Business update 30 September 2023

Results

Quest for Growth closed the first nine months of its financial year with a net loss of €5.5 million. The return on equity capital was -3.83%, without taking into account the increase in the number of outstanding shares, amounting to around 2.9%. Quest for Growth’s share price decreased by 15% over the first nine months of the year to a closing price of 5.10 euros on 30 September 2023. The discount of the share price in relation to the net asset value rose to 31.1% at the end of the quarter, compared to 24.3% at the end of 2022.

Market Environment

The European stock market index STOXX Europe 600 Net Return rose by 8.5% over the first nine months of 2023. The STOXX Europe Small 200 Net Return rose by 3.1% over the same period. Thus far, 2023 has had its ups and downs as far as the stock exchange is concerned. While the first quarter was still marked by problems in the banking sector and high volatility in equity markets, the bulls regained the upper hand in the second quarter. Fuelled by a technological breakthrough in artificial intelligence, the beginning of August saw both the S&P 500 in the United States and the STOXX Europe 600 reaching new heights for this year. And that’s when market sentiment slowly began to turn. Investors once again had their sights on rising long-term interest rates across the world. In the US, the 10-year Treasury yield reached its highest level since the beginning of 2008. The 10-year bond yield in Germany is approaching 3%, a level not seen since mid-2011. Most companies are managing to keep profits at a high level. European Small and Mid Caps however did struggle so far in 2023 and have been underperforming considerably on the stock market since mid-2021 compared to larger and more liquid stocks. The investment climate for unquoted shares is very challenging, especially for those companies that need additional money.