Whitestone Group (ROCK) H1 2024 earnings summary

Executive summary

• Two major capital increases in H1 2024 raised €59.7M, expanding equity to €73.8M and enabling significant new investments in Belgian SMEs, with a focus on balanced capital growth and positive ESG impact.

• Portfolio now includes 15+ holdings, with new stakes in sectors like renewable energy, health, food tech, and four new holdings (ESG, Sibelco, Tilman, Abbove), plus increased stakes in GFIN and Newtree Impact.

• Net Asset Value (NAV) rose from €33.4M to €99.7M, or €14.35 per share, after a -5% change versus 12/31/23, reflecting a -9% dilutive effect from fundraising.

• Cash and cash equivalents at June 30, 2024: €26M, factoring in the acquisition of a 69% stake in Lambda-X Ophthalmics.

• Main holdings delivered half-year results in line with expectations.

Financial highlights

• Net result for H1 2024: -€460K, or -€0.07 per share, a slight improvement from -€0.08 per share in H1 2023, impacted by exceptional fundraising costs.

• Operating result: -€268K, improved from -€292K in H1 2023 due to higher revenues offsetting increased costs.

• Current/recurring result: €12K, reflecting positive operational and financial activity, up from a €191K loss year-over-year.

• Fixed assets increased from €12.7M to €47.2M, mainly due to new investments and contributions in kind.

• Equity increased to €73.8M from €14.5M at year-end 2023, driven by capital increases.

Outlook and guidance

• NAV per share (fully diluted) at June 30, 2024: €14.35, down 4.9% from €15.06 at end-2023 but up 6% from pro-forma post-raise value.

• NAV will be reported biannually, at June 30 and December 31, except for exceptional transactions.

• Ongoing focus on deploying new capital into growth sectors and further international expansion.

• Half of the -9% dilutive effect from capital increases was offset by portfolio revaluation by end of June.