Q3 2022: Good growth and earnings development

Stockholm, 30 November 2022 (07:30 CET)

Period (July-September 2022)

• Net sales increased by 346 percent to SEK 457.2 million (102.6), of which organic growth amounted to 11.7 percent.
• EBITA increased to SEK 49.5 million (7.4) and the EBITA margin was 10.8 percent (7.2).
• Profit for the quarter amounted to SEK 0.1 million (–0.6).
• Cash flow from operating activities amounted to SEK –2.9 million (14.4).
• Three companies were consolidated, of which two were also acquired, with an aggregated annual turnover for the companies' last twelve months of SEK 260.7 million.
• SEK 250 million in bonds were issued within the framework of the company's existingbond loan 2021/2024.

Period (January–September 2022)

• Net sales increased by 600 percent to SEK 1,170.4 million (167.1), as a result of few comparisons companies during the entire period, organic growth is not reported.
• EBITA increased to SEK 92.9 million (11.0) and the EBITA margin was 7.9 percent (6.6).
• Profit for the period amounted to SEK -28.7 million (-0.9).
• Cash flow from operating activities amounted to SEK 15.2 million (24.5).
• Ten companies have been acquired with a combined annual turnover for the companies' last twelve months of SEK 1,096.6 million.

Significant events after the balance sheet date

Novedo's outstanding bonds were admitted to trading on Nasdaq Stockholm's corporate bond list on 28 October 2022. On November 30, 2022, the bonds from the Frankfurt Stock Exchange (Open Market) will be delisted.

The first Nordic acquisition, outside of Sweden, was completed on 11 November 2022 through the acquisition of the Danish company Nordkabel A/S with approximately 200 employees. Nordkabel is active in installations and service work, primarily in electricity networks, fiber, and water with sales of DKK 215 million and EBITA of DKK 32.5 million for the financial year ended June 30, 2022. Closing is expected in Q4 2022.

Per-Johan Dahlgren, President & CEO, comments on the period January – September 2022:

"Novedo's clear growth focus is reflected in the company's financial targets at the same time we are selective and focused on the three segments Industry, Infrastructure, and Installation & Services.  We have had good growth since the first company acquisition in 2021 and as of today, Novedo's pro forma net sales on an annual basis amount to SEK 2,337.2 million and pro formed  EBITA to SEK 245.4 million following the Group's recent acquisition of Danish Nordkabel A/S in November 2022.

The business situation during the first nine months of the year has been stable, which can be explained by the fact that our portfolio companies are focused on B2B customers active in structural growth, such as energy and infrastructure projects. Net sales increased to SEK 1,170.4 million (167.1) for the 9-month period, corresponding to an EBITA of SEK 92.9 million and an EBITA margin of 7.9 percent. We, as well as the rest of the world, see uncertainty about geopolitics and the economic situation ahead, but all in all, our broad and well-managed niche companies – which have been around for a long time – provide good conditions for long-term growth and profitability."
 

For more information, please contact:
Per-Johan Dahlgren 
President & CEO 
per-johan.dahlgren@novedo.se 

Anders Eriksson
CFO
anders.eriksson@novedo.se
Mobile: +46 (0)709 10 56 68

This information is information that Novedo Holding 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 07:30 CET on November 30, 2022.

About Novedo
Novedo is an industry group that consists of eminent entrepreneurial-driven SMEs with sound corporate culture in three focused segments – Industry, Infrastructure and Installation & Services. The company has an active Nordic acquisition strategy, and the ambition is to continue to grow with qualitative companies and through organic growth. Consolidated pro forma net sales per 30 September 2022 LTM amounted to 2 337 MSEK with an EBITA of approximately 245 MSEK. For more information, please visit  www.novedo.se.