Interim report January - March 2018

Many acquisitions and good profitability

January – March 2018

  • Net sales increased by 42.2 percent to SEK 979 (689) million. Organic growth was 3.0 (9.3) percent.
  • Adjusted EBITA increased to SEK 72 (45) million which corresponds to an adjusted EBITA margin of 7.3 (6.5) percent.
  • Operating cash flow for the quarter was SEK 74 (104) million.
  • Five acquisitions were made during the quarter, which, on an annual basis contribute an estimated total sales of SEK 315 million.
  • Earnings per share for the quarter amounted to SEK 0.42 (0.56).

Comments from CEO Per Sjöstrand:

Instalco started 2018 with good growth and rising profitability. Sales increased to SEK 979 (689) million, of which 41.3 percent was acquired growth and 3.0 percent was organic growth. Adjusted EBITA for the first quarter was SEK 72 million, which corresponds to an adjusted EBITA margin of 7.3 (6.5) percent. We saw a strong increase in the order backlog and at the end of the quarter, it amounted to SEK 3,736 (2,189) million, which corresponds to an increase of 70.7 percent. We divested the company Expertkyl during the quarter, which had a negative impact on earnings for the period with SEK 30 million and SEK 0.63 on earnings per share. However, it had a positive impact on the Group’s organic growth.

Many acquisitions

Many acquisitions were made during the quarter and Instalco continues to grow according to plan. During the quarter, we acquired five new companies, all of which contribute to our further expansion. With the acquisition of Sprinklerbolaget, which has country-wide operations in fire protection and sprinkler systems, we have also widened Instalco’s offering by adding a new, exciting business area that has many synergies with our existing operations.

In the area of electricity solutions, we acquired 3EL AB in Västerås and Rikelektro AB, which has operations in Sweden, Norway and Finland. Rikelektro delivers technical installations in electricity, telecom and data, and is specialised in retail, which is partially a new area for Instalco.

We also acquired Vent & Värmeteknik VVT AB, which primarily has its operations in Skåne, and the Stockholm-based company VVS-Kraft Teknikservice AB, which offers heating installations and service.

Our acquisition pipeline is stronger than ever and we will continue our growth journey by expanding and acquiring profitable companies that can contribute to the Group’s strategy and development. We’re expecting to wrap up more acquisitions during the second quarter.

Our quality requirements for acquisitions are high and our goal is to acquire companies with a total annual sales of SEK 600-800 million and EBITA that is consistent with our margin objective of 8 percent.

Specialisation is key to the Instalco model

We often talk about our large prestige projects. However, the foundation for our high margins is the large number of smaller projects that we run in the “mid-sized” segment. Our companies are highly specialised in their areas of operations, which is a key component of the Instalco model. It also facilitates collaboration between different disciplines.

For example, we recently received our first order covering installation of electricity, heating, ventilation and sprinklers all in the same project. This multi-disciplinary project is located in Uppsala, where DALAB and Sprinklerbolaget are collaborating on installations at a newly constructed store property.

Another smaller, yet also specialised project, is VVS-Installatör's assignment to install a new geothermal heating system at the Haga Courthouse in Solna, where the medical history library of Karolinska Institutet is located. The new system will both lower energy consumption and the risk of a fire, thereby offering a higher level of protection for this important collection of books and documents.

For quite some time, Instalco has been one of ­Sweden’s leading hospital contractors for heating and plumbing installations. We have had even more success in this area during the quarter, when LG Contracting signed an order for SEK 200 million covering new construction at the Skaraborg Hospital in Skövde. Another hospital assignment is at the new hospital area in Malmö, where Rörläggaren is involved in a collaboration project with APQ and Assemblin. This major project will run through mid-2020.

Diversification across both projects and markets

The demand for new housing remains high, but the rate of construction to meet that demand is low, due to a shortage of labour. Focus is also shifting from construction of condominiums to rental units. Instalco’s exposure in the housing market is relatively low and the Group’s main focus is on installations at commercial properties and public facilities. We have a high level of diversification across both project types and markets, which gives us stability.

The pace of collaboration between our companies is steadily increasing as more companies join the Group and contribute with their specialist expertise. Collaboration, a mature and modern leadership and efficient processes are key aspects in Instalco, where we spread best practice throughout the organisation.

This information is information that Instalco is required to disclose under the EU Market Abuse Regulation. The information was made public by the contact person listed below, on 8 May 2018 at 15:00 CET.

For further information:
Per Sjöstrand, CEO,, +46 70-724 51 49
Lotta Sjögren, CFO,, +46 70-999 62 44

Instalco is one of the leading installation companies in the Nordic region, active in the areas of heating, plumbing, electricity, cooling and industrial solutions. We work closely with customers, offering all the advantages of a local company, along with efficient collaboration and leadership. The operations are conducted through approximately 45 leading and highly specialised local units, with the support of a small central organisation. Instalco is listed at Nasdaq Stockholm under the ticker INSTAL. For further information, visit