Interim Report Rejlers AB January–March 2015

Strong growth opportunities

First quarter
» Revenue increased by 3 per cent to SEK 452.2 (438.9) million
» Operating profit was SEK 22.9 (13.4) million
» The operating margin amounted to 5.1 (3.1) per cent
» Profit after tax was SEK 17.2 (8.3) million
» Earnings per share before dilution were SEK 1.40 (0.70)
» Diluted earnings per share were SEK 1.40 (0.67)

Statement from President and CEO Peter Rejler
The first quarter shows an improvement in the operating profit compared to the previous year. After adjustment for one-off costs in the first quarter of 2014, we are at the same level as the previous year's result, even though the Swedish activities had one working day less in the first quarter of 2015.

Revenue increased by 3 per cent during the quarter compared to the same period of the previous year, driven by sound growth in the infrastructure area in both Finland and Norway, although we could note weaker demand in some areas of the industrial market during the first quarter. The cash flow of SEK 10.9 million from operating activities is still strong and our low level of net debt gives scope for ongoing investments.

I have confidence in positive development for Rejlers' services, with favourable prospects for sustained growth in areas with good profitability, such as infrastructure and energy. I also have confidence in the construction market, where we are focused on profitable growth in metropolitan areas, in accordance with our strategy.

We are also developing new business models and concepts that will help us to achieve our objectives. We wish to continue to help to build a sustainable society with focus on energy efficiency and sustainable solutions. In accordance with this strategy, we are developing our business by offering an increased number of turnkey solutions, while also undertaking greater project responsibility.

Even though revenue in Sweden decreased by 3 per cent during the quarter, there is good demand for our services, especially within sustainable energy solutions. The acquisition of Energy Business Sweden AB, which offers energy efficient services for properties and municipalities, is in line with our strategy for growth in the energy and environmental area. The restructuring in Sweden has now been completed and entails a stronger local presence. The restructuring also requires greater internal cooperation between our divisions.

In Finland, we can see a gradual improvement in the markets. Industrial investments are beginning to pick up and we are involved in major telecommunications and energy assignments.

In Norway, major infrastructure investments are underway, which will also give us new assignments. Efficiency improvements for public transport systems are required, together with modernisation of the telecommunications network. I can see positive trends for our Norwegian activities, but we need to increase our utilisation rate in order to achieve satisfactory profitability.

Rejlers continues to develop its business activities, and I am convinced that by being the most successful and financially sound company in our sector in the Nordic region we will achieve our growth target of 2020-3030-4040.  

For more information, please contact:
Peter Rejler, President and CEO, tel. +46 (0)70 602 34 24, e-mail: peter.rejler@rejlers.se
Mats Åström, CFO, tel. +46 (0)72 050 22 40, e-mail: mats.astrom@rejlers.se

Rejlers is one of the largest engineering consultancy firms in the Nordic region. Our 1,800 experts work with projects in the areas of Building and property, Energy, Industry and Infrastructure. At Rejlers, you will meet specialist engineers with the knowledge, cutting edge expertise and energy to create results. We are continuing to grow rapidly and our activities are spread across 80 locations in Sweden, Finland and Norway. In 2014 Rejlers achieved revenue of SEK 1.7 billion and its class B share is listed on NASDAQ Stockholm.