Newcap (NEWCAP) Q2 2024 earnings summary

Executive summary

• Result after tax for H1 2024 was DKK 0.9m, up from DKK -2.0m in H1 2023, mainly due to a positive fair value adjustment of earn out agreements of DKK 2.4m.

• Exercised option for early settlement and payment of remaining earn out agreement, receiving SEK 31.5m, with SEK 3.2m withheld due to a dispute.

• Preparing for extraordinary dividend payout of DKK 0.12 per share (total DKK 15.1m), expected end of September 2024.

• Board continues to explore strategic options, including new activities, investors, or possible liquidation.

Financial highlights

• Result before financial items: DKK -1.7m (H1 2023: DKK -1.5m).

• Equity at June 30, 2024: DKK 27.2m (Dec 31, 2023: DKK 26.4m), before extraordinary dividend.

• Cash position at June 30, 2024: DKK 25.8m.

• Earn out receivable at June 30, 2024: DKK 2.1m (Dec 31, 2023: DKK 20.5m).

• Cash flow from earn out payments in H1 2024: DKK 20.8m.

Outlook and guidance

• Full-year result before financial items now expected at DKK -2.5m to -3.0m, revised from DKK -2.0m to -3.0m, due to costs already incurred.

• Main uncertainty remains costs related to resolving the earn out dispute.