Northern CapSek Ventures (CAPS) Q3 2024 earnings summary

Executive summary

• Reported a net loss of -0.2 MSEK for Q3 2024, but a positive net result of 1.1 MSEK for the first nine months, driven by portfolio revaluations, especially in more mature unlisted holdings.

• Portfolio consists of 12 tech companies, with a net asset value (NAV) of 43 MSEK, or 0.91 SEK per share, reflecting a 74% discount to the share price at period end.

• Five "Phase 2" unlisted companies showed strong growth, with average H1 2024 sales up 62% year-over-year and three of five being cash flow positive.

Financial highlights

• Q3 2024 net sales were 52 TSEK, up from 17 TSEK in Q3 2023.

• EBITDA for Q3 2024 was -1,400 TSEK; EBIT was -2,388 TSEK.

• Net result for Q3 2024 was -209 TSEK, a significant improvement from -3,158 TSEK in Q3 2023.

• Earnings per share for Q3 2024 was -0.004 SEK, compared to -0.095 SEK in Q3 2023.

• For the first nine months, net result was 1,058 TSEK, compared to -10,034 TSEK in the same period last year.

Outlook and guidance

• Phase 2 portfolio companies are expected to achieve an average operating margin above 10% for full-year 2024.

• Portfolio companies have concrete expansion plans requiring additional capital, with CapSek aiming to increase its ownership and support growth.