Strategic Investments (STRINV) Q4 2024 earnings summary

Executive summary

• Net loss for 2024 was DKK -155.7m before tax and DKK -165.7m after tax, reflecting a -34.4% return, in line with revised expectations but below long-term targets.

• The portfolio, focused on micro and small cap equities, was heavily impacted by market declines, low liquidity, and investor interest.

• Four investments (Acroud, Nord Insuretech Group, Ennogie Solar Group, DDM GF) accounted for about 60% of the loss.

• Equity at year-end was DKK 316.6m, with net asset value per share at DKK 0.79.

• The investment case is considered intact but delayed in realization.

Financial highlights

• Investment result for 2024 was DKK -147.6m, compared to DKK 52.6m in 2023.

• Operating expenses were DKK 8.1m, down from DKK 9.3m in 2023.

• Net asset value per share fell from DKK 1.22 to DKK 0.79 year-over-year.

• Dividend of DKK 0.02 per share proposed, matching the prior year.

• Cash flow from operations was DKK -9.7m; total cash flow DKK -60.9m.

Outlook and guidance

• For 2025, expected return is in the range of -10% to +10%, reflecting continued challenging conditions for small cap equities.

• The company maintains a long-term return target of 10-15% per annum.