Sectra’s year-end report 2017/2018: Positive earnings trend and healthy order book

Press release –  Linköping, Sweden, May 29, 2018 – International medical imaging IT and cybersecurity company Sectra (STO: SECT B) reported increased order bookings, net sales and earnings compared with the preceding fiscal year. Sectra’s financial focus is to increase its operating profit per share while maintaining its operating margin, and the company’s financial performance measures continue to exceed the Group’s target levels. Taking into consideration this favorable performance and the company’s strong financial position, the Board and the CEO have decided to propose to the Annual General Meeting (AGM) that SEK 4.50 per share be distributed to the shareholders through a share redemption program.

2017/2018 fiscal year in figures 

  • Order bookings increased 26.7% to SEK 1,492.5 million (1,177.7).  
  • Net sales rose 11.0% to SEK 1,266.5 million (1,140.9). Adjusted for currency fluctuations, sales increased 12.5%. 
  • Operating profit rose 19.5% to SEK 239.1 million (200.1), corresponding to an operating margin of 18.9% (17.5). Adjusted for currency fluctuations, operating profit increased 22.0%.  
  • Cash flow after changes in working capital amounted to SEK 222.7 million (235.2).  

Fourth quarter in figures 

  • Order bookings increased 43.1% to SEK 500.3 million (349.6).  
  • Net sales rose 13.8% to SEK 387.9 million (340.8). Adjusted for currency fluctuations, sales increased 13.9%. 
  • Operating profit rose 12.3% to SEK 83.7 million (74.5), corresponding to an operating margin of 21.6% (21.9). Adjusted for currency fluctuations, operating profit increased 13.0%. 
  • Profit before tax rose 44.8% to SEK 113.5 million (78.4). Net financial items increased SEK 25.9 million to SEK 29.8 million, of which the sale of 100% of the shares in the associated company Commit; Oy accounted for SEK 9.8 million. 
  • Cash flow after changes in working capital amounted to SEK 101.9 million (60.2).  

Torbjörn Kronander, President and CEO of Sectra AB, comments 

“The 2017/2018 fiscal year was characterized by successes that strengthened Sectra’s position in our niche markets. We have achieved all of our financial goals and are growing through collaboration with new and existing customers and partners. Our customers have entrusted us to execute projects with innovative solutions that could ultimately lead to new advances in critical social functions. The overall aim of all our projects and business ventures is to solve major social problems that must be addressed in the foreseeable future. Helping customers to improve the efficiency and quality of patient care and increase cybersecurity in critical social functions is Sectra’s most significant contribution to a more sustainable society. 

“A year ago, our order bookings looked somewhat worrying, but after the most recent quarter we are ending the fiscal year with a healthy order book. This will provide a solid foundation for continued growth. Sectra has stable underlying operations, with favorable profitability and cash flow. We also have a number of highly exciting projects in the pipeline that could eventually become major endeavors, although, as always, there are no guarantees with such projects. 

“It is rewarding to lead and work for a company with satisfied customers and employees who do an outstanding job every day. The Group’s performance is a result of our targeted efforts to understand our customers’ environments and of our culture, with employees who truly care about and assume responsibility for our customers. I am incredibly proud of the Sectra culture and the way it is ingrained in every operating area in the company. This further strengthens our reputation and helps to boost our profitability. This ultimately benefits our customers, employees and shareholders—and, above all, the patients who benefit from our medical IT systems and the citizens of the democratic, open societies protected by our security solutions.  

For further CEO comments and information, see the attached year-end report.  

Presentation of the year-end report  

A presentation will be held by Torbjörn Kronander, President and CEO of Sectra AB, and Mats Franzén, CFO of Sectra AB. The presentation will be held in English.  

Time: May 29, 2018, at 12:00 noon 

To attend the presentation at Operaterrassen, register here: www.financialhearings.com/event/10336 

The report presentation can also be followed live online: www.sectra.com/irwebcast. A recorded version will also be available via this link after the conference. 

This information constitutes information that Sectra AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and/or the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 8:00 a.m. (CET) on May 29, 2018.

For further information, please contact:
Dr. Torbjörn Kronander, CEO and President Sectra AB, 46 (0) 705 23 52 27

About Sectra 
Sectra assists hospitals throughout the world to enhance the efficiency of care, and authorities and defense forces in Europe to protect society’s most sensitive information. Thereby, Sectra contributes to a healthier and safer society. The company was founded in 1978, has its head office in Linköping, Sweden, with direct sales in 19 countries, and operates through partners worldwide. Sales in the 2017/2018 fiscal year totaled SEK 1,267 million. The Sectra share (STO: SECT B) is quoted on the Nasdaq Stockholm exchange. For more information, visit www.sectra.com.

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Sectra assists hospitals throughout the world to enhance the efficiency of care, and authorities and defense forces in Europe to protect society’s most sensitive information. Thereby, Sectra contributes to a healthier and safer society. The company was founded in 1978, has its head office in Linköping, Sweden, with direct sales in 19 countries, and operates through partners worldwide. Sales in the 2016/2017 fiscal year totaled SEK 1,141 million. The Sectra share (STO: SECT B) is quoted on the Nasdaq Stockholm exchange. For more information, visit www.sectra.com.

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The 2017/2018 fiscal year was characterized by successes that strengthened Sectra’s position in our niche markets. We have achieved all of our financial goals and are growing through collaboration with new and existing customers and partners. Our customers have entrusted us to execute projects with innovative solutions that could ultimately lead to new advances in critical social functions. The overall aim of all our projects and business ventures is to solve major social problems that must be addressed in the foreseeable future. Helping customers to improve the efficiency and quality of patient care and increase cybersecurity in critical social functions is Sectra’s most significant contribution to a more sustainable society.
Torbjörn Kronander, President and CEO of Sectra AB
A year ago, our order bookings looked somewhat worrying, but after the most recent quarter we are ending the fiscal year with a healthy order book. This will provide a solid foundation for continued growth. Sectra has stable underlying operations, with favorable profitability and cash flow. We also have a number of highly exciting projects in the pipeline that could eventually become major endeavors, although, as always, there are no guarantees with such projects.
Torbjörn Kronander, President and CEO of Sectra AB
It is rewarding to lead and work for a company with satisfied customers and employees who do an outstanding job every day. The Group’s performance is a result of our targeted efforts to understand our customers’ environments and of our culture, with employees who truly care about and assume responsibility for our customers. I am incredibly proud of the Sectra culture and the way it is ingrained in every operating area in the company. This further strengthens our reputation and helps to boost our profitability. This ultimately benefits our customers, employees and shareholders—and, above all, the patients who benefit from our medical IT systems and the citizens of the democratic, open societies protected by our security solutions.
Torbjörn Kronander, President and CEO of Sectra AB