Interim Report January-March 2018
First quarter 2018
Net profit for the first quarter amounted to MSEK 21.0 (10,6).
Earnings per share amounted to SEK 1.55 (0,73).
Net asset value amounted to MSEK 846 (SEK 62,32 per share) at March 31, 2018,
compared to MSEK 821 (SEK 60.17 per share) at December 31, 2017.
Net cash amounted to MSEK 437 (SEK 32.17 per share) at March 31, 2018, compared to
MSEK 450 (SEK 32.97 per share) at December 31, 2017.
Distribution of profits
The Board of Directors previously communicated its intention to make the level of the
proposed dividend for FY 2017 dependent on the amount that may have been distributed
under the form of share repurchases during the first quarter of 2018.
The Board of Directors stated that the actual level of the dividend would be set as the
difference between SEK 38,682,960,25 (corresponding to SEK 2.75/share) and the amount
that has been distributed under the form of share repurchases during the period between
January 1 and March 31, 2018.
NAXS repurchased shares for a total amount of SEK 3,099,608.69 during the period
between January 1 and March 31, 2018. Therefore, the amount that remains available to
be paid as dividend for the fiscal year 2017 is SEK 35,583,351.56, corresponding to SEK
The Board of Directors therefore proposes to the Annual General Meeting the payment of a
dividend of SEK 2.53/share for FY 2017. In addition, the Board of Directors proposes to the
Annual General Meeting to vote on a continued share repurchase mandate.
Comments by the CEO
NAXS’s net asset value per share made good progress during the first
quarter of 2018, increasing by 3.6%.
The Company made 1 new direct investment during the quarter,
participating in a private placement of new shares by Awilco Drilling PLC,
a drilling operator listed on the Oslo Stock Exchange, and subsequently
acquiring additional shares on the market. At the end of the quarter,
NAXS’s total investment in Awilco Drilling amounted to MNOK 17.6, and
as of the date of this report to MNOK 23.3.
NAXS also continued to selectively repurchase shares during the quarter,
acquiring 61,642 of its own shares.
After the end of the reporting period, NAXS announced that it had opted to roll-over part
of its interests in Nordic Capital Fund VII to a continuation vehicle established by Nordic
Capital, and had acquired MEUR 4 of additional interests in the same vehicle. We believe
that this transaction, combining elements of a new fund commitment with those of a
secondary transaction with full visibility on underlying assets, represents a particularly
attractive risk/reward profile.
Finally, in light of the prevailing investment climate and NAXS’ current pipeline of potential
investment opportunities, the board of NAXS decided to make 2 adjustments to the
Company’s investment policy: (i) the proportion of the net asset value that can be invested
in any assets in any jurisdiction has been raised from 25% to 40%, and (ii) the geographic
restriction to the Nordic countries for co-investments has been lifted. You can find the
revised policy on our website.