Lagercrantz Interim Report 2018/19 Q2

Second quarter (July – September 2018)

• Net revenue increased by 15 percent to MSEK 895 (775). Organically, net revenue increased by 6 percent.
• Operating profit (EBITA) increased by 19 percent to MSEK 117 (98), equivalent to an operating margin of 13.1 percent (12.6).
• Profit after financial items increased by 23 percent to MSEK 96 (78).
• Profit after taxes increased to MSEK 73 (62). Earnings per share before and after dilution for the latest 12-month period amounted to SEK 4.56, compared to SEK 4.21 for the 2017/18 financial year.
• Return on equity was 22 percent (23). The equity ratio at the end of the period was 40 percent (36).
• Cash flow from operating activities for the latest 12-month period amounted to MSEK 362, compared to MSEK 282 for the 2017/18 financial year.

The first six months (April – September 2018)

• Net revenue for the first six months increased by 17 percent to MSEK 1,843 (1,569).
• Operating profit (EBITA) increased by 16 percent to MSEK 229 (198), equivalent to an operating margin of 12.4 percent (12.6).
• Profit after financial items amounted to MSEK 187 (160) and profit after taxes amounted to MSEK 150 (127).

STATEMENT OF THE CHIEF EXECUTIVE

The second quarter of the financial year was a good continuation of the first quarter, with a strong result development. Demand was strong in the Group’s main markets of the Nordic region and Northern Europe. Among the Group’s main customers, the large industrial and infrastructure customers did not report any slowdown in business activity. Revenue during the quarter increased by 15 percent in total, of which 6 percent was organic, which represented a clear improvement from before. This also meant that earnings growth was strong at 23 percent during the quarter, and that we reached a new all-time-high of MSEK 385 in the moving 12-month profit after financial items since the listing in 2001. This can be converted into earnings per share of SEK 4.56.

It is also extra satisfying to state that a number of activities we initiated during the previous year have borne fruit. Several companies have implemented measures to improve earnings and our new investments, including an increased market presence in the USA, have started to deliver results. The proportion of proprietary products is also continuing to increase and amounted to 55 percent of consolidated sales during the past 12 months. We are continuing on our chosen path and we will further increase the proportion of proprietary products combined with clear growth ambitions, particularly when it comes to exports. The acquisitions carried out during the past year of niche technology companies with market-leading positions have contributed positively to the performance and show that our acquisition model is still successful.

Jörgen Wigh 
President and CEO 

Stockholm, 23 October 2018

Lagercrantz Group AB (publ)

For additional information, contact:
Jörgen Wigh, President & CEO, Lagercrantz Group AB, tel +46 8 700 66 70,
Thomas Alkbrant, Chief Financial Officer, Lagercrantz Group, tel +46 8 700 66 73,
or the company website at: http://www.lagercrantz.com

This information is information that LAGERCRANTZ GROUP AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 23 October 2018 at 08:00 CET.

LAGERCRANTZ GROUP IN BRIEF
Lagercrantz Group is a technology group that offers world-leading, value-creating technology, using either proprietary products or products from leading suppliers. The Group is comprised of some 50 companies, each with a focus on a specific sub-market – a niche. High value-creation is common to all the companies, including a high degree of customisation, support, service and other services.
Lagercrantz Group is active in nine countries in Northern Europe, in China, India and in the USA. The Group has approximately 1,400 employees and annual revenue of approximately MSEK 3,600. The Company is listed on Nasdaq Stockholm since 2001.

Tags: