Ambea’s year-end report 2019
CEO comment:
As we close the books on the fourth quarter, we can look back on a year when Ambea’s largest-ever acquisition was integrated, while we simultaneously opened more new operations than ever before. In the coming year, the high rate of new-starts will continue and we will be taking the next step to improve the margins of care operations acquired from Aleris. In Norway, additional measures will now be initiated and continue throughout 2020. The aim is to lower administrative costs, but also to secure close leadership in our units and to strengthen the central support functions.
In the fourth quarter, net sales amounted to SEK 2,804 million (1,550). Own Management accounted for 73 per cent (70) of net sales. Adjusted EBITA rose 28 per cent year-on-year to SEK 154 million (120). Excluding the effects of IFRS 16, adjusted EBITA rose 8 per cent to SEK 130 million.
Highlights of the fourth quarter 2019:
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Net sales rose 81 per cent to SEK 2,804 million (1,550)
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Operating profit (EBIT) increased to SEK 110 million (64)
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EBITA increased 71 per cent to SEK 145 million (85), corresponding to a margin of 5.2 per cent (5.5)
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Adjusted EBITA, excluding items affecting comparability increased 28 per cent to SEK 154 million (120)
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The adjusted EBITA margin was 5.5 per cent (7.7)
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Items affecting comparability in the quarter amounted to SEK -9 million (-35), where the year’s items were attributable to integration costs and synergy realisation in connection with the acquisition of Aleris Omsorg
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Profit for the period was SEK 36 million (32)
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Earnings per share amounted to SEK 0.39 (0.43) before and after dilution
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Operating cash flow amounted to SEK 562 million (202)
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Free cash flow totalled SEK 471 million (149)
Significant events in and after the fourth quarter
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During the quarter, the Board decided to confirm existing financial targets.
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The Board proposes that a dividend of SEK 0.80 (1.10) per share be paid for 2019
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After the end of the quarter, a restructuring programme was initiated in Norway. The expected savings effect on a full-year basis is SEK 30 million, gradually increasing from the second quarter of 2020. Items affecting comparability of about SEK 45 million are expected to be charged to the first six months of 2020.
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/mmc/p/jujv7vrk
Dial-in information:
To ensure that you are connected to the conference call, please dial in at least five minutes before the conference call starts to register your attendance and enter participation code 8574348.
Sweden: +46 (0)8 506 921 80
UK: +44 (0)20 71 92 80 00
US: +1 631 510 7495
The interim report, presentation and other material are available on www.ambea.com
For more information, contact:
Jacob Persson, Head of Group Business Control & Investor Relations
Telephone: +46 (0)708 64 07 52
E-mail: ir@ambea.se
Ambea press contact
Telephone: +46 (0)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 February 14, 2020 at 07:00 CET.
Ambea is the market leading care provider in Sweden, Norway and Denmark respectively, with over 900 care units and around 26,000 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. The company was founded in 1996 and its head office is located in Solna, Sweden. Ambea is listed on Nasdaq Stockholm.