Handicare announces preliminary financial results for the fourth quarter 2020 and an outlook for 2021
As a result of Savaria Corporation ("Savaria") today having announced a public cash offer for Handicare Group AB (“Handicare” or the “Company”), Handicare announces certain preliminary financial information in respect of the fourth quarter 2020 and an outlook for 2021.
Revenues for the quarter are anticipated at EUR 59.2 million, compared to EUR 58.5 million for the corresponding period in 2019 resulting in an organic growth of 5.6% (currency adjusted). Revenues in Handicare’s key focus area, Accessibility, is anticipated at EUR 43.8 million, compared to EUR 40.2 million for the corresponding period in 2019 resulting in an organic growth of c. 12% (currency adjusted). Adjusted EBITA for the fourth quarter is anticipated to be EUR 7.9 million which represents a margin of c. 13%, compared to EUR 3.7 million (6%) for the corresponding period in 2019. Adjusted EBITDA is anticipated to be EUR 9.3 million which represents a margin of c. 16%.
The improvements are mainly the result of strong sales in key stairlift markets which together with the successful completion of the structural cost reductions initiatives being part of the Lift Up Program contributed to the overall improvement in profit. Handicare’s financial position and cash flow continues to be strong with a net debt anticipated at EUR 26.7 million and a leverage ratio (net debt / adjusted LTM EBITDA, excluding IFRS16) anticipated at 1.4x at the end of the fourth quarter.
Covid-19 continues to make market development uncertain, and thus short-term demand is difficult to predict. However, with the finalization of the Lift Up Program, the company is confident in having established a solid platform for growth. Supported by the attractive underlying long-term growth fundamentals that characterize the Accessibility market, Handicare sees positively on the development for 2021 and estimates that the full year will be in line with its financial targets.
Upcoming financial report
All figures are preliminary and have not been reviewed by the Company’s auditor. The final report for the fourth quarter and full year 2020 will be published at 8:00 a.m. CET on 4 February 2021. Please note that the date for publishing of the report has been changed from previously 12 February 2021. Handicare will not provide any additional comments or details until after the full report has been published.
For information, please contact:
Pernilla Lindén, CFO & Investor relations
Tel: +46 708 775 832
This is information that Handicare Group AB 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 22.50 CET on 27 January 2021.
Note 1: Excluding the divested entity Vehicle Accessibility Denmark.
Handicare offers solutions to increase the independence of disabled or elderly people, and to facilitate for their care providers and family. The offering encompasses a comprehensive range of curved and straight stairlifts, transfer, lifting and repositioning aids and vehicle adaptations. Handicare is a global company with sales in some 40 countries and is one of the market leaders in this field. The head office is in Stockholm, Sweden and manufacturing and assembly is located at four sites distributed across North America, Asia and Europe. In the twelve-month period to September 2020, revenue amounted to EUR 208 million and the adjusted EBITA margin was 6.3%. Employees amounted to approximately 900 and the share is listed on Nasdaq Stockholm. For more information, www.handicaregroup.com.