Quarterly Report • May 5, 2022
Quarterly Report
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INTERIM REPORT FOR 1 JANUARY - 31 MARCH
* 30.6 percent, not including currency effects.
Ì Acquisition of the Norwegian company, Aktiv Veidrift AS was completed.
| JANUARY-MARCH | JANUARY-DECEMBER | |||||
|---|---|---|---|---|---|---|
| SEK m | Jan-March 2022 |
Jan-March 2021 |
change % | Jan-Dec 2021 |
RTM | |
| Total revenue | 886 | 669 | 32.5 | 3,182 | 3,399 | |
| EBITA | 61 | 15 | 318 | 232 | 278 | |
| EBITA margin, % | 6.9 | 2.2 | 4.7 | 7.3 | 8.2 | |
| EBIT | 39 | $\overline{0}$ | n/a | 155 | 194 | |
| EBIT margin, % | 4.4 | 0.0 | 4.4 | 4.9 | 5.7 | |
| EBT | 22 | $-6$ | n/a | 122 | 149 | |
| Cash flow from operating activities | 78 | 37 | 113 | 174 | 216 | |
| Net debt | 1,157 | 954 | 21 | 1,036 | 1,157 | |
| Gearing ratio / PF EBITDA, RTM | 2.3 | 2.9 | $-21$ | 2.4 | 2.3 | |
| Order backlog | 5,739 | 5,227 | 10 | 5,125 | 5,739 | |
| Basic earnings per share, SEK | 0.27 | $-0.14$ | $\overline{\phantom{a}}$ | 1.84 | 2.25 | |
| Diluted earnings per share, SEK | 0.27 | $-0.13$ | $\overline{\phantom{a}}$ | 1.81 | 2.21 | |
| Average number of shares, before dilution | 53,086,903 | 47,728,672 | 11 | 49,978,854 | 51,300,478 |
The Group got off to a good start this year. Sales are increasing sharply, as well as earnings, which is driven by improvements in our existing companies along with the performance of new, profitable companies that have joined the Group. One important part of the Group's efforts involves putting the right prerequisites in place for our companies and entrepreneurs to succeed. I am proud to report that our strategy is bearing fruit.
We are continuing to grow strongly and total revenue increased by 32.5 percent to SEK 886 (669) million in the quarter. Positive is that the organic growth amounted to 6.7 percent. EBITA improved even further and amounted to SEK 61 (15) million, which corresponds to an increase of 318 percent. The strong earnings trend is being driven by higher profitability in our existing companies and the high margins of companies that we have acquired. As a result of these efforts, we were able to achieve an EBITA margin for the quarter of 6.9 (2.2) percent.
Basic earnings per share were SEK 0.27 (–0.14) million and the cash flow from the operating activities amounted to SEK 78 (37) million.
Our improved profitability in the first quarter means that we now have an EBITA margin over the last 12 months of 8.2 (5.5) percent and have thus achieved our financial target of an EBITA margin that is at least 8.0 percent. The gearing ratio (measured as net liabilities/EBITDA pro-forma RTM) was 2.3 (2.9) times. The growth rate for the last 12-month period was 40 percent, compared with the goal of growing by 10 percent.
Over the last three years, our Compound Annual Growth Rate (CAGR) has been 34 percent for sales and 123 percent for EBITA.
Russia's invasion of Ukraine is an abuse of a sovereign state and we have great sympathy for those affected by the war. We ensure as far as possible that we do not do business with companies linked to Russian interests. Through activities in our companies, we support Ukraine in various ways. Among other things, one of our subsidiaries in Finland has employed people who fled the war.
Our business is affected by increased input costs and we work actively to limit the effect of cost increases. Many of the Group's contracts stretch over many years and they contain indexation clauses to adjust prices. Other project activities are carried out in contracts with a duration shorter than one year, which makes it possible to adapt them for rising costs as needed. The situation is being carefully monitored and the CEOs of our subsidiaries are working proactively with this.
The Group acquired four new companies during the first quarter (their estimated annual sales are shown in parentheses): Markbygg Anläggning Väst AB (SEK 280 million) in Sweden, Hallandsåsens Utemiljö AB (SEK 30 million) in Sweden, Glenn Syvertsen AS (SEK
35 million) in Norway and Rainset Oy (SEK 40 million) in Finland. Also, subsequent to the end of the quarter, we signed an agreement to acquire all of the shares in Aktiv Veidrift AS (annual sales of approximately NOK 240 million) in Norway. Through these acquisitions, we strengthen our position in the Norwegian market and benefit from the additional skills and expertise that these new, dedicated entrepreneurs and employees contribute, making all of us grow stronger.
The addressable market for potential companies that could become part of the Group is high and we continuously meet exciting companies. The interest for the Group is growing and we can see that our offering to entrepreneurs is attractive. We have a long-term approach and believe in the power of local entrepreneurship, which is why we take great care in ensuring that there is a good cultural fit between the Group and companies that we acquire. During the acquisition process, we thus put a great deal of emphasis on getting to know the new entrepreneurs well.
The Group now consists of 42 subsidiaries in Sweden, Norway and Finland. All of them are independent companies that have the autonomy to make decisions adapted to the local conditions, in a decentralized context. We can best meet the needs of our customers and suppliers by adapting to the local conditions and opportunities. With this in mind, we put a great deal of focus on putting the right prerequisites in place for our companies to act and thrive.
As a group, we also work in a structured way to derive the greatest benefits from the expertise that exists at the local subsidiaries and support them in their development. We do this, for example, using methods for business development/LEAN and various initiatives associated with digitalization.
I am proud of what we have accomplished thus far on our journey to consolidate the Nordic market for ground maintenance & landscaping. I regard the results from the last quarter as evidence that our strategy is both viable and strong.
Johan Nordström CEO
Total revenue for the quarter amounted to SEK 886 (669) million, which is an increase of 32.5 percent.
EBITA for the quarter was SEK 61 (15) million. Financial items amounted to SEK –18 (–6) million and it was negatively impacted by translation differences from additional purchase payments and dividends from foreign subsidiaries. Profit for the period amounted to SEK 14 (–7) million, which corresponds to basic earnings per share of SEK 0.27 (–0.14). Tax expense for the quarter was SEK –7 (–1) million.
At the end of the quarter, order backlog was SEK 5,739 (5,227) million. The volume of our order backlog has increased compared to last year, primarily due to the Group having grown by adding several new companies and winning new contracts.
Over time, there is a correlation between the size of order backlog and sales. But this is not necessarily the case over the short term. The reason is that large, long-term contracts are procured with intervals of 3-10 years. When customers renew their contracts with Green Landscaping, it has a significant impact on the order backlog.
EBITA per quarter and LTM, SEK million
| Total revenue EBITA |
EBITA marginal, % | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | Jan-March 2022 |
Jan-March 2021 |
Jan-Dec 2021 |
Jan-March 2022 |
Jan-March 2021 |
Jan-Dec 2021 |
Jan-March 2022 |
Jan-March 2021 |
Jan-Dec 2021 |
| Region South | 120 | 116 | 543 | 5 | –2 | 38 | 4.1 | –2.0 | 7.1 |
| Region Mid | 267 | 196 | 920 | 17 | 2 | 27 | 6.4 | 1.0 | 2.9 |
| Region Stockholm | 127 | 137 | 581 | 7 | –10 | –1 | 5.8 | –7.4 | –0.1 |
| Region North | 117 | 111 | 353 | 14 | 9 | 31 | 11.7 | 8.2 | 8.8 |
| Region Norway | 290 | 136 | 900 | 37 | 18 | 145 | 12.6 | 13.0 | 16.1 |
| Region Finland | 10 | - | 66 | –4 | - | 10 | –42.8 | - | 15.0 |
| Unallocated amounts and eliminations | –46 | –29 | –182 | –14 | –2 | –19 | - | - | - |
| Total | 886 | 669 | 3,182 | 61 | 15 | 232 | 6.9 | 2.2 | 7.3 |
As of the end of the quarter, Green Landscaping Group consists of 41 operating subsidiaries, all of which share the same passion for creating and maintaining outdoor environments. The Group is gathered under six geographic segments. Reporting is by segment on total revenue, operating profit (loss) and profit margin.
Total revenue for the period January–March amounted to SEK 120 (116) million, with an operating profit of SEK 5 (–2) million. The margin amounted to SEK 4.1 (–2.0) percent.
Region South improved its sales, earnings and margin. The improvement is attributable to the high level of activity in several landscaping projects and many new contracts having started up during the period. Improvement initiatives that were implemented in several companies also made a positive contribution.
One example of the new business that was won during the period is the tendering process with the City of Helsingborg, where we were able to expand the scope of the existing contracts. The total annual volume is estimated at around SEK 75 million.
Hallandsåsens Utemiljö AB was acquired during the period, with annual sales of approximately SEK 30 million. The company develops and maintains outdoor environments for customers in Skåne and Halland.
Total revenue for the period January–March amounted to SEK 267 (196) million, with an operating profit of SEK 17 (2) million. The margin amounted to SEK 6.4 (1.0) percent.
Region Mid had a strong quarter in terms of both sales and earnings compared to last year. The acquisition of Markbygg Anläggning AB had a positive impact, along with the performance of our existing companies. The relatively milder weather during the quarter resulted in that fine planning and construction projects could be carried out, which compensated for the lack of snow removal. Some of our companies in the region were impacted by the war in Ukraine in the form of higher world market prices for such things as fertilizer and fuel. The overall impact that this has had on the region is, however, limited.
The acquisition of Markbygg Anläggning Väst AB, with annual sales of approximately SEK 280 million, was completed during the period.
EBITA per quarter and LTM, SEK million
Total revenue for the period January–March amounted to SEK 127 (137) million, with an operating profit of SEK 7 (–10) million. The margin amounted to SEK 5.8 (–7.4) percent.
The region is reporting a significant improvement in profitability and margin compared to last year. This is the third quarter in a row that there has been a clear improvement. Many companies in the region had higher order intake with more add-on orders during the period. The favorable earnings trend is also attributable to the fact that now, all units in the region are independent companies with an even greater focus on generating value to customers and creating competitive business advantages.
There was a negative impact on sales from the termination of unprofitable contracts that belonged to Stockholm North, a former profit unit that has been discontinued.
Examples of new contracts won during the period are the new maintenance agreements with Viktoriahem and Svenska Bostäder.
Total revenue for the period January–March amounted to SEK 117 (111) million, with an operating profit of SEK 14 (9) million. The margin amounted to SEK 11.7 (8.2) percent.
The region is reporting improvements in sales, earnings and margin compared to last year, even though the results then were strong as well. There was a positive impact from high add-on sales and streamlining efforts that have been implemented.
The contract for ground maintenance with Svevia in Umeå is just one example of new business that was won during the period.
Total revenue for the period January–March amounted to SEK 290 (136) million, with an operating profit of SEK 37 (18) million. The margin amounted to SEK 12.6 (13.0) percent.
The region reported significant growth in sales and earnings, which is primarily attributable to the newly acquired companies. A positive trend in order intake at the existing companies also contributed to the higher growth, with more add-on sales for road maintenance and snow & ice removal thanks to the favorable weather conditions.
Examples of some of the new business during the period are the landscaping project associated with construction of the new Drammen train station and renovation of roads and outdoor environments at Rådhusgatan for Tønsberg Municipality.
The landscaping company, Glenn Syvertsen AS, was acquired during the period, with annual sales of approximately NOK 35 million. An agreement was also signed to acquire all of the shares in Aktiv Veidrift AS, which has expected annual sales of approximately NOK 240 million. The acquisition was then completed after the end of the quarter.
Total revenue for the period January–March amounted to SEK 10 (-) million, with an operating profit of SEK –5 (-) million. The margin amounted to SEK –42.8 (-) percent.
Sales and earnings for the Finnish companies were in line with expectations, as the seasonal variation means that there is low activity in the business during the first quarter.
The acquisition of Rainset Oy, with annual sales of approximately EUR 4 million, was completed during the quarter.
Consolidated equity amounted to SEK 988 (896) million, which corresponds to an increase of SEK 92 million compared to 2021-12-31. The change is primarily attributable to the year's translation difference for foreign operations, along with the quarter's earnings and share issues.
Available liquidity amounts to SEK 382 (402) million, which includes cash and cash equivalents, along with bank overdraft of SEK 50 (50) million. The increase in cash and cash equivalents is primarily due to acquisitions.
The gearing ratio (measured as net liabilities/EBITDA pro-forma RTM) was 2.3 (2.9) times.
Consolidated cash flow from operating activities for the quarter was SEK 78 (37) million. Cash flow from changes in working capital amounted to SEK 40 (4) million.
Net investments including business combinations during the period amounted to SEK –159 (–102) million.
Depreciation of property, plant and equipment during the period was SEK –30 (–28) million.
Amortization of intangible assets during the period was SEK –22 (–14) million.
The average number of employees during the quarter was 1,655, compared to 1,373 employees during the same period last year.
Operating activities involve several risk factors that could impact the Group's business and financial position. The risks are primarily associated with operating activities such as delivery quality, tendering, and delivery efficiency. Weather is another external risk that could impact earnings. To counter such risks, the company strives to have a mix of agreements with fixed and variable remuneration. It also strives to share the risks with customers and subcontractors.
Through its operations, the Group is exposed to a variety of financial risks, such as credit risk, market risks (interest rate risk and other price risks) and liquidity risk. The Group's overall risk management is focused on unpredictability in the financial markets and efforts are aimed at minimizing the potential negative effects on the Group's financial results.
The Group's financial transactions and risks are managed by the CFO and the Parent Company's other senior executives, along with the board of directors. The Group's overall goal for financial risks is to minimize the negative effects on the Group's earnings due to market changes or other changes in the surrounding world.
For more information on the risks and uncertainties, please see the Annual Report for 2021.
The acquisition of Aktiv Veidrift AS in Region Norway was completed subsequent to the end of the period.
The COVID-19 pandemic continues to have a somewhat negative impact on the business due to fewer meetings with customers and clients, resulting in fewer orders and delays in some of our projects. Employees on sick leave is having a negative impact on the organization due to loss of production. The impact occurred mainly during the first half of the quarter.
There were no transactions between Green Landscaping Group and related parties during the period that significantly impacted the company's position and earnings.
The Parent Company's net sales for the period amounted to SEK 9 (8) million. Operating profit (loss) amounted to SEK –4 (2) million. The change is primarily attributable to higher external expenses and higher employee benefit expenses.
Financial assets have increased by SEK 297 million since 2021-12-31, which is primarily attributable to the acquisition of subsidiaries.
The interim report was prepared in accordance with International Financial Reporting Standards (IFRS). This interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and the Annual Accounts Act. Disclosures in accordance with IAS 34.16A are provided in the financial statements, notes and other parts of the interim report. The Group and Parent Company apply the same accounting policies and calculation methods as described in the Annual Report for 2021. The Parent Company does not apply IFRS 16, which is in accordance with the exception stated in RFR 2.
Green Landscaping Group AB (publ) is the holder of the Group account. The total amount in the Group account is reported as cash and cash equivalents in the Parent Company. Subsidiaries' share of the Group account is reported as a receivable/payable to Group companies. The Group has an overdraft facility of SEK 50 (50) million and as of 31 March 2022, the unutilized amount was SEK 50 (50) million.
The Group is mainly exposed to fluctuations of the SEK against the NOK and EUR currencies. The currency exposure is associated with the foreign subsidiaries' sales, earnings and equity, along with goodwill that has arisen in conjunction with those acquisitions. The revenue and expenses of foreign subsidiaries is primarily in their local currencies, which means that the direct impact of currency fluctuations in the subsidiaries is limited. There is some impact from the effect of currency fluctuations on consumables that are used in the business.
In terms of sales, the Group is primarily impacted by fluctuations in the NOK currency relative to SEK. Sales for Region Norway during the quarter were SEK 290 (136) million. A change in the exchange rate of 5 percent affects sales by approximately SEK 14 million and EBITA by approximately SEK 2 million.
The corresponding effect on the net assets in the Norwegian subsidiaries (including goodwill that has arisen in conjunction with the acquisitions) of an exchange rate change of 5 percent is approximately SEK 50 million based on carrying amounts at the end of March 2022. For the Finnish operations, a change in the exchange rate of 5 percent affects assets by approximately SEK 6 million. Any impact is reported directly in equity and does not affect the net profit. It is, however, part of the comprehensive income. During the year, sales in EUR were limited but the scope is expected to increase during the coming year. The Group does not hedge currencies by buying or selling currency on futures or with other financial instruments.
Operations are affected by seasonal variations. The service offering also varies with each season. During the summer, a full range of ground maintenance services is offered such as cleaning, lawn mowing, pruning, planting, harvesting and road maintenance. Also offered is a wide assortment of planning and construction services for creating outdoor environments. During winter, there is a high volume of snow and ice removal services. Project activities are also carried out during winter, weather permitting. Sales and earnings in any given quarter are affected by the season. For Green Landscaping Group's operations, the first quarter of the year is low season. Sales are lower then, which has a negative impact on earnings. The level of activity increases starting in April and through to the end of the year.
Green Landscaping Group's shares became listed for trading on Nasdaq Stockholm on 16 April 2019. Since the turn of the year 2021/2022, the share has been listed on Nasdaq Stockholm Midcap.
The company has three ongoing incentive programs for key employees of the Group.
With full utilization of the program, a total of 781,100 shares will be issued (after the rights issue), which would have a maximum dilutive effect of approximately 1.5 percent. The subscription price for shares that are subscribed to via the warrants is SEK 37.90 per share. The premium per warrant, which has been calculated in accordance with the Black & Scholes model amounted to SEK 5.19. Subscription of shares may occur during the period 16 March 2022 through 7 June 2022. With full utilization of the warrants, the Parent Company's share capital will increase by SEK 55,458.
With full utilization of the program, a total of 593,850 shares will be issued (after the rights issue), which would have a maximum dilutive effect of approximately 1.1 percent. The subscription price for shares that are subscribed to via the warrants is SEK 27.90 per share. The premium per warrant, which has been calculated in accordance with the Black & Scholes model amounted to SEK 2.70. Subscription of shares may occur during the period 22 March 2023 through 16 June 2023. With full utilization of the warrants, the Parent Company's share capital will increase by SEK 42,163.
With full utilization of the program, a total of 490,000 shares will be issued (after the rights issue), which would have a maximum dilutive effect of approximately 0.9 percent. The subscription price for shares that are subscribed to via the warrants is SEK 100.40 per share. The premium per warrant, which has been calculated in accordance with the Black & Scholes model amounted to SEK 5.18. Subscription of shares may occur during the period 12 June 2024 through 30 June 2024. With full utilization of the warrants, the Parent Company's share capital will increase by SEK 34,790.
| SEK m Note |
Jan-March 2022 |
Jan-March 2021 |
Jan-Dec 2021 |
|---|---|---|---|
| Net sales 1.2 |
876 | 664 | 3,139 |
| Other operating income | 10 | 5 | 42 |
| Total income | 886 | 669 | 3,181 |
| Operating costs | |||
| Cost of goods and services sold | –383 | –324 | –1,394 |
| Other external costs | –131 | –61 | –295 |
| Costs for remuneration to employees | –278 | –215 | –999 |
| Other operating expenses | –4 | –25 | –147 |
| Depreciation of PPE | –30 | –28 | –113 |
| Amortization of intangible assets | –22 | –14 | –77 |
| Operating profit (loss) | 39 | 0 | 155 |
| Profit (loss) from financial items | |||
| Financial income | 0 | 0 | 1 |
| Financial expenses | –18 | –6 | –34 |
| Total income from financial items | –18 | –6 | –33 |
| Earnings before tax | 22 | –6 | 122 |
| Tax | –7 | –1 | –30 |
| PROFIT (LOSS) FOR THE PERIOD | 14 | –6 | 92 |
| Other comprehensive income: | |||
| Translation gains or losses pertaining to foreign operations | 53 | 26 | 44 |
| Total comprehensive income for the period | 67 | 20 | 136 |
| Jan-March 2022 |
Jan-March 2021 |
Jan-Dec 2021 |
|
| Earnings per share | |||
| Basic earnings per share, SEK | 0.27 | –0.14 | 1.84 |
| Diluted earnings per share, SEK | 0.27 | –0.13 | 1.81 |
All net profit and comprehensive income for the period is attributable to the Parent Company's shareholders.
| SEK m Note |
31 March 2022 |
31 March 2021 |
31 Dec 2021 |
|---|---|---|---|
| Assets | |||
| Intangible assets 3 |
1,741 | 1,088 | 1,494 |
| Property, plant and equipment | 202 | 226 | 232 |
| Right-of-use assets | 313 | 215 | 266 |
| Financial assets | 26 | 21 | 27 |
| Total non-current assets | 2,283 | 1,550 | 2,019 |
| Inventories | 49 | 32 | 38 |
| Contract assets | 43 | 61 | 39 |
| Current receivables | 612 | 455 | 722 |
| Cash and cash equivalents | 332 | 112 | 352 |
| Total current assets | 1,035 | 660 | 1,152 |
| TOTAL ASSETS | 3,318 | 2,209 | 3,171 |
| Equity and liabilities | |||
| Equity | 988 | 479 | 896 |
| Non-current liabilities | 1,341 | 862 | 1,192 |
| Non-current lease liabilities | 194 | 148 | 206 |
| Contract liabilities | 53 | 65 | 25 |
| Current lease liabilities | 58 | 117 | 60 |
| Current liabilities | 685 | 538 | 793 |
| TOTAL EQUITY AND LIABILITIES | 3,318 | 2,209 | 3,171 |
| Other contributed |
Retained earnings incl. profit/loss for |
||||
|---|---|---|---|---|---|
| SEK m | Share capital | capital Translation reserve | the year | Total | |
| Opening balance 2021-01-01 | 3 | 623 | –16 | –143 | 468 |
| Profit (loss) for the period | –7 | –7 | |||
| Other comprehensive income | 26 | 26 | |||
| Comprehensive income for the period | 26 | –7 | 20 | ||
| Transactions with owners | |||||
| Non-cash issue | 0 | 21 | 21 | ||
| Repurchase of own shares | –30 | –30 | |||
| Closing balance 2021-03-31 | 3 | 644 | 11 | –179 | 479 |
| Profit (loss) for the period | 98 | 98 | |||
| Other comprehensive income | 18 | 18 | |||
| Comprehensive income for the period | 18 | 98 | 116 | ||
| Transactions with owners | |||||
| New share issue | 0 | 146 | 146 | ||
| Non-cash issue | 0 | 71 | 71 | ||
| Repurchase of own shares | 0 | 44 | 44 | ||
| Divestment of own shares | 37 | 37 | |||
| Premiums for warrants | 2 | 2 | |||
| Other Group adjustments | –1 | –1 | |||
| Closing balance 2021-12-31 | 4 | 907 | 29 | –44 | 896 |
| Opening balance 2022-01-01 | 4 | 907 | 29 | –44 | 896 |
| Profit (loss) for the period | 14 | 14 | |||
| Other comprehensive income | 53 | 53 | |||
| Comprehensive income for the year | 53 | 14 | 67 | ||
| Transactions with owners | |||||
| Non-cash issue | 0 | 49 | 49 | ||
| Repurchase of own shares | –24 | –24 | |||
| Closing balance 2022-03-31 | 4 | 956 | 82 | –54 | 988 |
New issues decreased for the amount of costs associated with new issues of SEK 0.0 million for the financial year. For the comparison year, the corresponding amount is SEK 3.0 million. Repurchased own shares have been used as the means of payment for acquisition of subsidiaries during the comparison year.
| SEK m Note |
Jan-March 2022 |
Jan-March 2021 |
Jan-Dec 2021 |
|---|---|---|---|
| Operating profit (loss) | 39 | 0 | 156 |
| Adjustment for depreciation/amortization | 52 | 43 | 193 |
| Capital gain (loss) | 0 | –1 | –4 |
| Other non-cash items | 1 | – | –2 |
| Interest received | 0 | 0 | 0 |
| Interest paid | –18 | –6 | –33 |
| Paid income tax | –36 | –3 | –42 |
| Cash flow from operating activities before changes in working capital | 38 | 33 | 268 |
| Change in inventory | –7 | –2 | –8 |
| Change in receivables | 164 | 4 | –82 |
| Change in current liabilities | –117 | 2 | –3 |
| Total change in working capital | 40 | 4 | –93 |
| Cash flow from operating activities | 78 | 37 | 174 |
| Business combinations 3 |
–151 | –94 | –433 |
| Acquisition of PPE | –15 | –10 | –33 |
| Acquisition of intangible assets | 0 | –1 | –11 |
| Sale of non-current assets | 7 | 3 | 12 |
| Cash flow from investing activities | –159 | –102 | –465 |
| New share issue | – | – | 146 |
| Net change in bank overdraft | – | 1 | –5 |
| New loans * | 140 | 127 | 1,460 |
| Amortization of debt | –34 | –20 | –993 |
| Amortization of lease liability | –31 | –20 | –103 |
| Repurchase of own shares | –24 | –30 | –30 |
| Option premiums and option redemptions | – | – | 47 |
| Cash flow from financing activities * | 51 | 58 | 522 |
| Cash flow for the period | –30 | –7 | 231 |
| Cash and cash equivalents at the beginning of the period * | 352 | 117 | 117 |
| Translation difference in cash and cash equivalents | 10 | 2 | 4 |
| Cash and cash equivalents at the end of the period | 332 | 112 | 352 |
* In the 2020 Annual Report, there were two financial items that were reported net. These items were adjusted in the 2021 Annual Report and are reported gross there. The amount is SEK 21.3 million and it increases cash and cash equivalents at the start of 2021 and affects "new loans" and "cash flow from financing activities" which is SEK 21 million lower for the first quarter of 2021 than in the published interim report.
| SEK m | Jan-March 2022 |
Jan-March 2021 |
Jan-Dec 2021 |
|---|---|---|---|
| Net sales | 9 | 8 | 34 |
| Operating costs | |||
| Other external costs | –7 | –2 | –18 |
| Employee benefit expenses | –6 | –4 | –15 |
| Operating profit (loss) | –4 | 2 | 1 |
| Financial items | 112 | –4 | –221 |
| Profit (loss) after financial items | 108 | –2 | –220 |
| Group contribution received | – | – | 12 |
| Tax | – | – | –2 |
| PROFIT (LOSS) FOR THE PERIOD | 108 | –2 | –211 |
The parent company does not have any items reported as other comprehensive income. Accordingly, total comprehensive income is the same as profit or loss for the period.
| SEK m | 31 March 2022 |
31 March 2021 |
31 Dec 2021 |
|---|---|---|---|
| Assets | |||
| Intangible assets | 0 | 1 | 0 |
| Financial assets | 2,175 | 1,484 | 1,878 |
| Total non-current assets | 2,175 | 1,485 | 1,878 |
| Current receivables | 291 | 27 | 66 |
| Cash and bank | 59 | 5 | 85 |
| Total current assets | 350 | 32 | 151 |
| TOTAL ASSETS | 2,525 | 1,516 | 2,029 |
| Equity and liabilities | |||
| Equity | 750 | 525 | 618 |
| Non-current liabilities | 1,177 | 792 | 1,039 |
| Current liabilities | 598 | 199 | 372 |
| TOTAL EQUITY AND LIABILITIES | 2,525 | 1,516 | 2,029 |
| SEK m | Jan-March 2022 |
Jan-March 2021 |
Jan-Dec 2021 |
|---|---|---|---|
| Services transferred over time | |||
| Region South | 119 | 116 | 543 |
| Region Mid | 223 | 160 | 807 |
| Region Stockholm | 127 | 137 | 581 |
| Region North | 117 | 111 | 353 |
| Region Norway | 262 | 136 | 805 |
| Region Finland | 10 | – | 66 |
| Unallocated amounts and eliminations | –46 | –29 | –182 |
| Total | 812 | 631 | 2,973 |
| Goods transferred at a specific point in time | |||
| Region South | 1 | – | – |
| Region Mid | 45 | 38 | 113 |
| Region Norway | 28 | – | 95 |
| Total | 74 | 38 | 208 |
| Total revenue from contracts with customers | 886 | 669 | 3,181 |
| Allocation of revenue by country | |||
| Sweden | 597 | 533 | 2,261 |
| Norway | 279 | 136 | 854 |
| Finland | 10 | – | 66 |
| Total revenue from contracts with customers | 886 | 669 | 3,181 |
| Jan-March 2022 | Region South |
Region Mid |
Region Stockholm |
Region North |
Region Norway |
Region Finland |
Unallocated amounts and eliminations |
Total |
|---|---|---|---|---|---|---|---|---|
| Revenue | 120 | 267 | 127 | 117 | 290 | 10 | –46 | 886 |
| Operating expenses | 115 | –250 | –120 | –103 | –253 | –14 | 32 | –825 |
| EBITA | 5 | 17 | 7 | 14 | 37 | –5 | –14 | 61 |
| Amortization of intangible assets | –22 | |||||||
| Operating profit (loss) | 39 | |||||||
| Financial items | –18 | |||||||
| Profit (loss) after financial items | 22 | |||||||
| Tax | –7 | |||||||
| PROFIT (LOSS) FOR THE PERIOD | 14 | |||||||
| Goodwill | 205 | 282 | 134 | 103 | 530 | 84 | 1,338 | |
| Average no. of employees | 261 | 440 | 251 | 241 | 386 | 56 | 20 | 1,655 |
| Region South |
Region Mid |
Region Stockholm |
Region North |
Region Norway |
Region Finland |
Unallocated amounts and eliminations |
Total |
|---|---|---|---|---|---|---|---|
| 116 | 198 | 137 | 111 | 136 | - | –29 | 669 |
| –118 | –196 | –147 | –102 | –118 | - | 27 | –654 |
| –2 | 2 | –10 | 9 | 18 | - | –2 | 15 |
| –15 | |||||||
| 0 | |||||||
| –6 | |||||||
| –6 | |||||||
| –1 | |||||||
| –6 | |||||||
| 819 | |||||||
| 306 | 431 | 266 | 210 | 145 | - | 15 | 1,373 |
| 196 | 135 | 134 | 93 | 261 | - | 0 |
| January-December 2021 | Region South |
Region Mid |
Region Stockholm |
Region North |
Region Norway |
Region Finland |
Unallocated amounts and eliminations |
Total |
|---|---|---|---|---|---|---|---|---|
| Revenue | 543 | 920 | 581 | 353 | 900 | 66 | –182 | 3,182 |
| Operating expenses | –505 | –893 | –582 | –322 | –755 | –56 | 164 | –2,949 |
| EBITA | 38 | 27 | –1 | 31 | 145 | 10 | –18 | 232 |
| Amortization of intangible assets | –77 | |||||||
| Operating profit (loss) | 155 | |||||||
| Financial items | –34 | |||||||
| Profit (loss) after financial items | 122 | |||||||
| Tax | –30 | |||||||
| PROFIT (LOSS) FOR THE PERIOD | 92 | |||||||
| Goodwill | 196 | 138 | 134 | 102 | 492 | 68 | – | 1,130 |
| Average no. of employees | 290 | 493 | 293 | 223 | 272 | 30 | 21 | 1,623 |
Thus far in 2022, Green Landscaping Group has acquired four companies in Sweden, Norway and Finland. During the prior financial year, a total of nine subsidiaries were acquired. For all of the acquired companies, 100 percent of the shares were acquired.
According to agreements on contingent additional consideration, the Group must make additional cash payments based on future results. Contingent consideration to be paid by the Group based on the future results of current and prior year acquisitions is a maximum of SEK 61 (117) million. Additional consideration is based on the terms in the purchase agreement, the company's knowledge of operations and how the current economic climate is expected to impact them. The amounts reported in the table below have been discounted to present value. The fair value of contingent consideration is at Level 3 of the fair value hierarchy in accordance with IFRS.
Goodwill of SEK 183 (361) million that has arisen from acquisitions represents future economic benefits that are neither individually identified nor separately reported.
Subsequent to the end of the period, an agreement was signed to acquire all of the shares in Aktiv Veidrift AS in Norway. The company has annual sales of approximately NOK 240 million and have around 100 employees. The acquisition was completed on 3 May.
During 2022 and the prior financial year, Green Landscaping Group made the following company acquisitions:
| Company name | Segment | Acquisition date | Full-year sales | Number of employees |
|---|---|---|---|---|
| Markbygg Anläggning Väst AB | Region Mid | January 2022 | 280 | 60 |
| Rainset OY | Region Finland | January 2022 | 40 | 13 |
| Hallandsåsens Utemiljö AB | Region South | February 2022 | 30 | 18 |
| Glenn Syvertsen AS | Region Norway | February 2022 35 |
14 | |
| Akershusgartneren AS | Region Norway | March 2021 | 205 | 80 |
| OK Hage AS | Region Norway | April 2021 | 15 | 9 |
| EF Drift AS | Region Norway | May 2021 | 124 | 20 |
| Håkans Trädgårdstjänst AB | Region Mid | May 2021 | 19 | 25 |
| Viher-Pirkka Oy | Region Finland | June 2021 | 94 | 48 |
| Utemiljö Skellefteå AB | Region North | November 2021 | 21 | 6 |
| Håkonsen og Sukke AS | Region Norway | November 2021 | 189 | 103 |
| Hermansen Maskin AS | Region Norway | December 2021 | 79 | 19 |
| Viherpojat Oy | Region Finland | December 2021 | 41 | 25 |
The acquisitions have the following effects on the Group's assets and liabilities. None of the acquisitions made in 2022 are individually assessed as being significant, which is why the information on acquisitions is at the overall level.
| SEK m | 2022-03-31 | 2021-12-31 |
|---|---|---|
| Breakdown of the consideration | ||
| Cash consideration | 219 | 555 |
| Contingent additional consideration | 49 | 26 |
| Remuneration shares | 15 | 129 |
| Total consideration | 283 | 710 |
| Change in acquired assets and liabilities | ||
| Brands | 14 | 33 |
| Customer relations/contracts | 37 | 158 |
| Other fixed assets | 11 | 156 |
| Net other assets and liabilities | –20 | –66 |
| Cash and cash equivalents | 68 | 121 |
| Deferred tax liability | –11 | –53 |
| Net identifiable assets and liabilities | 100 | 349 |
| Goodwill | 183 | 361 |
| Impact on cash and cash equivalents Cash consideration (included in cash flow from investing activities) |
–219 | –555 |
| Cash and cash equivalents of acquired companies (included in cash flow from investing activities) | 68 | 121 |
| Acquisition costs (included in cash flow from operating activities) | –3 | –6 |
| Total impact on cash and cash equivalents | –154 | –439 |
| Impact on sales and operating profit (loss) during the holding period | ||
| Sales | 62 | 404 |
| Operating profit (loss) | 9 | 69 |
| Additional consideration | ||
| Opening amount | 110 | 91 |
| Change for the year | 1 | –1 |
| Added additional consideration | 15 | 26 |
| Reversal of unsettled additional consideration | 0 | –0 |
| Paid additional consideration | –71 | –5 |
| Closing amount | 55 | 110 |
| Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
|
|---|---|---|---|---|---|---|---|---|---|
| Total revenue, SEK m | 886 | 957 | 761 | 794 | 669 | 656 | 552 | 552 | 375 |
| EBITA, SEK m | 61 | 83 | 69 | 65 | 15 | 33 | 40 | 46 | –19 |
| EBITA margin, % | 6.9 | 8.7 | 9.0 | 8.2 | 2.2 | 5.1 | 7.3 | 8.4 | –5.0 |
| Working capital, SEK m | –12 | 21 | 8 | –82 | –47 | –37 | 20 | –5 | –5 |
| Equity, SEK m | 988 | 896 | 794 | 754 | 479 | 468 | 419 | 385 | 210 |
| Interest-bearing net debt, SEK m | –1,157 | –1,036 | –902 | –913 | –954 | –797 | –707 | –518 | –720 |
| Average no. of employees | 1,655 | 1,513 | 1,922 | 1,686 | 1,373 | 1,357 | 1,246 | 1,331 | 1,013 |
The company presents certain financial measures in its interim report that are not defined in accordance with IFRS. The company feels that these measures provide valuable, supplementary information to investors and company management. Accordingly, the measures should be regarded as a supplement, rather than a replacement for measures defined in accordance with IFRS. Because Green Landscaping Group's definitions of these measures might differ from other companies' definitions of the same concepts, an explanation of how they are calculated is provided below. For more information on the purpose of each measure, please see "Definitions and explanations" at the end of this report.
| EBITA | Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
|---|---|---|---|---|---|---|---|---|---|
| Operating profit (loss) | 39 | 61 | 48 | 47 | 0 | 19 | 30 | 37 | –27 |
| Amortization and impairment of intangible assets |
22 | 23 | 21 | 18 | 15 | 14 | 10 | 10 | 8 |
| Total EBITA | 61 | 84 | 69 | 65 | 15 | 33 | 40 | 47 | –19 |
| Working capital | Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
|---|---|---|---|---|---|---|---|---|---|
| Inventories | 49 | 38 | 32 | 32 | 32 | 28 | 27 | 29 | 26 |
| Contract assets | 43 | 39 | 80 | 79 | 61 | 72 | 135 | 90 | 67 |
| Current receivables | 613 | 729 | 510 | 482 | 455 | 433 | 344 | 323 | 295 |
| Accounts payable - trade | –234 | –226 | –186 | –193 | –142 | –173 | –130 | –126 | –121 |
| Other liabilities and non-current interest-bearing liabilities |
–194 | –312 | –224 | –227 | –213 | –225 | –143 | –87 | –78 |
| Contract liabilities | –53 | –25 | –36 | –51 | –65 | –29 | –63 | –73 | –64 |
| Accrued expenses | –235 | –221 | –168 | –205 | –175 | –142 | –150 | –162 | –129 |
| Total working capital | –12 | 21 | 8 | –82 | –47 | –37 | 20 | –5 | –5 |
| Net debt | Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
| Bank overdraft | - | - | –23 | –27 | –5 | –4 | 0 | 0 | –2 |
| Liabilities to credit institutions (non-current) | –1,161 | –1,043 | –772 | –853 | –705 | –568 | –512 | –397 | –500 |
| Liabilities from finance leases (non-current and current) |
–252 | –266 | –237 | –283 | –265 | –185 | –181 | –192 | –204 |
| Liabilities to credit institutions (current) | –77 | –79 | –85 | –85 | –91 | –134 | –94 | –55 | –53 |
| Cash and cash equivalents | 332 | 352 | 215 | 336 | 112 | 95 | 80 | 125 | 40 |
| Total Net debt | –1,158 | –1,036 | –902 | –913 | –954 | –796 | –707 | –518 | –720 |
| EBITA | Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
| EBITA for the quarter | 61 | 83 | 69 | 65 | 15 | 33 | 40 | 46 | –19 |
| Total, last 4 quarters | 278 | 232 | 182 | 153 | 134 | 101 | 93 | 82 | 70 |
| Total EBITA RTM | 278 | 232 | 182 | 153 | 134 | 101 | 93 | 82 | 70 |
| Earnings per share | Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
| Profit (loss) for the period | 14 | 32 | 30 | 36 | –6 | 19 | 19 | 31 | –31 |
| Average number of shares | 53,086,903 | 52,332,330 | 52,042,611 | 47,733,632 | 47,728,627 | 47,259,360 | 46,212,770 | 37,171,595 | 36,431,957 |
| Basic earnings per share, SEK | 0.27 | 0.61 | 0.58 | 0.76 | –0.14 | 0.41 | 0.41 | 0.82 | –0.86 |
Green Landscaping Group AB (publ) had 4,047 known shareholders as of 31 March 2022. The company has a series of ordinary shares listed on Nasdaq Stockholm.
As of 31 March 2022 there were 53,214,964 registered shares. Market Cap as of 31 March 2022 was SEK 4,725 million compared to SEK 4,634 million on 31 December 2021.
| Largest shareholders as of 31 March 2022 | No. of shares | % of equity |
|---|---|---|
| Salén family via company | 8,432,298 | 15.8% |
| Byggmästare Anders J Ahlström Holding AB | 8,180,123 | 15.4% |
| Johan Nordström via company | 3,594,887 | 6.8% |
| AFA Försäkring | 2,982,503 | 5.6% |
| AP3, Third Swedish National Pension Fund | 2,041,153 | 3.8% |
| Capital Group | 1,644,000 | 3.1% |
| Per Sjöstrand via company | 1,616,107 | 3.0% |
| Paul Gamme via companies | 1,180,654 | 2.2% |
| Pensum Asset Management | 1,102,200 | 2.1% |
| SilverCross Investment Management B.V. | 1,061,253 | 2.0% |
| Total, 10 largest shareholders | 31,853,178 | 59.8% |
| Other shareholders | 21,379,786 | 40.2% |
| Total | 53,214,964 | 100% |
Green Landscaping Group: 23 March 2018 - 31 March 2022, closing price, share, SEK
During the trading day 2018-03-23 and 2018-06-08 2,9 respective 10,1 million shares was traded.
The report has not been subject to review by the company's auditors.
This report contains information that Green Landscaping Group AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation. The information was made available for publication by the contact person set out below on 5 May at 07.00 CEST.
Johan Nordström, CEO, [email protected], +46 708 38 58 12 Carl-Fredrik Meijer, CFO & IR, [email protected], +46 701 08 70 19
Green Landscaping Group's CEO Johan Nordström and CFO Carl-Fredrik Meijer will present the report in a teleconference/audiocast on 5 May at 10:00 CEST. The presentation will be held in English.
Phone: SE: +46850558369 UK: +443333009265 US: +1 6319131422 PIN: 11221528# Webcast: https://financialhearings.com/event/44141
| General | All amounts shown in tables are in SEK million, unless otherwise stated. All values in parentheses () are comparison figures for the same period last year, unless otherwise stated. |
|
|---|---|---|
| Key performance indicators | Definition/calculation | Purpose |
| EBITA | Operating profit (loss) before depreciation, amortization and impairment of property, plant and equipment and intangible assets |
EBITA is used to gauge the company's operating profitability. |
| EBITA | Operating profit (loss) before amortization and impairment of intangible assets along with depreciation, amortization and impairment of property, plant and equip ment and intangible assets. |
EBITDA and EBITA are used together to gauge the company's operating profit ability. |
| EBITA margin |
Operating profit (loss) before depreciation, amortization and impairment of intangi ble assets as a percentage of sales. |
EBITA margin is a measure of operating profitability. |
| EBT | Earnings before tax. | Earnings before tax provides an overall indication of the profit that was generated before tax. |
| Adjusted EBITDA pro forma | EBITDA adjusted for nonrecurring items including EBITDA of acquired companies for the current year prior to the acquisition date. |
It provides an indication of the Group's position in future periods. |
| Order backlog | This is the amount of contracts not yet delivered including possible contract exten sions. |
It provides an indication of the company's future performance. |
| Organic growth | Sales increase of legal entities owned for the entire financial year. | It shows how current operations are performing. |
| Working capital | Current assets not including cash and cash equivalents, less current liabilities. | Working capital is used to measure the company's ability to meet short-term capital requirements. |
| RTM | Rolling 12-month period, which means cumulative over the last four quarters. | Shows the Group's performance over the last 12 months. |
| CAGR | Compound Annual Growth Rate. Measures the average annual rate of growth. | Shows the Group's growth over several years. |
| Net debt | Interest-bearing liabilities less cash and cash equivalents. | Net debt is an indication of the Compa ny's financial position. |
| Net debt in relation to adjusted EBITDA |
Net debt as a percentage of adjusted EBITDA. | Net debt in relation to adjusted EBITDA is reported for the purpose of revealing the level of financial risk. It is also a useful metric for monitoring the Company's debt/equity level. |
Green Landscaping works with outdoor environments and infrastructure. Through its subsidiaries, it offers the most comprehensive service portfolio on the market, aimed at making outdoor environments more sustainable and safe.
With commitment and collaboration, we develop independent, competitive companies with a focus on customer value, quality and sustainability. We have operations in Sweden and Norway and Finland. In Sweden the business is divided into the following four regions: South, Middle, Stockholm and North.
We are professional in everything we do. At the center of it all is our skilled, experienced employees who inspire our customers, helping them realize their dreams of creating beautiful, functional outdoor environments. We also offer care and maintenance services that maximize the lifespan of these outdoor environments. For the 2021 financial year, we had approximately 1,600 employees and annual sales of approximately SEK 3.2 billion.
Green Landscaping was established in 2009 via a merger of the following four companies: ISS Landscaping, Jungs, Mark & Trädgårdsanläggare Sjunnesson and Qbikum.
In 2010, the company took the name Green Landscaping and it also acquired Miljöbyggarna in Stockholm. Since then, we have developed into a full-scale supplier in the market for construction
and maintenance of outdoor environments.
Green Landscaping's strategy between 2009–2014 has been to increase sales and become a leading player in the market. Companies that were acquired during that period were, among others, Jacksons Trädvård and GML Sport.
In 2015, we began the process of implementing a new strategy and governance process based on Policy Deployment, a system inspired by Danaher Corporation. Since then, a number of operational efficiencies have been implemented to increase profitability and create a platform for profitable growth.
Since 2017, Green Landscaping Group has been focusing on profitable growth via both organic growth and acquisitions. Between 2019 and 2021, the number of companies has increased substantially and the Group has been decentralized. The governance process has also been adapted accordingly, based on maturity and profitability.
Since 2020, Green Landscaping Group has had operations in Norway and as of 2021, also in Finland.
The Parent Company has been listed on Nasdaq Stockholm since 2018. The ticker symbol is GREEN. Since January 2022, Green Landscaping Group's stock is listed on Nasdaq Stockholm Mid Cap.
Green Landscaping Group AB Mäster Samuelsgatan 9 111 44 Stockholm
CORPORATE IDENTITY NUM-BER 556771-3465
| Annual General Meeting 2022 | 19 May |
|---|---|
| Interim Report for January-June 2022 | 19 August |
| Interim Report January-September 2022 | 17 November |
| 2023 | |
| Year-end Report January-December 2022 | 16 February |
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