Earnings Release • Aug 17, 2017
Earnings Release
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V ä s t e r å s , A u g u s t 1 7 , 2 0 1 7
| 2017 | 2016 | ||||||
|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q1 | Q2 | Q3 | Q4 | Full year | |
| Net turnover, SEK thousands | 1 001 898 | 1 077 380 | 801 834 | 859 584 | 723 223 | 904 575 | 3 289 215 |
| Operating profit (EBIT), SEK thousands | 86 813 | 74 397 | 76 712 | 92 326 | 52 646 | 59 669 | 281 353 |
| Profit after net financial items (EBT), SEK thousands | 92 258 | 70 478 | 75 954 | 90 758 | 53 050 | 59 583 | 279 344 |
| Operating margin (EBIT %) | 8,7% | 6,9% | 9,6% | 10,7% | 7,3% | 6,6% | 8,6% |
| Profit margin before tax (EBT %) | 9,2% | 6,5% | 9,5% | 10,6% | 7,3% | 6,6% | 8,5% |
| Liquid ratio | 142% | 140% | 157% | 153% | 164% | 142% | 142% |
| Debt/equity ratio | 60% | 60% | 60% | 60% | 64% | 60% | 60% |
| Return on total assets 2) | 13,2% | 12,3% | 12,6% | 14,0% | 14,5% | 13,1% | 13,1% |
| Return on equity excl. Tax 2) | 18,0% | 16,4% | 16,0% | 18,1% | 18,1% | 17,9% | 17,9% |
| Number of employees in Sweden | 1 021 | 1 065 | 815 | 803 | 791 | 1 005 | 1 005 |
| Number of employees outside Sweden | 4 198 | 4 319 | 3 817 | 3 865 | 3 888 | 4 158 | 4 158 |
| Key indicators per share, SEK 1) | |||||||
| Profit for the period | 4,19 | 3,20 | 3,46 | 4,18 | 2,58 | 2,79 | 13,01 |
| Equity | 84,38 | 84,85 | 68,82 | 71,56 | 75,79 | 79,98 | 79,98 |
| Number of shares, thousands 3) | 18 294 | 18 294 | 18 034 | 18 034 | 18 034 | 18 294 | 18 294 |
1) There are no instruments that could lead to share dilution.
2) Calculated based on 12 months rolling amounts.
3) In connection with the acquisition of Gerdins Industrial System AB, October 3 2016, 260 000 shares of the same category was issued.
The second quarter was our 91st consecutive quarter with profit. AQ's second quarter with a turnover exceeding a billion SEK. The highest turnover in the history of the group. We have increased our turnover every year since the start October 1, 1994 i.e. for 22 years.
We are satisfied with the growth and cash flow is better than in the first quarter 2017, but we are not satisfied with the margin (EBT) 6.5%. We need to work on improving the margin.
The organic growth for the quarter was 10.1% compared to 6.2% the second quarter of 2016.
The second quarter of 2017 shows our margin sliding
downwards, partly because of additional costs in conjunction with increasing utilization and partly because we haven't succeeded in increasing our prices in the same pace as raw material prices have increased. It is important that we quickly adjust prices to our customers when prices of raw material are increasing. We still have work to do here. We are also intensifying our work to get our supplier base to be more competitive. Our goal is to have an EBT margin of 8%. As we have previously communicated, the second quarter of 2016 had a number of unusually profitable projects in telecom.
There is an economic expansion in the industry. Several of AQ's leading industrial customer show good growth. This partly explains AQ's high organic growth in the second quarter. In parallel I believe that we are gaining market shares in several business areas.
Gradually during the year, several of our production units have had increasing utilization rate and we see a need of increased investments in production capacity in several areas. We have signed an agreement to buy adjacent real estate to our production unit in Hungary. We are negotiating more production space in Poland and we are planning for expansion space in Mexico. This is obviously a good sign that our customers have a good order backlog and that our customers have confidence in AQ.
We have had some late deliveries to our customers, which have cost a lot of money in express shipments, overtime and extra personnel. Late deliveries don't only cost money, the biggest cost is that it affects our customers' confidence and it's contrary to our value "We are reliable" and intense improvement work is ongoing.
The cash flow from operating activities during the second quarter 2017 was better than the first quarter 2017 and we are working to reduce the capital tied up in accounts receivable and inventory. There is still a pressure from customers to extend credit terms though.
Gerdins was acquired on October 3, 2016. It is our biggest acquisition so far when it comes to turnover. The subsidiaries of Gerdins have been integrated into AQ's existing business areas, the EBT margin is however still below AQ's goal. We have gained competent and dedicated employees and exciting customers so we are looking positively at the future for "Gerdins"
We are always looking at a number of acquisition opportunities. We would like to strengthen our presence and capabilities in the growth areas where we are already present. We also work to follow some of our important customers to completely new geographic regions.
Our focus is always to adapt to customers' requirements and real demands. It's a strategy we will continue to follow, to be fast movers and adaptable no matter of market conditions. Our organisation is built on entrepreneurship and it is a foundation of our core values.
My assessment is that we are gaining market shares in several areas and we are also entering new markets. However, one shall be aware of the fact that AQ is acting in a global competition with subsequent price pressure.
With operations in 12 countries and more than 5 000 employees it is important for us to maintain our simplicity and speed in our decision making and to minimise bureaucracy which can easily occur in a larger organisation.
AQ is well positioned for new acquisitions from a financial as well as from a management view.
With strong relations to world leading customers and engaged employees I am looking positively at the future with continued growth with a stable profit level. An important part of this is our core values and our efforts to be a reliable supplier to leading industrial customers.
Claes Mellgren CEO
Net sales for the second quarter was SEK 1077 million (860), an increase of SEK 217 million compared to the same period in the previous year. The increase in turnover is due to acquisitions SEK 108 million (Gerdins Industrial System AB with subsidiaries and Magnetica). In addition, net sales in Sweden, Poland, Bulgaria, Estonia and India have increased compared to the same period last year. The total growth in the quarter was 25.3 %, of which organic growth 10.1 %, growth through acquisitions 12.6 % and currency effects of 2.7 %. The currency effect of 2.7 % corresponds to about SEK 22.8 million and is mainly with the currencies EUR, PLN and HUF.
Operating margin (EBIT) in the second quarter was SEK 74 million (92), a decrease of SEK 18 million. The decrease can partly be explained by costs for raw material, consumables and personnel being higher than the same period in the previous year. During the second quarter in the previous year AQ had a number of unusually profitable projects.
Goodwill has increased with SEK 26 million compared to the same period in the previous year, which is due to the acquisitions of Gerdins, Magnetica in Italy and Serbia and currency translation effects.
Investments in material assets in the quarter in the group was SEK 33 million (45). Investments were mainly made in more efficient production machines to increase production capacity.
Interest bearing debts of the group are SEK 222 million (195) and cash and cash equivalents amount to SEK 103 million (117), which means that the group has a net debt of SEK 119 million. In the same period last year, the group had net debt of SEK 78 million. The increase is due to a short term credit facility in conjunction with the acquisition of Gerdins and increased usage of the operating credit.
Cash flow from operating activities was SEK 79 million (76). Cash flow is more or less at the same level as the second quarter last year.
Cash flow from investing activities was SEK -30 million (-45), which relates to investments in fixed assets.
Cash flow from financing activities was SEK -69 million (-65) which relates to amortizations of bank loans, reduction of operating credit and payment of dividends.
Equity at the end of the period was SEK 1 552 million (1 291) for the group.
Net sales for the first six months was SEK 2 079 million (1 661), an increase of SEK 418 million compared to the same period previous year. Increase in net sales can be explained by acquisitions (Gerdins Industrial System AB with subsidiaries and Magnetica). In addition, sales in Sweden, Poland, Bulgaria, Estonia, India and Lithuania have increased compared to the same period last year. In the first six months the total growth was 25.1 %, of which organic growth 9.4 %, growth through acquisitions 13.8 % and a currency effect of 1.9 %. The currency effect of 1.9 % corresponds to about SEK 32 million and is mainly with the currencies EUR, PLN and HUF.
Operating margin (EBIT) in the first six months was SEK 161 million (169), a decrease of SEK 8 million. The decrease can partly be explained by costs for raw material, consumables and personnel being higher than the same period in the previous year. During the first six months in the previous year AQ had a number of unusually profitable projects.
Goodwill has increased with SEK 26 million compared to the same period in the previous year. The increase is due to the acquisition of Gerdins and Magnetica in Italy and Serbia and currency translation effects.
The investments of the group in tangible fixed assets in the first six months were SEK 53 million (63). Investments were mainly made in more efficient production machines to increase production capacity.
Interest bearing debts of the group are SEK 222 million (195) and cash and cash equivalents amount to SEK 103 million (117), which means that the group has a net debt of SEK 119 million. In the same period last year, the group had a net debt of SEK 78 million. The increase is due to a short term credit facility in conjunction with the acquisition of Gerdins and increased usage of the operating credit.
Cash flow from operating activities were SEK 94 million (168). Cash flow is lower than the same period last year due to capital tied up in accounts receivable and inventory.
Cash flow from investing activities was SEK -51 million (-63), which relates to investments in fixed assets.
Cash flow from financing activities was SEK -100 million (-126) which relates to amortizations of bank loans, reduction of operating credit and payment of dividends.
Equity at the end of the period was SEK 1 552 million (1 291) for the group.
On January 5, 2017 Nasdaq Stockholm's listing committee approved the trading of the shares of AQ Group AB (publ) on Nasdaq Stockholm's main market. First trading day of the company's shares on Nasdaq was January 16, 2017.
AQ Group AB (publ) has prepared a prospectus due to the listing, which has been approved and registered by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen). The prospectus is available on AQ Group's website (www.aqg.se) and on the Swedish Financial Supervisory Authority's website (www.fi.se/Register/Prospektregistret).
After an inspiring and exclusive visit by Percy Barnevik, AQ decided to support the charity organisation " Hand in Hand" with SEK 175 000 in 2017 and SEK 175 000 in 2018. The money will go to a village in India near our factory in Pune. The money will be used for training in entrepreneurship for women in self-aid groups and to successively help expanding their companies.
Legal merger of AQ Industrial Systems AB and AQ Group AB.
To simplify business in China with import and export of material the board has decided to establish a company in Hong Kong.
There have been no significant events after the end of the period.
The goal of the group is continued profitable growth. The Board of directors are not giving any forecast for turnover or profit. Statements in this report can be perceived as forward looking and the real outcome can be significantly different.
The board of directors of AQ Group has set goals for the group. The goals mean that the group is managed towards good profit, high quality and delivery precision with strong growth and a healthy financial risk level. The dividend policy is to have dividends corresponding to about 25 % of profit after tax over a business cycle. However, the Group's financial consolidation must always be considered.
| Goal | Jan-June 2017 | |
|---|---|---|
| Product quality | 100 % | 99.6 % |
| Delivery precision | 98 % | 92.2 % |
| Equity ratio | >40 % | 60 % |
| Profit margin before tax (EBT %) | 8 % | 7.8 % |
The parent company has a related party relationship with its subsidiaries. There are some sales activities concerning goods between the operating group companies. The parent company is charging a management fee to the subsidiaries. All invoicing is according to market level prices and results in claims and debts between the companies which are settled regularly. There are some long-term loans between the parent company and a few subsidiaries. These loans are given with market level interest rates. Most companies in the group are part of cash pool in the parent company. The companies are charged/given interest rates at market level.
There have been no other transactions between AQ and closely related parties which significantly affected the position or result of the company. There are no loans to members of the board of directors nor to anyone in leading positions.
At the annual general meeting on April 27, 2017 it was decided that a yearly fee of SEK 160 000 shall be paid to the members of the board of directors and a fee of SEK 400 000 to the chairman of the board. For the chairman of the Audit Committee, the remuneration shall be SEK 70,000 and to the other members of the Audit Committee, SEK 40,000. For the chairman of the Remuneration Committee, the remuneration shall be SEK 50,000 and to the other members of the Remuneration Committee, SEK 30,000. There are no other remunerations to the board of directors. There is no remuneration paid after a board assignment is completed.
People in management positions are paid a fixed salary and a variable element calculated in % of the group's profit maximized to one-year salary. There are no other benefits in addition to pension benefits for work performed via the employment contract. In individual cases and where there is special justification, the Board shall have the option of deviating from the above guidelines.
AQ is a global company with operations in twelve countries. Within the group there are a number of risks and uncertainties of both operational and financial characteristics, which were described in the annual report of 2016. No additional significant risks have been identified since the annual report of 2016 was published. In addition to the commented factors the real outcome can be affected by for example political events, business cycle effects, currency and interest rates, competing products and their pricing, product development, commercial and technical difficulties, delivery problems and large credit losses at our customers.
The risks that are most evident in a shorter perspective are risks related to interest rates and currency. The exposure to risks related to interest rates are low and relates to the group's financing with credit institutions and are currently with floating interest, connected to the base interest of the bank which is connected to the interest rate of Sweden's central bank.
Transactions and assets and debts in foreign currency are managed centrally within AQ in order to create balance in the respective currency thereby achieving highest possible levelling effect within the group in order to minimize currency differences.
AQ is not buying any direct raw material, but only intermediate goods for further production such as sheet metal of steel and aluminium, cables, insulated wire etc. The risk is minimized through customer agreements with price clauses.
Raw material price risk refers to the change in the price of material and its impact on earnings. The company's purchase of materials to different processes is significant. There is a risk of sharp price increases for raw materials where the Company is not able to compensate price increases, which may affect the Company's earnings negatively.
The group's credit risks are mainly connected to receivables from customers.
The parent company is indirectly affected by the same risks and uncertainties.
Interim report Q2, 2018 April 26, 2018 at 08:00
Interim report Q3, 2017 October 26, 2017 at 8:00 Year-end report 2017 February 22, 2018 at 8:00
The information of this interim report shall be made public according to the Securities Market Act of Sweden. AQ Group AB (publ) is listed on Nasdaq Stockholm's main market.
The information was made public on August 17, 2017 at 8.00 AM. This report has not been reviewed by the company's financial auditors.
Further information can be given by AQ Group AB: CEO, Claes Mellgren, telephone +46 70-592 83 38, [email protected] or via CFO, Mia Tomczak, telephone +46 70-833 00 80, [email protected] or via IR, Glen Nilsson, telephone +46 70-654 40 03, [email protected]
Financial reports and press releases are published in Swedish and English. If there are discrepancies between the two, the Swedish version shall prevail. They are available at www.aqg.se .
The Chief Executive Officer certifies that the interim report gives a true and fair overview of the Group's and the parent company's operations, financial position and results and describes material risks and uncertainties facing the parent company and the companies that form part of the Group.
Västerås, August 17, 2017
Claes Mellgren, CEO
P-O Andersson Ulf Gundemark Patrik Nolåker Chairman Board member Board member
Gunilla Spongh Hidayet Tercan Lars Wrebo Board member Board member Board member
| Rolling 12 months | ||||||
|---|---|---|---|---|---|---|
| SEK thousands | Apr-Jun 2017 Apr-Jun 2016 | Jan-Jun 2017 | Jan-Jun 2016 | Jul 2016 | - Jun 2017 Full year 2016 | |
| Net sales | 1 077 380 | 859 584 | 2 079 278 | 1 661 418 | 3 707 075 | 3 289 215 |
| Other operating income | 16 681 | 8 384 | 27 363 | 19 618 | 55 395 | 47 650 |
| 1 094 061 | 867 967 | 2 106 641 | 1 681 036 | 3 762 471 | 3 336 866 | |
| Change in inventory and work in progress | 14 223 | 3 223 | 24 401 | -10 178 | 32 159 | -2 420 |
| Raw material and consumables | -555 360 | -418 407 | -1 061 909 | -782 367 | -1 854 804 | -1 575 262 |
| Goods for resale | -32 612 | -8 216 | -41 803 | -16 038 | -69 012 | -43 247 |
| Other external expenses | -132 833 | -108 752 | -256 332 | -213 822 | -481 795 | -439 285 |
| Personnel costs | -283 234 | -221 364 | -548 101 | -430 675 | -990 540 | -873 114 |
| Depreciation and amortisation | -23 656 | -17 769 | -46 519 | -35 667 | -90 796 | -79 944 |
| Other operating expenses | -6 192 | -4 358 | -15 167 | -23 251 | -34 157 | -42 241 |
| -1 019 664 | -775 642 | -1 945 431 | -1 511 999 | -3 488 945 | -3 055 513 | |
| Operating profit | 74 397 | 92 326 | 161 210 | 169 037 | 273 525 | 281 353 |
| Net financial income/expense | -3 919 | -1 568 | 1 526 | -2 326 | 1 843 | -2 008 |
| Profit before tax | 70 478 | 90 758 | 162 736 | 166 712 | 275 368 | 279 344 |
| Taxes | -11 641 | -15 192 | -26 974 | -28 734 | -41 906 | -43 666 |
| Profit for the period | 58 837 | 75 565 | 135 762 | 137 978 | 233 463 | 235 678 |
| PROFIT FOR THE PERIOD ATTRIBUTABLE TO: | ||||||
| Parent company shareholders | 58 601 | 75 354 | 135 334 | 137 686 | 232 914 | 235 265 |
| Non-controlling interests | 236 | 212 | 427 | 292 | 549 | 413 |
| 58 837 | 75 565 | 135 762 | 137 978 | 233 463 | 235 678 | |
| Earnings per share 1) | 3,20 | 4,18 | 7,40 | 7,64 | 12,77 | 13,01 |
1) There were no transactions during the year that might result in dilution effects.
In conjunction with the acquisition of Gerdins Industrial System AB on October 3, 2016, 260 000 shares of the same kind were issued.
| Rolling 12 months | ||||||
|---|---|---|---|---|---|---|
| Jul 2016 | ||||||
| SEK thousands | Apr-Jun 2017 Apr-Jun 2016 | Jan-Jun 2017 | Jan-Jun 2016 | - Jun 2017 Full year 2016 | ||
| PROFIT FOR THE PERIOD | 58 837 | 75 565 | 135 762 | 137 978 | 233 463 | 235 678 |
| OTHER COMPREHENSIVE INCOME | ||||||
| Items that cannot be transferred to the profit for the period | ||||||
| Revaluation of defined benefit pension plans | -303 | -303 | ||||
| Items transferred or that can be transferred to the | ||||||
| profit for the period | ||||||
| Translation difference transferred to the profit | 6 737 | 6 737 | 6 737 | |||
| Translation difference for foreign operations | 44 | 7 835 | 3 610 | 16 770 | 28 145 | 41 304 |
| Other comprehensive income for the period after tax | 44 | 14 572 | 3 610 | 23 507 | 27 842 | 47 739 |
| Comprehensive income for the period | 58 880 | 90 137 | 139 372 | 161 484 | 261 305 | 283 417 |
| COMPREHENSIVE INCOME FOR THE | ||||||
| PERIOD ATTRIBUTABLE TO: | ||||||
| Parent company shareholders | 58 605 | 89 876 | 138 910 | 161 120 | 260 692 | 282 902 |
| Non-controlling interests | 275 | 261 | 462 | 364 | 613 | 515 |
| 58 880 | 90 137 | 139 372 | 161 484 | 261 305 | 283 417 |
| SEK thousands | 30/06/2017 | 30/06/2016 | 31/12/2016 |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 150 121 | 124 148 | 148 393 |
| Other intangible assets | 81 037 | 55 722 | 84 181 |
| Tangible assets | 508 083 | 432 467 | 495 915 |
| Financial assets | 2 024 | 2 092 | 2 147 |
| Deferred tax assets | 12 530 | 12 283 | 9 448 |
| TOTAL NON-CURRENT ASSETS | 753 794 | 626 712 | 740 084 |
| Inventories | 624 954 | 486 061 | 581 332 |
| Trade and other receivables | 947 782 | 749 032 | 805 186 |
| Other current receivables | 161 748 | 170 376 | 160 179 |
| Short term investments | - | 200 | 204 |
| Cash and cash equivalents | 103 003 | 116 631 | 162 812 |
| TOTAL CURRENT ASSETS | 1 837 487 | 1 522 300 | 1 709 712 |
| TOTAL ASSETS | 2 591 281 | 2 149 012 | 2 449 796 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to parent company shareholders | 1 549 057 | 1 287 974 | 1 460 455 |
| Non-controlling interests | 3 201 | 2 603 | 2 739 |
| TOTAL EQUITY | 1 552 257 | 1 290 577 | 1 463 195 |
| Non-current liabilities to credit institutions | 91 653 | 105 842 | 107 779 |
| Non-current non-interest-bearing liabilities | 82 788 | 76 317 | 84 241 |
| Total non-current liabilities | 174 441 | 182 158 | 192 020 |
| Interest-bearing current liabilities | 130 614 | 89 178 | 164 034 |
| Trade and other payables | 414 437 | 306 639 | 351 986 |
| Other current liabilities | 319 532 | 280 460 | 278 562 |
| Total current liabilities | 864 583 | 676 277 | 794 582 |
| TOTAL LIABILITIES | 1 039 024 | 858 435 | 986 601 |
| TOTAL EQUITY AND LIABILITIES | 2 591 281 | 2 149 012 | 2 449 796 |
| Equity attributable to parent company shareholders | |||||||
|---|---|---|---|---|---|---|---|
| Share capital | Other | Translation | Retained | Subtotal Non-controlling | Total equity | ||
| contributed | reserve | earnings incl. | interests | ||||
| SEK thousands | capital | Profit | |||||
| Equity, 01/01/2016 | 36 068 | 34 014 | 24 303 | 1 073 044 | 1 167 430 | 2 307 | 1 169 737 |
| Profit for the year | 137 686 | 137 686 | 292 | 137 978 | |||
| Translation differences in foreign operations | 23 434 | 23 434 | 73 | 23 507 | |||
| Other comprehensive income | 23 434 | - | 23 434 | 73 | 23 507 | ||
| Total comprehensive income | 23 434 | 137 686 | 161 120 | 364 | 161 485 | ||
| Changes in non-controlling interests | -68 | -68 | |||||
| Dividends paid | - | -40 577 | -40 577 | - | -40 577 | ||
| Transactions with shareholders | - | - | -40 577 | -40 577 | -68 | -40 644 | |
| Equity, 30/06/2016 | 36 068 | 34 014 | 47 738 | 1 170 154 | 1 287 974 | 2 603 | 1 290 577 |
| Equity, 01/01/2017 | 36 588 | 84 194 | 72 236 | 1 267 437 | 1 460 455 | 2 739 | 1 463 195 |
| Profit for the period | 135 334 | 135 334 | 427 | 135 762 | |||
| Translation differences in foreign operations | 3 576 | 3 576 | 34 | 3 610 | |||
| Other comprehensive income | 3 576 | 3 576 | 34 | 3 610 | |||
| Comprehensive income for the period | 3 576 | 135 334 | 138 910 | 462 | 139 372 | ||
| Dividends paid | -50 309 | -50 309 | -50 309 | ||||
| Transactions with shareholders | -50 309 | -50 309 | -50 309 | ||||
| Equity, 30/06/2017 | 36 588 | 84 194 | 75 812 | 1 352 462 | 1 549 057 | 3 201 | 1 552 257 |
All shares, 18 294 058 pcs, are A-shares with equal voting rights and equal rights to the results. In conjunction with the acquisition of Gerdins Industrial System AB on October 3, 2016, 260 000 shares of the same kind were issued.
| SEK thousands | 1 Apr - 30 Jun, 2017 | 1 Apr - 30 Jun, 2016 | 1 Jan - 31 Jun, 2017 | 1 Jan - 31 Jun, 2016 | Full year 2016 |
|---|---|---|---|---|---|
| Profit before tax | 70 478 | 90 758 | 162 736 | 166 712 | 279 344 |
| Adjustment for non cash generating items | 25 363 | 20 508 | 44 776 | 52 582 | 162 081 |
| Income tax paid | 2 295 | -12 227 | -23 540 | -30 973 | -45 182 |
| Cash flow from operating activities before change in | |||||
| working capital | 98 135 | 99 038 | 183 972 | 188 321 | 396 243 |
| Increase (-)/decrease (+) in inventories | -7 264 | -253 | -40 121 | 5 938 | -19 927 |
| Increase (-)/decrease (+) in trade receivables | -25 312 | -53 676 | -138 718 | -69 362 | -42 936 |
| Increase (-)/decrease (+) in other receivables Increase (+)/decrease (-) in trade payables |
12 568 12 436 |
-1 821 28 021 |
6 050 61 827 |
-3 874 18 946 |
-66 030 15 448 |
| Increase (+)/decrease (-) in other liabilities | -11 943 | 4 693 | 20 678 | 28 296 | 7 452 |
| Change in working capital | -19 514 | -23 037 | -90 284 | -20 056 | -105 993 |
| Cashflow from operating activities | 78 621 | 76 002 | 93 688 | 168 264 | 290 251 |
| Aquisitions of shares in subsidiaries | 113 | 34 | -64 035 | ||
| Acquisition of intangible non-current assets | -463 | -376 | -1 258 | -590 | -1 922 |
| Acquisition of tangible non-current assets | -32 939 | -44 902 | -53 167 | -62 684 | -119 436 |
| Sale of tangible non-current assets | 3 508 | 70 | 3 585 | 70 | 1 793 |
| Purchase/Sales of short-term investment in securities | 205 | 204 | |||
| Cashflow from investing activities | -29 689 | -45 094 | -50 635 | -63 169 | -183 600 |
| New borrowings | 436 | 50 | 39 715 | ||
| Amortisation of loans | -14 103 | -7 487 | -24 795 | -14 975 | -32 101 |
| Amortisation of loans (leasing) | -1 082 | -466 | -2 032 | -936 | -2 786 |
| Change in bank overdraft facilities | -3 319 | -16 456 | -23 828 | -69 823 | -47 887 |
| Dividends to the parent company shareholders | -50 309 | -40 577 | -50 309 | -40 577 | -40 577 |
| Other changes in financial activities | 73 | 11 | 104 | 46 | -58 |
| Casflow from financing activities | -68 740 | -64 976 | -100 424 | -126 216 | -83 693 |
| Increase(Decrease) in cash and cash equivalents | -19 808 | -34 068 | -57 372 | -21 120 | 22 958 |
| Cash and cash equivalents at the beginning of the year | 125 316 | 147 614 | 162 812 | 135 602 | 135 602 |
| Exchange rate difference in cash and cash equivalents | -2 505 | 3 086 | -2 437 | 2 149 | 4 252 |
| Cash and cash equivalents at the end of the year | 103 003 | 116 631 | 103 003 | 116 631 | 162 812 |
The parent company, AQ Group AB, focuses primarily on managing and developing the Group. As in previous years, the parent company's turnover consists almost exclusively of the sale of administrative services to subsidiaries. There are no purchases of any substance from subsidiaries.
| Rolling 12 months Jul 2016 |
||||||
|---|---|---|---|---|---|---|
| SEK thousands | Apr - Jun 2017 Apr - Jun 2016 | Jan-Jun 2017 | Jan-Jun 2016 | -Jun 2017 Full year 2016 | ||
| Net sales | 12 427 | 13 174 | 24 770 | 26 440 | 54 026 | 55 696 |
| Other operating income | 998 | 181 | 1 323 | 395 | 4 622 | 3 695 |
| 13 425 | 13 356 | 26 092 | 26 835 | 58 649 | 59 391 | |
| Other external expenses | -4 511 | -6 007 | -8 063 | -10 401 | -18 832 | -21 169 |
| Personnel costs | -5 507 | -2 713 | -10 398 | -7 460 | -20 639 | -17 701 |
| Depreciation and amortisation | -74 | -153 | -543 | -390 | ||
| Other operating expenses | -42 | -110 | -109 | -291 | -233 | -415 |
| -10 135 | -8 830 | -18 724 | -18 152 | -40 247 | -39 675 | |
| Operating profit | 3 290 | 4 526 | 7 369 | 8 683 | 18 402 | 19 716 |
| Net financial items | 40 848 | 12 022 | 84 285 | 14 066 | 168 577 | 98 358 |
| Earnings after net financial items | 44 139 | 16 548 | 91 654 | 22 749 | 186 979 | 118 074 |
| Appropriations | 2 350 | 2 350 | ||||
| Profit before tax | 44 139 | 16 548 | 91 654 | 22 749 | 189 329 | 120 424 |
| Taxes | -587 | -2 464 | -2 765 | -2 204 | -5 299 | -4 738 |
| Profit for the period | 43 551 | 14 084 | 88 889 | 20 544 | 184 031 | 115 686 |
Net sales for the second quarter was SEK 12.4 million (13.2), SEK 0.8 million lower than the same period in the previous year. Other external expenses were SEK 4.5 million (6.0).
Personnel costs were SEK 5.5 million (2.7), a part of the increase is due to an adjusted accrued salary cost in 2016 which made the cost in 2016 lower than normal. Operating profit (EBIT) was SEK 3.3 MSEK (4.5). Net financial items were SEK 40.8 million (12.0), of which SEK 42.2 million is tax free dividends from subsidiaries.
Net sales for the first six months was SEK 24.8 million (26.4), SEK 1.6 million lower than the same period in the previous year. Other external expenses were SEK 8.1 million (10.4). The difference is due to costs last year in conjunction with the list change from Aktietorget to Nasdaq.
Personnel costs were SEK 10.4 million (7.5). Operating profit (EBIT) was SEK 7.4 MSEK (8.7). Net financial items were SEK 84.3 million (14.1), of which SEK 79.9 million is tax free dividends from subsidiaries.
| SEK thousands | 30/06/2017 | 30/06/2016 | 31/12/2016 |
|---|---|---|---|
| ASSETS | |||
| Tangible assets | 1 068 | - | 1 354 |
| Financial fixed assets | 704 185 | 639 082 | 785 990 |
| Deferred tax assets | 581 | 3 494 | 512 |
| TOTAL NON-CURRENT ASSETS | 705 833 | 642 576 | 787 856 |
| Other current receivables | 225 432 | 181 748 | 251 503 |
| Cash and cash equivalents | - | - | - |
| TOTAL CURRENT ASSETS | 225 432 | 181 748 | 251 503 |
| TOTAL ASSETS | 931 265 | 824 324 | 1 039 360 |
| EQUITY AND LIABILITIES | |||
| Restricted equity | 37 745 | 37 225 | 37 745 |
| Non-restricted equity | 309 375 | 209 496 | 357 931 |
| Total equity | 347 120 | 246 720 | 395 676 |
| Untaxed reserves | 44 100 | 41 300 | 44 100 |
| Other provisions | 7 708 | - | 7 000 |
| Interest-bearing non-current liabilities | 75 472 | 104 274 | 90 439 |
| Total non-current liabilities | 83 180 | 104 274 | 97 439 |
| Interest-bearing current liabilities | 442 870 | 427 587 | 491 327 |
| Trade and other payables | 1 709 | 2 108 | 2 040 |
| Other current liabilities | 12 287 | 2 335 | 8 778 |
| Total current liabilities | 456 866 | 432 030 | 502 146 |
| TOTAL LIABILITIES | 540 046 | 536 304 | 599 584 |
| TOTAL EQUITY AND LIABILITIES | 931 265 | 824 324 | 1 039 360 |
The increase in financial fixed assets compared to the same period previous year is related to the acquisition of Gerdins. The decrease compared to December 31, 2016 is due to reduction of shares in subsidiaries because of the merger of AQ Industrial System AB into AQ Group AB.
Other current receivables consist of tax receivables of SEK 10 million and receivables from subsidiaries of SEK 215 million. The increase compared to the same period previous year consists mainly of an increase of receivables from subsidiaries. During May the parent company received SEK 11 million back from preliminary paid taxes.
The change in non-restricted equity compared to December 31, 2016 is partly due to dividends of SEK 50.3 million, SEK 88.9 million result of the period and SEK 87.1 million from results of the merger of AQ Industrial System AB into AQ Group AB.
Other provisions of SEK 7.7 million consist of the calculated earnout payment due to the acquisition of Gerdins. A revaluation of this payment has affected the quarter negatively by SEK 0.7 million.
The change of interest-bearing non-current liabilities is partly due to a yearly amortization of SEK 30 million.
Interest-bearing current liabilities have increased compared to the same period previous year, and consist of overdraft credit of SEK 30 million, usage of operating credit and debt to the subsidiaries in the cash pool.
The summary interim report has been prepared in accordance with the Swedish Annual Accounts Act as well as IFRS, applying IAS 34, Interim Financial Reporting. The interim report for the parent company has been prepared in accordance with Swedish Annual Accounts Act, chapter 9 Interim report. For the group and the parent company the accounting and valuation principles applied are the same as used in the latest annual report.
The total sum in tables and calculations do not always sum up of the parts due to rounding differences. The objective is that every interim row shall conform with the original source resulting in rounding differences.
AS of July 3, 2016, ESMAs (European Securities And Markets Authority) "Guidelines – Alternative performance measures" are applied. In accordance with these guidelines information about financial numbers have been added that are not defined by IFRS.
The Group operates in two business segments: Component, which produces transformers, wiring systems, mechanical components, punched sheet metal and injection-moulded thermoplastics and System, which produces systems, power and automation solutions and assembles complete machines in close collaboration with the customers.
| Q2 2017 | Component | System | eliminations | Group |
|---|---|---|---|---|
| Net sales, external | 848 381 | 228 999 | 1 077 380 | |
| Net sales, internal | 86 760 | 43 287 | -130 046 | |
| Total net turnover | 935 140 | 272 286 | -130 046 | 1 077 380 |
| Material costs, excl. purchases own segment | -478 825 | -215 311 | 120 386 | -573 749 |
| Depreciation | -21 833 | -1 749 | -74 | -23 656 |
| Other operating expenses/income | -369 226 | -47 282 | 10 931 | -405 578 |
| Operating profit | 65 257 | 7 944 | 1 196 | 74 397 |
| Net financial items | -3 919 | -3 919 | ||
| Profit before tax | 65 257 | 7 944 | -2 723 | 70 478 |
| Other comprehensive income plus tax | -11 597 | -11 597 | ||
| Comprehensive income for the period | 65 257 | 7 944 | -14 320 | 58 880 |
| Q2 2016 | ||||
| Net sales, external | 658 609 | 200 974 | 0 | 859 584 |
| Net sales, internal | 64 344 | 41 279 | -105 624 | |
| Total net turnover | 722 954 | 242 254 | -105 624 | 859 584 |
| Material costs, excl. purchases own segment | -348 236 | -171 298 | 96 135 | -423 399 |
| Depreciation | -17 052 | -999 | 282 | -17 769 |
| Other operating expenses/income | -293 316 | -48 796 | 16 022 | -326 090 |
| Operating profit | 64 350 | 21 161 | 6 815 | 92 326 |
| Net financial items | -1 568 | -1 568 | ||
| Profit before tax | 64 350 | 21 161 | 5 247 | 90 758 |
| Other comprehensive income plus tax | -621 | -621 | ||
| Comprehensive income for the period | 64 350 | 21 161 | 4 627 | 90 137 |
For the segment Component, the total net sales for the second quarter was SEK 935 million (723), of which SEK 848 million (659) is external sales. The increase of the external sales of totally SEK 189 million is partly due to the acquisition of Gerdins.
For the segment System, the total net sales for the second quarter was SEK 272 million (242), of which SEK 229 million (201) is external sales. The increase of the external sales of SEK 28 million is due to increased demand of assembly of packaging machines.
Operating profit (EBIT) was in the second quarter SEK 65 million (64) for Component, which was SEK 1 million better than the same period last year. Operating profit (EBIT) for System was SEK 8 million (21), which was SEK 13 million lower than the same period in the previous year.
In the column" Unallocated and eliminations" there are items which have not been allocated to the two segments, mainly real estate companies, parent company and group eliminations.
| Unallocated and | ||||
|---|---|---|---|---|
| YTD 2017 | Component | System | eliminations | Group |
| Net sales, external | 1 647 729 | 431 548 | 2 079 278 | |
| Net sales, internal | 161 876 | 85 899 | -247 775 | |
| Total net turnover | 1 809 605 | 517 447 | -247 775 | 2 079 278 |
| Material costs, excl. purchases own segment | -929 574 | -381 915 | 232 177 | -1 079 312 |
| Depreciation | -43 208 | -3 159 | -153 | -46 519 |
| Other operating expenses/income | -710 294 | -102 036 | 20 094 | -792 236 |
| Operating profit | 126 529 | 30 338 | 4 343 | 161 210 |
| Net financial items | 1 526 | 1 526 | ||
| Profit before tax | 126 529 | 30 338 | 5 869 | 162 736 |
| Other comprehensive income plus tax | -23 364 | -23 364 | ||
| Comprehensive income for the period | 126 529 | 30 338 | -17 495 | 139 372 |
| YTD 2016 | ||||
| Net sales, external | 1 284 232 | 377 186 | 1 661 418 | |
| Net sales, internal | 110 044 | 81 719 | -191 763 | |
| Total net turnover | 1 394 277 | 458 904 | -191 763 | 1 661 418 |
| Material costs, excl. purchases own segment | -677 490 | -313 987 | 182 893 | -808 584 |
| Depreciation | -33 949 | -2 072 | 354 | -35 667 |
| Other operating expenses/income | -557 991 | -96 855 | 6 716 | -648 130 |
| Operating profit | 124 846 | 45 991 | -1 800 | 169 037 |
| Net financial items | -2 326 | -2 326 | ||
| Profit before tax | 124 846 | 45 991 | -4 126 | 166 712 |
| Other comprehensive income plus tax | -5 227 | -5 227 | ||
| Comprehensive income for the period | 124 846 | 45 991 | -9 353 | 161 484 |
For the segment Component, the total net sales for the first six months was SEK 1 810 million (1394), of which SEK 1 648 million (1 284) is external sales. The increase of the external sales of totally SEK 364 million is partly due to the acquisition of Gerdins.
For the segment System, the total net sales for the first six months was SEK 517 million (459), of which SEK 432 million (377) is external sales. The increase of the external sales of SEK 55 million is due to increased demand of assembly of packaging machines.
Operating profit (EBIT) was in the first six months SEK 127 million (125) for Component, which was SEK 2 million better than the same period last year. Operating profit (EBIT) for System was SEK 30 million (46), which was SEK 16 million lower than the same period in the previous year.
In the column" Unallocated and eliminations" there are items which have not been allocated to the two segments, mainly real estate companies, parent company and group eliminations.
Number of employees (full time yearly equivalents) in the Group per country.
| Jan-Jun 2017 | Jan-Jun 2016 | Jan-Dec 2016 | Jan-Dec 2015 | |
|---|---|---|---|---|
| Bulgaria | 1 051 | 978 | 981 | 966 |
| Sweden | 1 065 | 803 | 1 005 | 812 |
| Lithuania | 680 | 674 | 688 | 647 |
| China | 484 | 515 | 498 | 539 |
| Poland | 954 | 587 | 873 | 508 |
| Hungary | 444 | 415 | 447 | 411 |
| Estonia | 369 | 369 | 349 | 379 |
| India | 131 | 139 | 134 | 146 |
| Mexico | 145 | 130 | 127 | 94 |
| Italy | 12 | 23 | 24 | 4 |
| Thailand | 22 | 18 | 20 | 12 |
| Serbia | 27 | 17 | 17 | 0 |
| 5 384 | 4 668 | 5 163 | 4 518 |
AQ's strategy is to grow in both segments. During the first six months there were no acquisitions or divestments.
On May 17 AQ Industrial Systems AB (556937-6576) was merged into AQ Group AB.
Financial instruments that are shown in the balance sheet include on the assets side mainly cash or cash equivalents, receivables from customers and other receivables. On the liabilities side they consist mainly of payables to suppliers, other payable and credit debts.
Real value is not separately shown as it is our assessment that the values shown are an acceptable estimation of the real value because of the short terms. Real value of assets is established from market prices. Real value is based on the listing at brokers. Similar contracts are being traded on an active market and the prices are reflecting actual transactions of comparable instruments.
The Group is only in exceptional cases using derivatives to reduce currency risks. As per June 30 the market value of the derivatives was SEK -2.7 million (-1.4) valued according to level 2.
The earnout payment for the acquisition of Gerdins SEK 7.7 million has been valued at real value according to level 3. The earnout is based on 50% of the profit after tax 2016 of the acquired Gerdins group.
Information about events after the end of the reporting period are presented on page 6.
| 2017 | 2016 | |||||||
|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | YTD | Q1 | Q2 | Q3 | Q4 | Full year | |
| Operating margin, (EBIT %) | ||||||||
| Operating profit | 86 813 | 74 397 | 161 210 | 76 712 | 92 326 | 52 646 | 59 669 | 281 353 |
| Net revenue Operating margin |
1 001 898 8,7% |
1 077 380 6,9% |
2 079 278 7,8% |
801 834 9,6% |
859 584 10,7% |
723 223 7,3% |
904 575 6,6% |
3 289 215 8,6% |
| Profit margin before tax, (EBT %) | ||||||||
| Profit before tax | 92 258 | 70 478 | 162 736 | 75 954 | 90 758 | 53 050 | 59 583 | 279 344 |
| Net revenue | 1 001 898 | 1 077 380 | 2 079 278 | 801 834 | 859 584 | 723 223 | 904 575 | 3 289 215 |
| Profit margin before tax | 9,2% | 6,5% | 7,8% | 9,5% | 10,6% | 7,3% | 6,6% | 8,5% |
| Liquid ratio, % | ||||||||
| Trade and other receivables | 922 728 | 947 782 | 947 782 | 687 538 | 749 032 | 697 938 | 805 186 | 805 186 |
| Other current receivables | 184 722 | 161 748 | 161 748 | 159 750 | 170 376 | 166 477 | 160 179 | 160 179 |
| Cash and cash equivalents | 125 316 | 103 003 | 103 003 | 147 614 | 116 631 | 118 960 | 162 812 | 162 812 |
| Current liabilities | 865 301 | 864 583 | 864 583 | 633 744 | 676 277 | 598 307 | 794 582 | 794 582 |
| Liquid ratio | 142% | 140% | 140% | 157% | 153% | 164% | 142% | 142% |
| Debt/equity ratio, % | ||||||||
| Total equity | 1 543 686 | 1 552 257 | 1 552 257 | 1 241 016 | 1 290 577 | 1 366 832 | 1 463 195 | 1 463 195 |
| Total assets | 2 593 111 | 2 591 281 | 2 591 281 | 2 066 851 | 2 149 012 | 2 130 582 | 2 449 796 | 2 449 796 |
| Debt/equity ratio | 60% | 60% | 60% | 60% | 60% | 64% | 60% | 60% |
| Return on total assets, % | ||||||||
| Profit before tax, rolling 12 months | 295 648 | 275 368 | 275 368 | 231 604 | 265 145 | 274 539 | 279 344 | 279 344 |
| Financial expenses, rolling 12 months | -12 669 | -15 652 | -15 652 | -12 570 | -13 160 | -14 962 | -12 977 | -12 977 |
| Total equity and liabilities, opening balance for 12 months | 2 066 851 | 2 149 012 | 2 149 012 | 1 798 487 | 1 828 465 | 1 861 878 | 2 024 282 | 2 024 282 |
| Total equity and liabilities, closing balance | 2 593 111 | 2 591 281 | 2 591 281 | 2 066 851 | 2 149 012 | 2 130 582 | 2 449 796 | 2 449 796 |
| Total equity and liabilities, average | 2 329 981 | 2 370 147 | 2 370 147 | 1 932 669 | 1 988 738 | 1 996 230 | 2 237 039 | 2 237 039 |
| Return on total assets | 13,2% | 12,3% | 12,3% | 12,6% | 14,0% | 14,5% | 13,1% | 13,1% |
| Return on equity after tax, % | ||||||||
| Profit for the period after tax, rolling 12 months | 250 191 | 233 463 | 233 463 | 188 327 | 216 778 | 227 944 | 235 678 | 235 678 |
| Total equity, opening for 12 months | 1 241 016 | 1 290 577 | 1 290 577 | 1 119 233 | 1 110 539 | 1 155 688 | 1 169 736 | 1 169 736 |
| Total equity, closing | 1 543 686 | 1 552 257 | 1 552 257 | 1 241 016 | 1 290 577 | 1 366 832 | 1 463 195 | 1 463 195 |
| Total equity, average | 1 392 351 | 1 421 417 | 1 421 417 | 1 180 125 | 1 200 558 | 1 261 260 | 1 316 465 | 1 316 465 |
| Return on equity after tax | 18,0% | 16,4% | 16,4% | 16,0% | 18,1% | 18,1% | 17,9% | 17,9% |
| Net cash / Net debt | ||||||||
| Cash and cash equivalents | 125 316 | 103 003 | 103 003 | 147 614 | 116 631 | 118 960 | 162 812 | 162 812 |
| Non-current interest bearing liabilities | 100 757 | 91 653 | 91 653 | 113 449 | 105 842 | 98 341 | 107 779 | 107 779 |
| Current interest bearing liabilities | 139 998 | 130 614 | 130 614 | 106 402 | 89 178 | 53 088 | 164 034 | 164 034 |
| Total interest bearing liabilities | 240 755 | 222 267 | 222 267 | 219 851 | 195 020 | 151 430 | 271 812 | 271 812 |
| Net cash / Net debt | -115 439 | -119 264 | -119 264 | -72 237 | -78 389 | -32 470 | -109 000 | -109 000 |
| Growth, % | ||||||||
| Organic growth | ||||||||
| Net revenue | 1 001 898 | 1 077 380 | 2 079 278 | 801 834 | 859 584 | 723 223 | 904 575 | 3 289 215 |
| - Effect of changes in exchange rates | 8 945 | 22 944 | 31 890 | -8 615 | -15 435 | -6 759 | 10 357 | -20 452 |
| - Net revenue for last year | 801 834 | 859 584 | 1 661 418 | 715 216 | 758 819 | 654 561 | 803 281 | 2 931 878 |
| - Net revenue for acquired companies | 121 766 | 108 181 | 229 947 | 69 287 | 68 926 | 61 495 | 128 095 | 327 803 |
| = Organic growth | 69 353 | 86 671 | 156 023 | 25 946 | 47 274 | 13 926 | -37 158 | 49 986 |
| Organic growth divided by last year net revenue, % Growth through acquisitions |
8,6% | 10,1% | 9,4% | 3,6% | 6,2% | 2,1% | -4,6% | 1,7% |
| Net revenue for acquired companies divided by last | ||||||||
| year net revenue, % | 15,2% | 12,6% | 13,8% | 9,7% | 9,1% | 9,4% | 15,9% | 11,2% |
Calculated as operating profit divided by net sales.
This key figure shows the achieved profitability in the operative business of the company. Operating margin is a useful measure to follow up profitability and efficiency of the business before deduction of tied up capital. The figure is used internally for controlling and managing the business as well as a benchmark towards other companies in the industry.
Calculated as profit before tax divided by net sales.
This key figure shows the profitability of the business before tax. Profit margin before tax is a useful measure to follow up profitability and efficiency including tied up capital. The figure is used internally for controlling and managing the business as well as a benchmark towards other companies in the industry.
Calculated as current assets (excl. inventory) divided by current liabilities.
This key figure reflects the company's short term solvency as it sets the company's current assets (except inventory) in relation to the short term liabilities. If the liquid ratio exceeds 100%, it means that the assets exceed the liabilities in question.
Calculated as adjusted equity divided by balance sheet total.
This key figure reflects the company's financial position and its long term solvency. To have a good equity ratio and thus a strong financial position is important for being able to manage business cycles with varying sales. To have a strong financial position is also important for managing growth.
Calculated as profit/loss after financial items divided by the average balance sheet total.
This key figure also shows the achieved profitability in the operative business. This number complements the operating margin as it includes tied up capital. It means that the number gives information on the return the business is given in relation to the capital tied in it. (Financial investments and cash and cash equivalents are also considered and the profit they give in the form of financial income.)
Calculated as profit/loss after tax divided by average equity including minority interest.
This is a key figure showing the return of the capital that the owners have invested in the company (including retained earnings) after other stakeholders have received their dividends. This key figure shows how profitable the company is for its owners. This return also has significance for the company's opportunities to grow in a financial balance.
Calculated as the profit before tax and financial items.
Operating profit shows the result generated by the operative business and is used together with operating margin and return on total assets for evaluating and managing the operative business.
Calculated as the profit before tax.
The key figure shows the result generated by the operative business and financial income taking into account payments to creditors for the capital they are contributing to finance the business. The figure shows remaining profit to the owners taking into account that part of it will be deducted for tax payments.
Calculated as the difference between interest bearing debts and cash and cash equivalents.
This key figure is reflecting how much interest bearing debts the company has taking into account in cash and cash equivalents. The figure gives a good picture of the debt situation. Net cash means that cash and cash equivalents exceeds interest bearing debts. Net debt means that interest bearing debts exceed cash and cash equivalents.
The company is using two key figures to describe growth; 1) organic growth and 2) growth through acquisitions.
Organic growth is calculated as the difference between the net sales of the current period and the net sales of the previous period, excluding currency effect and net sales of acquired units.
Organic growth in % is calculated as the organic growth divided by the net sales in the same period in the previous year. Growth through acquisitions is calculated as net sales of acquired companies divided by the net sales in the same period in the previous year. Growth is an important component in the company's strategy as growth is required to be a leading actor in the markets where the company is operating. Growth is partly through acquisition and partly organic. It's important to follow up and to present the different ways of achieving growth as it is two different ways to grow. Acquisitions are done when opportunities are given to expand the business in a certain geographic market or in a certain product area (in line with the company's strategic plan). Organic growth often has the character of a continued expansion within the existing operations.
Dividend per share is decided at the Annual General Meeting where the annual report is approved for the fiscal year. Number of shares are the thousands of shares issued at the set date for payment of dividends.
AQ is a leading supplier to demanding industrial customers and is listed on Nasdaq Stockholm's main market.
The Group consists mainly of operating companies each of which develop their special skills and in cooperation with other companies, striving to provide cost effective solutions in close cooperation with the customer.
The Group headquarter is in Västerås, Sweden. AQ has, on December 31, 2016, in total about 5,100 employees in Sweden, Bulgaria, China, Estonia, Hungary, India, Italy, Lithuania, Mexico, Poland, Serbia and Thailand.
In 2016 AQ had net sales of SEK 3.3 billion and the group has since its start in 1994 shown profit every quarter.
AQ has the highest credit rating AAA according to Bisnode.
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