The Management Board of 2invest AG (Frankfurt: 2INV; ISIN: DE000A3H3L44) forecast a net loss of approximately EUR 251k for the financial year 2021 in the forecast report of the last annual financial statements (financial year 2020). The company's planning did not include income and expenses from the investments in securities, as the exact entry/exit point for the securities cannot be predicted. These are dependent on several factors.
Due to the current strong price declines on the stock markets due to Corona variant fears and inflation fears, the Management Board this morning carried out a valuation of the securities in the portfolio to be reported in the current assets of 2invest AG, which are subject to the strict lower of cost or market principle according to the German Commercial Code (HGB), and prepared an updated forecast. Based on the valuation carried out and assuming approximately stable prices until the end of the year, the Management Board expects a write-down requirement on securities held as current assets of approximately EUR 3.1 million to EUR 7.1 million at the end of the current financial year. The range of EUR 4 million corresponds to about 5% of the assets invested in listed securities. Accordingly, the Management Board currently assumes that the 2021 financial year will close with a net loss of between EUR 2.0 million and EUR 6.0 million in accordance with the German Commercial Code (HGB), which means that the forecast of a net loss of EUR 251k will be significantly missed.
The hidden reserves of currently around EUR 3.5 million in the current assets portfolio are not reflected in the annual result according to the German Commercial Code (HGB), as according to the HGB it is not permitted to write up the assets beyond the acquisition costs.
In addition, the company currently has hidden reserves in fixed assets of over EUR 20 million, which are primarily attributable to the investment in 4basebio PLC. The Company continues to hold approximately 3.67 million shares in 4basebio PLC (approximately 29.8%), which are listed on AIM (Alternative Investment Market) and currently trade at a price of GBP 6.45 per share.
The book value of equity per share according to HGB is currently around EUR 14.
The aforementioned estimate is based on the valuation of the 2021 financial year made by the Management Board this morning. The estimates stated in this announcement are subject to increased uncertainty due to the current volatility of the equity markets.
Board of Directors
Ziegelhäuser Landstr. 3
|Contact Person:||Hansjörg Plaggemars|
|Phone:||+49 6221 649 2480|
|Stock Exchange(s):||Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate|