Year-end Report Rejlers AB January–December 2015

Strong growth in Telecommunications and IT

Fourth quarter
» Revenue increased by 26 per cent to SEK 586.7 million (464.1)
» Operating profit was SEK 9.1 million (32.5)
» Operating margin amounted to 1.6 per cent (7.0)
» Profit after tax was SEK 5.2 million (24.7)
» Cash flow from operating activities amounted to SEK 21,1 million (47,9)
» Earnings per share before dilution were SEK 0.42 (2.01)
» Diluted earnings per share were SEK 0.40 (2.01)

January–December
» Revenue increased by 10 per cent to SEK 1,875.5 million (1,711.5)
» Operating profit was SEK 71.0 million (48.6)
» Operating margin amounted to 3.8 per cent (2.8)
» Profit after tax was SEK 51.2 million (33.9)
» Cash flow from operating activities amounted to SEK 42,5 million (68,2)
» Earnings per share before dilution amounted to SEK 4.15 (SEK 2.78) and diluted earnings per share were SEK 3.96 (2.75)
» The Board proposes an unchanged dividend of SEK 2.00 per share (2.00)

Statement from President and CEO Peter Rejler
In the final quarter we achieved strong growth through the acquisitions of Embriq in Norway and Orbion Consulting in Sweden. These acquisitions will boost our annual revenue by around SEK 500 million and increase our workforce by around 270 new employees. Embriq provides IT services within rationalisation of infrastructure and energy to customers worldwide. Orbion Consulting offers turnkey solutions within mobile and landline telecommunications networks. The acquisition establishes Rejlers as one of Sweden’s largest engineering consultancy firms within the telecommunications sector.

In order to coordinate our investments within digitised technology solutions we are setting up a new Nordic segment, IT Solutions, which will offer comprehensive IT solutions, primarily within the energy sector.

Operating profits declined in the fourth quarter compared with the same period in the previous year due to costs associated with integration of acquisitions, lower order volumes in the industrial sector in Sweden, and start-up costs of major projects in Norway. Rejlers Finland posted positive results despite the weak industrial market, while Rejlers Norway was awarded some major contracts in the quarter. In Rejlers Sweden we are taking strong actions to improve profitability which will affect earnings in the first half of 2016.

Climate and environmental challenges are boosting demand for our services aimed at energy efficiency and sustainable energy solutions. We see good opportunities for growth in the telecommunications market due to increased customer demand for turnkey solutions. New investments in residential and office construction are boosting demand for our expertise.

We were awarded several important contracts in the quarter. These included a framework agreement with Svenska Kraftnät on creating a modern and climate friendly energy system, a new agreement with TeliaSonera on supplying telecommunications services, and a contract with the City of Helsinki Real Estate Department, which is building a new campus for Helsinki Metropolia University.

By focusing on business development and turnkey solutions, we are planning to achieve our growth target of 2020-3030-4040. The aim is to improve the operating margin to 8 per cent over a business cycle. In order to improve our opportunities for achieving our profitability and growth targets, I stepped down as President of Rejlers Sweden on 1 January 2016, and Jonas Thimberg took over the role. I am now able to focus exclusively on the Nordic business as a whole. 

For further information, please contact:
Peter Rejler, President and CEO, 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 2,100 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 achieve results. We are still experiencing rapid growth and can now be found in 80 locations in Sweden, Finland and Norway. Rejlers recorded revenue of SEK 1.9 billion in 2015 and its class B share is listed on NASDAQ Stockholm.

The information in this interim report is that which Rejlers AB is required to publish in compliance with the Swedish Securi-ties Market Act and/or the Swedish Financial Instruments Trading Act. This information was released for publication on 9 February 2016 at 8.00 am. This interim report is also available in Swedish. The English version is a translation of the Swedish original. In the case of any discrepancy between the two, the Swedish version takes precedence.