GOTHENBURG, Sweden, Oct. 25, 2002 (PRIMEZONE) -- Bure Equity's Focus on Improving Efficiency and Financial Stability:
- Bure's tax matters finally decided -- maintained investment company status.
- The net asset value was SEK 26.50 per share.
- The parent company's result after tax amounted to SEK -94M for the third quarter and SEK -474M for the reporting period.
- An action programme aimed at reducing the parent company's indebtedness and administrative costs has been initiated.
Subsequent Events
Bure-owned company, Carl Bro, merges with Sweco. Bure frees up SEK 214M and realises an anticipated exit gain of more than SEK 80M.
Telephone Conference on Monday 28 October
At 09.00 a.m. CET (GMT+1) Monday, 28 October 2002, a telephone conference will take place in Swedish with Bure President, Peter Sandberg, and Chief Financial Officer, Benny Averpil. Journalists and professionals in the capital markets are invited to take part.
You can participate by telephoning +44 20 8240 8243, quoting 'Bure.'
Introduction
Continued global uncertainty and dramatically falling stock market prices characterised the third quarter of 2002. The uncertainty and the downward economic trend have created a very weak and unstable venture capital market.
Following Bure's investment phase during autumn 2001, we have made it our priority to develop operational efficiency and profitability in the companies in which we are a proactive owner. The target is that our hub companies should be strong and well-positioned in the market when there is an upturn in the economy.
The third quarter is generally a weak quarter for the sectors in which most of the hub companies operate.
Despite the unfavourable market conditions externally and in the capital markets, it is possible to achieve a dividend on long-term value creation. The important structural deal within the Nordic technology consulting sector in which we are involved in the merger of the Danish company Carl Bro with the Swedish company Sweco, is one example of this.
Cygate's acquisition of Maldata is another aggressive structural deal in which Bure has been the driving force.
No exits through listing of direct holdings have been planned for Bure during 2002 and the foreseeable part of 2003.
However, some of our indirect holdings, such as Molnlycke Health Care and Nycomed, are closer to be able to achieve exits. Other indirect holdings via Nordic Capital are also prepared for a stock market listing or a sale as soon as market conditions allow. These indirect holdings represent 40 per cent of Bure's net asset value. Due to conditions in the stock market, the planned schedule has been postponed. Combined with the significant fall in value of listed holdings, this has affected our financial position. Bure has, therefore, initiated a programme aimed at significantly reducing the debt ratio by mid-2003.
During the autumn, we have reviewed Bure's cost structure and initiated an action programme which is expected to reduce administrative costs in the parent company by more than SEK 30M on an annual basis.
In the current situation, Bure's strategy is to focus its resources on existing hub companies and to secure financial stability. The aim is to have good flexibility and freedom of action when there is an upturn in the economy and the stock market.
This report has not been the subject of examination by the company's auditors.
Future reports Year-End Report 2002 20 February 2003 Interim Report January-March 2003 29 April 2003 Interim Report January-June 2003 26 August 2003
For further information, please contact
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http://www.waymaker.net/bitonline/2002/10/25/20021025BIT01200/wkr0001.doc The full report
http://www.waymaker.net/bitonline/2002/10/25/20021025BIT01200/wkr0002.pdf The full report