Interim Report Rejlers January - March 2016

Results worse than expected

First quarter
» Sales increased by 24 percent to SEK 559.2 million (452.2)
» Operating profit/loss was SEK -6.0 million (22.9), which corresponds to an operating margin of -1.1 percent (5.1)
» Operating profit/loss adjusted for restructuring costs was SEK 0.1 million, which corresponds to an operating margin of 0.0 percent
» The profit/loss after tax was SEK -5.5 million (17.2)
» Cash flow from operating activities totalled SEK -13.3 million (10.9)
» Earnings per share before dilution amounted to SEK -0.46 (1.40)
» Earnings per share after dilution amounted to SEK -0.46 (1.40)

Comments from the CEO and Group President, Peter Rejler
We are undertaking a transformation of the company by closing down unprofitable parts of the business and growing in the fields of digital processes and comprehensive IT solutions for the energy, infrastructure and construction markets. The costs of this transformation have had an impact on the quarterly results.

The operating losses for the first quarter of SEK -6.0 million were worse than expected. The transformation costs in Sweden were SEK 6.1 million. In addition, significant start-up costs for projects in Norway, poor employee utilisation and the calendar effect have all had a negative effect on the operating results. The calendar effect affects the operating results by SEK 8 million.

The decline in profits in Rejlers Finland is due to a poor employee utilisation within the industry and the postponement of a major building project, which has resulted in laying off 25 employees.

An efficiency programme has been introduced in Rejlers Norway in order to achieve profitability in line with Rejler's objective. Rejler's Norway however won several new contracts in the second half of 2015, and this is expected to provide positive employee utilisation in the future.

IT Solutions had positive employee utilisation during the quarter, large contracts have started and the segment is developing according to plan.

The growth has continued well with an increase in sales of 24 percent in the group. The acquisition of Embriq in Norway and Orbion Consulting in Sweden have been well integrated into the business and have added new skills in the areas of energy, IT and telecommunications. We therefore see major opportunities in the telecommunications market, clients are requesting more turnkey solutions.

We have won several interesting contracts during the quarter. These include a contract with Dala Energi which involves analysing future energy supply in the municipality of Leksand, and a major contract worth 60 MNOK to supply IT services in infrastructure where Elkjøp in Norway is the end customer.

I am now taking decisive action to address the issue of profitability. We are accelerating our positioning and transition to a more efficient organisation and business and at the same time focus forward to ensure good employee utilisation and a positive cash flow across the entire business.

The goal is to improve the operating margin to 8 percent over time and to reach our growth objectives of 2020-3030-4040. Rejlers should be an attractive place to work and at the forefront of developing tomorrow's smart society.  

For further information, please contact:
Peter Rejler, CEO and Group President, tel: +46 (0)70 -602 34 24, email:
Mats Åström, CFO, Tel: +46 (0)70 -050 22 40, email:

Rejlers is one of the Nordic region's largest technical consultants. 2,100 experts work on projects in construction and property, energy, industry and infrastructure. We have specialist engineers with both broad and specific expertise, coupled with energy that creates results. We are continuing to expand rapidly, and currently have offices in 80 locations throughout Sweden, Finland and Norway. In 2015, Rejlers' turnover was SEK 1.9 billion and its Class B shares were listed on the Stockholm NASDAQ.

Rejlers AB is obliged by the law on the securities market and/or the law on trade in financial instruments to publish the in-formation contained in this interim report. This information was released for publication on 9 May 2016, 4.00 p.m. This report is also available in English. This English report is a translation from Swedish. If there are any differences, the Swedish language report shall prevail.

About Us

Rejlers is one of the largest engineering consultancy firms in the Nordic region. Our 2,000 experts work with projects in the areas of Energy, Buildings, Industry, Infrastructure and Telecom. At Rejlers, you will meet specialist engineers with the knowledge, cutting edge expertise and energy to achieve results. We can be found in 75 locations in Sweden, Finland and Norway. Rejlers recorded revenue of SEK 2.5 billion in 2017 and its class B share is listed on Nasdaq Stockholm.


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