Interim report January – June 2017

High growth in sales and order backlog

April – June 2017

  • Net sales increased by SEK 30.5 percent to SEK 781 (599) million. Organic growth was –9.0 percent.
  • Adjusted EBITA increased to SEK 69 (55) million which corresponds to an adjusted EBITA margin of 8.9 (9.2) percent.
  • Operating cash flow for the quarter was SEK 30 (77) million.
  • One acquisition was made during the quarter, which, on an annual basis is expected to contribute SEK 167 million in sales.
  • Earnings per share for the quarter amounted to SEK 0.90 (0.81).

January – June 2017

  • Net sales increased by 37.0 percent to SEK 1,470 (1,073) million. Organic growth was 2.8 percent.
  • Adjusted EBITA increased to SEK 114 (80) million which corresponds to an adjusted EBITA margin of 7.8 (7.5) percent.
  • Operating cash flow for the period was SEK 134 (152) million.
  • Six acquisitions were made during the period, which, on an annual basis are expected to contribute SEK 482 million in sales.
  • Earnings per share for the period amounted to SEK 1.46 (1.22).

Comments from CEO Per Sjöstrand:

Instalco continued to exhibit growth in sales with favourable profitability during the second quarter of the year. Sales increased to SEK 781 (599) million, of which –9.0 percent was organic growth and 38.6 percent was acquired growth. During the second quarter last year, we had an unusually high number of large projects, which impacted accounts receivable and consequently the cash flow and organic growth in the quarter. For the first half of the year, organic growth was 2.8 percent. Adjusted EBITA for the second quarter amounted to SEK 69 million, which corresponds to an EBITA margin of 8.9 percent. We also experienced strong growth in the order backlog, which, at the end of the quarter, amounted to SEK 2,496 (1,683) million and an increase of 48.3 percent.

Growth in all markets
Instalco continues to grow in all of its markets. The demand for installation services is high in all areas and many entrepreneurs are interested in our model. Compared to prior periods, fewer acquisitions were made during the second quarter, but, to a great extent, this was attributable to the IPO in May, which temporarily diverted resources from our ordinary operations. Altogether this year, up until the end of the quarter, we have acquired companies with an estimated annual sales of approximately SEK 482 million.

Continued expansion in Norway
We have strengthened our presence in Norway during the quarter thanks to the acquisition of the electrical installation company Frøland & Noss in Bergen. Frøland & Noss represents our first steps into the Bergen region, where we anticipate good opportunities for further expansion. We are already considering expanding operations to also include ventilation. Overall, we are optimistic about the Norwegian market and intend to grow in all of our business areas. In the quarter we have also engaged in activities enhancing profitability in our Norwegian companies, which have resulted in a strengthened margin.

Sustainable services
One driving force for market growth throughout the ­Nordic region is the increasing demand for energy efficient installations from both property owners and consumers. Instalco’s companies are at the forefront in offering sustainable services. One example from the previous quarter is the geothermal plant that was built for Panncentralen Frölundaborg. We are proud of the fact that three Instalco companies were involved in this project, where there was a reduction in CO2 emissions by 78 percent, SO2 emissions by 55 percent and NOx emissions by 41 percent for the properties that are connected. LG Contracting was the general contractor, with Expertkyl and Tofta Plåt & Ventilation as subcontractors. It took just 8 months to complete this project, thanks to efficient collaboration between the companies. It’s an excellent example of how the Instalco model works!

Strong market
We remain optimistic about Instalco’s continued development. Both the market and order placement remain very strong. Our challenge, therefore, is obtaining the manpower that we require, which could limit organic growth somewhat going forward. We continue to pursue our ambitious acquisition plan and discussions are ongoing with several interesting companies in all of our markets.

Report presentation

Instalco’s CEO Per Sjöstrand and CFO Lotta Sjögren will present the report in a conference call/audiocast today 25 August at 14.00 CET. Dial-ins for participants:

SE: +46 8 566 42 699
UK: +44 203 008 9803
US: +1 855 831 5948

The presentation can also be followed at

This information is information that Instalco is required to disclose under the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was made public by the contact person listed below, on 25 August 2017 at 12:00 CET.

For further information:
Per Sjöstrand, CEO,, 070-724 51 49
Lotta Sjögren, CFO,, 070-999 62 44

Instalco is one of the leading installation companies in the Nordic region, active in the areas of heating, plumbing, electricity, cooling and industrial solutions. We work closely with customers, offering all the advantages of a local company, along with efficient collaboration and leadership. The operations are conducted through approximately 30 leading and highly specialised local units, with the support of a small central organisation. Instalco is listed at Nasdaq Stockholm under the ticker INSTAL. For further information, visit