Sectra’s year-end report 2011/2012: Strong fourth quarter – operating profit doubled
IT and medical technology company Sectra reported a strong close of the 2011/2012 fiscal year. Consolidated operating profit for the fourth quarter rose 111.3% to SEK 46.8 million (22.1) and net sales increased 20.9% to SEK 238.5 million (197.3). Prior to the Annual General Meeting, the Board of Directors proposes that SEK 5.00 per share be transferred to the shareholders through a redemption program.
Order bookings for the fourth quarter amounted to SEK 188.2 million (126.6), up 48.7% compared with the corresponding quarter in the preceding fiscal year.
“Despite the challenging economic climate, our Medical Systems business area reported increased order bookings in the US and Northern Europe during the fourth quarter,” says Jan-Olof Brüer, President and CEO of Sectra AB.
Capital gain boosts Sectra’s profit
Sectra reported profit after tax of SEK 385.8 million for the 2011/2012 fiscal year, including discontinued operations. The company’s earnings included a capital gain of SEK 322.6 million generated by Sectra’s sale of its operations for the mammography modality MicroDose Mammography. Order bookings for 2011/2012 rose 11.1% to SEK 701.1 million (631.0) and net sales amounted to SEK 823.1 million. Operating profit totaled SEK 103.5 million, corresponding to an operating margin of 12.6%. Profit after net financial items amounted to SEK 127.9 million, corresponding to a profit margin of 15.5%.
Excluding a nonrecurring item attributable to the divestment of the MicroDose operations, Sectra’s sales amounted to SEK 793.1 million (783.7) and operating profit to SEK 78.5 million (72.5), corresponding to an operating margin of 9.9% (9.3).
“We increased our profitability during the year through the divestment of the operations for low-dose mammography and began implementing internal efficiency-enhancement measures. We have now completed the divestment of MicroDose and can focus the organization on our core business,” says Jan-Olof Brüer.
Higher direct return
Sectra maintained a healthy cash flow during the year and significantly strengthened its financial position. The Board of Directors and President propose that no regular dividend be paid for the 2011/2012 fiscal year and that the Annual General Meeting instead resolve to transfer SEK 5.00 per share to the shareholders through a redemption program. This would correspond to a direct return of 11.6%.
“The investments we have made in MicroDose Mammography previously impacted our cash flow. Following the divestment of this business, we are able to finance the development of our continuing operations in a secure manner, while also having the possibility to give our shareholders a favorable return,” says Jan-Olof Brüer.
The information in this press release is such that Sectra AB (publ) is obligated to disclose in compliance with the Swedish Securities and Clearing Operations Act. The information was submitted for publication on May 22, 2012 at 8:00 a.m. (CET).
For further information, please contact:
Dr. Jan-Olof Brüer, CEO and President Sectra AB, tel 46 13 23 52 09
About the Sectra Group
Sectra was founded in 1978 and has its roots in Linköping University in Sweden. The company’s business operation includes cutting-edge products and services within the niche segments of medical systems and secure communication systems. Sectra has offices in 12 countries and operates through partners worldwide. Sales in the 2011/2012 fiscal year totaled SEK 823 million. The Sectra share is quoted on the NASDAQ OMX Stockholm AB exchange. For more information, visit www.sectra.com.