Interim report 1 April 30 September 2006 (6 months)

Transcription

1 Value Adding Tech Provider Interim report April 3 September (6 months) Net revenues increased to,75 (,569). Operating income increased by 3 percent to 56 (9). During the second quarter net revenues increased to 82 (737) and operating income increased by 6 percent to 75 (47). Income after financial items increased to 5 (7). Income after taxes increased to 7 (86). Earnings per share increased by 35 percent to SEK 4.65 (3.45). The return on equity was 48 percent and the equity ratio was 28 percent. The return on capital employed was 45 percent. 7, own shares were repurchased during the period. ADDTECH GROUP NET REVENUES AND INCOME First six months of /27 (April September) Quarter Net revenues Moving 3 5 Quarter Operating income Moving /5 5/6 6/7 Net revenues Moving 2 months 4/5 5/6 6/7 Operating income Moving 2 months The Addtech Group s net revenues for the first six months increased by 9 percent to,75 (,569). During the second quarter (July September) net revenues increased by percent to 82 (737). Adjusted for acquired and sold units, the increase in net revenues was 4 percent during the interim period April September, and 6 percent during the most recent quarter. Operating income increased by 3 percent to 56 (9) and income after financial items increased by 29 percent to 5 (7). The operating margin increased to 9. percent (7.6). Demand continued to be strong for most of the Group s units and the four business areas report higher net revenues as well as higher operating income, both for the interim period April September and the most recent quarter. The improvement in earnings is explained primarily by higher net revenues in combination with greater efficiency in certain parts of the Group s areas of operation. During the second quarter (July September) operating income increased by 6 percent to 75 (47) and income after financial items to 72 (46). Currency effects of translation of foreign units, affected net revenues by 2 and operating income by. ADDTECH INTERIM REPORT APRIL 3 SEPTEMBER

2 The net of financial items was 5 ( 2). The lower net of financial items is a consequence of higher net financial liabilities compared to the corresponding year-ago period. Income after taxes increased by 24 percent to 7 (86) and earnings per share increased by 35 percent to SEK 4.65 (3.45). The effective tax rate was 29 percent (26). BUSINESS AREAS Net revenues Net revenues Operating income Net revenues Operating income and operating income 3 months ending 3 months ending 6 months ending 6 months ending by business area () Components Transmission Equipment Life Science Parent Company and consolidation eliminations Addtech Group ,75, ADDTECH COMPONENTS Addtech Components is focused on electronic and electro-mechanical components and sub-systems. Important market segments include the vehicle and the electronics industries. Addtech Components net revenues increased by 7 percent to 453 (423). Operating income increased to 46 (42). The increase in volume was driven by continued strong demand from export-oriented OEM customers, in the telecom industry among other. The improvement in earnings is explained primarily by higher net revenues, in combination with continued positive development of business with a high technology and added value content. COMPONENTS 3 months ending 6 months ending 2 months ending 3 Mar. Net revenues, Operating income, Operating margin, % ADDTECH TRANSMISSION Addtech Transmission is focused on components and sub-systems based on mechanics, electro-mechanics and hydraulics for customers in the manufacturing industry. Addtech Transmissions net revenues increased by 8 percent to 543 (54). Adjusted for acquisitions and disposals the increase was 6 percent. Operating income increased by 23 percent to 59 (48). Continued stable business conditions for replacement components, combined with increased demand for production components, explain the increase in volume and earnings. Examples of market sectors where demand has increased are the wind power and offshore industries. 3 months ending 6 months ending 2 months ending TRANSMISSION 3 Mar. Net revenues, Operating income, Operating margin, % ADDTECH EQUIPMENT Addtech Equipment markets equipment, materials and components for use primarily in the vehicle industry, the engineering industry and the electronics and telecom sectors. Addtech Equipment s net revenues amounted to 376 (353). The increase is explained by increments from acquired companies. Operating income increased by 45 percent to 29 (2). The increase in earnings is primarily explained by streamlining and adaptation of operations and a positive effect of acquisitions made. 3 months ending 6 months ending 2 months ending EQUIPMENT 3 Mar. Net revenues, Operating income, Operating margin, % ADDTECH INTERIM REPORT APRIL 3 SEPTEMBER

3 ADDTECH LIFE SCIENCE Addtech Life Science markets laboratory instruments, diagnostic equipment and consumables for health care, research and industry. Net revenues for Addtech Life Science increased by 6 percent to 335 (29). Adjusted for acquisitions the increase was 3 percent. Operating income increased to 27 (2). The effects of the action program implemented during the preceding year in the business area s units aimed at the laboratory market are the primary reason for the increase in earnings. Increased sales in the diagnostics area contributed to a higher business volume as well as higher operating income. 3 months ending 6 months ending 2 months ending LIFE SCIENCE 3 Mar. Net revenues, Operating income, Operating margin, % PROFITABILITY The return on capital employed was 45 percent (4 percent during the preceding financial year) and the return on equity was 48 percent (4 percent during the preceding financial year). All profitability metrics are calculated as moving 2- months values. FINANCIAL POSITION AND CASH FLOW The equity ratio at the end of the period stood at 28 percent (33 percent at the beginning of the financial year). Shareholders equity per share, not including minority interest, amounted to SEK 7.4 (9.9 at the beginning of the financial year). Since the beginning of the financial year, a dividend of SEK 4. per share has been paid, which is equivalent to a total of 92. The Group s net financial indebtedness amounted to 273 at the end of the period, compared with 5 at the beginning of the year. Cash flow from current operations amounted to 44 during the period (6) and to 248 during the most recent 2-month period ( 265 during the preceding financial year). Investments in non-current assets amounted to 3 (3) and disposals amounted to 2 (). Own shares were repurchased during the period for 76. EMPLOYEES At the end of the period the number of employees was,22, which can be compared to,2 at the beginning of the financial year. Acquisitions made during the financial year added a net of 9 employees. The average number of employees during the period was,22, compared to,98 during the preceding financial year. OWNERSHIP STRUCTURE The share capital amounted to 5.8 at the end of the period. The distribution on classes of shares is as follows: Classes of shares Shares outstanding Class A shares,3,84 Class B shares 22,529,8 Total number of shares outstanding before repurchases 23,632,832 Repurchased class B shares,26, Total number of shares outstanding after repurchases 22,372,832 A total of 7, own shares have been repurchased at an average price of SEK 9 per share since the beginning of the financial year, 5, shares of which since the most recent reporting occasion at an average price of SEK 7 per share. The,26, class B shares held in treasury are equivalent to 5.3 percent of the total number of shares outstanding and 3.8 percent of the votes. 555, of these shares secure the Company s undertaking to holders of personnel options.,3,283 shares remain from the Annual General Meeting mandate to repurchase the equivalent of percent of the total shares outstanding. The average acquisition cost for repurchased shares amounts to SEK 89. The latest paid price for the Addtech share on 7 November was SEK 2,. The average number of shares held in treasury during the period was 2,356,75 (84,929). Upon full utilisation of the personnel option programme, the number of class B shares outstanding increases by 555,, equivalent to 2.5 percent of the number of shares outstanding and.7 percent of the number of votes. The programme remains in force until 8 February 2 with a redemption price of SEK During the month of June, 25, personnel options were utilised to acquire 25, class B shares. Together with utilisation in prior years, a total of 45, personnel options have thus been utilised. 3 ADDTECH INTERIM REPORT APRIL 3 SEPTEMBER

4 ACQUISITIONS In August an agreement was concluded to acquire Specma Drives AB, which designs and markets electromechanical drive systems. The company, with net revenues during of approximately 4, is consolidated in business area Addtech Components from October. From April Kurt Wiig AS is a part of business area Addtech Transmission. The company, the annual net revenues of which amount to approximately MNOK 24, delivers customer-specific hydraulic solutions, primarily to the Norwegian offshore and sub-sea industries. During the month of June an agreement was concluded to acquire Blästerprodukter i Köping AB, which from 3 June is consolidated in business area Addtech Equipment. The company sells media and spare parts for blasting equipment, mainly to Swedish manufacturing industry. Annual revenues amount to just over 2. The total purchase money for companies acquired during the period (Kurt Wiig AS and Blästerprodukter i Köping AB) amounts to 3. The two acquisitions have impacted the Addtech Group s net revenues by 2 and the period s income after taxes by 2. The acquisitions would have impacted consolidated net revenues by an estimated 27 and the period s income after taxes by approximately 2 had the acquisitions been consummated as of April. ACOUNTING 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 net revenues amounted to 6 (3) and income after financial items was 42 (3). This result includes revenue from shares in Group companies in a net amount of 45 (42). Net capital expenditures in non-current assets were made in an amount of (). The Parent Company s financial net liability amounted to 5 at the end of the period, compared to 24 at the beginning of the financial year. Stockholm, 8 November Roger Bergqvist President This report has not been subject to review by the Company s auditors. The interim report for the period April 3 December will be presented 6 February 27. For further information, contact: Roger Bergqvist, President, Kennet Göransson, Chief Financial Officer, Value Adding Tech Provider Addtech is a technology trading group that within selected niches develops and sells components and products to industrial companies and the service industry. The Group has annual sales of approximately SEK 3.5 billion and has approximately,2 employees. The majority of customers are manufacturers in the mechanical, vehicle, telecom and electronics industries, and laboratories within health care and research in the Nordic Region. Addtech provides its customers with technical as well as economic value added. Addtech AB (publ) Box 62 Gamla Brogatan SE- 32 Stockholm, Sweden Telephone Fax info@addtech.com Company number ADDTECH INTERIM REPORT APRIL 3 SEPTEMBER

5 BUSINESS AREAS QUARTERLY DATA /27 / Net revenues by business area () Q 2 Q Q 4 Q 3 Q 2 Q Components Transmission Equipment Life Science Parent Company and consolidation eliminations 2 2 Addtech Group QUARTERLY DATA /27 / Income by business area () Q 2 Q Q 4 Q 3 Q 2 Q Components Transmission Equipment Life Science Parent Company and consolidation eliminations Operating income in % of net revenues 9, 9,2 9,5 7,4 6,4 8,7 Financial income and expense Income after financial items in % of net revenues Net revenues by business area 3 months ending 6 months ending 2 months ending 3 Mar. Components Transmission ,93,54 Equipment Life Science Parent Company and consolidation eliminations Addtech Group ,75,569 3,498 3,362 Income by business area 3 months ending 6 months ending 2 months ending 3 Mar. Components Transmission Equipment Life Science Parent Company and consolidation eliminations Operating income in % of net revenues Financial income and expense Income after financial items in % of net revenues ADDTECH INTERIM REPORT APRIL 3 SEPTEMBER

6 GROUP SUMMARY INCOME STATEMENT 3 months ending 6 months ending 2 months ending 3 Mar. Net revenues ,75,569 3,498 3,362 Cost of goods sold ,24,4 2,326 2,242 Gross income ,72,2 Selling expenses Administrative expenses Other operating income and expenses Operating income in % of net revenues Financial income and expense Income after financial items in % of net revenues Taxes Net income for the period of which attributable to the minority of which attributable to the shareholders Earnings per share, SEK* Earnings per share, fully diluted basis, SEK* Average number of shares outstanding, 22,824 24,48 22,893 24,492 23,27 24,73 Number of shares outstanding at end of period, 22,373 24,3 22,373 24,3 22,373 23, Operating expenses include depreciation and amortisation of tangible non-current assets in amounts of of intangible non-current assets in amounts of * Calculated based on shareholders portion of income for the period BALANCE SHEET, 3 Mar. Non-current assets Goodwill Other intangible non-current assets Tangible non-current assets Financial non-current assets Current assets Inventories Short-term receivables Cash and cash equivalents Total assets,433,426,33 Total equity Interest-bearing provisions Non-interest-bearing provisions Interest-bearing non-current liabilities Total non-current liabilities Non-interest-bearing provisions Interest-bearing current liabilities Non-interest-bearing current liabilities Total current liabilities Total equity and liabilities,433,426,33 CHANGE IN TOTAL EQUITY Apr. Apr. 3 Mar. Apr. Amount at beginning of period (IFRS) Effect of changed accounting policy (IAS 39) Reduction of share capital through cancellation 3 Rights issue 3 Non-cash issue 4 Redemption of personnel options 2 Effect of hedge accounting in accordance with IAS 39 Period s translation difference 8 8 Repurchase of own shares Dividend Net income for the period Amount at end of period ADDTECH INTERIM REPORT APRIL 3 SEPTEMBER

7 CASH FLOW STATEMENT 3 months ending 6 months ending 2 months ending 3 Mar. Income after financial items Adjustment for items not included in cash flow Taxes paid Change in working capital Cash flow from operating activities Net investment in non-current assets Acquisitions and disposals Cash flow from investment activities Dividend Repurchase of own shares Redemption of personnel options 3 2 Other financing activities Cash flow from financing activities Period s cash flow Cash and cash equivalents at beginning of period Translation difference in cash and cash equivalents 2 2 Cash and cash equivalents at end of period KEY FINANCIAL INDICATORS 2 months ending 3 Mar. 3 Mar. 3 Mar. 24* Net revenues, 3,498 3,362 2,422 2,2 Operating income, Income after financial items, Income after taxes, Operating margin, % Profit margin, % Return on capital employed, %** Return on equity, %** Capital employed, ** Financial net liabilities, Equity ratio, %** Debt to equity ratio** Net debt to equity ratio**.7.2. n/m Interest coverage ratio Average number of employees during the year,22, Number of employees at end of period,22,2, * Calculations based on previously applied Swedish accounting principles. ** Key financial indicators are calculated with interest of the minority in shareholders equity included in shareholders equity. KEY FINANCIAL INDICATORS PER SHARE 2 months ending 3 Mar. 3 Mar. 3 Mar. 24* Earnings per share, SEK Earnings per share, fully diluted basis, SEK Cash flow per share, SEK Shareholders equity per share, SEK** Last price paid per share, SEK Average number of shares outstanding after repurchases, 23,27 24,73 24,486 25,534 Average number of shares outstanding after repurchases, fully diluted basis, 23,497 24,366 24,66 25,534 Number of shares outstanding at end of period, 22,373 23,48 24,53 24,533 * Calculations based on previously applied Swedish accounting principles. ** Calculated based on proportion of shareholders equity attributable to the shareholders. In view of the current value of the redemption price on outstanding personnel options (SEK 4.53) and the average market price of the share during the twelve-month period (SEK 99.74), there is a dilutive effect of approximately.4 percent (.2 percent during the preceding financial year) as a result of outstanding personnel options. The corresponding dilutive effect is.5 percent for the most recent quarter and.5 percent during the interim period April September (.2 and. percent, respectively, for the corresponding periods during the preceding financial year). The market price of the share was SEK 6. as of 3 September. The redemption price on the personnel options is SEK 44.8 and they remain valid until 8 February 2, inclusive. The average acquisition cost of shares held in treasury amounts to SEK ADDTECH INTERIM REPORT APRIL 3 SEPTEMBER