Scandinavian Investment Group (SIG) Q4 2024 earnings summary

Executive summary

• 2024 was a challenging year, with results below the average annual target despite global stabilization in interest rates and inflation.

• Net profit after tax was DKK 15.5 million, including a DKK 4.0 million deferred tax asset activation, yielding an 8.1% return on equity.

• The company maintained a conservative investment approach, focusing on strong-balance-sheet companies and stable real estate assets.

• Active capital structure management continued, with significant share buybacks and cancellations to enhance shareholder value.

• Exposure remains cautious due to high valuations in equity and real estate markets.

Financial highlights

• Revenue from rental income was DKK 12.2 million, with net property income of DKK 7.5 million.

• Net profit for 2024 was DKK 15.5 million, up from DKK 11.0 million in 2023.

• Return on equity was 8.1% (2023: 5.9%).

• Diluted net asset value per share increased to DKK 4.20 (2023: DKK 3.85).

• Cash flow from operations was DKK 11.6 million, with a net cash outflow of DKK 1.9 million for the year.

Outlook and guidance

• 2025 guidance targets a 10-15% return on equity, corresponding to post-tax earnings of DKK 19-28 million.

• Expected net income: DKK 11.5 million from properties, DKK 7.2 million from credit bonds, DKK 5.4 million from equity investments.

• No further activation of deferred tax assets is anticipated in 2025.