Relais Group Plc Financial Statement Bulletin 1 January – 31 December 2019 (unaudited) – Powerful growth through acquisitions

Thu, Feb 27, 2020 08:00 CET

Relais Group Plc

Company Release 27 February 2020 at 9.00 a.m.

Relais Group Plc Financial Statement Bulletin 1 January – 31 December 2019 (unaudited) – Powerful growth through acquisitions

This release is a summary of Relais Group’s Financial Statement Bulletin 2019. The full release is attached to this company release and is available on our website at https://relais.fi/en/investors/.

Relais Group Plc acquired the shares of AB Reservdelar (ABR) and Huzells i Karlstad AB on 31 May 2019. The companies have been included in Relais Group’s consolidated balance sheet from 31 May 2019 and in the consolidated income statement from 1 June 2019. This financial statement bulletin includes the figures for the acquired companies in the 2019 financial period from the dates of joining stated above. The financial statement’s reference data for the 2018 financial period does not include the figures for the acquired companies.

JULY – DECEMBER 2019 IN BRIEF

Net sales totalled EUR 61,225 thousand (July – December 2018: 38,794), +57.8% change
EBITA was EUR 9,100 (4,868) thousand, 14.9% (12.5%) of net sales
EBIT was EUR 5,671 (3,506) thousand, 9.3% (9.0%) of net sales
Comparable earnings per share excluding amortisation of goodwill (undiluted) was EUR 0.41 (0.42)
Share issue and listing on the Nasdaq First North Growth Market Finland market on 17 October 2019
Ownership of Awimex International AB increased to 100% with the purchase of 30% of its shares on 18 December 2019

JANUARY – DECEMBER 2019 IN BRIEF

Acquisition of the Swedish companies AB Reservdelar (ABR) and Huzells i Karlstad AB on 31 May 2019
Net sales were EUR 98,946 thousand (January – December 2018: 72,452), +36.6% change
EBITA was EUR 12,976 (8,395) thousand, 13.1% (11.6%) of net sales
EBIT was EUR 7,856 (5,723) thousand, +39.2% change
Comparable earnings per share excluding amortisation of goodwill (undiluted) was EUR 0.76 (0.67)
The Board of Directors will propose to the Annual General Meeting of March 26, 2020 a dividend of EUR 0.10 per share

2020 OUTLOOK

Group’s reported net sales and operating profit excluding amortization of goodwill (EBITA) are estimated to grow clearly from the previous year.

KEY FIGURES

EUR thousand	Jul – Dec 2019	Jul – Dec 2018	Jan – Dec 2019	Jan – Dec 2018
Net sales	61,225	38,794	98,946	72,452
Gross profit	20,723	13,001	33,090	24,316
EBITDA	9,296	5,019	13,335	8,731
EBITDA margin, %	15.2%	11.0%	13.5%	12.1%
EBITA	9,100	4,868	12,976	8,395
EBITA margin, %	14.9%	12.5%	13.1%	11.6%
Operating profit	5,671	3,506	7,856	5,723
Operating profit margin, %	9.3%	9.0%	7.9%	7.9%
Profit (loss)	657	2,240	384	3,092
Profit (loss) margin, %	1.1%	5.8%	0.4%	4.3%
Comparable profit (loss) excluding amortisation of goodwill	6,010	3,601	8,740	5,765
Comparable profit (loss) excluding amortisation of goodwill margin, %	9.8%	9.3%	8.8%	8.0%
Return on equity (ROE), %	n/a	n/a	1.4%*)	21.2%
Equity ratio	44,5%	36,0%	44.5%	36.0 %
Net gearing	54,3%	108,1%	54.3%	108.1%
Earnings per share, basic, EUR	0.05	0.26	0.03	0.36
Earnings per share, diluted, EUR	0.04	0.25	0.03	0.34
Comparable earnings per share, basic, EUR	0.18	0.26	0.31	0.36
Comparable earnings per share, diluted, EUR	0.17	0.25	0.29	0.34
Comparable earnings per share excluding amortisation of goodwill, basic, EUR	0.41	0.42	0.76	0.67
Comparable earnings per share excluding amortisation of goodwill, diluted, EUR	0.40	0.40	0.71	0.64
Personnel at the end of the period, FTE	258	147	258	147

*) Items affecting comparability and amortization of goodwill not eliminated

CEO ARNI EKHOLM COMMENTS:

“2019 was a year of growth and development for Relais. Our net sales grew by 36.6%, making it EUR 98.9 million. In addition to growth achieved through acquisitions, we also saw growth in the lighting products group, where we successfully launched several products over the course of the year. Even though we invested heavily in developing our business activities, our profitability remained on a good level. The corporate transactions we completed in Sweden have had a particularly favourable effect on our growth and development.

In May 2019, we implemented the largest corporate transaction in the history of the company when we acquired the Swedish companies AB Reservdelar (ABR) and Huzells i Karlstad AB. ABR has a strong foothold in the Swedish passenger vehicle spare parts market and Huzells is strong in the spare parts market for heavy-duty commercial vehicles. The aim of joining forces was to increase our presence on the Swedish market and to allow us to benefit from synergies between our companies. With this joining of forces, we can offer our customers more comprehensive services and customer support as well as one of the widest product ranges in our sector.

Post-transaction integration work in 2019 progressed as planned. We worked to unify our product range and we have now been able to benefit from greater purchase volumes. We expect to be able to benefit from new synergies from the 2020 financial period onwards.

One of the most pivotal moments of the year was Relais Group’s listing on Nasdaq Helsinki’s Nasdaq First North Growth Market Finland in October 2019. We sought support through listing for the specific purpose of implementing and financing our growth strategy. The venture succeeded and we attracted more than 2,000 new shareholders. Over the course of the year, we also updated our financial management processes and strengthened our organisation.”

LONG-TERM FINANCIAL TARGETS

The company aims to double its net sales in five years. The company aims to grow through a combination of organic growth and acquisitions.

Organic growth: Relais aims to continue growing at an average pace exceeding the market growth, which is supported by targeted synergies, e.g. cross-sales between the existing and acquired entities.
Based on Relais management’s view, the overall market has been growing during recent years at a moderate but stable rate of approximately 1–3 percent annually, depending on product category and geography.
M&A based growth: The company targets to make 1–2 acquisitions per year, where targeted synergies are expected to support earnings growth.

FINANCIAL RELEASES IN 2020

Financial statements and report of the Board of Directors, 1 January – 31 December 2019

5 March 2020

Mid-year report, 1 January – 30 June 2020

4 August 2020

BRIEFING INVITATION

Relais Group will hold a briefing for media and analysts in Finnish on February 27, 2020, starting at 11:00 a.m. EET, at GLO Hotel Kluuvi, Kluuvikatu 4, 00100 Helsinki.

You can watch the webcast online at: https://relais.videosync.fi/results-2019

Presentation material and video will be available in Finnish on the company's website at https://relais.fi/sijoittajat/ after the event.

Relais Group Plc

Board of Directors

Further information:

Relais Group, CEO Arni Ekholm
tel. +358 40 543 1446

Email: arni.ekholm@relais.fi

Certified advisor:

Evli Bank Plc, tel. +358 40 579 6210

Distribution:

Nasdaq Helsinki

Key media

www.relais.fi

Relais Group in brief

Relais Group is an importer and technical wholesaler that actively develops its vehicle spare parts and electrical equipment business in the Nordic and Baltic countries. Relais creates added value for its customers by offering vehicle spare parts, electrical equipment, and specialist services throughout the lifecycle of vehicles in a reliable, efficient and timely manner. As a strongly growth-oriented company, Relais aims to be an industry forerunner in the vehicle lifecycle enhancement business. The net sales of Relais Group were EUR 98.9 million in 2019. The company employed 258 people across five countries on 31 December 2019.