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Quest for Growth NV — Interim / Quarterly Report 2012
Apr 26, 2012
3991_10-q_2012-04-26_daf7b962-c253-4a71-8bad-ff9d7c3786fe.pdf
Interim / Quarterly Report
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The enclosed information constitutes regulated information as defined in the Royal Decree of 14 November 2007 regarding the duties of issuers of financial instruments which have been admitted for trading on a regulated market.
QUEST FOR GROWTH
Interim Financial Report January – March 2012
INTERIM REPORT
Quest for Growth has made a strong start in 2012, with an increase of the net asset value to € 8.44 per share on 31 March 2012, to compare with € 7.90 per share on 31 December 2011. In the first quarter the net profit ran up to € 6.2 million (€ 0.54 per share), while the net profit in the first quarter of 2011 amounted to € 0.9 million (€ 0.07 per share).
The quarterly profit comes entirely from the quoted portfolio. This makes up for an important part of the loss in the quoted portfolio during 2011. No less than six shares in the portfolio increased by more than 25 %: Leguide. com, Arcadis, Umicore, Init, LEM and Melexis. Mobotix was sold entirely with a profit of approximately 40 % in less than one year. Stratec Biomedical, a German producer of diagnostic systems, was the only newcomer in the portfolio. In the unquoted portfolio most activities took place through the funds.
In February the Board of Directors of Quest for Growth appointed ADP Vision BVBA, represented by Antoon De Proft, as its new Chairman. Following the recent merger between Quest Management and Capricorn Venture Partners the latter has, as the legal successor of Quest Management, taken over the role of managing director of Quest for Growth.Thanks to his wide experience in the financial and the high-tech world - as CEO of the listed company ICOS Vision Systems, as Chairman of IMEC and as Board member of Barco – Antoon De Proft has the right profile to succeed the outgoing Chairman Jos B. Peeters.
During the last quarter the ownership of shares of Quest for Growth has changed significantly. Laxey Partners, Ltd. reported no longer holding voting securities, while Financial & Investment Management Group, Ltd. crossed the threshold of 10 % voting rights and reported holding 14.08 % voting securities of Quest for Growth.
DISCOUNT QUEST FOR GROWTH
VALUATION QUEST FOR GROWTH
| Stock Price | Net asset value/share | ||
|---|---|---|---|
| 31/03/2012 | 31/03/2012 | 29/02/2012 | 31/12/2011 |
| 5.00 EUR | 8.44 EUR | 8.38 EUR | 7.90 EUR |
| Number of shares | 11,529,950 | 11,529,950 | 11,529,950 |
| Discount of the share price versus Net Asset Value: 40.75% |
Source: Estimate by Capricorn Venture Partners NV
1
CONDENSED INTERIM FINANCIAL STATEMENTS
| 1. BALANCE SHEET AT MARCH 31ST 2012 |
2012 31 March |
2011 31 December |
2012 31 March |
2011 31 December |
|
|---|---|---|---|---|---|
| ASSETS | LIABILITIES | ||||
| Fixed assets | 91.207.841 | 86.989.456 Capital and Reserves | 97.299.387 | 91.101.307 | |
| Formation expenses | 0 | 0 Issued capital | 109.748.742 | 109.748.742 | |
| Financial assets | 91.207.841 | 86.898.456 Reserves | 656.423 | 656.423 | |
| Shares | 83.645.535 | 79.492.057 | Reserves not available for distribution | 0 | 0 |
| Claims | 7.562.306 | 7.497.399 | Reserves available for distribution | 656.423 | 656.423 |
| Current assets | 6.229.910 | 4.235.030 Profit carried forward | 0 | ||
| Amounts receivable > one year | 0 | 0 Loss carried forward | (19.303.859) | (19.303.859) | |
| Trade receivables | 0 | 0 Result for the period | 6.198.080 | ||
| Other receivables | 0 | 0 | |||
| Amounts receivable < year | 513.737 | 1.165.102 Debts | 62.440 | 123.179 | |
| Trade receivables | 0 | 0 Amounts payable < one year | 62.440 | 105.882 | |
| Other receivables | 513.737 | 1.165.102 | Financial debts | 0 | 0 |
| Investments | 0 | 0 | Trade debts | 16.403 | 55.358 |
| Own shares | 0 | 0 | Taxes | 432 | 432 |
| Term investments | 0 | 0 | Other debts | 45.606 | 50.092 |
| Cash | 5.716.173 | 3.038.427 | |||
| Deferred charges and accrued income | 1.048.125 | 31.501 Deferred charges and accrued income | 1.124.049 | 17.297 | |
| TOTAL ASSETS | 98.485.876 | 91.224.485 TOTAL LIABILITIES | 98.485.876 | 91.224.485 |
| 2. STATEMENT OF INCOME FOR THE PERIOD ENDED MARCH 31ST 2012 |
31 December 2011 31 March 2012 |
31 December 2011 31 March 2012 |
|---|---|---|
| Operating income and charges | ||
| Gross operating income | 6,831,461 | 1,097,286 |
| Realised gains/losses on shares | 822,909 | 1,073,688 |
| Unrealised gains/losses on shares | 6,029,658 | (444,919) |
| Results from option transactions | (44,687) | 0 |
| Realised results from forward currency rate agreements | 148,428 | 596,908 |
| Unrealised results from forward currency rate agreements | (124,846) | (128,391) |
| Depreciation and other amounts written off | 0 | 0 |
| Other operating charges | (472,459) | (468,900) |
| Management fee | (372,951) | (369,863) |
| Custodian fee | (11,269) | (10,808) |
| Statutory Auditors fee | (2,904) | (2,264) |
| Printing and publication costs | (19,138) | (15,558) |
| Annual tax on collective investment schemes | (18,121) | (20,911) |
| Directors fees | (23,304) | (17,852) |
| Advisory fees | (4,238) | (8,723) |
| Accountants | 0 | 0 |
| Other | (20,534) | (22,922) |
| Operating profit / loss | 6,359,002 | 628,386 |
| Financial income | 243,654 | 164,766 |
| Financial charges | (404,576) | 70,756 |
| Amounts written off own shares | 0 | 165,955 |
| Capital increase cost | 0 | 0 |
| Other | (404,576) | (95,199) |
| Profit / Loss for the period, before taxes | 6,198,080 | 863,908 |
| Income taxes | 0 | 0 |
| Profit / Loss for the period, after taxes | 6,198,080 | 863,908 |
| Profit / Loss for the period, after taxes, per share | 0.5376 | 0.0752 |
3. OFF BALANCE POSITIONS AT MARCH 31ST 2012
3.1 Commitments
| Commitment | Currency | Commitment in € | |
|---|---|---|---|
| Capricorn Cleantech Co-investments | 1,500,000 | € | 1,500,000 |
| Capricorn Cleantech Fund | 550,000 | € | 550,000 |
| Capricorn Health-tech Fund | 11,250,000 | € | 11,250,000 |
| Carlyle Europe Technology Partners I | 385,056 | € | 385,056 |
| Carlyle Europe Technology Partners II | 1,292,301 | € | 1,292,301 |
| Cartagenia | 625,001 | € | 625,001 |
| Life Sciences Partners III | 70,799 | € | 70,799 |
| Life Sciences Partners IV | 1,213,575 | € | 1,213,575 |
| Schroder Ventures International Life Sciences Fund II | 19,953 | \$ | 14,939 |
| Ventech Capital 2 | 203,714 | € | 203,714 |
| Vertex III | 49,023 | \$ | 36,705 |
| TOTAL | 17,142,090 | ||
3.2 Forward currency rate agreements
| Value date | Counterparty | Quest for Growth buys | Quest for Growth sells |
|---|---|---|---|
| 30/04/2012 | Belfius Bank | € 3,097,819.61 | £ 2,600,000 |
| 30/04/2012 | Belfius Bank | € 1,870,277.55 | \$ 2,500,000 |
| 30/04/2012 | KBC Bank | € 2,980,750.31 | £ 2,500,000 |
| 30/04/2012 | KBC Bank | € 2,021,502.80 | \$ 2,700,000 |
PORTFOLIO COMPOSITION AND MARKET CAPITALISATION AT MARCH 31ST 2012
4. NOTES TO THE FINANCIAL STATEMENTS FINANCIAL ASSETS BREAKDOWN AT MARCH 31ST 2012
4.1. Shares quoted companies
| Company | Sector / Market | Number of shares |
Change since 31/12/2011 |
Currency | Share price | Valuation in € |
in % of Net Asset Value |
|---|---|---|---|---|---|---|---|
| Software & Services | |||||||
| DOCDATA | Euronext Amsterdam | 65,000 | 0 | € | 12.8000 | 832,000 | 0.86% |
| ECONOCOM | Euronext Brussels | 180,263 | 26,600 | € | 16.8000 | 3,028,418 | 3.11% |
| INIT INNOVATION | Deutsche Börse | 106,178 | 7,000 | € | 18.4000 | 1,953,675 | 2.01% |
| LEGUIDE.COM | Euronext Paris | 80,000 | 0 | € | 19.5700 | 1,565,600 | 1.61% |
| NEMETSCHEK | Deutsche Börse | 132,500 | -7,500 | € | 31.0550 | 4,114,788 | 4.23% |
| PHARMAGEST INTERACTIVE | Euronext Paris | 40,000 | 0 | € | 46.2500 | 1,850,000 | 1.90% |
| TRANSICS | Euronext Brussels | 250,000 | 0 | € | 7.1300 | 1,782,500 | 1.83% |
| UNIT 4 | Euronext Amsterdam | 70,330 | -87,500 | € | 21.7500 | 1,529,678 | 1.57% |
| Technology Hardware | |||||||
| EVS BROADCAST EQUIPM. | Euronext Brussels | 90,000 | 0 | € | 38.8800 | 3,499,200 | 3.60% |
| LEM Holding | SWX Swiss Exchange | 4,869 | -341 | CHF | 494.5000 | 1,998,938 | 2.05% |
| Pharma & Biotech | |||||||
| TEVA PHARMACEUTICAL | Nasdaq | 60,000 | 0 | \$ | 45.0600 | 2,024,259 | 2.08% |
| Healthcare Equipement & Services |
|||||||
| GERRESHEIMER | Deutsche Börse | 50,000 | 15,000 | € | 32.8000 | 1,640,000 | 1.69% |
| NEXUS | Deutsche Börse | 170,000 | 52,000 | € | 8.4600 | 1,438,200 | 1.48% |
| SPHERE MEDICAL | AIM | 930,031 | 0 | £ | 0.7033 | 784,320 | 0.81% |
| STRATEC BIOMEDICAL | Deutsche Börse | 40,000 | 40,000 | € | 31.0000 | 1,240,000 | 1.27% |
| UNITED DRUG | Dublin | 1,391,786 | -100,000 | € | 2.1200 | 2,950,586 | 3.03% |
| Electrical & Engineering | |||||||
| ANDRITZ | Vienna | 57,500 | -5,000 | € | 73.3800 | 4,219,350 | 4.34% |
| ARCADIS | Euronext Amsterdam | 225,000 | 0 | € | 15.6700 | 3,525,750 | 3.62% |
| FAIVELEY | Euronext Paris | 27,500 | -2,500 | € | 52.0000 | 1,430,000 | 1.47% |
| IMTECH | Euronext Amsterdam | 147,555 | -42,500 | € | 23.9700 | 3,536,893 | 3.64% |
| KENDRION | Euronext Amsterdam | 61,500 | 6,500 | € | 19.6250 | 1,206,938 | 1.24% |
| SCHALTBAU HOLDING | Deutsche Börse | 12,777 | 2,277 | € | 82.4300 | 1,053,208 | 1.08% |
| Semiconductors | |||||||
| MELEXIS | Euronext Brussels | 125,133 | 5,000 | € | 13.2000 | 1,651,756 | 1.70% |
| Materials | |||||||
| CENTROTEC | Deutsche Börse | 65,000 | -8,000 | € | 13.0850 | 850,525 | 0.87% |
| UMICORE | Euronext Brussels | 100,000 | -10,000 | € | 41.3050 | 4,130,500 | 4.25% |
| Options | |||||||
| DAX PUT strike 6500 21sep 2012 | 500 | 500 | € | 238.5000 | 119,250 | 0.12% | |
| UMICORE Call strike 40 20 apr 2012 | -7,500 | -7,500 | € | 1.7900 | -13,425 | -0.01% | |
| 53,942,906 | 55.44% |
4.2. Shares unquoted companies
| Company | Sector / Market | Currency | Valuation in € | in % of Net Asset Value |
|---|---|---|---|---|
| ANTERYON | Technology Hardware | € | 1,499,027 | 1.54% |
| CAPRICORN CLEANTECH CO-INVESTMENTS | € | 1,074,527 | 1.10% | |
| CARTAGENIA | Software & Services | € | 625,001 | 0.64% |
| CLEAR2PAY | Software & Services | € | 5,570,337 | 5.73% |
| IDEA AG | Pharma & Biotech | € | 164,417 | 0.17% |
| KIADIS PHARMA | Pharma & Biotech | € | 2,374,279 | 2.44% |
| MAGWEL | Software & Services | € | 430,000 | 0.44% |
| OXAGEN Ltd. | Pharma & Biotech | £ | 5,011 | 0.01% |
| PROSONIX | Pharma & Biotech | £ | 2,609,399 | 2.68% |
| SYNTAXIN | Pharma & Biotech | £ | 2,412,969 | 2.48% |
| TCLAND | Pharma & Biotech | € | 1,499,995 | 1.54% |
| 18,264,963 | 18.77% |
4.3. Investments in venture funds
| CAPRICORN VENTURE PARTNERS | Currency | Last Valuation Date |
Valuation in € | in % of Net Asset Value |
|---|---|---|---|---|
| CAPRICORN CLEANTECH FUND | € | 31-12-2011 | 1,121,719 | 1.15% |
| CAPRICORN HEALTH-TECH FUND | € | 31-12-2011 | 3,395,312 | 3.49% |
| Other fonds |
||||
| CARLYLE EUROPE TECHNOLOGY PARTNERS I | € | 31-12-2011 | 1,456,845 | 1.50% |
| CARLYLE EUROPE TECHNOLOGY PARTNERS II | € | 31-12-2011 | 2,624,601 | 2.70% |
| CETP LP CO-INVESTMENT | € | 31-12-2011 | 1,568,150 | 1.61% |
| CETP II LP CO-INVESTMENT | £ | 31-12-2011 | 175,493 | 0.18% |
| LIFE SCIENCES PARTNERS III | € | 31-12-2011 | 1,348,420 | 1.39% |
| LIFE SCIENCES PARTNERS IV | € | 31-12-2011 | 691,000 | 0.71% |
| SCHRODER VENTURES LSF II | \$ | 31-12-2011 | 181,411 | 0.19% |
| VENTECH CAPITAL 2 | € | 31-12-2011 | 809,889 | 0.83% |
| VERTEX III | \$ | 31-12-2011 | 1,345,530 | 1.38% |
| 14,718,370 | 15.13% | |||
| Total Financial Assets - Shares | 86,926,239 | 89.34% | ||
| Depreciation unquoted companies | -3,280,704 | -3.37% | ||
| Total Financial Assets – Shares after depreciation | 83,645,535 | 85.97% |
4.4. Amounts receivable companies
| Company | Face | Currency | Valuation in € | in % of |
|---|---|---|---|---|
| value in currency | Net Asset Value | |||
| Loan notes | ||||
| ANTERYON Convertible loan note | 63,440 | € | 63,440 | 0.07% |
| TCLAND Convertible loan note | 500,000 | € | 500,000 | 0.51% |
| 563,440 | 0.58% | |||
| Commercial paper | ||||
| CODRALUX | 2,000,000 | € | 1,999,815 | 2.06% |
| CODRALUX | 2,000,000 | € | 1,999,889 | 2.06% |
| DEME | 2,000,000 | € | 1,999,394 | 2.05% |
| ETEXCO | 1,000,000 | € | 999,769 | 1.03% |
| 6,998,867 | 7.19% | |||
| Total Financial Assets - Amounts receivable | € | 7,562,307 | 7.77% | |
| Total Financial Assets | € | 91,207,841 | 93.74% | |
| Cash | € | 5,716,173 | 5.87% | |
| Other Net Assets | € | 375,373 | 0.39% | |
| Quest for Growth - Ordinary shares | € | - | 0.00% | |
| Total Net Asset Value | € | 97,299,387 | 100.00% |
PORTFOLIO DISTRIBUTION BY SECTOR Software & Services 24.3% Electrical & Engineering 16.8% Funds & Diversified Companies 15.4% Pharma & Biotech 12.1% Technology Hardware 9.5% Other sectors 5.2% Health Care Equipment & Services 8.4% Materials 5.2% Cash & other net assets 3.1% PORTFOLIO DISTRIBUTION BY COUNTRY Belgium 34.0% Netherlands 17.6% United Kingdom 13.3% Germany 11.5% France 8.1% Austria 4.5% Israel 3.6% Ireland 3.1% Switzerland 2.3% US 2.1% PORTFOLIO DISTRIBUTION BY CURRENCY EUR 88.64% GBP 5.57% USD 3.79% CHF 2.01%
5
PROFILE, AIM
Quest for Growth focuses on European technology-based growth companies in sectors such as life sciences, information technology, software, semiconductors, telecom, electronics, new materials and special situations in other growth sectors. Funds under management amounted to € 97 million on March 31st 2012.
Quest for Growth has been listed on Euronext Brussels since September 23rd 1998.
The Privak, created by Royal Decree of April 18th 1997, is an investment vehicle, specially tailored to provide a suitable framework for investments in private equity and in growth companies.
The Privak is a closed-end Undertakings for Collective Investments in Transferrable Securities (UCITS) under the regulation of the Financial Services and Market Authority (FSMA) and subject to specific investment and dividend pay out.
INVESTMENT POLICY
Quest for Growth invests in growth companies with the objective of converting capital gains into tax-free income through the Privak structure. The largest part of the portfolio is invested in growth companies listed on European stock exchanges (Euronext, London Stock Exchange, Deutsche Börse etc.) and other regulated markets. Under Privak rules this part may not exceed 65 % of the assets.
THE INTERIM FINANCIAL REPORT JANAURY – MARCH 2012 HAS NOT BEEN CONSOLIDATED NOR SUBMITTED TO A CONDENSED REVIEW BY THE STATUTORY AUDITOR KLYNVELD PEAT MARWICK GOERDELER BEDRIJFSREVISOREN
STATEMENT ON THE TRUE AND FAIR VIEW OF THE CONDENSED INTERIM FINANCIAL STATE-MENTS AND THE FAIR OVERVIEW OF THE INTERIM FINANCIAL REPORT
Regine Slagmulder BVBA, represented by Prof. Regine Slagmulder, Director – Chairman of the Audit Committee and Capricorn Venture Partners NV, represented by Dr. Jos B. Peeters, Managing Director certify, on behalf and for the account of the Board of Directors of Quest for Growth NV, that, to their knowledge,
- a) the condensed interim financial statements which have been prepared in accordance with the accounting framework and standards applicable in Belgium give a true and fair view of the assets, liabilities, financial position and profit or loss of the company, under Article 13, § 4 of the Royal Decree of November 14, 2007 on the obligations of issuers of financial instruments admitted to trading on a regulated market.
- b) the interim financial report includes a fair overview of the information required under Article 13, §§ 5 and 6 of the Royal Decree of November 14, 2007 on the obligations of issuers of financial instruments admitted to trading on a regulated market.
Leuven, 24 April 2012
Regine Slagmulder BVBA Capricorn Venture Partners NV Director – Chairman of the Audit committee Managing Director represented by represented by Regine Slagmulder Jos B. Peeters
7
GeNeRAL INFORMATIONS
| Board of Directors | ADP Vision BVBA, Director, represented by Mr. Antoon De Proft |
|---|---|
| Capricorn Venture Partners NV, Managing Director, represented by Dr. Jos B. Peeters, Managing Director | |
| René Avonts BVBA, Director, represented by Mr. René Avonts | |
| Auxilium Keerbergen BVBA, Director, represented by Mr. Frans Theeuwes | |
| Axxis BVBA, Director, represented by Mr. Philippe de Vicq de Cumptich | |
| Baron Bernard de Gerlache de Gomery, Director | |
| De Meiboom NV, Director, represented by Mr Edward Claeys | |
| Euro Invest Management NV, Director, represented by Prof. Philippe Haspeslagh | |
| Gengest BVBA, Director, represented by Mr. Rudi Mariën | |
| Pamica NV, Director, represented by Mr. Michel Akkermans | |
| Regine Slagmulder BVBA, represented by Prof. Regine Slagmulder | |
| Mr. Dirk Vanderschrick, Director | |
| Audit Committee | Regine Slagmulder BVBA, Chairman, represented by Prof. Regine Slagmulder |
| Auxilium Keerbergen BVBA, represented by Mr Frans Theeuwes | |
| Baron Bernard de Gerlache de Gomery | |
| Managing Director | Capricorn Venture Partners NV, Lei 19 box 1, B-3000 Leuven, |
| represented by Dr. Jos B. Peeters | |
| Auditors | Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren Burg. CV, |
| represented by Mr. Erik Clinck, Prins Boudewijnlaan 24d, B-2550 Kontich | |
| Depositary bank | BELFIUS BANK BELGIUM, Pachecolaan 44, B-1000 Brussels |
| Incorporation | June 9th, 1998 |
| Official listing | September 23rd, 1998 on Euronext Brussels |
| Security number | ISIN: BE0003730448 |
| Stock Price | Bloomberg: QFG BB Equity |
| Reuters: QUFG.BR | |
| Telekurs: 950524 | |
| Company reports | published quarterly, the next quarterly report will be published in July 2012 |
| Estimated | published every first Saturday of the month in De Tijd and in L'Echo, Moneytalk and on the website |
QUEST FOR GROWTH NV
Privak, fixed capital investment company established under Belgian Law Lei 19, box 3 - B-3000 Leuven - Phone: +32 (0)16 28 41 28 - Fax: +32 (0)16 28 41 29 www.questforgrowth.com [email protected]