Interim Report January - June 2000 from AB Ångpanneföreningen (publ)

Interim Report January-June 2000 from AB Ångpanneföreningen (publ) * Operating profit excluding refunds from SPP improved by 80 percent to SEK 36 (20) million * Profit after net financial items excluding refunds from SPP improved by 31 percent to SEK 27 (20) million * Profit after net financial items including refunds from SPP was SEK 284 million * Turnover rose by 6 percent to SEK 849 (799) million * Net worth SEK 109 (73) per share * Employees subscribed to convertibles for SEK 96 million Apart from projects from the energy sector and process industries, demand for ÅF Group services improved in all areas when compared with the corresponding period in 1999. Measured on a monthly basis capacity utilisation increased successively during the reporting period from 64 to 71 percent, enabling profit for the Group's consulting operations to show a considerable improvement. Second-quarter profits for 2000 were three times higher than those for the corresponding period in 1999. Projects within technical and administrative IT services continued to increase, a trend which was especially evident for ÅF-Systemdesign. Various aspects of the business have been 'fine-tuned' by merging individual operations and establishing more efficient commercial units, particularly in the field of Energy, Environment and Process Technology. Profits for Inspection & Testing rose by SEK 7 million compared to the previous year, but the overall result for this business area still showed a loss. A number of surveys were carried out during the reporting period among students of technology and clients in the IT industry in order to assess the image of the ÅF Group. The results show that the ÅF brand is the strongest in the industrial consulting business - both as a supplier of consulting services and as an employer. There was a positive response to the ÅF Group's offer to employees to subscribe to convertible bond loans. More than 700 employees subscribed SEK 96 million, equivalent to 90 percent of the total amount earmarked for this purpose. If the conversion option is fully utilised during the period January 2004 to June 2005, the additional shares will represent a 6 percent dilution of the votes and 9 percent of capital. Monies for purchase of the convertibles were received in July 2000. The value of the premium refund from the pensions insurance company, SPP, has been calculated at SEK 257 million. This has been entered separately in the Income Statement in order to facilitate financial comparisons. The refund will be made chiefly in the form of a reduction in premiums and the settlement of the ÅF Group's pensions liability of SEK 105 million. Consolidated profit after net financial items and proportional interests in associated companies amounted to SEK 284 (20) million, which is equivalent to a 50.4 (9) percent return on equity. If the SEK 257 million refund from SPP is excluded from these figures, consolidated profit after net financial items and proportional interests in associated companies was SEK 27 (20) million. Turnover rose to SEK 849 (799) million. The lion's share of this rise is attributable to operations in the business area Software, Electronics & Mechanical Engineering, a development well in line with the ambition to increase the significance of this business area relative to the ÅF Group as a whole. The profit margin was 33.4 (2.5) percent, or 3.1 (2.5) percent excluding the SPP refund. Order stocks increased to SEK 468 (422) million. The profit has been charged with a calculated bonus to the Group's employees amounting to SEK 1.5 (1.4) million. Group profit after tax was SEK 201.9 (15.1) million. The number of full-time equivalents during the period, including employees in associated companies, was 2,215 (2,235). The parent company recorded net sales of SEK 52 (48) million and the profit after net financial items was SEK 1.2 (0.5) million. The Group's net worth, after the standard 20 percent tax deduction on the estimated surplus value of property, was SEK 109 (73) per share. Adjusted equity ratio was 43 (38) percent. At the beginning of the period the ÅF Group acquired the environmental research company Miljöforskargruppen AB. The company runs operations in Sweden, Finland and Denmark, and has one of the best track records among environmental specialist services in Scandinavia. Among the cooperation agreements signed during the reporting period are those with Joseph Maier Papiertechnologie, Siemens, SilberSoftware and the broadband technology company, Bredbandsbolaget. The agreement with Joseph Maier paves the way for an option to invest in an ownership stake in this paper-machine consulting business within the next twelve months. During the period the Group also increased its ownership stake in ÅF-QPS Consultants Ltd. (a consultancy company based in Manchester, UK, with a staff of around 30 people) from 40 to 70 percent. Consulting activities The consolidated profit after net financial items for the Group's consulting activities increased by 36 percent to SEK 33 (24) million, with net sales rising to SEK 908 (843) million. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/11/20000811BIT00530/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/11/20000811BIT00530/bit0002.pdf The full report