TROAX: INTERIM REPORT JANUARY – MARCH 2017
Hillerstorp 10th of May 2017, 12.30 CET
JANUARY – MARCH 2017
- Order intake increased by 32 per cent, or 16 per cent adjusted for acquisition and currency.
- Sales increased 35 per cent to 36,3 (26,8) MEUR, or 18 per cent adjusted for acquisition and currency.
- Operating profit increased to 6,6 (4,7) MEUR.
- Operating margin increased to 18,2 (17,5) per cent.
- Profit after tax increased to 4,0 (2,8) MEUR.
- Earnings per share was 0,20 (0,14) EUR.
Troax has started 2017 in a good way with an organic increase in orders of 16%, which clearly is above the historical growth average. We have received several important orders from customers within, automotive, warehouse and property, which shows that the Troax offering is strong. On top of that, we have the newly acquired company Folding Guard in USA, that also has started the year in a good way regarding orders received. Our judgment is that the market development during the first Quarter has been positive for the Group.
The development has been especially strong in Continental Europe, Nordic region and UK. A somewhat lower figure is shown for new markets, since we received fewer large orders last year that influenced the comparison. We have not seen any effect of Brexit in UK. Orders in hand at the end of the quarter continued to be at a good level.
The integration work of the acquired company Folding Guard (end of last year), is continuing well, and according to plan. It contains both personnel changes and an increased focus on growth possibilities. Integration of common functions have been started. The acquisition has so far, been well received by important customers in the US. We see good possibilities to strengthen the customer base, long term, for both brands in the important market of North America.
Sales invoiced increased in the quarter by 35 per cent, compared with the same period last year (excluding acquisition and currency the increase is 18 per cent). The progress was positive in all markets. Totally, the Group has increased to an order intake level of approximately 129 MEUR on a rolling 12 months’ basis, including Folding Guard sales invoiced for one quarter.
The result has continued to improve during the quarter, mainly because of good sales volumes, and aided by there being no more inauguration costs for the new paint line. The market investments are continuing per plan, but at a lower level short term, as some internal resources have been dedicated to the integration of our American acquisition.
The operating result was 6,6 (4,7) MEUR, which corresponds to a profit margin of 18,2 per cent to be compared with 17,5 per cent last year. Please note that the consolidation of Folding Guard decreases the margin in percent. We do however, see clear possibilities to increase the margin also for Folding Guard, long term. The Net result has also developed in a positive way, and amounts to 4,0 MEUR for the quarter (2,8 MEUR).
The result per share, after the first quarter is 0,20 EURO to be compared with 0,14 EURO last year.
The Working Capital is on a similar level as last quarter. Work in Progress, has increased and is on a higher level, indicating that some important projects still are under implementation and hence still have not been invoiced. We have continued with good cash generation during the quarter and the net debt is now 59,6 MEUR and our key figure of our lending in comparison with EBITDA is clearly below our target for the Group.
Thomas Widstrand, President and CEO
Invitation to presentation of the first quarter result:
Thomas Widstrand, CEO presents the result on a phone conference on the 10th of May 2017 at 17:00 CET.
The conference will be held in English. For more information, please refer to http://www.troax.com/en/news.
This information is information that Troax Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact person set out above, at 12:30 CET on 10th of May, 2017.
President and CEO
Troax Group AB
335 04 Hillerstorp
Tel 46 (0)370-82831
Troax is the leading global supplier of indoor perimeter protection (“metal-based mesh panel solutions”) for the market segments: Machine guarding, Warehouse partitioning and Property Protection. Troax develops high quality and innovative safety solutions to protect people, property and processes.
Troax Group AB (publ), Reg. No. 556916-4030, has a global organisation with a strong sales force and efficient logistics setup, enabling local presence and short delivery times in 36 countries.
In 2016 Troax net sales amounted to 116 MEUR and the number of employees amounted to 600 persons. The Company’s head office is located in Hillerstorp, Sweden.