Interim report January - March 2019

NET ASSET VALUE AND THE LATOUR SHARE

  • The net asset value rose to SEK 119 per share, compared with SEK 100 per share at the start of the year. This is an increase of 18.9 per cent. By comparison, the Stockholm Stock Exchange's Total Return Index (SIXRX) increased by 13.2 per cent. The net asset value was SEK 124 per share at 26 April. 1)

  • The total return on the Latour share was 11.2 per cent during the year measured against the SIXRX, which rose 13.2 per cent.

INDUSTRIAL OPERATIONS

  • The industrial operations' order intake rose 22 per cent to SEK 3,332 m (2,723 m), which represents an 11 per cent increase for comparable entities adjusted for foreign exchange effects.

  • The industrial operations' net sales rose 24 per cent to SEK 3,140 m (2,531 m), which represents a 12 per cent increase for comparable entities adjusted for foreign exchange effects.

  • The operating profit increased by 48 per cent to SEK 411 m (278 m), which equates to an operating margin of 13.1 per cent (10.9) for continuing operations.

  • Latour Industries acquired the Norwegian company TKS Heis AS in January.

THE GROUP

  • Consolidated net sales totalled SEK 3,185 m (2,590 m) and profit after financial items was SEK 1,791 m (656 m). Capital gains and other items impacting comparability amounting to SEK 833 m (0 m) are recognised in the income statement.

  • Consolidated profit after tax was SEK 1,701 m (586 m), which is equivalent to SEK 2.66 (0.92) per share.

  • Net debt, excluding impacts of IFRS 16, was SEK 3,650 m (4,338 m) and is equivalent to 4.6 per cent of the market value of total assets. Recognised Group net debt, where IFRS 16 had full impact, amounted to SEK 4,344 m.

INVESTMENT PORTFOLIO

  • During the first quarter, the value of the investment portfolio increased by 20.7 per cent adjusted for changes in the portfolio. The benchmark index (SIXRX) rose 13.2 per cent.

  • During the quarter, all A Shares in Loomis were sold for a purchase price of approximately SEK 800 m.

EVENTS AFTER THE REPORTING PERIOD

  • Latour’s entire shareholding in the part-owned holding Terratech was divested on 25 April. Otherwise, there were no material events subsequent to the end of the reporting period.

(1) The calculation of the net asset value on 26 April was based on the value of the investment portfolio at 1 p.m. on 26 April and the same values as at 31 March were used for the unlisted portfolio.

Comments from the CEO
“Latour's industrial operations continue to grow at a steady pace and we can report yet another record-breaking quarter. During the first quarter, the order intake grew by 22 per cent and invoiced sales by 24 per cent. Excluding acquisitions and foreign exchange effects, the order intake grew by 11 per cent and invoiced sales by 12 per cent. At the end of the quarter, the order backlog stood at a new record level of SEK 2,186 m (1,338 m) and was thus up an impressive 63 per cent on the previous year's value. This excellent performance and good cost control in our companies have resulted in a profit of SEK 411 m (278 m) in the quarter with an operating margin of 13.1 per cent (11.0). Our best quarter ever, in absolute terms, and a very positive start to 2019.

In line with our long-term strategy, we are continuing to invest broadly in our business areas in product development, sales and marketing. Activity has generally remained high for our business areas in most of the markets in which they operate. This must surely be confirmation that our operations are offering what the market wants. The companies are providing high-quality products and services and delivering good standards of service and support. The fact that we have a global presence with operations in many countries means that we are not as vulnerable to local economic fluctuations.

We made one acquisition for the industrial operations in the first quarter. Aritco Group, within the Latour Industries business area, acquired the Norwegian company TKS Heis AS. Read more about our acquisitions on page 4.                          

The development of the stock market has again been positive after the downturn at the end of last year. Our investment portfolio increased by as much as 20.7 per cent, adjusted for changes in the portfolio, while the benchmark index SIXRX increased by 13.2 per cent. The net asset value in Latour increased by 18.9 per cent to SEK 119 per share in the same period. In March, we accepted an offer and sold all of the remaining shares in Loomis, which was a natural consequence of our first disposal back in 2016.

Only a few of our listed holdings have yet submitted reports. On the whole these reports are good and stable, which again corroborates the high quality of the companies in our portfolio. The acquisition activities in the investment portfolio have continued. Assa Abloy has announced a number of acquisitions, including the acquisition of the Swiss listed Agta Record. In addition, Fagerhult acquired iGuzzini in March. This acquisition makes Fagerhult one of the largest leading lighting companies in Europe, generating annual sales in excess of SEK 8 billion. Latour is supporting the acquisition financially too as guarantor in the forthcoming new share issue in Fagerhult, which will take place in May.”

Jan Svensson
President and CEO

For further information please contact:
Jan Svensson, President and CEO, Tel. +46 705-77 16 40 or
Anders Mörck, CFO, Tel. +46 706-46 52 110.

Conference call
President and CEO Jan Svensson and CFO Anders Mörck present the report and answers to questions by telephone today at 10.00 AM (CEST). The conference call will be held in English.
To follow the meeting, please call +46 (0)8 505 583 64.
To follow the webcast please visit our webpage, www.latour.se, or use the link: http://event.on24.com/wcc/r/1977795-1/D95B151EB6E12595CFB1AA6F56F53C94?partnerref=rss-events

About Us

Investment AB Latour is a mixed investment company with operations primarily carried out in two business lines; a wholly-owned industrial operation and a portfolio of nine listed holdings of which Latour is the principal owner or one of the principal owners.