H1 2025 net loss came in at € 237k (vs. € 697k net income in H1 2024) due to the absence of divestments. Mind you, in H1 2024 029 sold its stake in Emerald Stay, which resulted on a € 0.94m book gain. Besides that, operating expenses remained largely unchanged compared to previous year's figures. Cash at the end of the first half stood at € 65k while liabilities slightly increased to € 700k (+ € 100k).
More importantly, key holdings continue to develop in line with expectations. Limestone Capital (eNuW: 86% of implied fair NAV) successfully opened its 5-star hotel on Mallorca and the former Nobu location in London just yesterday, increasing its locations to 10. Next to the hotel brand Aethos, Limestone also acquired a majority stake in LOISIUM Wine & Spa Hotels and initiated an investment program of over € 100m to develop four additional properties in Italy and France. Limestone also announced the launch of its third hotel brand, Crafted, which is seen to open its first property in East Sussex still this year. With AUMs of over € 1bn, Limestone is quickly developing into a leading European player within its niche.
TRIP Drinks (eNuW: 9% of implied fair NAV), recorded >100% sales growth as the company is increasingly gaining traction across the UK but also new end markets such as France and the US. Based on the reported NAV and 029's 5% stake, the valuation of TRIP should have increase by 51% yoy to € 203m. As seen with the acquisition of its US peer Poppi and other transactions in that space, strategic buyers (PepsiCo in the case of Poppi) are willing to pay 4-5x sales.
hotelbird, a leading solution provider for a seamless digital guest journey within the hotel industry, continuous to grow organically while being able to finance itself. For instance, the company is currently rolling out its solutions across hotels of the Motel One group. Since the listing of its peer ReGuest, the implied valuation (25-30x EV/Sales FY25e) provides confidence in a significant valuation uplift compared to the holdings current NAV in case of an exit or potential funding round.
Brother's Bond entered into a phase of international expansion during H1 (so far US pure play), supported by fresh growth capital. This strategy is already bearing fruit as the company already entered into several new partnerships. For instance, the company's bourbon is now available across the Gebr. Heinemann (leading duty free shop at airports and on cruise ships) locations. Thanks to the recent strong growth, Brother's Bond also reached profitability.
Fjör, 029's skincare investment within the premium segment is broadening its product portfolio with the launch of a new moisturizer in June, world's first hydrolytic body care product. At a NAV of € 0.5m, Fjör's impact on the group's valuation remains limited.
We upgrade to HOLD (old: SELL) due to higher fair NAVs for Limestone Capital (strong AUM growth) and TRIP Drinks (implied NAV following recent funding round) with a € 22 PT (old: € 15.80).
ISIN: DE000A2LQ2D0
