July- September July- September 2018

Transcription

1 Interim Report January -

2 Interim Report Third Quarter Sales in the third quarter were SEK (183.3) million, which in local currencies means a decrease of 14 per cent. Operating profit for the third quarter amounted to SEK 9.5 (15.5) million. Items affecting comparability of SEK 9.7 ( 0.1) million are included. Free cash flow during the quarter was SEK 0.8 ( 10.4) million Full year Sales, SEK million Operating profit, SEK million Profit after tax, SEK million Free cash flow, SEK million Net debt, SEK million Net debt/equity ratio, % Profit per share after tax, SEK Equity per share, SEK

3 Interim Report Third Quarter Sales Sales during the quarter were SEK (183.3) million and during the first three quarters of the year SEK (539.5) million. In local currencies this was a decrease of 14 and 3 per cent respectively. Profit Operating profit for the quarter decreased to SEK 9.5 (15.5) million. During the year to date earnings improved to SEK 33.7 ( 5.9) million. The operating profit for the quarter includes a profit of SEK 13.6 million from the sale of Horsviks Gård. Adjusted for items affecting comparability of SEK 9.7 ( 0.1) million for the quarter and SEK 8.3 ( 6.2) million for the first three quarters of the year, the operating margin decreased during the quarter to 0.1 (8.5) per cent, while during the year to date it increased to 4.7 (0.1) per cent. Loss after financial items in the quarter was SEK 3.5 ( 4.6) million and during the year to date SEK 11.4 ( 13.4) million. Profit after tax deteriorated to SEK 4.5 (11.1) million for the quarter. During the year to date, however, earnings improved to SEK 14.9 ( 15.0) million. Technology Sales increased during the quarter to SEK 40.0 (36.0) million and during the first three quarters of the year to SEK (140.6) million. In local currencies the increase was 11 per cent for the quarter and 14 per cent for the three first quarters. Operating profit for the third quarter increased to SEK 0.7 ( 3.6) million and during the first three quarters of the year to SEK 18.4 (7.1) million. The operating margin for the quarter increased to 1.8 ( 10) per cent and for the first three quarters to 11.5 (5.3) per cent. The improvement in the margin is mainly from more effective treatment of operational waste. Capacity utilization in production is high and the order situation for the year is strong. Sales decreased during the quarter to SEK 18.8 (39.8) million and during the first three quarters of the year to SEK 59.4 (101.5) million. In local currencies this was a decrease of 56 per cent for the quarter and 42 per cent for the three first quarters. The reduced sales are due to discontinuation of low-margin services in England and Sweden. During the third quarter of the previous year license revenue of SEK 22 million was received in connection with the signing of the cooperation agreement in China for FBSR technology. The operating profit for the third quarter decreased to SEK 8.7 (15.5) million and for the first three quarters of the year to SEK 7.6 (15.8) million. Adjusted for items affecting comparability of SEK 2.5 (2.6) million for the quarter, the operating margin for the quarter decreased to 33.0 (45.5) per cent and for the first three quarters to 6.2 (18.1) per cent. In August Mikael Karlsson was appointed as new business area head. Scandpower Sales increased during the quarter to SEK 31.2 (19.6) million and during the first three quarters of the year to SEK 97.8 (56.4) million. In local currencies the increase was 48 per cent for the quarter and 72 per cent for the three first quarters. Just over SEK 8 million of the sales for the quarter are related to TVEL and thus most of the order totaling SEK 38 million from TVEL is included in sales for the year to date. In addition, demand during the year for other software and supplementary orders has been good. The work to obtain licenses from the American authorities to export ordered software to China is continuing. The operating profit for the quarter improved to SEK 1.2 ( 2.7) million and for the first three quarters of the year to SEK 20.9 ( 9.8) million. The operating margin for the quarter increased to 3.8 ( 13.8) per cent and for the half year to 21.4 ( 17.4) per cent. Germany Sales during the quarter were SEK 78.3 (81.9) million and during the first three quarters of the year SEK (226.6) million. In local currencies this was a decrease of 12 per cent for the quarter and 9 per cent for the three first quarters. The decrease in sales in due to lower capacity utilization of staff working on refueling and maintenance outages in German nuclear power plants. The operating profit for the quarter decreased to SEK 2.5 (10.7) million and for the first three quarters of the year to SEK 2.6 (0.4) million. Adjusted for items affecting comparability of SEK 0 (2.5) million for the quarter and SEK 0 (0.0) million for the first three quarters, the operating margin for the quarter decreased to 3.2 (10.0) per cent and for the first three quarters to 1.2 (0.2) per cent. Investments Investments in the quarter amounted to SEK 7.7 (2.8) million and during the three first quarters to SEK 20.8 (15.2) million. The investments are mainly related to the Elekta order announced in January. Cash flow The free cash flow improved in the quarter to SEK 0.8 ( 10.4) million and in the three first quarters to SEK 24.8 ( 53.5) million. Financial position and liquidity Cash and cash equivalents after the three first quarters amounted to SEK (128.2) million. Net interestbearing debt was SEK 73.4 (71.2) million, which meant a net debt/equity ratio of 22.9 (23.1) per cent. Staff The average number of employees after the three first quarters was 631 (668). The decrease is due to discontinuation of low-margin services in England, fewer employees in the German operations and outsourcing of property management of the Studsvik facility. Transactions with related parties During the quarter a dividend of SEK 0.3 (1.2) million was received from UK Nuclear Waste Management Ltd. 3

4 Interim Report Third Quarter Parent company Operations in the parent company consist of coordination of the Group. Sales during the quarter were SEK 4.0 (4.6) million and during the first three quarters SEK 12.1 (14.7) million. The operating profit for the quarter amounted to SEK 0.2 ( 3.1) million and SEK 5.9 ( 13.2) million for the first three quarters. Loss after financial items in the quarter was SEK 6.3 ( 9.7) million and for the first three quarters SEK 3.8 ( 29.4) million. Net financial income for the quarter includes revaluation of intra-group loans by SEK 2.7 ( 5.2) million and for the three first quarters SEK 10.1 ( 11.6) million. Cash and cash equivalents including current investments amounted to SEK 32.2 (8.2) million and interest-bearing liabilities to SEK (199.9) million. Risks and uncertainties An overall analysis of the Group's risks and how they are dealt with is given in the Annual Report, which is available on the company's website. Apart from these risks, no further significant risks are deemed to have arisen. Accounting policies Studsvik applies the International Financial Reporting Standards (IFRS) approved by the European Commission. This interim report was prepared for the Group in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. For the parent company, the Swedish Financial Reporting Board recommendation RFR 2 Accounting for Legal Entities and the Annual Accounts Act are applied. The accounting policies applied are in line with what is stated in the Annual Report for, with the exception of new standards and revisions of standards and interpretations to be applied to the financial year starting on January 1, and that were not already applied when preparing the Annual Report. The standards that have an impact on the Group s financial statements and are being applied for the first time in the financial year starting on January 1, are set out below: with earlier principles. The amount was recognized in revenue in the income statement for. Consequently, the company does not report any transition effect for transition to IFRS 15. Stockholm, October 22, Camilla Hoflund President/CEO This report has not been reviewed by the company's auditors. Time Schedule for Financial Information Year-end Report February 14, 2019 Interim report March 2019 April 29, 2019 Interim report June 2019 July 22, 2019 Interim report 2019 October 22, 2019 For further information, please contact Pål Jarness, Chief Financial Officer, or Camilla Hoflund, President and Chief Executive Officer, The interim report will be presented at a conference call to be held in English, on October 22 at 2:00 p.m. Further information for those interested in participating is available at IFRS 9: Financial instruments IFRS 15: Revenue from contracts with customers The amendments to these standards have not had any material impact on the financial reporting, apart from extended disclosure requirements. The accounting policies and valuation principles applicable to these new standards are presented on page 38 of the Annual Report for. A number of new or amended standards and interpretations will not come into force until the coming financial year and have not been applied early when preparing the financial statements. There will be no early application of new or amended standards effective as of financial years after and none of these are expected to have any material impact on the Group s financial statements. The preliminary transition effect of SEK 1.5 million communicated in the year-end report for proved on final analysis to relate to a customer contract that was also recognized in income in in accordance 4

5 Consolidated statement of profit or loss and other comprehensive income Interim Report Third Quarter Full year Net sales Cost of services sold Gross profit Selling and marketing expenses Administrative expenses Research and development costs Share in earnings from associated companies Other operating income Other operating expenses Operating profit Financial income Financial expenses Fair value gain/loss (realized and unrealized) 1) Profit/loss before tax Income tax NET PROFIT/LOSS FOR THE PERIOD Other comprehensive income Items that may later be reversed in the income statement Translation differences on foreign subsidiaries 1) Cash flow hedging Income tax on items recognized in other comprehensive income Other comprehensive income for the period, net after tax Total profit/loss and other comprehensive income for the period Income for the period attributable to Parent company's shareholders Non-controlling interests Total comprehensive income attributable to Parent company's shareholders Non-controlling interests Earnings per share calculated on income attribu table to the parent company's shareholders during the period, SEK Earnings per share (There is no dilution effect) Profit/loss from continuing operations NET PROFIT/LOSS FOR THE PERIOD ) Net financial income and the translation difference in other comprehensive income have been adjusted in comparison with previous reports. The effect of this adjustment is presented in Note 1. 5

6 Interim Report Third Quarter Group statement of financial position December ASSETS Intangible assets Property, plant and equipment Other non-current assets Total non-current assets Inventories Trade receivables Other current receivables Cash and cash equivalents Total current assets TOTAL ASSETS ,9 EQUITY AND LIABILITIES Equity attributable to parent company's shareholders Non-controlling interests Total equity Borrowing Provisions and other non-current liabilities Total non-current liabilities Trade and other payables Borrowing Total current liabilities TOTAL EQUITY AND LIABILITIES Changes in equity Equity attributable Other to the parent Non- Share contributed Retained company's controlling capital capital Reserves earnings shareholders interest Total equity Equity at December 31, Changes January 1 30, Dividend Comprehensive income for the period Equity at June 30, , Changes October 1 December 31, Comprehensive income for the period ,9 Equity at December 31, Changes January 1 30, Comprehensive income for the period Equity at 30, , , ,

7 Interim Report Third Quarter Group statement of cash flow Total operations Cash flow from operating activities Full year Operating profit Adjustment for non-cash items Financial items, net Income tax paid Cash flow from operating activities before change in working capital Change in working capital Cash flow from operating activities Investing activities Acquisition of property, plant and equipment Acquisition in associated companies Divestment of subsidiaries Dividend from associated companies Other cash flow from investing activities Cash flow from investment activities Free cash flow Financing activities Change in borrowing Dividend to shareholders Cash flow from financing activities Changes in cash and cash equivalents Cash and cash equivalents at the beginning of the period Translation difference Cash and cash equivalents at the end of the period

8 Interim Report Third Quarter Financial ratios for the Group Full year Margins Operating margin, % Profit margin, % Return on investment Return on capital employed, % Return on equity, % Capital structure Capital employed Equity Net debt Net debt/equity ratio, % Equity/assets ratio, % Employees Average number of employees Net sales per employee Data per share Full year Number of shares at the end of the period 8,218,611 8,218,611 8,218,611 8,218,611 8,218,611 Average number of shares 8,218,611 8,218,611 8,218,611 8,218,611 8,218,611 Earnings per share before and after dilution Profit/loss from continuing operations Profit/loss for the period Equity per share, SEK Net sales per geographical area Full year Sweden Europe North America Asia Other Total Quarterly review Continuing operations 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net sales Operating expenses Operating profit Financial items, net Profit/loss after financial items

9 Interim Report Third Quarter Financial data per segment Total operations Technology Scandpower Germany Other Elimination Group External sales revenue Revenue from segment Operating profit Items affecting comparability Adjusted operating profit Assets Liabilities Investments Depreciation/amortization Average number of employees Technology Scandpower Germany Other Elimination Group External sales revenue Revenue from segment Operating profit Items affecting comparability Adjusted operating profit Assets Liabilities Investments Depreciation/amortization Average number of employees Technology Scandpower Germany Other Elimination Group External sales revenue Revenue from segment Operating profit Items affecting comparability Adjusted operating profit Assets Liabilities Investments Depreciation/amortization Average number of employees Technology Scandpower Germany Other Elimination Group External sales revenue Revenue from segment Operating profit Items affecting comparability Adjusted operating profit Assets Liabilities Investments Depreciation/amortization Average number of employees Full year Technology Scandpower Germany Other Elimination Group External sales revenue Revenue from segment Operating profit Items affecting comparability Adjusted operating profit Assets Liabilities Investments Depreciation/amortization Average number of employees

10 Interim Report Third Quarter Financial data per segment cont. - External sales per country, total operation Sales from Technology Scandpower Germany Other Total Germany Switzerland United Kingdom USA Sweden France Japan Total Sales from Consutancy Technology Scandpower Germany Other Total Germany Switzerland United Kingdom USA Sweden France Japan Total Sales from Technology Scandpower Germany Other Total Germany Switzerland United Kingdom USA Sweden France Japan Total Sales from Technology Scandpower Germany Other Total Germany Switzerland United Kingdom USA Sweden France Japan Total Full year Sales from Technology Scandpower Germany Other Total Germany Switzerland United Kingdom USA Sweden France Japan Total

11 Parent company income statement Interim Report Third Quarter Full year Net sales Cost of services sold Gross profit Other operating income and costs Operating profit Result from participations in Group companies Net financial items Profit/loss before tax Income tax NET PROFIT/LOSS FOR THE PERIOD Parent company balance sheet ASSETS December Intangible assets Property, plant and equipment Financial non-current assets Total non-current assets Current assets Cash and cash equivalents Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Equity Provisions Non-current liabilities Current liabilities Total liabilities TOTAL EQUITY AND LIABILITIES

12 Interim Report Third Quarter Note 1 Adjustment of translation difference and net financial income Full year Fair value gain/loss befor adjustment (realized and unrealized) Adjustment Fair value gain/loss after adjustments (realized and unrealized) Translation difference before adjustment Adjustment Translation difference after adjustment Note 2 Fair value estimation The tables below show financial instruments at fair value on the basis of their classification in the fair value hierarchy. The definition of the various levels can be found in the Annual Report, Note 2.3. The tables below refer to total operations. The Group's assets and liabilities measured at fair value as at 30, (MSEK) Level 1 Level 2 Level 3 Assets Financial assets at fair value through profit or loss Derivatives used for hedging 3.1 Liabilities Derivatives used for hedging 3.5 The Group's assets and liabilities measured at fair value as at December 31, (MSEK) Level 1 Level 2 Level 3 Assets Financial assets at fair value through profit or loss Derivatives used for hedging 2.7 Liabilities Derivatives used for hedging 2.9 Fair value of the Group's borrowings (MSEK) 30, December 31, Non-current loans Current loans Total loans

13 Interim Report Third Quarter Reconciliations of key ratio Return on capital employed Full year Profit/loss after financial items Financial costs according to the income statement Fair value - foreign exchange losses Total Balance sheet total Provisions and other long-term liabilities Trade and other payables Opening capital employed Balance sheet total Provisions and other long-term liabilities Trade and other payables Closing capital employed Average capital employed Return on capital employed Return on equity Full year Net profit/loss for the year Total Opening equity Closing equity Return on equity Net debt Full year Current borrowing Non-current borrowing Total liabilities Cash and cash equivalents Net debt

14 Interim Report Third Quarter Definitions of key figures and ratios Some key figures and ratios used by company management and analysts to assess the Group's development have not been prepared in accordance with IFRS (International Financial Reporting Standards). The company management considers that these key figures and ratios make it easier for investors to analyze the Group s development. Equity The total of non-restricted and restricted equity at the end of the year. Average equity capital has been calculated as opening balance plus closing balance of equity capital, divided by two. Equity per share Equity divided by the number of shares at the end of the period. Free cash flow Cash flow from operating activities (after change in operating profit) minus cash flow from investing activities. Sales revenue per employee Sales revenue divided by average number of employees. For quarterly reports net sales are estimated on a full year basis. Investments Total of the acquisition of business/subsidairies and acquisition of intangible assest and property, plant and equipment. Average number of employees Average number of employees at the end of each month. Net debt Total long-term and short-term borrowing less cash and cash equivalents. Net debt-equity ratio Interest-bearing net debt divided by equity including non-controlling interests. Earnings per share Profit for the year divided by the average number of shares. The average number of shares has been calculated as a weighted average of all shares in issue for the year. Return on equity Profit for the year as a percentage of average equity. Return on capital employed Profit/loss after financial items with financial expenses, fair value losses and foreign exchange losses added back, as a percentage of average capital employed. For the comparison year, capital employed has been adjusted by estimated values for operations held for sale, and only calculated on the closing balance. Interest coverage ratio Profit after financial income divided by the financial expenses. Operating margin Operating result after amortization as a percentage of net sales. Equity/assets ratio Equity including non-controlling interests as a percentage of the balance sheet total. Capital employed Balance sheet total less non-interest-bearing liabilities. Average capital employed has been calculated as opening balance plus closing balance of capital employed, divided by two. Profit margin Profit before tax as a percentage of net sales. 14

15 Interim Report Third Quarter Major shareholders, 30, Number of shares Share, % The Karinen Family 1,769, Briban Invest AB 1,285, Peter Gyllenhammar AB 930, The Girell Family 381, Credit Agricole Suisse SA 363, Avanza Pensionsförsäkring AB 292, Nordnet Pensionsförsäkring AB 258, Malte Edenius 250, Leif Lundin 196, Invus Investment AB 191, Total ten largest shareholders - holdings 5,918, Other shareholders 2,300, Total 8,218, The Studsvik share Studsvik OMX Stockholm_PI Traded number of shares in 1 000s per month Source: Facts about Studsvik Studsvik offers a range of advanced technical services to the global nuclear power industry. Studsvik s business focus areas are fuel and materials technology, reactor analysis software and consultancy services within waste treatment technology, decommissioning, NORM and solutions for final disposal. The company has 70 years nuclear technology and radiological service experience. Studsvik has 600 employees in 7 countries and the company s shares are listed on the Nasdaq Stockholm This report is a translation of the Swedish statutory report. In the event of any discrepancies between this document and the Swedish original, the latter shall govern. The content of this interim report may not, in whole or part, be reproduced or stored in a machine-readable medium without the previous permission of Studsvik AB (publ). Production/Graphic design: Studsvik AB Photo: Studsvik 15

16 Studsvik AB SE Nyköping, SWEDEN Telephone Fax