• Interim Report – 6 months 1 April-30 September 2016

    Source: Nasdaq GlobeNewswire / 28 Oct 2016 01:45:40   America/New_York

    Second quarter (1 July-30 September 2016)

    • Revenue rose by 2 percent to MSEK 1,879 (1,839).
    • Operating profit amounted to MSEK 131 (131), corresponding to an
      operating margin of 7.0 percent (7.1)
      .
    • Profit after financial items totalled MSEK 126 (126).
    • Net profit amounted to MSEK 96 (96).
    • Earnings per share totalled SEK 3.40 (3.40).
    • Cash flow from operating activities amounted to MSEK 79 (57) and
      cash flow per share for the most recent 12-month period totalled SEK 17.70 (16.05).
    • The return on equity for the most recent 12-month period was 14 percent (14).
    • The equity/assets ratio at the end of the period was 51 percent (49).
    • The operational net loan liability declined to MSEK 183 (451).
    • Acquisition of a successful sales company in the UK and Ireland in order to strengthen the position of the Group’s premium brands. Closing took place in early October 2016.

    Reporting period – 6 months (1 April-30 September 2016)

    • Revenue rose by 3 percent to MSEK 4,014 (3,893).
    • Operating profit increased by 2 percent to MSEK 264 (260) and the operating margin was 6.6 percent (6.7). Operating profit for the first quarter of the preceding year was impacted by non-recurring items totalling MSEK +15 and the underlying earnings growth for the reporting period thus amounted to 8 percent.
    • Profit after financial items rose by 2 percent to MSEK 255 (250).
    • Net profit increased by 3 percent to MSEK 195 (190).

    Events after the end of the reporting period·

    • Acquisition of one of Norway’s leading industrial resellers with approximately MNOK 240 in revenue strengthened the Group’s position as a supplier to Nordic industry. Closing is scheduled to take place in November 2016.

     

     

    PRESIDENT’S STATEMENT

    The Group’s revenue, measured in local currency, rose by 2 percent during the first six months of the 2016/17 financial year. Operating profit increased by 8 percent during the period (adjusted for non-recurring items totalling MSEK +15, which impacted operating profit for the first quarter of the preceding year). The construction and civil engineering sector continues to grow, while demand from the industry remains relatively weak. The earnings trend for TOOLS Sweden has been negative during the last quarter and we are now implementing measures to improve the future profitability.

    A certain portion of our growth will come from acquisitions and we have completed two strategic acquisitions in recent months. Within Bergman & Beving, we acquired IQ Supplies – a successful sales company for our subsidiary Teng Tools, with sales in the UK and Ireland. This acquisition was fully in line with Bergman & Beving’s strategy to strengthen the position of our premium brands. Within Momentum Group, we acquired Astrup Industrivarer – one of Norway’s largest industrial resellers, with five branches in western Norway. This acquisition reaffirms Momentum Group’s goal of being the best choice for customers when it comes to consumables and components for professional end users.

    With a healthy cash flow and strong balance sheet, we are creating the right conditions for the long-term profitable growth of Bergman & Beving and Momentum Group – both through organic growth and with attractive new acquisition opportunities.

    Stockholm, October 2016

    Ulf Lilius
    President & CEO

     

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