Flat Capital AB (publ) ("Flat") publishes its interim report for January-September 2024 where net asset value per share increased to 8.00 SEK per share, +6.1% compared to the previous quarter. The positive development is a result of a number of positive value adjustments, largely following new capital rounds in a few holdings at updated valuations. We continue to see positive momentum in our portfolio holdings. We also note that some of the recent investments we have made in AI are consistently highlighted as category leaders and some of the most promising global AI companies, which is of course encouraging. During the quarter, four investments were made, of which three were new holdings, for a total value of 39 MSEK; approx. 18 MSEK in the space and satellite company SpaceX, 10 MSEK in the security company Hemla, approx. 11 MSEK in a US AI hardware company and approx. 0.5 MSEK in the existing portfolio holding CDLP.
Flat's management will host a live stream and give a personal update on the report at 12:00 CET at the following link: https://www.youtube.com/live/66QI6956wVc'si=Ahc05OBXNnBuQmDp
Financial position
- Net asset value amounted to 392 712 KSEK, corresponding to 8.00 SEK per share, which represents an increase of +6.1% per share for the quarter, including a negative FX effect of -9 729 KSEK.
- Net cash amounted to 86 147 KSEK, corresponding to 22% of net asset value as of September 30, 2024.
The period July-September 2024
- The change in value of portfolio holdings amounted to +22 863 KSEK (-28 239), including an FX effect of approximately -9 729 KSEK. The change in value is mainly due to several holdings that have recently completed capital raisings at updated valuations. This includes holdings such as Perplexity, Harvey, DeepL, Figma and Quartr, whose accumulated value adjustment amounts to approx. +22 151 KSEK.
- Investments amounted to 38 809 KSEK (0), see "Investments and divestments during the quarter".
- Operating expenses amounted to 1 130 KSEK (1 114), corresponding to 1.19% (1.39%) of average NAV, on an annual basis.
- Operating profit amounted to 21 733 KSEK (-29 353), including unrealized changes in value of 22 863 KSEK (-28 239).
- Profit after tax amounted to 22,482 KSEK (-29 053).
- Earnings per share amounted to 0.46 SEK (-0.80).
The period January-September 2024
- The change in value of portfolio holdings amounted to -19 811 KSEK (-53 538) and mainly consisted of the change in value of OpenAI +37 662 KSEK and Getir -61 338 KSEK.
- Investments amounted to 76 592 KSEK (58 210).
- Operating expenses amounted to 4 024 KSEK (5 956), corresponding to 1.33% (2.49%) of average NAV, on an annual basis.
- Operating profit amounted to -23 835 KSEK (-59 494). Operating profit includes unrealized changes in value of -19 811 KSEK (-46 311) and realized changes of 0 KSEK (-7 227).
- Profit after tax amounted to -20 009 KSEK (-57 831).
- Earnings per share amounted to 0.41 SEK (-1.78).
Significant events during the quarter
- In September, Flat's Board of Directors decided to carry out a new share issue with preferential rights for existing B shareholders. At full subscription, Flat will receive 80 MSEK before issue costs. The issue is secured to 55 MSEK, corresponding to 69%, through subscription commitments. Flat also has the option to increase the issue amount further, by up to 60 MSEK if the issue is oversubscribed. Please also see Press release 2024-09-27
Investments & divestments during the quarter
- During the quarter, four investments were made, of which three were new holdings, for a total value corresponding to 38 809 KSEK;
- Flat invested 17 604 KSEK in SpaceX, which designs, manufactures and launches some of the world's most advanced rockets and spacecraft. SpaceX also offers internet services via satellites through its Starlink brand. The investment was made through a so-called SPV and involves market-based management costs.
- Flat invested 10 000 KSEK in the security company Hemla, which was recently founded and is run by entrepreneurs Fredrik Hamilton, Axel Möller and CEO Jakob Lyckenvik with the ambition of building the next generation security service. Flat was also one of the first external investors in Budbee, later Instabee, founded and run by Fredrik Hamilton.
- Flat also invested 10 749 KSEK in a US based AI hardware company, but as the round has not yet been announced, we intend to return with more information.
- Flat also participated with its pro-rata in the portfolio company CDLP, corresponding to approx. 456 KSEK, in connection with the company closing a new financing round.
Significant events after the end of the quarter
- No significant events have occurred after the end of the quarter.
This text has been translated using DeepL.
Link to the report on the website:
https://www.flatcapital.com/en/investor-relations/
For further information, please contact:
Hanna Andreen, CEO, hw@flatcapital.com, +46 (0) 73 353 44 66
Antonio Melani, CFO, am@flatcapital.com,+46 (0) 72 221 81 32
Certified Adviser:
Flat Capital's Certified Adviser is Augment Partners AB, info@augment.se, +46 (0) 8 604 22 55
About Flat Capital:
Flat Capital is an investment company that focuses on growth stage companies with prominent entrepreneurs in leading positions and primarily makes investments through its network of world-class investors and entrepreneurs. The company was founded in 2013 by entrepreneurs Nina and Sebastian Siemiatkowski (founders and CEOs of Milkywire and Klarna, respectively) and is led by CEO Hanna Andreen together with an experienced board of directors. Examples of portfolio companies include Klarna, OpenAI, Instabee, Figma and DeepL. The company aims to provide long-term capital and is essentially a passive minority shareholder, while Flat Capital's experience and network are available to the extent the entrepreneur wishes. The aim is to facilitate successful company building and enable exposure to otherwise hard-to-reach and promising companies. More information is available at www.flatcapital.com
Note: This is a non-official translation of the Swedish original text. In case of any discrepancies between the Swedish text and the English translation, the Swedish text shall prevail.
This information is information that Flat Capital AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-10-29 08:30 CET.
