TROAX: YEAR-END REPORT 2016
Hillerstorp 14th of February 2017, 12.30 CET
OCTOBER – DECEMBER 2016
- Order intake increased by 21 per cent, or 26 per cent adjusted for acquisition and currency.
- Sales increased 14 per cent to 31,9 (27,9) MEUR, or 19 per cent adjusted for acquisition and currency.
- Operating profit increased to 9,4 (6,6) MEUR. Redemption of bond has influenced the operating result positively in the period 0,6 (0,0) MEUR.
- Operating margin increased to 29,5 (23,7) per cent.
- Profit after tax increased to 6,4 (4,3) MEUR.
- Earnings per share was 0,32 (0,22) EUR.
- Acquisition of Folding Guard, one of the market leading businesses in the North American market.
JANUARY – DECEMBER 2016
- Order intake increased by 15 per cent, or 16 per cent adjusted for acquisition and currency.
- Sales increased 12 per cent to 115,8 (103,7) MEUR, or 13 per cent adjusted for acquisition and currency.
- Operating profit increased to 25,3 (22,4) MEUR. Result has been influenced by cost for starting up the new paint line and increased market investments.
- Operating margin increased to 21,8 (21,6) per cent.
- Profit after tax was 16,3 (13,7) MEUR.
- Earnings per share was 0,82 (0,69) EUR.
- The board suggest a dividend of 3,75 (3,00) SEK (Swedish Krona) per share.
During the fourth Quarter 2016, Troax showed an increased strength in the development of orders received. This increased by 21 per cent (26 per cent excluding currency and acquisitions). The development in continental Europe and UK are especially positive. We have not seen any effect of Brexit in the UK so far. In the Nordic areas the finish of the year was strong. New Markets have seen an acceptable increase, albeit these markets still have relatively low absolute figures. At the year end, the order book remains on a good and healthy level.
One of the market leading producers on the American market, Folding Guard was acquired end of 2016.
Sales invoiced increased in the quarter by 14 per cent, compared with the same period last year (excluding acquisition and currency the increase is 19 per cent). The progress was positive in all markets. Totally, the Group has increased to an order intake level of approximately 119 MEUR on a rolling 12 months’ basis, excluding Folding Guard in USA which was acquired in late December 2016. Folding Guard’s turnover in 2016 was approximately 18 MEURO.
The result has improved during the quarter, mainly because of good sales volumes, but also due to the fact that the main extra costs for the new paint line in its inauguration phase are now over. The market investments are continuing according to plan.
The operating result therefore becomes 9,4 (6,6) MEUR, which corresponds to a profit margin of 29,5 per cent to be compared with 23,7 per cent last year. Redemption of bond has influenced the operating result positively in the period 0,6 (0,0) MEUR. The Net result has also developed in a positive way, and amounts to 6,4 MEUR for the quarter (4,3 MEUR).
The result per share, after the third quarter is 0,82 EURO to be compared with 0,69 EURO last year.
The Working Capital is on a similar level as last year. Work in Progress, has been reduced and is now at a normal level for the Group. We have continued with good cash generation during the quarter and the net debt is now 63,9 MEUR.
Thomas Widstrand, President and CEO
Invitation to presentation of the fourth quarter result:
Thomas Widstrand, CEO presents the result on a phone conference on the 14th of February 2017 at 16:30 CET. The conference will be held in English.
For more information please refer to www.troax.com.
This information is information that Troax Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 12:30 CET on 14th of February, 2017.
President and CEO
Troax Group AB
330 33 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 an unparalleled 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 485 persons. The Company’s head office is located in Hillerstorp, Sweden.