Topic: Results publication
CEO Koen Dejonckheere:
2022 represented for our companies yet another period of severe turbulence and necessity to realign in terms of supply, energy, inflation, skilled teams, interest rates, financing and economic demand. Once more, they demonstrated their robustness and vitality by posting strong revenue growth (+24% for the second year in a row) and maintaining profitability (-1.7%). Our confidence in their solid foundations, strong entrepreneurship, and the perseverance of their management and staff has been confirmed. Although the first half of 2022 was difficult, effective pricing policies and cost management translated into a recovery in the second half of the year. During this period, the solid performance of our companies supported a positive portfolio result, with the platform portfolio return thus remaining positive on a year-on-year basis.
We continued our intensive investment activity in the past year, resulting in a record investment amount of EUR 261 million. We not only welcomed nine new companies to our portfolio, but the growth momentum through buy-and-build also continued to accelerate with no fewer than 36 acquisitions by our companies. As a result, the overall investment portfolio could reach a record level of over EUR 1.5 billion, an important source of sustainable value creation in the coming years. Combined with our solid balance sheet, this means we can confirm our dividend of EUR 2.60 per share for the past financial year.
Chair Hilde Laga adds:
Gimv is committed to integrate sustainability into the dialogue with our portfolio companies to ensure they are – and remain – future-proof. They can count on Gimv to guide them in achieving their sustainability goals. Gimv’s inclusion in the BEL ESG index is a public recognition of our sustainability vision and ESG efforts.
The results for the 2022–23 financial year relate to consolidated figures for the period from 1 April 2022 to 31 March 2023.
Key elements
Results
- Sustained strong revenue growth at portfolio companies in 2022 (+24%) and maintained profitability (-1.7%) despite strong inflationary pressure on costs (e.g. energy, commodities and salaries).
- Although the first half of 2022 was difficult, effective pricing policies and cost management and lower working capital requirements translated into a positive portfolio result (EUR +50 million) in the second half of the year. The return on the platform portfolio remained positive for the full financial year (EUR +4.7 million or +0.4%; the total portfolio result was EUR -1.2 million).
- Net result (group share): EUR -59.5 million (or EUR -2.20 per share)
Investments / Exits
- A record investment level of EUR 260.6 million, spread across nine new holdings and a growing number of additional investments in our portfolio companies with 36 add-on acquisitions in the past 2022–23 financial year as part of a continued intensive buy-and-build strategy.
- Total proceeds from divestments: EUR 175 million, with a total realised money multiple of 1.8x compared to the invested amount.
Balance sheet and portfolio
- Sustained high investment rhythm and a record number of acquisitions made by portfolio companies ensured continued growth of the investment portfolio by 5.1% to a new record level of EUR 1,523 million (invested in 59 companies).
- Available liquidity on the balance sheet increased from the end of the first half of the 2022–23 financial year to EUR 194.4 million (EUR 350 million financed by LT bonds). Gimv also has EUR 200 million of undrawn credit lines at banks.
Equity
- Value of equity (group share): EUR 1,312 million (or EUR 48.20 per share compared to EUR 50.40 per share (excluding dividends) as at the end of March 2022).
Dividend
- Proposal to maintain the dividend of EUR 2.60 gross (EUR 1.82 net) per share for the 2022–23 financial year, subject to general meeting approval on 28 June 2023.
Payment in principle through an optional dividend, which will allow Gimv, as appropriate, to strengthen its cash position with a view to continued portfolio growth.
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