Quarterly report January March 2007

Transcription

1 QUEST FOR GROWTH Quarterly report January March 2007 Dear Shareholders TOTAL SHAREHOLDERS RETURN (SINCE 31/03/2006) After the most successful fiscal year 2006, Quest for Growth continued its excellent performance with a net profit over Q1 of 5.0 mio ( 0.53 per share). Though the Q1 result in 2006 ( 10.6 mio or 1.06 per share) was twice as high, this Q1 result is well in line with the overall 2006 result ( 21.5 mio or 2.27 per share). Moreover unlike Q1 2006, when equity markets were booming, the Q1 had to be realised in a much more volatile environment. As shown in the graph alongside, Quest for Growth had to perform better than all three equity indices used to assess our financial results. This profit that amounts to 5.26 % of net assets at the beginning of the quarter was almost exclusively due to the performance of the quoted portfolio. It is however remarkable to note that the 3 stocks stemming from the private equity portfolio and which realized an IPO last year, contributed significantly to this overall result. Omrix, Wilex and Metris (the latter 2 stocks still being under a lock up agreement), which together represent 11.4 % of the overall portfolio at the end of the quarter contributes as much as 40 % of the total return. Few announcements needed to be made on the private equity activity over the reporting period, the only exception being a small follow on investment in Trigen AG, a biotech company. However the pipeline of investments in consideration looks very promising as of today. It is therefore likely that several investments will be realized in the forthcoming months. On March 15, 2007 the Annual General Assembly unanimously approved the distribution of a gross dividend of 1.94 ( 1.93 after withholding tax) per ordinary share, corresponding to 100% of the 2006 profit. An EGM, organized the same day, approved the renewal of the existing share buy back program for another 18 months after its upcoming maturity in May. The EGM also decided to organize a Rights Issue through a Secondary Public Offering starting on April 10 and potentially increasing the number of ordinary shares with 25 % of the present number. The capital increase, if successful, will enable Quest for Growth to increase the maximum amount of its single investments in unquoted companies without having to affect the risk profile of the company. 10% 5% 0% -5% VALUATION QUEST FOR GROWTH Share Price PERFORMANCE OF QUEST FOR GROWTH NAV AND MARKET INDICES TO MARCH 31 ST, 2007 QfG Net Asset Value Nasdaq (in euro) New Markets 50 NextEconomy 5.26% -0.85% Net Asset Value/ share 31/03/ /03/ /02/ /12/ EUR EUR * EUR EUR * After dividend payment of 1.94 per ordinary share. Source: Quest for Growth s estimate 4.30% Since December 31st, %

2 1. BALANCE SHEET AT MARCH 31 ST, ASSETS 31 March 31 December LIABILITIES 31 March 31 December Fixed Assets 108,433, ,699,790 Capital and Reserves 100,984,863 95,943,007 Financial assets 108,433, ,699,790 Issued capital 89,942,195 89,942,195 Shares 107,423, ,733,291 Reserves 6,000,000 6,000,000 Amounts receivable 1,010, ,499 Reserves not available for distribution 1,281,318 1,093,412 Reserves available for distribution 4,718,682 4,906,588 Current Assets 7,923,674 11,865,851 Profit carried forward Amounts receivable within one year 220, ,804 Result for the period 5,041,855 Trade receivables 101,023 0 Amounts payable 15,372,333 21,622,634 Other receivables 118, ,804 Amounts payable within 1 year 14,630,602 21,614,063 Short term investments 1,281,318 11,043,412 Financial debts 7,000,000 0 Own shares 1,281,318 1,093,412 Trade debts 0 0 Term deposits 0 9,950,000 Taxes Cash at Bank and in hand 6,016, ,328 Other amounts payable 7,630,278 21,613,740 Deferred charges and accrued income 405,865 90,307 Accrued charges and deferred income 741,731 8,570 TOTAL ASSETS 116,357, ,565,641 TOTAL LIABILITIES 116,357, ,565, STATEMENT OF INCOME FOR THE PERIOD ENDED MARCH 31 ST, months to 3 months to March 31 st 2007 March 31 st 2006 Operating income and charges Gross operating income 5,784,296 11,183,180 Depreciation and other amounts written off 0 0 Other operating charges (586,042) (445,982) Operating profit / Loss 5,198,255 10,737,198 Financial income 97,856 83,964 Financial charges (254,255) (185,286) Profit / Loss on ordinary activities before taxes 5,041,855 10,635,876 Income taxes 0 0 Profit / Loss for the period 5,041,855 10,635, OFF BALANCE POSITIONS AT MARCH 31 ST, Commitments Commitment Currency Commitment in Carlyle Europe Technology Partners 306, ,829 Life Sciences Partners III 1,334,381 1,334,381 Movetis 969, ,388 Plastic Logic 210, ,914 Schroder Ventures International Life Sciences Fund II 192,168 $ 144,292 Ventech Capital 2 400, ,000 Vertex III 2,130,000 $ 1,599, Forward Currency Rate Agreements Value date Counterparty Quest for Growth buys Quest for Growth sells 30/04/2007 Dexia Bank 3,601, ,450,000 30/04/2007 Dexia Bank 3,328, $ 4,450,000 30/04/2007 KBC Bank 3,600, ,450,000 30/04/2007 KBC Bank 3,854, $ 5,150,000

3 HOLDINGS AT MARCH 31ST 2007 Company Sector / Market Number of Change since Currency Share Valuation In % of Net Shares 31/12/2006 Price in Asset Value Quoted Companies Software ARTWORK SYSTEMS Euronext Brussels 45,000 45, , % GLOBAL GRAPHICS Euronext Brussels 129,955-15, ,221, % MAMUT ASA (1) Oslo 797, ,000 NOK ,393, % NEMETSCHEK Deutsche Börse 50,000 45, ,351, % UNIT 4 AGRESSO Euronext Amsterdam 230,041-10, ,317, % VIZRT Deutsche Börse 111, ,577, % IT Services BINCKBANK NV Euronext Amsterdam 100,806-55, ,464, % ICT AUTOMATISERING Euronext Amsterdam 90,000 90, ,296, % INTERACTIVE PROSPECT TARGETING London 100, , , % LBI International Stockholm 237,720-44,662 SEK ,256, % SWORD GROUP Euronext Paris 45, ,876, % UNIBET SDB Stockholm 161,500 SEK ,758, % YOC Deutsche Börse 27, , % Technology Hardware EVS BROADCAST EQUIPM. Euronext Brussels 94,594 14, ,514, % LEONI Deutsche Börse 57, ,757, % METRIS Euronext Brussels 121,572 69, ,940, % PHILIPS KON. Euronext Amsterdam 100, ,859, % PUNCH GRAPHIX London 574, ,068, % TECHNOTRANS Deutsche Börse 100,000 34, ,409, % TKH GROUP Euronext Amsterdam 46,362-14, ,229, % TOMTOM Euronext Amsterdam 70,000 10, ,135, % Semiconductors ASM International Euronext Amsterdam 99, ,657, % BE SEMICONDUCTOR Euronext Amsterdam 175, , , % ICOS VISION Euronext Brussel 119,231 20, ,739, % SMARTRAC Deutsche Börse 75,000 75, ,656, % Telecommunication D+S EUROPE Deutsche Börse 385,000 60, MOBISTAR Euronext Brussels 29, VODAFONE London 929, , Pharma & Biotech 3,880, % 1,896, % 1,852, % ANTISOMA London 1,100, , % ARK THERAPEUTICS London 654, , ,222, % FORNIX BIOSCIENCES Euronext Amsterdam 81,914-7, ,793, % MEDIGENE Deutsche Börse 45,000 45, , % OMRIX BIOPHARMACEUTICALS (1) Nasdaq 175,015-10,165 $ ,029, % PLETHORA SOLUTIONS (1) Aim 601, ,490, % PROSTRAKAN GROUP Ltd. (1) London 900, ,297, % SOLVAY Euronext Brussels 17, ,955, % VERNALIS London 900, , , % WILEX (1) Deutsche Börse 289, ,521, % Health Care Equipment & Services CORIN GROUP London 234,476 73, ,328, % FUTURA MEDICAL (1) Aim 357, , % FUTURA MEDICAL Aim 650, , % GYRUS GROUP London 250, ,666, % OMEGA PHARMA Euronext Brussels 47,500-7, ,738, % Funds & Diversified Companies DCC Dublin 80, ,108, % Other Sectors BDI-BIODIESEL Deutsche Börse 15, , % TEN CATE KONINKLIJKE Euronext Amsterdam 90,640-26, ,610, % UMICORE Euronext Brussels 20,000 3, ,662, % 89.23%

4 Unquoted Companies CLEAR2PAY Software 3,203, % COREOPTICS Technology Hardware $ 1,126, % IDEA AG Pharma & Biotech 1,034, % KIMOTION Technologies Software 1,000, % MOVETIS Pharma & Biotech 1,530, % OXAGEN Ltd. Pharma & Biotech 6, % PLASTIC LOGIC Technology Hardware 806, % TRIGEN Holdings Pharma & Biotech 1,500, % WELCOME Software 484, % loan notes Face value CONCEPT GROUP IT Services 307, , % TRIGEN Convertible Pharma & Biotech 390, , % TRIGEN Convertible 2 Pharma & Biotech 160, , % Warrants METRIS Technology Hardware _ 460, % Options OMRIX BIOPHARMACEUTICALS Pharma & Biotech $ 89, % 12.13% Venture Funds Last valuation at (2) CARLYLE EUROPE TECHN. PARTNERS Funds & Diversified Companies _ 31/12/2006 1,933, % CETP CO-INVESTMENT FUND Funds & Diversified Companies _ 31/12/ , % KIWI I VENTURA SERVICOS Funds & Diversified Companies _ 30/09/ , % LIFE SCIENCES PARTNERS III Funds & Diversified Companies _ 30/09/2006 1,070, % SCHRODER VENTURES LSF II Funds & Diversified Companies $ 30/06/ , % VENTECH CAPITAL 2 Funds & Diversified Companies _ 31/12/2006 1,016, % VERTEX III Funds & Diversified Companies $ 31/12/ , % 6.02% Number of shares Total invested 108,433, % Cash 6,016, % Other net assets (3) -14,746, % Quest for Growth ordinary shares 138,345 1,281, % TOTAL 100,984, % (1) Futura Medical, Mamut, Metris, Omrix Biopharmaceuticals, Plethora Solutions, ProStrakan Group and Wilex are quoted companies, but are considered as unquoted companies for the privak investment restrictions according to article 41 of the Royal Decree of (2) Valuation based on the last report of the directors of the Venture Fund. (3) Other net assets include formation expenses, unsettled trades, amounts receivable, amounts payable, deferred charges and accrued income, accrued charges and deferred income. (4) Angiosonics, Easdaq and Phytera are still part of the portfolio but have no residual value. A list of all transactions during the year is available on request from the company's offices. QUEST FOR GROWTH BY SECTOR Telecommunications 7% Semiconductors 7% Funds & Diversified Companies 8% France 4% US 5% United Kingdom 16% Malta 3% Healthcare Equipment & Services 6% IT Services 10% Israel 2% Ireland 2% Other sectors 6% Software 14% QUEST FOR GROWTH BY COUNTRY USD 7.17% SEK 4.97% Sweden 1% Norway 1% Austria 1% Portugal 0% Germany 17% QUEST FOR GROWTH BY CURRENCY NOK 1.38% EUR 72.48% Pharma & Biotech 21% Technology Hardware 21% Belgium 25% Netherlands 23% GBP 14.00%

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 101 million on March 31st, Quest for Growth has been listed on Euronext Brussels since September 23rd, 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 fund under the regulation of the Belgian Banking Commission and subject to specific investment and dividend pay out rules. 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. Up to 15 % of the assets can be invested in venture or private equity funds having an investment policy compatible with that of Quest for Growth. The balance will be invested in unquoted companies intending to seek an exit within 36 months. Investments in start-ups or early stage companies are allowed, but will be exceptional.

6 GENERAL INFORMATION Board of Directors Audit Committee Dr Jos B. Peeters, Chairman Quest Management NV, Managing Director, represented by Mr René Avonts, Managing Director Quest Management NV Bergendal & Co. BVBA, Vice Chairman, Independent Director, represented by Comte Diego du Monceau de Bergendal Auxilium Keerbergen BVBA, Chairman, represented by Mr Frans L. Theeuwes Tacan BVBA, represented by Mr Johan Tack Bergendal & Co. BVBA, represented by Count Diego du Monceau de Bergendal Tacan BVBA, Vice Chairman, represented by Mr Johan Tack Euro Invest Management NV, Director, represented by Prof. Philippe Haspeslagh De Meiboom NV, Director, represented by Mr Leo Claeys Mr Dirk Vanderschrick, Director Auxilium Keerbergen BVBA, Independent Director, represented by Mr Frans L. Theeuwes Gengest BVBA, Independent Director, represented by Mr Rudi Mariën Prof. Koen Debackere, Independent Director Pamica NV, Independent Director, represented by Mr Michel Akkermans Investment Committee Euro Invest Management NV, Chairman, represented by Prof Philippe Haspeslagh Dr Jos B. Peeters Pamica NV, represented by Mr Michel Akkermans Managing Director Quest Management NV Lei 19 Box 2, B-3000 Leuven Represented by Mr René Avonts Auditors Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren Burg. CV represented by Mr Erik Clinck Bourgetlaan 40, B-1130 Brussels Depositary bank DEXIA BANK, Pachecolaan 44, B-1000 Brussels Incorporation June 9 th, 1998 Official listing September 23 rd, 1998 on Euronext Brussels (Continuous Market) Security number ISIN: BE Stock price Bloomberg: QFG BB Equity Reuters: QUFG.BR Telekurs: Company reports Quarterly, the next report will be the semi-annual report, to be published in July 2007 The quarterly results will be publicly announced on July 20th th, Gengest BVBA, represented by Mr Rudi Mariën De Meiboom NV, represented by Mr Leo Claeys Ms Nadia Van Hove Quest Management NV, represented by Mr René Avonts Estimated Net Asset Value Published every first Saturday of the month in De TIJD and in L Echo, in Cash and on the Quest for Growth website. QUEST FOR GROWTH NV Privak, fixed capital investment company established under Belgian Law Lei 19, box 3 B-3000 Leuven - Phone: +32 (0) Fax: +32 (0) quest@questforgrowth.com