Interim report 1 April 30 September 2008 (6 months)

Transcription

1 Value Adding Tech Provider Interim report 1 April 3 September (6 months) Revenue increased 13 percent, to MSEK 2,21 (1,955). Operating profit increased 9 percent, to MSEK 213 (195). During the second quarter, revenue rose 1 percent, to MSEK 1,56 (956), while operating profit rose 5 percent, to MSEK 97 (92). Profit after financial items increased to MSEK 25 (187), and profit after taxes amounted to MSEK 152 (137). Cash flow from operations totalled MSEK 112 (93). Earnings per share increased 12 percent, to SEK 6.8 (6.5). For the most recent 12-month period, earnings per share were SEK (12.55). The return on equity was 46 percent, and the equity ratio was 3 percent. ADDTECH GROUP REVENUE AND PROFIT Quarter 1 5 Revenue MSEK Moving 4 5 Quarter 15 Operating profit MSEK Moving /7 7/8 8/9 Revenue Moving 12 months 6/7 7/8 8/9 Operating profit Moving 12 months 1 ADDTECH INTERIM REPORT 1 APRIL 3 SEPTEMBER

2 The Addtech Group s revenue for the first six months of the financial year increased 13 percent to MSEK 2,21 (1,955). During the second quarter (July-September) revenue increased 1 percent to MSEK 1,56 (956). Adjusted for acquisitions, and taking currency effects arising from translation of foreign units into account, the increase in revenue was 3 percent during the interim period April September and percent during the most recent quarter. The currency effects arising from translation of foreign units affected revenue in the amount of MSEK 16 and operating profit MSEK 2. During April- September, the Group enjoyed healthy demand overall. During the latter part of the second quarter, July-September, demand from some Nordic manufacturing companies, the OEM customers, slowed. In other market segments, demand remained stable. Acquisitions made previously have contributed positively to increased revenue and profit. The Group has initiated activities to influence costs and operating capital so as to counteract the effects of any future deterioration in business conditions. Operating profit increased 9 percent during the interim period, to MSEK 213 (195) and operating margin reached 9.6 percent (1.). The operating margin before amortisation of intangible non-current assets amounted to 1.4 percent (1.5). Net financial items amounted to MSEK -8 (-8) and profit after financial items increased 1 percent to MSEK 25 (187). During the second quarter, operating profit rose 5 percent, to MSEK 97 (92), and profit after financial items to MSEK 94 (87). During the second quarter, the Group divested three properties which together resulted in a minor capital gain, reported among other operating income and expenses. At the same time, the Group charged costs in roughly the same amount for measures to boost efficiency. Financial items include financial exchange rate differences totalling MSEK 2 (-1), of which MSEK 2 (-1) occurred during the second quarter. Profit after taxes increased 11 percent, to MSEK 152 (137), and earnings per share increased 12 percent, to SEK 6.8 (6.5). The effective tax rate was 26 percent (27). BUSINESS AREAS ADDTECH COMPONENTS Addtech Components markets and sells components and sub-systems in mechanics, electro-mechanics and hydraulics to customers in the manufacturing industry. Addtech Components revenue increased 11 percent, to MSEK 561 (54). Operating profit increased 3 percent to MSEK 56 (43). Business conditions for products and sub-systems containing a high degree of technology and value-added continued to develop positively, while demand for more standardised products from certain Nordic OEM customers slowed somewhat. The improvement in profit was mainly attributable to the higher revenue combined with ongoing growth of deals containing a high degree of technology and value-added. COMPONENTS 3 months ending 6 months ending 12 months ending 31 Mar. Revenue, MSEK ,152 1,95 Operating profit, MSEK Operating margin, % ADDTECH ENERGY & EQUIPMENT Addtech Energy & Equipment markets and sells battery solutions, products for power transmission, and equipment and material for industrial production processes. Its customers are in the commercial vehicle industry, the energy and telecom sectors, and in engineering. Addtech Energy & Equipment s revenue increased 11 percent, to MSEK 441 (397). Operating profit increased 12 percent to MSEK 48 (43). Demand for the business area s energy components and battery solutions remained robust during the period, and business conditions have been stable for equipment and material for industrial production processes. Strategic acquisitions completed have lifted sales for the business area and contributed to the improvement in earnings. ENERGY & EQUIPMENT 3 months ending 6 months ending 12 months ending 31 Mar. Revenue, MSEK Operating profit, MSEK Operating margin, % ADDTECH INDUSTRIAL SOLUTIONS Addtech Industrial Solutions markets and sells machinery components, automation solutions, polymer products and customised products in electro-mechanics and circuitry. Own-brand products are marketed and sold to local and global industrial customers. Addtech Industrial Solutions revenue increased 14 percent, to MSEK 83 (727). Operating profit amounted to MSEK 81 (89). During the period, demand for sub-systems and replacement components for the Nordic production industry remained healthy, and demand for production components has been stable. Two isolated events had a negative impact on the operating margin during the period. The product mix in one operation changed, as one sales volume at a high margin was replaced by a 2 ADDTECH INTERIM REPORT 1 APRIL 3 SEPTEMBER

3 new volume at a margin normal for Addtech. In addition, efficiency-enhancing efforts at Codan Tech, acquired in January, have taken more time than initially anticipated. Other acquisitions completed earlier have developed positively. 3 months ending 6 months ending 12 months ending INDUSTRIAL SOLUTIONS 31 Mar. Revenue, MSEK ,628 1,525 Operating profit, MSEK Operating margin, % ADDTECH LIFE SCIENCE Addtech Life Science markets and sells instruments and consumables to laboratories in health care and research, diagnostics equipment for the health care sector and process and analytical equipment for industry. Revenue for Addtech Life Science increased 15 percent, to MSEK 385 (334). Operating profit improved 38 percent and totalled MSEK 36 (26). The business area has enjoyed strong demand for diagnostics equipment and consumables from Nordic health care as well as for instruments and analytical equipment for industrial applications. The business area s operations that are focused on more general equipment for the laboratory market continues to adapt its product range and to streamline in order to meet the Group s requirements for profitability and growth. 3 months ending 6 months ending 12 months ending LIFE SCIENCE 31 Mar. Revenue, MSEK Operating profit, MSEK Operating margin, % PROFITABILITY Return on capital employed was 39 percent (46), and return on equity was 46 percent (55). FINANCIAL POSITION AND CASH FLOW The equity ratio at the end of the period stood at 3 percent (29). Equity per share, excluding minority interest, amounted to SEK 29.6 (24.4). At the end of the period, the Group s financial net debt amounted to MSEK 522 (47), including pension liability of MSEK 182 (176). Cash and cash equivalents, consisting of cash and bank balances, together with granted but unused credit totalled MSEK 388 at 3 September. Cash flow from operating activities amounted to MSEK 112 (93) during the period. Investments in non-current assets amounted to MSEK 3 (2) and in corporate acquisitions to MSEK 97 (9). Divestments of non-current assets totalled MSEK 7 (17). In addition, during the second quarter property management companies were divested, releasing MSEK 42 in liquidity. EMPLOYEES At the end of the period the number of employees was 1,565, which can be compared to 1,537 at the beginning of the financial year. Acquisitions made during the period added 26 employees.the average number of employees during the most recent 12-month period was 1,477 (1,287). OWNERSHIP STRUCTURE Share capital amounted to MSEK 51.1 after the cancellation of 9, repurchased class B shares in accordance with a decision made by the Annual General Meeting. Distribution based on class of share was as follows: Class of share Shares outstanding Class A shares 1,12,47 Class B shares 21,63,362 Total number of shares outstanding before repurchases 22,732,832 Repurchased class B shares -689,5 Total number of shares outstanding after repurchases 22,43,332 Since the preceding interim report, 25, shares have been repurchased at a price of SEK per share. The 689,5 class B shares held in treasury correspond to 3. percent of the total number of shares outstanding and 2.1 percent of the votes. The average acquisition cost for repurchased shares was SEK 11 per share. The last price paid for the Addtech share on 28 October was SEK The average number of shares held in treasury during the period was 1,471,437 (1,157,525). During the current financial year 85,5 personnel options have been exercised to acquire 85,5 of class B shares. Upon full exercise of the personnel option programme, which remains in force through 18 February 21, the number of class B shares outstanding would increase by 334,5. This corresponds to 1.5 percent of the number of shares outstanding and 1. percent of the number of votes. A total of 334,5 of the repurchased shares held in treasury secure the Company s undertaking to holders of personnel options and were acquired during 21 at an average price of SEK This can be compared with the redemption price of SEK ADDTECH INTERIM REPORT 1 APRIL 3 SEPTEMBER

4 ACQUISITIONS The companies acquired during the period have a combined annual revenue of MSEK 129. The consideration paid for all acquisitions together was MSEK 129, MSEK 88 of which was allocated to goodwill and other intangible assets. The overall effect of the acquisitions on the Addtech Group s revenue was MSEK 46, on operating profit MSEK 5 and on net profit MSEK 3. If the acquisitions had been made at the start of the current financial year, they would have had an effect of about MSEK 7 on consolidated revenue, about MSEK 7 on operating profit and about MSEK 4 on net profit. ACCOUNTING POLICIES This interim report has been prepared in accordance with IFRS with application of IAS 34 Interim Financial Reporting. The same accounting policies and the same bases for judgment as for the most recent annual report have been applied. PARENT COMPANY The Parent Company s revenue amounted to MSEK 17 (16), and profit after financial items MSEK 9 (76). This amount includes revenues of MSEK 81 (75) from shares in Group companies. Net investments in non-current assets totalled MSEK (). The Parent Company s financial net assets at the end of the period amounted to MSEK 94, compared with a financial net debt of MSEK 39 at the beginning of the financial year. During September dividends were paid to the equity holders of the parent in the amount of MSEK 154, corresponding to SEK 7 per share. RISKS AND FACTORS OF UNCERTAINTY Addtech s income and financial position, as well as its strategic position, are affected by a number of internal factors under Addtech s control and by a number of external factors over which Addtech has limited influence. The most important risk factors for Addtech are the state of the economy, structural change, the competitive situation and fluctuations in foreign exchange rates. Since no material changes occurred during the period relating to risks and factors of uncertainty, please refer to the Administration Report in Addtech s / annual report for further details. The Parent Company is indirectly affected by the above risks and uncertainty factors due to its role in the organisation. AFFIRMATION The Board of Directors and the President deem that the interim report on the first six months gives a true and fair picture of the company s and the Group s operations, position and earnings, and describes the significant risks and uncertainty factors to which the company and the Group are exposed. Stockholm, 29 October Anders Börjesson Eva Elmstedt Tom Hedelius Chairman Director Deputy Chairman Urban Jansson Lars Spongberg Johan Sjö Director Director Director and President This report has not been subject to review by the Company s auditor. The interim report for the period 1 April 31 December will be published 9 February 29. For further information, please contact: Johan Sjö, President and CEO, Kennet Göransson, Chief Financial Officer, Value Adding Tech Provider Addtech is a technology trading group that develops and sells high-tech components and systems to industrial companies and the service industry in selected niches. The Group has annual revenue of about SEK 4.4 billion and around 1,5 employees. Its customers are mainly manufacturing companies in the engineering, vehicle, telecom and electronics industries and laboratories in the fields of health care and research in the Nordic region. Addtech provides its customers with technological and financial added value. Addtech is listed on the OMX Nordic Exchange Stockholm. Addtech AB (publ) Box 62 Gamla Brogatan 11 SE Stockholm, Sweden Telephone Fax info@addtech.com Company number ADDTECH INTERIM REPORT 1 APRIL 3 SEPTEMBER

5 BUSINESS AREAS QUARTERLY DATA /29 / Revenue by business area, MSEK Q 2 Q 1 Q 4 Q 3 Q 2 Q 1 Components Energy & Equipment Industrial Solutions Life Science Parent Company and Group items Addtech Group 1,56 1,154 1,155 1, QUARTERLY DATA /29 / Profit by business area, MSEK Q 2 Q 1 Q 4 Q 3 Q 2 Q 1 Components Energy & Equipment Industrial Solutions Life Science Parent Company and Group items Operating profit as % of revenue Financial income and expenses Profit after financial items as % of revenue Revenue by business area 3 months ending 6 months ending 12 months ending MSEK 31 Mar. Components ,152 1,95 Energy & Equipment Industrial Solutions ,628 1,525 Life Science Parent Company and Group items Addtech Group 1, ,21 1,955 4,453 4,198 Profit by business area 3 months ending 6 months ending 12 months ending MSEK 31 Mar. Components Energy & Equipment Industrial Solutions Life Science Parent Company and Group items Operating profit as % of revenue Financial income and expenses Profit after financial items as % of revenue ADDTECH INTERIM REPORT 1 APRIL 3 SEPTEMBER

6 GROUP SUMMARY INCOME STATEMENT 3 months ending 6 months ending 12 months ending MSEK 31 Mar. Revenue 1, ,21 1,955 4,453 4,198 Cost of sales ,492-1,319-3,5-2,832 Gross profit ,448 1,366 Selling expenses Administrative expenses Other operating income and expenses Operating profit as % of revenue Financial income and expenses Profit after financial items as % of revenue Income tax expense Profit for the period Attributable to: Equity holders of the Parent Company Minority interest Earnings per share (EPS), SEK* EPS, after dilution, SEK* Average number of shares outstanding, ( s) 22,1 22,5 22,161 22,475 22,228 22,385 Number of shares outstanding at end of period, 22,43 22,5 22,43 22,5 22,43 22,28 ( s) Operating expenses include depreciation and amortisation - of property, plant and equipment in amounts of - of intangible non-current assets in amounts of -1-8 *Calculated based on equity holders portion of profit for the period BALANCE SHEET, MSEK 31 Mar. Goodwill Other intangible non-current assets Property, plant and equipment Financial non-current assets Total non-current assets Inventories Current receivables Cash and cash equivalents Total current assets 1,46 1,296 1,261 Total assets 2,195 2,9 1,899 Total equity Interest-bearing provisions Non-interest-bearing provisions Non-current interest-bearing liabilities Total non-current liabilities Non-interest-bearing provisions Current interest-bearing liabilities Current non-interest-bearing liabilities Total current liabilities 1, ,39 Total equity and liabilities 2,195 2,9 1,899 CHANGES IN EQUITY MSEK 1 Apr. - 1 Apr Mar. 1 Apr.- Amount at beginning of period Options exercised by employees Effect of hedge accounting as per IAS Period s change in translation reserve 18 4 Repurchase of own shares Dividend Profit for the period Amount at end of period ADDTECH INTERIM REPORT 1 APRIL 3 SEPTEMBER

7 CASH FLOW STATEMENT 3 months ending 6 months ending 12 months ending MSEK 31 Mar. Profit after financial items Adjustment for items not included in cash flow Income tax paid Changes in working capital Cash flow from operating activities Net investments in non-current assets Acquisitions and disposals Cash flow from investing activities Dividend paid Repurchase of own shares Other financing activities Cash flow from financing activities Cash flow for the period Cash and cash equivalents at beginning of period Exchange differences on cash and cash equivalents Cash and cash equivalents at end of period KEY FINANCIAL INDICATORS 12 months ending 31 Mar. 31 Mar. 31 Mar. 26 Revenue, MSEK 4,453 4,198 3,661 3,362 Operating profit, MSEK Profit after financial items, MSEK Profit for the period, MSEK Operating margin, % Profit margin, % Return on capital employed, %* Return on equity, %* Capital employed, MSEK* 1,269 1, Financial net debt, MSEK Equity ratio, %* Debt / equity ratio, times* Net debt / equity ratio, times* Interest coverage ratio, times Average number of employees 1,477 1,368 1,235 1,198 Number of employees at end of the period 1,565 1,537 1,36 1,211 * Key financial indicators are calculated with minority interest included in equity. NYCKELTAL PER AKTIE 12 months ending 31 Mar. 31 Mar. 31 Mar. 26 Earnings per share (EPS), SEK EPS, after dilution, SEK Cash flow per share, SEK Equity per share, SEK* Last price paid per share, SEK Average number of shares outstanding after repurchases, ( s) 22,228 22,385 22,652 24,73 Average number of shares outstanding after repurchases and dilution, ( s) 22,449 22,678 22,977 24,366 Number of shares outstanding at end of the period, ( s) 22,43 22,28 22,434 23,48 * Calculations based on proportion of equity attributable to the equity holders. In view of the redemption price on outstanding personnel options (SEK 44.8) and the average market price of the share during the 12-month period (SEK ) outstanding personnel options represent a potential dilution of approximately 1. percent during the last 12-month period (1.4 percent during the preceding financial year). The corresponding dilution effect would be 1. percent for the most recent quarter (1.4) and 1. percent for the period 1 April- 3 September (1.4). The market price of the share was SEK 113. as of 3 September. The redemption price on the personnel options is SEK 44.8, and the options are valid through 18 February ADDTECH INTERIM REPORT 1 APRIL 3 SEPTEMBER

8 ACQUISITIONS Acquisitions completed during the /8 and /9 financial years are distributed among the business areas as follows: Acquisitions Time Revenue MSEK* Business area LabRobot Products, SE Q 2 /8 8 Life Science Chemo Electric, DK Q 2 /8 73 Components Amitra, FI Q 2 /8 27 Industrial Solutions Moving Hjulex, SE Q 2 /8 45 Industrial Solutions Inline Dreamteam, SE Q 3 /8 25 Components Kouvo Automation, FI Q 4 /8 22 Life Science Immunkemi F&D, SE Q 4 /8 1 Life Science Allan Rehnström Tryckluft-Vakuum, SE Q 4 /8 22 Components Codan Tech, DK and China Q 4 /8 15 Industrial Solutions Eurolaite, FI Q 4 /8 28 Energy & Equipment S.E.G. Process, SE Q 4 /8 1 Life Science Minitec, FI and Estonia Q 1 /9 15 Components Emcomp, SE Q 1 /9 72 Industrial Solutions Cumatix, SE Q 1 /9 6 Components SABP Elteknik, SE Q 2 /9 36 Energy & Equipment * refers to conditions at the time of acquisition PARENT COMPANY INCOME STATEMENT 3 months ending 6 months ending 12 months ending MSEK 31 Mar. Revenue Administrative expenses Other operating income and expenses Operating profit Profit from shares in Group companies Interest income and expenses and similar items Profit after financial items Appropriations -5-5 Profit before taxes Income tax expense Profit for the period BALANCE SHEET, MSEK 31 Mar. 3 Jun. Intangible non-current assets 2 2 Property, plant and equipment 1 1 Financial non-current assets 1,61 1,42 1,45 Total non-current assets 1,613 1,45 1,45 Current receivables Cash and cash equivalents Total current assets Total assets 1,785 1,749 1,561 Equity Untaxed reserves Provisions Non-current liabilities Current liabilities Total equity and liabilities 1,785 1,749 1,561 Pledged assets Contingent liabilities The information is such that under the Securities Market Act Addtech is obligated to publish it. The information was submitted for publication on 29 October at 11: a.m. 8 ADDTECH INTERIM REPORT 1 APRIL 3 SEPTEMBER