Ambea interim report April-June 2018

CEO comment:

Acquired units and start-ups continued contributing to strong growth of operations under own management in the second quarter and better underlying profitability. Efforts to increase the number of beds and placements in our pipeline were successful. We have secured several major tenders that will contribute to organic growth moving forward.

Net sales in the second quarter amounted to SEK 1,518 million (1,442). Own Management accounted for 68 per cent (64) of net sales. Adjusted EBITA, excluding items affecting comparability, increased compared to the previous year to SEK 114 million (112).Given that the second quarter of 2017 was positively impacted by repaid pension premiums of SEK 18 million, the underlying profitability performance was favourable.

Our previously announced adjustments to the administrative cost structure are proceeding as planned and redundancy costs amounted to about SEK 8 million during the quarter. The assessment is still that a limited positive earnings impact will be achieved in 2018, but that the full impact of about SEK 30 million will be achieved in 2019.

Highlights of the second quarter 2018:

• Net sales rose 5 per cent to SEK 1,518 million (1,442)
• Operating profit (EBIT) increased to SEK 95 million (90)
• EBITA increased 10 per cent to SEK 114 million (104), corresponding to a margin of 7.5 per cent (7.2)
• Adjusted EBITA, excluding items affecting comparability increased 2 per cent to SEK 114 million (112).
• The adjusted EBITA margin was 7.5 per cent (7.8)
• Items affecting comparability in the quarter amounted to SEK 0 million (-8), were the previous year’s items were attributable to the IPO and the previously divested operations in personal assistance
• Profit for the period was SEK 75 million (20)
• Earnings per share amounted to SEK 1.11 (0.31) before and after dilution
• Operating cash flow amounted to SEK 245 million (118)
• Free cash flow totaled SEK 236 million (80)

Telephone conference:

Ambea will host a presentation with the possibility to attend through a telephone conference at 10:00 (CET) today. The presentation will be held in English and will also be available as webcast on: https://edge.media-server.com/m6/p/vrv2jvg5

Dial-in information:

To ensure that you are connected to the conference call, please dial in a few minutes before the conference call starts to register your attendance and enter participation code 4584957.

Sweden:                              +46 (0)8 5033 6574
UK:                                      +44 (0)330 336 9126 
US:                                       +1 929 477 0324 

The interim report, presentation and other material are available on www.ambea.com

For more information, contact:

Jacob Persson, IR-manager
Telephone: +46 (0)708 64 07 52
E-mail: jacob.persson@ambea.se

Ambea press contact
Telephone: +46 10 33 00 501
E-mail: press@ambea.se

This information is information that Ambea AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, on August 21, 2018.

Ambea, is present in care services, and has approximately 15,000 employees. We offer services in disabled care, individual and family care, and elderly care with a focus on residential care and own management. We aim to be the quality leader in all that we do and our vision is to make the world a better place, one person at a time. Total revenue and adjusted EBITA for the 2017 financial year amounted to SEK 5,816 million and SEK 498 million. The company was founded in 1996 and its head office is located in Solna, Sweden. Ambea is listed on Nasdaq Stockholm.