the emerging markets also remain factors causing uncertainty in 2016.
The extremely successful year in 2015 will be hard for the unlisted portfolio to emulate in 2016. Following the disposal of Prosonix and Kiadis the main emphasis over the next few years will lie in further expanding the unlisted portfolio, though we do expect that the strategy of co-investing in the Capricorn funds' portfolio companies will, in the medium term, generate better results for the unlisted portfolio.
Capital increase
2015 was an exceptional year for Quest for Growth. The positive results both from the listed and unlisted portfolios and from the venture capital funds demonstrate that the new strategic path embarked on in 2012 has worked and is already bearing fruit.
It is important that, in future, Quest for Growth should continue to be capable of taking on sufficiently large commitments for both funds and unlisted direct investments so as to play a meaningful role in determining the strategy of start-up businesses, which will ultimately produce a more-than-average return. Additionally, Quest for Growth must also maintain sufficient liquidity to meet the future cash needs of unlisted companies and venture capital funds.
We are mindful of the fact that, over the past few years, the listed portfolio's excellent performance has made a major contribution to the success of Quest for Growth. It will therefore be the aim to further nurture the listed segment of Quest for Growth's investment strategy on into the future.
In order to turn that growth strategy to account, the shareholders will be given an opportunity to subscribe to a capital increase, subject to compliance with pre-emption rights. The board of directors proposes to issue a maximum of of 3,843,316 ordinary shares. The issue price for the new shares will be set at a later date and submitted to an Extraordinary General Meeting for approval and a decision on the capital increase. We will be sending out further details of the procedure for the capital increase proposal in due course.
The notice calling the first Extraordinary General Meeting to decide on the capital increase will appear together with the agenda on 26 January 2016 in the Belgian official gazette, the written press and on the company's website at www.questforgrowth.com.
The offer of new ordinary shares will only be possible once the issue prospectus has been approved by the FSMA and after approval by the Extraordinary General Meeting.
The General Meeting will be held on 17 March 2016 at 11 am in Leuven.
www.questforgrowth.com quest@questforgrowth.com
not for releAse, PuBlICAtIon or DIstrIButIon In whole or In PArt, DIreCtlY or InDIreCtlY, In or Into the unIteD stAtes, AustrAlIA, CAnADA, south AfrICA, JAPAn, swItZerlAnD, new ZeAlAnD or AnY other CountrY or JurIsDICtIon to whoM or In whICh thIs woulD Be unlAwful or to AnY nAtIonAl, resIDent or CItIZen thereof. other restrICtIons Are APPlICABle. PleAse see the IMPortAnt notICe At the enD of thIs AnnounCeMent
totAl shAreholDers return ( 31/12/2005- 31/12/2015)
DIsCount of the shAre PrICe Versus the net Asset VAlue untIl 31 DeCeMBer 2015
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
Average discount of Belgian investment companies (Source: KBC Securities)
Discount Quest for Growth
0%
PortfolIo CoMPosItIon AnD MArket CAPItAlIsAtIon At 31/12/2015
results froM 31/12/2005 untIl 31/12/2015
100,000,000
34.5 %
€ 160,000,000
14.68%
80,000,000
€ 140,000,000
16.61%
60,000,000
55.08%
17.4 %
€ 100,000,000
€ 80,000,000
€ 60,000,000
€ 40,000,000
40,000,000
22.4 % 1.8 %
24.7 %
17.2 %
+ Other net assets
+ Commercial Paper
-40,000,000
€ 120,000,000
13.63%
€ 20,000,000
€ 0
Cash Quoted portfolio Unquoted portfolio Venture funds
Market cap
7.9 %
20,000,000
16.0 %
26.8 %
-12.1 %
-
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-20,000,000
-41.8 %
www.questforgrowth.com quest@questforgrowth.com
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31 December
1. Balance sheet 2015
2014
31 December
2013
31 December
2012
31 December
2011
31 December
ASSETS | |||||
Fixed assets | 127,605,558 | 110,414,970 | 120,264,108 | 104,265,373 | 86,989,456 |
Formation expenses | 0 | 0 | 0 | 0 | 0 |
Financial assets | 127,605,558 | 110,414,970 | 120,264,108 | 104,265,373 | 86,898,456 |
Shares | 112,654,890 | 98,488,620 | 106,950,253 | 100,625,585 | 79,492,057 |
Loans to portfolio companies | 14,950,668 | 11,926,350 | 13,313,854 | 3,639,788 | 7,497,399 |
Current assets | 20,278,986 | 8,229,318 | 5,083,517 | 2,632,925 | 4,203,529 |
Amounts receivable in more than one year | 2,448,120 | 1,399,479 | 666,305 | 0 | 0 |
Trade receivables | 0 | 0 | 0 | 0 | 0 |
Other receivables | 2,448,120 | 1,399,479 | 666,305 | 0 | 0 |
Amounts receivable within one year | 4,533,187 | 150,425 | 70,187 | 689,618 | 1,165,102 |
Trade receivables | 0 | 0 | 0 | 0 | 0 |
Other receivables | 4,533,187 | 150,425 | 70,187 | 689,618 | 1,165,102 |
Short term investments | 0 | 0 | 0 | 0 | 0 |
Own shares | 0 | 0 | 0 | 0 | 0 |
Term deposits | 0 | 0 | 0 | 0 | 0 |
Cash at bank and in hand | 13,284,643 | 6,670,317 | 4,280,362 | 1,867,036 | 3,038,427 |
Deferred charges and accrued income | 13,036 147,884,544 | 15,192 | 66,662 | 76,271 | 31,501 |
TOTAL ASSETS | 118,650,383 | 125,347,624 | 106,898,298 | 91,224,485 |
LIABILITIES | |||||
Capital and reserves | 110,012,217 | 109,848,623 | 109,837,261 | 106,803,118 | 91,101,307 |
Issued capital | 109,748,742 | 109,748,742 | 109,748,742 | 109,748,742 | 109,748,742 |
Reserves | 0 | 0 | 0 | 656,423 | 656,423 |
Reserves not available for distribution | 0 | 0 | 0 | 0 | 0 |
Reserves available for distribution | 0 | 0 | 0 | 656,423 | 656,423 |
Profit carried forward | 263,475 | 99,881 | 88,518 | 0 | 0 |
Loss carried forward | 0 | 0 | 0 | (3,602,048) | (19,303,859) |
Amount payable | 37,872,327 | 8,801,760 | 15,510,364 | 95,180 | 123,179 |
Amounts payable within one year | 37,780,621 | 8,745,601 | 15,478,430 | 43,405 | 105,882 |
Financial debts | 0 | 0 | 0 | 0 | 0 |
Trade debts | 0 | 0 | 0 | 4,971 | 55,358 |
Taxes | 191 | 162 | 346 | 447 | 432 |
Dividends to be paid for the fiscal year | 37,735,442 | 8,700,784 | 15,440,141 | 0 | 0 |
Other amounts payable | 44,988 | 44,655 | 37,944 | 37,987 | 50,092 |
Accrued charges and deferred income | 91,705 147,884,544 | 56,159 | 31,933 | 51,775 | 17,297 |
TOTAL LIABILITIES | 118,650,383 | 125,347,624 | 106,898,298 | 91,224,485 |
www.questforgrowth.com quest@questforgrowth.com
Quest for Growth NV issued this content on 2016-01-21 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-21 23:37:08 UTC
Original Document: http://www.questforgrowth.com/PDF/Press/English/160121_AnnualResults.pdf