Interim report January – September 2018

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Strong growth in sales, profitability and order backlog

July – September 2018

  • Net sales increased by 40.8 percent to SEK 998 (708) million. Organic growth was 8.6 (0.2) percent.
  • Adjusted EBITA increased to SEK 74 (48) million which corresponds to an adjusted EBITA margin of 7.5 (6.8) percent.
  • Operating cash flow for the quarter was SEK 8 (–3) million.
  • No new acquisitions were made during the quarter.
  • Earnings per share for the quarter amounted to SEK 1.22 (0.85).

January – September 2018

  • Net sales increased by 44.6 percent to SEK 3,150 (2,178) million. Organic growth was 7.4 (1.5) percent.
  • Adjusted EBITA increased to SEK 253 (163) million which corresponds to an adjusted EBITA margin of 8.0 (7.5) percent.
  • Operating cash flow for the period was SEK 207 (131) million.
  • Nine acquisitions were made during the period, which, on an annual basis are expected to contribute SEK 553 million in sales.
  • Earnings per share for the period amounted to SEK 3.17 (2.31).

Comments from CEO Per Sjöstrand:

Instalco once again reported strong growth in sales and high profitability during the third quarter of the year. Sales for the quarter amounted to SEK 998 (708) million. Growth was 40.8 percent, of which 8.6 percent was organic growth. Adjusted EBITA for the third quarter was SEK 74 (48) million, which corresponds to an adjusted EBITA margin of 7.5 (6.8) percent.

Order backlog continued to grow robustly and at the end of the quarter, it amounted to SEK 3,724 (2,611) million, which corresponds to an increase of 42.6 percent.

On the whole, we see continued stability in the installation sector, with a higher demand for energy-efficient solutions and higher demands on sustainability.

Favourable climate for acquisitions
During the quarter, we pursued acquisition discussions with several skilled entrepreneurs in the installation sector. The acquisition climate is favourable and there are many attractive, well-run companies that we are in contact with and interested in acquiring. However, we are only interested in profitable companies that fit the Group's strategy and can contribute to our growth.

We are on track with our target of SEK 600-800 million in acquired sales each year and several interesting company acquisitions are in the works for the fourth quarter.

Subsequent to the end of the reporting period, we acquired Rörman AB and MSI-El AB with an anticipated annual sales of SEK 133 million.

High demand for energy-efficient solutions
For all of our projects, we strive to generate benefits to society. At all times, our goal is to help customers lower their environmental impact by decreasing their energy consumption and achieving a higher level of sustainability. It is evident that the demand for energy-efficient solutions is rising.

For example, we won a contract during the quarter for comprehensive ventilation and electricity installations that will conserve energy at the Scania ice rink in Södertälje. Instalco companies JN El and OTK collaborated on that project. OTK replaced the ventilation system at the rink and JN El provided electricity installations for all the fan units, along with installing new LED lighting over both the rink and seating areas. The new system provides 80 percent more light and a 40 percent energy saving.

Another energy-saving project is ORAB’s pipe installations that are part of the conversion project at Stora Enso's newsprint mill, Hylte Mill. The installation of a new condensing steam turbine increases the mill’s level of self-sufficiency and lowers its electricity consumption.

In central Stockholm, we won two large, interesting assignments during the quarter. Ohmegi has been contracted for electrical installations at the Glashuset property at Slussen and in collaboration with Rörgruppen, they have began electrical installation and plumbing works at Sergelhuset, which is located at the most central public square in Stockholm. The work will be carried out under a contract from NCC with Vasakronan (the property owner) and it is part of the major renovation and modernisation of the blocks surrounding Sergels torg.

Stable demand in the installation sector
The installation sector is still growing steadily even though housing construction has slowed down. It is a stable market with high demand, yet still with the challenge of finding enough skilled labour to meet that demand. The sector is growing even though there has been a dip in housing construction. In the public sector, the rate of construction for schools, preschools and hospitals remains high. In the installation sector, the most important disciplines are electricity, heating and plumbing.

At Instalco, we’ve continued developing collaboration efforts between our specialist companies and areas of technology so that we can offer customers attractive solutions that cover all of their needs. Instalco offers the best of both worlds: the advantage of proximity to customers that local companies provide, along with the synergies that come with belonging to a large group.

Report presentation
Instalco’s CEO Per Sjöstrand and CFO Lotta Sjögren will present the report in a conference call/audiocast today 8 November at 14.00 CET. Dial-ins for participants:
SE: +46 8 566 426 62
UK: +44 203 008 9801
US: +1 855 753 2235

The presentation can also be followed at

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 November 2018 at 12:00 CET.

For further information:
Per Sjöstrand, CEO,, 070-724 51 49
Lotta Sjögren, CFO,, 070-999 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.
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