Year-end report 1 April 2017 - 31 March 2018
FOURTH QUARTER (1 JANUARY - 31 MARCH 2018)
- Net sales increased by 9 percent and amounted to SEK 2,121 million (1,941).
- Operating profit before amortisation of intangible non-current assets (EBITA) increased by 15 percent and amounted to SEK 221 million (193) corresponding to an EBITA-margin of 10.4 percent (10.0).
- Operating profit increased by 13 percent and amounted to SEK 184 million (163) corresponding to an operating margin of 8.7 percent (8.4).
- Profit after tax increased by 14 percent and amounted to SEK 133 million (118) and earnings per share before dilution amounted to SEK 1.95 (1.75).
- Niklas Stenberg appointed new President and CEO of Addtech and takes over in connection with the Annual General Meeting 30 August 2018.
FULL YEAR (1 APRIL 2017 - 31 MARCH 2018)
- Net sales increased by 12 percent and amounted to SEK 8,022 million (7,178).
- Operating profit before amortisation of intangible non-current assets (EBITA) increased by 17 percent and amounted to SEK 838 million (715) corresponding to an EBITA-margin of 10.5 percent (10.0).
- Operating profit increased by 16 percent and amounted to SEK 701 million (604) corresponding to an operating margin of 8.7 percent (8.4).
- Profit after tax increased by 17 percent and amounted to SEK 526 million (450) and earnings per share before dilution amounted to SEK 7.70 (6.60).
- Return on working capital (P/WC) amounted to 53 percent (53) and return on equity amounted to 28 percent (28).
- The equity ratio amounted to 39 percent (39).
- Cash flow from operating activities amounted to SEK 539 million (551) and cash flow from operating activities per share amounted to SEK 8.05 (8.25).
- Since the start of the financial year we have completed eleven acquisitions with total annual sales of about SEK 700 million.
- The Board of Directors proposes a dividend of SEK 4.00 per share (3.50).
FOURTH QUARTER - A GOOD END TO ANOTHER SUCCESSFUL YEAR
As in previous quarters, the fourth quarter of the financial year was characterised by a favourable climate for business, with good demand in most of our geographical markets and most customer segments. Sales increased by 9 percent, mainly driven by our acquisitions, and we achieved a profit growth of 15 percent. As a result, our operating margin continued to increase compared with the previous year. Overall, the acquisitions made contributed in line with expectations.
The Components Business Area again delivered a good quarter, via both organic growth and several acquisitions. The Energy Business Area reported weaker growth relative to a very strong quarter in the previous year, but maintained a high operating margin. Industrial Process is benefiting from generally favourable market conditions, and delivered good profit growth. Power Solutions is performing at a stable level overall in view of the disposal carried out earlier in the financial year.
FULL YEAR OUTCOMES EXCEED OUR FINANCIAL TARGETS
At Addtech, 2017/2018 was a strong year, characterised by high activity, a favourable business climate and stable to rising demand in most of our markets. We can proudly state that once again, we exceeded our financial targets. Sales surpassed SEK 8 billion, with growth of 12 percent, of which 5 percent organic growth. Our profit growth, measured as EBITA, was 17 percent and our focused work on continuous development – while keeping costs under control – delivered a higher operating margin. Return on working capital (P/WC) amounted to 53 percent.
From a geographical perspective, our highest rate of growth was in Denmark, followed by Sweden, Finland and Norway. Our business volume outside the Nordic region expanded considerably over the year, through both strong organic growth and acquisitions.
With regard to demand in our various customer segments, we increased sales of production components to manufacturers of, for example, special vehicles, machinery, electronics, wind power and marine vessels. Demand from customers was stable in medical technology and oil & gas, but was lower from customers in the telecom segment. Demand for aftermarket products for the manufacturing industry continued to increase, while the pace of investment in the forest and process industry was relatively stable overall. Sales of infrastructure products to power grid companies in the Nordic region were stable overall. Demand for electricity-related products from building and installation customers continued to grow strongly.
Acquisitions remain an important part of our strategy, in order partly to create opportunities for gaining market-leading positions in various niches and partly as a way of achieving our ambition to establish longterm profitable growth. We maintained a high pace of acquisitions and ended our business year with a total of eleven completed acquisitions that contribute annual sales of around SEK 700 million. Since the end of the financial year, we have acquired four companies with aggregate annual sales of around SEK 230 million. Our business model attracts owners and entrepreneurs wishing to retain their system of decentralised responsibility, but also to gain support for development via an active, long-term owner.
President and CEO
This information is information that Addtech AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at 8.15 a.m CET on 15 May 2018.
For further information, please contact:
Johan Sjö, President and CEO, +46 8 470 49 00
Christina Kassberg, CFO, +46 8 470 49 00
Addtech in brief
Addtech is a technology trading group that provides technological and economic value added in the link between manufacturers and customers. Addtech operates in selected niches in the market for advanced technology products and solutions. Its customers primarily operate in the manufacturing industry and infrastructure. Addtech has about 2,300 employees in approximately 120 subsidiaries that operate under their own brands. The Group has annual sales of over SEK 8 billion. Addtech is listed on the Nasdaq Stockholm.