Interim Report Rejlers AB January–June 2014

Continued focus on profitability and organic growth

Second quarter
» Revenue increased by 20 per cent to SEK 442.0 million (368.6)
» Operating profit was SEK 0.2 million (17.8)
» Operating margin amounted to 0.0 per cent (4.8)
» Profit after tax was SEK 0.7 million (12.4)
» Earnings per share before dilution were SEK 0.04 (1.09)
» Diluted earnings per share were SEK 0.04 (1.09)

First half-year
» Revenue increased by 20 per cent to SEK 880.9 million (733.3)
» Operating profit was SEK 13.6 million (44.4)
» Operating margin amounted to 1.5 per cent (6.1)
» Profit after tax was SEK 9.0 million (36.5)
» Earnings per share before dilution were SEK 0.74 (3.22)
» Diluted earnings per share were SEK 0.73 (3.22)

Statement from President and CEO Peter Rejler  
Compared to the previous year, Rejlers showed growth of 20 per cent over the quarter, around half of which came through acquisitions. The second quarter was characterised by a continued focus on boosting the company’s efficiency and profitability.

The fall in profit for the second quarter is mainly explained by operations in Norway, which is reporting a loss. These operations are in a coordination and expansion phase, meaning that the profit for the quarter was affected by expenses related to the merger of five companies on 1 July. Several project losses had an impact on profitability during the quarter. Measures have been taken to improve profitability in Norway and a continued review of unprofitable operations will continue in the coming quarter. An improvement in the operating profit is expected thanks to streamlining the administration and focusing on assignment management and cost savings.

Operations in Sweden have a good level of activity and demand. Profit for the quarter has been adversely affected by retroactive pension premiums relating to 2013. We see a continued solid earnings performance in Sweden. Despite the weak economy in Finland, we are seeing a small recovery on the market and the level of activity is improving. We are continuing to grow within profitable markets in Finland such as energy and telecommunications.

We are facing several challenges in our work to increase profitability, yet I can also see many opportunities. We are well positioned in each of our markets and we have increased our sales activities. We are experiencing a general improvement in demand within the industry. Infrastructure investments are also continuing to provide us with assignments, at the same time energy projects are on the increase. We expect to achieve our growth target 3x2015 primarily through organic growth in the Nordic region.

For further information, please contact:
Peter Rejler, President and CEO, tel. +46 (0)70 602 34 24, e-mail: peter.rejler@rejlers.se
Eva K Nygren, CFO, tel. +46 (0)73 412 59 60, e-mail: eva.k.nygren@rejlers.se

Rejlers is one of the largest engineering consultancy firms in the Nordic region. Our 1,800 experts work with projects within the areas of Building and property, Energy, Industry and Infrastructure. With us, you will meet specialist engineers with the breadth, cutting edge expertise and not least energy to create the results you want. We are continuing to grow rapidly and our activities are spread across 80 locations in Sweden, Finland and Norway. In 2013 Rejlers had revenue of approx. SEK 1.5 billion and its Class B share is listed on the Nasdaq OMX, Nordic list.

The information in this interim report is that which Rejlers AB is required to publish in compliance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was released for publication on 25 July 2014 at 8.00 am. This interim report is also available in Swedish. The English version is a translation of the Swedish original. In the case of any discrepancy between the two, the Swedish version takes precedence.