Sievi Capital Oyj
Sievi Capital Plc’s Financial Statements Release for 1 January–31 December 2020
Sievi Capital Plc
Stock exchange release 24 February 2021 at 8:00 am EET
Sievi Capital Plc’s Financial Statements Release for 1 January–31 December 2020
Sievi Capital’s 2020 result was strong considering the circumstances, several M&A transactions completed
This is the summary of the Financial Statements Release for 2020. The full Financial Statements Release is attached to this release and is also available on the company’s website at www.sievicapital.fi.
- Operating profit was EUR 6.0 (8.5) million
- Net profit for the period was EUR 5.0 (6.7) million
- Earnings per share (undiluted and diluted) were EUR 0.09 (0.12)
- Operating profit was EUR 11.7 (16.0) million
- Net profit for the period was EUR 9.9 (12.8) million
- Earnings per share (undiluted and diluted) were EUR 0.17 (0.22)
- Net asset value per share at the end of the review period was EUR 1.33 (1.35)
- Return on equity was 12.7% (17.7%)
- Gearing at the end of the review period was -11.1% (-41.2%)
- Sievi Capital invested in Nordic Rescue Group in February and in Logistikas in December
- The investment in Suvanto Trucks was sold in December
- Sievi Capital paid its shareholders dividends a total of EUR 0.19 per share
Figures in parentheses are reference figures from the corresponding period in the previous year, unless indicated otherwise. The figures in the Financial Statements Release are audited. 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.
Proposal for the distribution of profit
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.04 per share be paid for the past financial period (the dividend paid for the previous financial period was EUR 0.04 per share).
CEO Päivi Marttila:
"The year 2020 was exceptional for Sievi Capital, as it was for the entire society. However, despite the coronavirus crisis, the year as a whole turned out to be good for us. We started the year with a very strong balance sheet after a significant exit made at the end of the previous year. During the year, we were able to put Sievi Capital’s balance sheet into more efficient use by distributing EUR 11.0 million in dividends to our shareholders and investing EUR 14.8 million in new and current target companies. Due to the excessively strong balance sheet at the end of the previous year, return on equity, 12.7%, was slightly below our long-term target of 13%.
In 2020, the most successful of our target companies was Indoor Group. Indoor Group’s performance in the difficult market situation in the spring was excellent and the company continued its strong development also when the market picked up. Indoor Group’s operating profit grew by approximately 70% from the previous year. This was attributable to the favourable market situation in late spring and particularly the company’s own active measures to improve its margins.
KH-Koneet Group’s operating environment was more challenging than in the previous year and its Swedish business operations were in an intensive construction phase. As a result, the company’s EBITDA decreased somewhat in 2020 compared to the previous year. Nevertheless, the company made significant progress towards its strategic goals in 2020 by expanding the Swedish business acquired at the end of 2019 through the acquisition of an earth-moving machinery rental company and the signing of significant new dealership agreements.
In 2020, we made two new investments. For Nordic Rescue Group, the rescue vehicle group established in early 2020, the year consisted of laying the foundation for the new company’s business. New management was recruited to lead the company in the development of operations and the expansion of the production capacity, with the aim of enabling the growth sought in the coming years. This work proceeded well and although Nordic Rescue Group’s financial development in 2020 did not meet the goals, we are confident about the company’s future development.
Our second new investment was made in Logistikas towards the end of the year. This logistics service company has performed well in recent years and this trend continued in 2020, with the company’s pro forma EBITDA increasing considerably from the previous year. The company provides a solid basis for growing the business and expanding it to new areas.
During the eventful year 2020, we also made one exit by selling our holding in Suvanto Trucks in December. This investment was not a success for us as return on ownership was weak. However, I am pleased that this arrangement could be completed. Now we can focus our resources on enterprises where we have the opportunity to exercise the most influence. I also believe that under the personnel’s ownership, Suvanto Trucks is well placed for future development."
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 24 February 2021 at 10:00 am EET. You can follow the live webcast at https://sievicapital.videosync.fi/2020-q4-tulos. 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
CEO Päivi Marttila, tel. +358 400 285 358
Nasdaq Helsinki Ltd
Sievi Capital is a listed (Nasdaq Helsinki) private equity investment company that invests in small and medium-sized Finnish companies. Sievi Capital acts in close partnership with management and co-owners in target companies and actively supports growth, performance and value creation.
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