Fram Skandinavien AB (publ) publishes interim report Q2 2024

As of 31st of July 2024, the net asset value amounted to 154 mSEK (43 SEK per share), which was approximately +166% above the closing price of the Fram B share on the same day and a -16% vs. latest reported NAV.

Fram has made additional progress in reducing losses of ventures in the portfolio. Carmudi’s results for Q2 2024 showed a meaningful uptrend as GMV grew by +54% y-on-y. Gross profit increased by +5% y-on-y and number of car transactions increased by +27% compared to Q2 2023. EveHR’s revenues increased by +24% compared to the same period last year. Liven technology experienced modest growth in revenues (+21% y-on-y), while gross profit increased by +210% y-on-y. Group EBIT losses were reduced by 82% y-on-y.

Second quarter operational losses from non-discontinued operations were reduced to -0.4 mSEK this year, from -0.9 mSEK in second quarter 2023.

The general investor appetite for unprofitable tech companies is relatively low in the current environment. Hence, Fram deems it less likely to find interested buyers for the core holdings before they have reached breakeven. Consequently, the main focus is on driving the ventures to profitability. In parallel, to further align valuations with potential acquirers’ expectations and perspectives on the ventures while they remain unprofitable, Fram has decided to further develop the valuation of Carmudi into a full scale sum-of-the-parts valuation for better application of most relevant peer multiples.

As previously communicated, DragonLend’s key creditors have requested to receive back their investment principals and Fram does not expect the dialogues with GOLQ or other potential acquirers to progress further. Hence, DragonLend is winding down its loan book in a controlled manner and returning cash to creditors. Hence, Fram will from this report and onwards report DragonLend as “Discontinued operations”. Fram does not expect to incur any additional cash outflow from investments into DragonLend