English

Interim report January – March 2020

Report this content

NET ASSET VALUE AND THE LATOUR SHARE

  • The net asset value fell to SEK 114 per share, compared with SEK 136 per share at the start of the year. This is a decrease of 16.2 per cent. By comparison, the Stockholm Stock Exchange's Total Return Index (SIXRX) decreased by 18.2 per cent. The net asset value was SEK 122 per share at 27 April.1)
  • In the first quarter, the total return on the Latour share amounted to -7.3 per cent measured against the SIXRX, which was down 18.2 per cent.

INDUSTRIAL OPERATIONS

  • The industrial operations' order intake rose 20 per cent to SEK 3,996 m (3,325 m), which represents a 3 per cent increase for comparable entities adjusted for foreign exchange effects.
  • The industrial operations' net sales rose 16 per cent to SEK 3,630 m (3,139 m), which represents a -1 per cent decrease for comparable entities adjusted for foreign exchange effects.
  • The operating profit increased by 8 per cent to SEK 449 m (415 m), which equates to an operating margin of 12.4 (13.2) per cent for continuing operations.
  • The Dutch company Emma Safety Footwear was acquired for Hultafors Group, the Spanish company Batec Mobility for Latour Industries and the UK company Waterloo Air Products for Swegon during the quarter. In addition, the acquisition of S+S Regeltechnik for Bemsiq within Latour Industries was finalised.

THE GROUP

  • Consolidated net sales totalled SEK 3,678 m (3,185 m), and profit after financial items was SEK 116 m (1,791 m). A revaluation of Alimak has negatively impacted this year's income statement by SEK -808 m. Capital gains and other items affecting comparability resulted in a SEK 833 m favourable impact on last year's income statement.
  • Consolidated profit after tax was SEK 4 m (1,701 m), which is equivalent to SEK 0.01 (2.66) per share.
  • The Group reported net debt of SEK 9,193 m (4,344 m). Net debt, excluding impacts of IFRS 16, was SEK 8,601 m (3,650 m) and is equivalent to 10 (5) per cent of the market value of total assets.

INVESTMENT PORTFOLIO

  • During the first quarter, the value of the investment portfolio decreased by 19.0 per cent adjusted for changes in the portfolio. The benchmark index (SIXRX) decreased by 18.2 per cent.
  • The shareholding in Fagerhult increased to 46.7 per cent following acquisition of 590,000 shares in the first quarter. The shareholding in Alimak increased to 29.3 per cent following acquisition of 65,000 shares.

EVENTS AFTER THE REPORTING PERIOD

  • The effects of the Covid-19 outbreak are becoming increasingly evident. At present, it is impossible to make an assessment of the extent and duration of the impacts. The financial results for the second quarter of 2020 will be significantly down on the same period last year.

 (1) The calculation of the net asset value on 27 April was based on the value of the investment portfolio at 1 p.m. on 27 April and the same values as at 31 March were used for the unlisted portfolio.

Comments from the CEO
“The year started very strongly for the industrial operations, despite the impact of the ongoing Covid-19 pandemic. The order intake grew by a total of 20 per cent during the quarter, and by 3 per cent when adjusted for acquisitions and foreign exchange effects. Growth in invoiced sales was 16 per cent, although this fell by over 1 per cent following adjustments for acquisitions and foreign exchange effects. The operating profit for the quarter increased by 8 per cent to SEK 449 m (415 m) with an operating margin of 12.4 (13.2) per cent.

The operations that have been affected by the negative impacts arising from Covid-19 during the quarter are mainly those with significant sales in China (Nord-Lock and Aritco), which were hit hard in February, and our operations in Italy (Vimec within Latour Industries and Blue Box within Swegon), which were impacted more severely in the second half of March.

The Covid-19 pandemic is likely to have a significant adverse effect on business for some time. At present, however, it is not possible to predict either the size or the duration of this effect with any confidence.

In the past, we have communicated that our operations are well-positioned and equipped for a more widespread downturn in the economy, but few could ever have imagined that things would change so rapidly and dramatically in such a short space of time. Fortunately, we can conclude that our sense so far has proved to be correct, we own operations with highly competent leaders and employees, who are dealing with new issues every day to work through the challenges created by the pandemic.

We continue to take a forward-looking perspective and are investing in product development, sales and marketing in our business areas. We should be able to advance our positions, even in the current climate. Our previous focus on sustainability remains firm and is, if possible, a more important factor than ever before that will underpin our future growth.

After a busy autumn of actively pursuing acquisitions, our focus now is on dealing with the current Covid-19 crisis. The year began, however, with a number of acquisitions. The Dutch company Emma Safety Footwear was acquired for Hultafors Group, the Spanish company Batec Mobility for Latour Industries and the UK company Waterloo Air Products for Swegon. In addition, the acquisition of S+S Regeltechnik for Bemsiq within Latour Industries was finalised. Read more about our acquisitions on page 4.  

Stock markets have been very volatile in the first quarter, as has our investment portfolio which has fallen 19.0 per cent since the beginning of the year, while the benchmark index SIXRX is down 18.2 per cent. The net asset value in Latour decreased by 16.2 per cent to SEK 114 per share in the same period.

Some of our listed holdings have released their first quarter report and some have provided market guidance. While Covid-19 is having a large negative impact on a number of the companies, others have been affected to a lesser extent. We refer you to the reports released by each company for forward-looking comments. However, it is most likely that all companies will be affected in the coming period. Furthermore, many of the companies have either cancelled or reduced their dividends, in some cases with the intention of paying an additional dividend later on this year in the autumn.

Latour's Board is continuously assessing the proposed dividend of SEK 2.75 per share. An announcement will be made before the Annual General Meeting on 11 May 2020 if any change to the proposal is to be made.

In conclusion, Latour is on a strong financial and operational footing. We believe that we will emerge from this crisis in good shape.”

Johan Hjertonsson
President and CEO

For further information please contact:
Johan Hjertonsson, President and CEO, Tel. +46 702-29 77 93 or
Anders Mörck, CFO, Tel. +46 706-46 52 110

Conference call
President and CEO Johan Hjertonsson and CFO Anders Mörck present the report and answers to questions by telephone today at 10.00 AM (CET). The conference call will be held in English.

To follow the meeting, please call +46 (0)8 566 427 03.
To follow the webcast please visit our webpage, www.latour.se, or use the link:

https://event.on24.com/wcc/r/2266065/521048D382C5F08E8EC83959F72FB4E0

Subscribe

Documents & Links