Financial Report 2018/19 1 April 2018-31 March 2019
Financial year 2018/19 (1 April 2018-31 March 2019)
- Revenue increased by 7 percent to MSEK 6,024 (5,616).
- Operating profit (excluding items affecting comparability in the preceding year) rose by 20 percent to MSEK 302 (252), corresponding to an operating margin of 5.0 percent (4.5).
- EBITA increased by 21 percent to MSEK 318 (262), corresponding to an EBITA margin of 5.3 percent (4.7).
- Profit after financial items rose by 26 percent to MSEK 296 (235).
- Net profit increased by 27 percent to MSEK 231 (182).
- Earnings per share totalled SEK 8.20 (6.45).
- Cash flow from operating activities increased to MSEK 230 (92).
- The return on equity was 19 percent (17) and the return on working capital (P/WC) was 25 percent (24).
- The operational net loan liability amounted to MSEK 266 (295) and the equity/assets ratio was 45 percent (42) at the end of the financial year.
- A dividend of SEK 3.20 per share (2.60) is proposed.
Fourth quarter (1 January-31 March 2019)
- Revenue increased by 9 percent to MSEK 1,560 (1,437).
- Operating profit (excluding items affecting comparability in the preceding year) rose by 30 percent to MSEK 79 (61), corresponding to an operating margin of 5.1 percent (4.2).
- Profit after financial items rose by 28 percent to MSEK 77 (60).
- Net profit increased by 33 percent to MSEK 61 (46).
- The acquisition of TOOLS Løvold in January 2019 further strengthens TOOLS’ position as the leading supplier of tools and consumables to Norwegian industry.
- TOOLS Finland’s acquisition of the assets and liabilities of Lindström Group’s personal protective equipment (PPE) business in early March 2019 further strengthened the company’s position as a leading supplier of tools, PPE and related services to Finnish industry. Closing took place in April after the end of the financial year.
After the end of the financial year
- Momentum Industrial acquired 70 percent of the shares in ETAB Industriautomation AB in early May 2019. This acquisition strengthens Momentum Industrial’s position as a leading supplier of solutions in the areas of pneumatics and hydraulics to Swedish industry. ETAB generates annual revenue of approximately MSEK 45 and has nine employees. Closing is scheduled to take place in June 2019.
Increased focus has yielded results since spin-off in 2017
Now that we have concluded our second financial year as an independent company, we can report that our increased focus has yielded results and that we have taken additional important steps in our journey of improvement. We have surpassed our earnings growth target of 15 percent per year, with an average increase in operating profit (excluding items affecting comparability) over the past two years of 25 percent per year for the Group as a whole – and 51 percent per year for the business area Tools & Consumables. At the same time, the business area Components & Services reports an operating margin of more than 9 percent, combined with favourable revenue growth. We have carried out a total of ten acquisitions – including the acquisition of ETAB Industriautomation last week – with combined revenue of approximately MSEK 570. Overall, Momentum Group’s revenue has now surpassed SEK 6 billion and we have welcomed approximately 140 talented new colleagues to the Group through acquisitions.
2018/19 – a year headed in the right direction
The market situation for the industrial sector in our main markets in Sweden, Norway and Finland has been stable throughout the financial year. Operating profit increased 20 percent during the year (excluding items affecting comparability), corresponding to an operating margin of 5.0 percent (4.5). Our focus on reducing funds tied up in working capital also contributed to improved cash flow from operating activities, which totalled MSEK 230 for the year. Our profitability, measured as our return on equity, increased to 19 percent (17), compared with our target of 20 percent.
Momentum Industrial reported its strongest result to date in terms of both revenue and earnings, with a positive contribution from the acquisition of Brammer at the start of the financial year. The TOOLS companies progressed in the right direction during the year, delivering their highest combined operating profit for some time. However, we still have more room for development and improvement in all three of our TOOLS businesses. For Gigant, 2018/19 was a year of transition, during which we carried out a number of important activities to improve our sales process and enhance our cost-efficiency. Our niche companies in workwear and promotional products continue to deliver operating profits at a good level.
An exciting new year in 2019/20
As we look back over the past year, I would like to conclude by extending my sincere thanks to all of our dedicated employees for your many outstanding contributions – and to our customers and business partners for your continued confidence. We will continue along the path we have established, with a focus on earnings growth in our existing units, reduced funds tied up in working capital and corporate acquisitions in order to increase profitability. As always, decentralised responsibility and customer proximity remain a high priority in our daily efforts to continue becoming “better than yesterday”.
Stockholm, May 2019
President & CEO
Presentation of the Financial Report – 12 months 2018/19
Investors, analysts and media are welcome to participate in a webcast conference call in which CEO & President Ulf Lilius and CFO Niklas Enmark will present the Financial Report and answer any subsequent questions. The presentation will be held in English.
Time: Thursday, 9 May 2019 at 11:00 a.m. CET.
Web link: https://financialhearings.com/event/10943.
Telephone no: SE +46 8 505 583 54/ UK +44 33 330 092 66 / US +1 83 382 305 90
Ulf Lilius, President & CEO, Tel: +46 10 454 54 70
Mats Karlqvist, Head of Investor Relations, Tel: +46 70 660 31 32
The information in this report is such that Momentum Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CET on 9 May 2019.
This document is in all respects a translation of the Swedish original Financial Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.
Momentum Group is a leading reseller of industrial consumables and components, service and maintenance to professional end users in the industrial and construction sectors in the Nordic region. The Group has annual revenue of approximately SEK 6 billion and approximately 1,600 employees. Momentum Group AB (publ) has been listed on Nasdaq Stockholm since June 2017. Read more at www.momentum.group.