Lagercrantz Interim Report 2019/20 Q2
1 April – 30 September 2019
Second quarter (July – September 2019)
Net revenue increased by 7 percent to MSEK 954 (895).
Operating profit (EBITA) increased by 8 percent to MSEK 126 (117), equivalent to an operating margin of 13.2 percent (13.1).
Cash flow from operating activities increased to MSEK 79 (38).
Profit after financial items increased by 4 percent to MSEK 100 (96).
Profit after taxes increased by 7 percent to MSEK 78 (73).
Return on equity was 24 percent (22). The equity ratio at the end of the period was 36 percent (40).
Earnings per share after dilution for the latest 12-month period amounted to SEK 5.19 (SEK 5.05 for the 2018/19 financial year).
The first six months (April – September 2019)
Net revenue for the first six months increased by 7 percent to MSEK 1,969 (1,843). Organically, net revenue increased by 2 percent.
Operating profit (EBITA) increased by 12 percent to MSEK 256 (229), equivalent to an operating margin of 13.0 percent (12.4).
Profit after financial items increased by 10 percent to MSEK 205 (187) and profit after taxes increased to MSEK 160 (150).
STATEMENT OF THE CHIEF EXECUTIVE
During the first six months of the financial year, we continued to build Lagercrantz and our four divisions. Overall, our performance was positive with an increase in net revenue of 7 percent to MSEK 1,969 and an increase in operating profit (EBITA) of 12 percent to MSEK 256. This meant a good operating margin of 13.0 percent (12.4) for the first six months and a return on working capital of 53 percent and an all-time-high in our earnings per share of SEK 5.19 on a moving 12-month basis. Since April 2019, we have completed three further acquisitions and two add-on acquisitions and the Group now consists of 54 niche-oriented companies, which all sell specialised products and solutions to other companies. Accordingly, there is a good diversification of fields of technology, sectors and geographies in the Group.
In an otherwise complex economic and geopolitical environment, it is satisfying to see that our total business volume was stable during the first six months. Meanwhile, we see indications of a slowdown with a lower growth rate as a consequence. An increased caution among our customers has led to purchasing decisions and future investments tending to be deferred to the future which is impacting our project-related businesses. Even so, a number of companies continue to show strong performance. The Group’s largest units Elpress, R-Con, Asept, ACTE Denmark and Norway and the units Radonova and Precimeter have started the year strongly with good growth. All in all, we have a good diversification in the Group involving many different technology areas, customer segments and geographies. We monitor developments closely and adapt our efforts and actions to the prevailing situation in every company. This means that I am positive about the future even if the economic situation should become weaker.
President and CEO
Stockholm 23 October 2019
Lagercrantz Group AB (publ)
For additional information, contact:
Jörgen Wigh, President & CEO, Lagercrantz Group AB, tel +46 8 700 66 70,
Kristina Elfström Mackintosh, Chief Financial Officer, Lagercrantz Group, tel +46 8 700 66 70,
or the company website at: http://www.lagercrantz.com
This information was made public pursuant to the EU Market Abuse Regulation and was submitted for publication on 23 October 2019 at 08:00 am. 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 1,500 employees and annual revenue of ca MSEK 4,000. The Company is listed on Nasdaq Stockholm since 2001. www.lagercrantz.com