Did Arvo still have receivables from here? Famous builder goes bankrupt | Kauppalehti
According to my understanding, Arvo still has a small receivable in the company, but the EUR 4.2 million share capital and all receivables have already been written down in the 2022 financial statements. This means no more negative surprises can come from that direction. A small positive income-affecting item may come through taxes when the final tax-deductible portion of the credit loss is determined.
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A board member bought a quite significant amount of 500 units (approx. 35,000 €) on Monday.
Absolutely a positive signal!
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Arvo granted a couple of new bridge financings. 2 MEUR for Pesmel and 0.7 MEUR for Quarken Boats. Both have also been granted bridge financing previously. In my opinion, these companies, which have already received financing, are the best customers from Arvo’s perspective, as the companies are already well-known and DD (due diligence) is likely to succeed much more smoothly.
In Pesmel’s case, the financing will be used for delivery-time financing of orders from two Finnish industrial customers. To one customer, Pesmel will supply a steel coil packaging system. To the other customer’s logistics center, an automated high-bay warehouse and its associated conveyor system will be delivered. Cooperation with Pesmel has been ongoing for over five years.
For Quarken, the bridge financing will be used to strengthen cash flow during the delivery of ordered boats. The order book for larger boats has remained strong despite sluggish general economic development and US tariffs. The company’s customer base is mainly international. This is the second bridge financing for the company.
@Jari_Pirinen_Pohjanm as a hook for a future report. It would be interesting if you calculated the realized return on bridge financings now that there’s a fair amount of data 
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Aikolon, a company engaged in plastics processing and wholesale trade, has been sold to Arla Plast Ab in Sweden. The company invested in an automated production line in recent years, but the demand for high-quality industrial plastics from the line remained weaker than expected due to the weakening economic cycle, and the company applied for corporate restructuring at the end of 2024.
For
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The largest holding in Arvo’s financial portfolio, HANZA AB, becomes Europe’s largest listed contract manufacturer through a corporate acquisition announced yesterday.
At the current share price of Hanza and the Swedish krona exchange rate, and based on Arvo’s H1 report figures, Arvo’s Hanza holding is approximately 10 million euros, assuming nothing has been sold after H1 (the lock-up period is likely still in effect).
Hanza’s growth and future growth targets will continue to create value for Arvo’s Leden investment.
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In that HANZA press release, there was an interesting point related to Leden from Arvo’s perspective.
The company Leden, which was acquired in March 2025, has, in line with previous communications, faced capacity challenges as a result of rapidly growing demand during the spring, which is temporarily having a negative impact on the operating margin. For Q2/25, the operating margin was approximately 3%, and the margin is expected to remain at a similar level for the remainder of 2025. The capacity project that began in Q2/25 is expected to be completed by the end of 2025/2026, at which point Leden is expected to reach the Group’s margin target of 8%. As a consequence of the temporarily lower operating margin, HANZA intends to release an additional purchase price of approximately EUR 5 million during the third quarter of 2025, which will be reported as a one-time income.
Apparently, the additional purchase price for the Leden acquisition will not be realized, at least not in full. The maximum additional purchase price was perhaps 15M, of which Arvo’s share was just under 5M.
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Here are Frans’s comments on Arvo’s new acquisition. 
Arvo Investment Cooperative, together with Evli Private Capital, makes a 7 million euro investment in Enico Oy, which specializes in Finnish battery energy storage solutions, with Arvo’s share being EUR 2.1 million. Enico offers scalable and modular battery energy storage solutions (BESS) to companies operating in the commercial, industrial, and energy sectors. The company has grown very rapidly since its establishment (2019). Enico estimates it will double its 2024 revenue of EUR 8.9 million this year. This year, the company rose to first place in the Deloitte Technology Fast 50 ranking in Finland.
EDIT:
I accidentally wrote Aapeli’s comments earlier, even though these were Frans’s comments.
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A comprehensive report out from Frans. The Ostrobothnia train is chugging along well, and hopefully this will increase investor interest and liquidity.
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This was quite a task, as I delved deep into even the minutest details. I tried to keep the report concise, but this time I couldn’t get it under 50 pages 
But I hope those interested will find a lot of information and at least points of comparison for considering their own investment cases.
Although the share price development has been strong (this year +47%), we still remained on the ‘add’ side, because we see a 6-7% equity yield in the current market, combined with the current 37% discount relative to our sum-of-the-parts calculation, as still attractive. With the return on equity averaging 4.7% over the last 5.5 years, a discount is indeed warranted, but overall, we still find the current share price level attractive.
There is also a good amount of unrealized profit on the balance sheet (15 MEUR, considering deferred tax liabilities), and it is now concentrated in liquid assets, i.e., the financial portfolio and listed shares. I estimate that this will support returns on capital in the coming years. Unrealized profit is, of course, already accounted for in our sum-of-the-parts calculation, but stock markets will likely demand stronger evidence of an increase in return on equity for the balance sheet to shrink more clearly. Of course, it doesn’t make sense to realize good investments just for this reason, but for example, HANZAN’s weight in the portfolio is already clearly over 5% (8.2% in our report), and a direct Swedish equity investment doesn’t quite fit the current investment strategy.
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Thank you, Frans. A very good and comprehensive analysis. It highlights the basics well, but thank you especially for explaining direct investments, which I think you do excellently. And several models you used confirm the valuation well. The challenge for the company is to estimate the earnings for next year (-26) or -27, as it is so strongly linked to exits. The earnings, in turn, are strongly linked to the dividend in this case. In my opinion, you have estimated the results and dividends conservatively, which is very good. The figures have a bit of a margin of safety. The comparables you used and the valuation level of the investment company are well in line with what I outlined for this in my time and dared to join the cooperative as an investor. The portfolio’s diversification and breadth are also well highlighted in your analysis.
The biggest upside is related not only to exits but also to actions previously highlighted by me and a few other writers, such as whether own shares are bought back, a one-off dividend, or a capital return by lightening the financial portfolio. In my opinion, only a significant lightening of the financial portfolio and a return in the ways described above could sustainably raise the return on capital above 7.5%. As you point out in the analysis, the share of interest rates in the financial portfolio will likely push returns closer to 5% than 10%. This remains a strong wish for the board and the CEO.
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Our CEO Jari Pirinen was presenting his company at the Sijoittaja 2025 event. \n\n\nArvo Sijoitusosuuskunta | Sijoittaja 2025 - Inderes
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Iikka and Frans had a comprehensive discussion about Arvo.
Topics:
00:00 Introduction
02:17 Arvo’s positioning in the industry
09:07 Financial investments
10:36 Listed investments
14:32 Unlisted investments
19:15 Diversified portfolio
28:17 Valuation
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