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Sectra’s Interim Report May-October 2014: Strong first half-year

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  • The IT and medical technology company Sectra (STO: SECT B) has achieved all of the Group’s financial goals for stability, profitability and profit growth in the first six months of 2014/2015.
  • Order bookings increased 56.3% to SEK 632.4 million (404.6).
  • Net sales rose 20.9% to SEK 451.5 million (373.6). The sale and licensing of patents in Business Innovation during the first quarter of the fiscal year had a positive impact of SEK 16.3 million on sales and operating profit. Excluding this item, net sales increased 16.5% to SEK 435.2 million.
  • Operating profit rose 75.5% to SEK 76.0 million (43.3), corresponding to an operating margin of 16.8% (11.6). Excluding the sale and licensing of patents, operating profit increased 37.9% to SEK 59.7 million, corresponding to an operating margin of 13.7%.
  • Cash flow after changes in working capital amounted to SEK 55.7 million (50.2).

Torbjörn Kronander, President and CEO of Sectra AB, comments

"We posted strong profitability and growth during the first six months of 2014/2015. For the first time since our three financial goals were established one and a half years ago, Sectra’s average growth in terms of operating profit per share over a five-year period exceeded 10%. This means that we have achieved all of our financial goals with respect to stability, profitability and profit growth.

There are several reasons for this positive development, the most of important of which is customer satisfaction. Internal and external evaluations conducted around the world have confirmed that our customers are satisfied with Sectra as a supplier, which is crucial for our long-term growth.

During the first half of the year, we reported successful sales performances in Scandinavia, the US and the UK, which are our largest markets. Our order bookings include several comprehensive, long-term customer contracts. These long-term contracts contribute to a stable trend for the Group, where recurring income currently accounts for more than half of net sales. However, these contracts will have little effect on the Group’s sales growth in the short term and may initially impact earnings for the next six to twelve months, even although the long-term business is positive. Thanks to its high level of customer satisfaction, its large proportion of long-term customer contracts and long-term investments in products and services, Sectra is well positioned to continue driving the development of efficient solutions that can improve people’s quality of life, reduce society’s healthcare costs and contribute to a more secure society.”

The full interim report is attached.

Teleconference for the presentation of the interim report

with President Torbjörn Kronander and CFO Simo Pykälistö

Time: 9:30 a.m. (CET). December 9, 2014

To participate, call:

Sweden: +46 (0)8 51999352
UK: +44 (0)2076602079
US +1 855 7161592

The presentation will be held in English and can also be followed online via: http://media.fronto.com/cloud/sectra/141209/. A recorded version will be available on Sectra’s website after the conference via: www.sectra.se/irwebcast.

The information in this report is such that Sectra AB (publ) is obligated to disclose in compliance with the Securities and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was issued to the media for publication on December 9, 2014, at 08:00 a.m. (CET).

For further information, please contact:
Dr. Torbjörn Kronander, CEO and President Sectra  AB, +46 (0) 705 23 52 27
Pictures: http://flickr.com/photos/sectramedicalsystems

About the Sectra Group
Sectra was founded in 1978 and has its roots in Linköping University in Sweden. The company’s business operation includes cutting-edge products and services within the niche segments of medical IT and secure communication. Sectra has offices in 12 countries and operates through partners worldwide. Sales in the 2013/2014 fiscal year totaled SEK 853 million. The Sectra share is quoted on the NASDAQ OMX Stockholm exchange. For more information, visit www.sectra.com

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Interim report Sectra Torbjörn Kronander imaging IT

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We posted strong profitability and growth during the first six months of 2014/2015. For the first time since our three financial goals were established one and a half years ago, Sectra’s average growth in terms of operating profit per share over a five-year period exceeded 10%. This means that we have achieved all of our financial goals with respect to stability, profitability and profit growth.
Torbjörn Kronander, President and CEO of Sectra AB
There are several reasons for this positive development, the most of important of which is customer satisfaction. Internal and external evaluations conducted around the world have confirmed that our customers are satisfied with Sectra as a supplier, which is crucial for our long-term growth.
Torbjörn Kronander, President and CEO of Sectra AB
During the first half of the year, we reported successful sales performances in Scandinavia, the US and the UK, which are our largest markets. Our order bookings include several comprehensive, long-term customer contracts. These long-term contracts contribute to a stable trend for the Group, where recurring income currently accounts for more than half of net sales. However, these contracts will have little effect on the Group’s sales growth in the short term and may initially impact earnings for the next six to twelve months, even although the long-term business is positive. Thanks to its high level of customer satisfaction, its large proportion of long-term customer contracts and long-term investments in products and services, Sectra is well positioned to continue driving the development of efficient solutions that can improve people’s quality of life, reduce society’s healthcare costs and contribute to a more secure society.
Torbjörn Kronander, President and CEO of Sectra AB