Annual Report • May 11, 2016
Annual Report
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B&B TOOLS provides the industrial and construction sectors in northern Europe with industrial consumables, industrial components and related services. The Group has annual revenue of approximately SEK 8 billion and approximately 2,600 employees.
| QUARTER – 3 MONTHS ENDING 31 MAR | FULL-YEAR – 12 MONTHS ENDING 31 MAR | |||||
|---|---|---|---|---|---|---|
| 2016 | 2015 | Change | 2016 | 2015 | Change | |
| Revenue, MSEK | 1,935 | 1,994 | –3% | 7,821 | 7,903 | –1% |
| Operating profit, MSEK | 111 | 111 | +/–0% | 486 | 450 | +8% |
| Profit after financial items, MSEK | 107 | 100 | +7% | 468 | 408 | +15% |
| Net profit (after taxes), MSEK | 87 | 75 | +16% | 362 | 306 | +18% |
| Earnings per share, SEK | 3.10 | 2.70 | +15% | 12.90 | 10.90 | +18% |
| Operating margin | 5.7% | 5.6% | 6.2% | 5.7% | ||
| Profit margin | 5.5% | 5.0% | 6.0% | 5.2% | ||
| Return on equity | 15% | 14% | ||||
| Equity per share, SEK | 92.20 | 82.80 | +11% | |||
| Equity/assets ratio | 51% | 45% | ||||
| Number of employees at the end of the period |
2,623 | 2,682 | –2% |
As we summarise the 2015/16 financial year, we can look back at another year of earnings improvements in the Group. It is particularly gratifying to highlight TOOLS Sweden, which increased its profit by more than MSEK 30, as well as the fact that Momentum and ESSVE reported operating margins of more than 10 percent. Our focus on profitability, measured as P/WC*, contributed to a strong cash flow for the year. Despite a turbulent operating environment with currency fluctuations and a weak economic climate, particularly in Norway (which accounts for 30 percent of our revenue), our operating margin increased to 6.2 percent. While this is the Group's highest margin since 2007/08, we are naturally not satisfied with this result and aim to do even better in the future. We have good potential to continue improving our profitability.
As part of the Group's focus on its future development, the Board of Directors has today also assigned the Group management the task of investigating the possibility of splitting the Group into two separate listed companies in the future. The starting point of this work is the two new operating segments introduced in the Group on 1 April. The purpose of the split is to increase the Group's earnings growth through a clearer focus on development of leading brands and attractive market channels in profitable niches. The names of the two new segments – Bergman & Beving and Momentum Group – reflect the Board's ambitions for our future development.
Note: The figures stated are pro forma per new operating segment for the 2015/16 financial year (rounded).
As I have discussed in earlier reports, we have radically improved our basic prerequisites for growth and development in recent years. With our strong balance sheet and low debt, I also believe we have the right conditions for attractive corporate acquisitions. The review of the Group's future structure will further strengthen these conditions and could create new business opportunities.
In conclusion, I would like to take this opportunity to extend my sincere thanks to all of our dedicated employees for your many outstanding efforts during the year. I would also like to thank our customers and business partners for continuing to believe in us. I look forward to an exciting new financial year in 2016/17.
Stockholm, May 2016
Ulf Lilius President & CEO
* Operating profit in relation to working capital (inventories + accounts receivable – accounts payable).
Revenue for the fourth quarter decreased by –3 percent to MSEK 1,935 (1,994). Exchange-rate translation effects had an impact of MSEK –50 (+27) on revenue. Revenue for comparable units, measured in local currency and adjusted for the number of trading days, rose by 2 percent during the quarter.
In the fourth quarter, operating profit totalled MSEK 111 (111). Exchange-rate translation effects had a net impact of MSEK – 1 (+3) on operating profit. The operating margin was 5.7 percent (5.6). Profit after financial items amounted to MSEK 107 (100) and net profit to MSEK 87 (75) for the quarter, corresponding to earnings per share of SEK 3.10 (2.70).
Revenue for the full financial year amounted to MSEK 7,821 (7,903). Exchange-rate translation effects had a negative impact of MSEK –117 (+82) on revenue. Revenue for comparable units, measured in local currency and adjusted for the number of trading days, was essentially unchanged during the financial year.
Operating profit for the financial year increased by 8 percent to MSEK 486 (450). Operating profit was charged with depreciation and impairment losses of MSEK –24 (–25) on tangible non-current assets and amortisation and impairment losses of MSEK –4 (–3) on intangible non-current assets. Exchange-rate translation effects had a net impact of MSEK +2 (+7) on operating profit. The operating margin increased to 6.2 percent (5.7).
Profit after financial items rose by 15 percent to MSEK 468 (408) and net financial items amounted to MSEK –18 (–42). The profit margin was 6.0 percent (5.2). Net profit amounted to MSEK 362 (306), corresponding to earnings per share of SEK 12.90 (10.90).
During the year, the B&B TOOLS Group comprised two operating segments* – TOOLS / Momentum and Product Companies – as well as shared administrative, logistics and IT functions. The operating segments included a total of nine operating areas.
| THE B&B TOOLS GROUP | ||||
|---|---|---|---|---|
| QUARTER | FULL-YEAR | |||
| 3 MONTHS ENDING 31 MAR | 2015/ | 2014/ | ||
| MSEK | 2016 | 2015 | 2016 | 2015 |
| Revenue | 1,935 | 1,994 | 7,821 | 7,903 |
| Operating profit | 111 | 111 | 486 | 450 |
| Operating margin | 5.7% | 5.6% | 6.2% | 5.7% |
1 APRIL 2015 – 31 MARCH 2016
TOOLS and Momentum are the B&B TOOLS Group's market channels for industrial consumables and industrial components for Nordic industry. Via TOOLS and Momentum, the Group has a presence in some 200 locations in Sweden, Norway and Finland.
| TOOLS / MOMENTUM | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| QUARTER | FULL-YEAR | |||||||||||
| REVENUE | OPERATING | OPERATING | REVENUE | OPERATING | OPERATING | |||||||
| JAN-MAR | PROFIT JAN-MAR |
MARGIN JAN-MAR |
2015/ | 2014/ | PROFIT 2015/ |
2014/ | MARGIN 2015/ |
2014/ | ||||
| MSEK | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| TOOLS Sweden | 464 | 477 | 5 | 4 | 1.1% | 0.8% | 1,940 | 1,903 | 45 | 14 | 2.3% | 0.7% |
| TOOLS Norway | 303 | 386 | 4 | 6 | 1.3% | 1.6% | 1,302 | 1,562 | 17 | 58 | 1.3% | 3.7% |
| TOOLS Finland | 190 | 188 | 2 | 0 | 1.1% | 0.0% | 787 | 755 | 9 | 3 | 1.1% | 0.4% |
| Momentum | 254 | 241 | 31 | 30 | 12.2% | 12.4% | 993 | 952 | 116 | 111 | 11.7% | 11.7% |
| Eliminations | –12 | –11 | 0 | 1 | – | – | –52 | –52 | 1 | 1 | – | – |
| TOTAL | 1,199 | 1,281 | 42 | 41 | 3.5% | 3.2% | 4,970 | 5,120 | 188 | 187 | 3.8% | 3.7% |
Revenue for comparable units in TOOLS / Momentum decreased by approximately –1 percent1 during the fourth quarter. The industrial economy in Norway remained weak during the final quarter of the financial year, which was also adversely impacted by a general decline in activity and sales across the Nordic region in March in connection with the Easter holidays (compared with the preceding year, when Easter fell in April).
Revenue for TOOLS Sweden decreased by approximately 1 percent1 during the quarter, mainly due to the impact of the Easter holidays on the industry. The activities implemented to increase efficiency had a positive impact on earnings and the unit strengthened its market position as a leading occupational health and safety (OHS) supplier. Operating profit tripled during the financial year.
TOOLS Norway's sales to the construction and civil engineering industry and other customer segments remained stable, but were not sufficient to offset the decline primarily in the offshore sector in Norway. In total, revenue declined by –11 percent1 and operating profit by MSEK –2 MSEK compared with the corresponding quarter in the preceding year. The business continued to adapt its cost levels to the declining volumes.
Despite ongoing market uncertainty in Finland, TOOLS Finland increased its revenue by approximately 3 percent1 during the quarter as a result of stronger sales trends among certain major customers. A systematic focus on pricing and the business' core range strengthened the operating margin during the year.
Momentum's revenue increased by slightly more than 5 percent1 during the quarter, with some companies in the mining and forestry industries recovering slightly during the year. The operating margin was 11.7 percent.
The Group's five product companies – Luna, Skydda, ESSVE, Grunda and Gigant – supply professional users with construction and industrial consumables and related services.
| PRODUCT COMPANIES | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| QUARTER | FULL-YEAR | |||||||||||
| REVENUE | OPERATING OPERATING REVENUE PROFIT MARGIN |
OPERATING PROFIT |
OPERATING MARGIN |
|||||||||
| MSEK | 2016 | JAN-MAR 2015 |
JAN-MAR 2016 |
2015 | 2016 | JAN-MAR 2015 |
2015/ 2016 |
2014/ 2015 |
2015/ 2016 |
2014/ 2015 |
2015/ 2016 |
2014/ 2015 |
| Luna | 247 | 281 | 12 | 27 | 4.9% | 9.6% | 1,056 | 1,101 | 71 | 102 | 6.7% | 9.3% |
| Skydda | 301 | 296 | 31 | 27 | 10.3% | 9.1% | 1,260 | 1,230 | 100 | 101 | 7.9% | 8.2% |
| ESSVE | 237 | 219 | 26 | 15 | 11.0% | 6.8% | 868 | 802 | 93 | 63 | 10.7% | 7.9% |
| Grunda | 114 | 129 | 2 | 5 | 1.8% | 3.9% | 474 | 501 | 10 | 15 | 2.1% | 3.0% |
| Gigant | 90 | 111 | 3 | 3 | 3.3% | 2.7% | 366 | 407 | 5 | 10 | 1.4% | 2.5% |
| Eliminations | –2 | –8 | 0 | 1 | – | – | –13 | –16 | 0 | 0 | – | – |
| TOTAL | 987 | 1,028 | 74 | 78 | 7.5% | 7.6% | 4,011 | 4,025 | 279 | 291 | 7.0% | 7.2% |
Luna's revenue declined by –7 percent1 during the quarter, mainly due to the weak trend in the Norwegian market and a certain shift of export sales of proprietary product brands between the quarters compared with the preceding year. Skydda's revenue rose by 6 percent1 during the quarter, with increased sales of proprietary product brands, and the operating margin was 10.3 percent. Profit for both units continued to be negatively affected by the exchange rate trend for the USD and NOK.
1 Comparable units, measured in local currency and adjusted for the number of trading days this year compared with the preceding year.
Revenue for ESSVE increased by +14 percent2 during the quarter, with continued favourable growth in the core product range for chain customers in the area of construction materials in Sweden and Norway. The operating margin was 11.0 percent.
Revenue for Grunda decreased by approximately –4 percent2 during the fourth quarter, primarily due to declining demand in the Norwegian market. Revenue for Gigant also decreased during the quarter (–14 percent2 ), mainly due to the trend in Norway – with unchanged operating profit. The proportion of sales made directly to end customers increased gradually during the year for Gigant. The businesses continue to implement measures to enhance efficiency and strengthen their positions in the market.
An operating loss of MSEK –3 (–26) was reported for "Group-wide" for the financial year. As reported in earlier Interim Reports during the year, capital gains from the sale of properties and the conveyance of a previously concluded pension obligation had a total positive impact of approximately MSEK 15 on operating profit during the financial year.
The Parent Company's revenue amounted to MSEK 36 (39) and profit after financial items to MSEK 318 (237). These results include Group contributions, intra-Group dividends and corresponding items totalling MSEK 472 (311).
Eliminations for intra-Group inventory gains had a positive impact of MSEK +22 (–2) on earnings during the year.
* As of 1 April 2016, the B&B TOOLS Group comprises two new operating segments – Bergman & Beving and Momentum Group. For more detailed information, refer to pages 2 and 7.
At the end of the financial year, the number of employees in the Group amounted to 2,623, compared with 2,682 at the beginning of the year.
In early July 2015, Momentum signed an agreement to acquire all shares in Carl A Nilsson AB ("CAN"). CAN is a comprehensive service company specialising in electromechanical services and sales for the industrial sector in southern Sweden. CAN generates annual revenue of approximately MSEK 20 and has 13 employees. Closing took place on 1 September 2015, and the acquisition is assessed to have had a marginally positive impact on B&B TOOLS' earnings per share during the financial year.
In mid-March 2016, TOOLS Norway entered an agreement to acquire all shares in Tønsberg Maskinforretning AS ("TM"). TM is a reseller of industrial components and consumables to the industrial and construction sectors in southern Norway. TM generates annual revenue of approximately MNOK 20 and has ten employees. Closing took place after the end of the financial year on 4 April 2016, and the acquisition is assessed to have a marginally positive impact on B&B TOOLS' earnings per share.
The Group's profitability, measured as the return on working capital, P/WC (operating profit in relation to working capital3 ), increased to 27 percent (25) for the financial year. The return on capital employed was 14 percent (13) and the return on equity was 15 percent (14).
Cash flow from operating activities before changes in working capital for the financial year amounted to MSEK 416 (384). Funds tied up in working capital decreased by MSEK 77. Inventories increased by MSEK 3 during the year, while operating receivables decreased by MSEK 15. Operating liabilities rose by MSEK 65. Accordingly, cash flow from operating activities for the year amounted to MSEK 493 (330).
Cash flow for the financial year was also impacted in a net amount of MSEK –55 (–40) pertaining to investments and divestments of non-current assets, and a net amount of MSEK +19 (+99) pertaining to the acquisition and divestment of subsidiaries and other business units. Two Group properties were disposed of during the financial year, which generated approximately MSEK 25 in cash flow and had a marginally positive impact on earnings per share.
The Group's operational net loan liability at the end of the financial year amounted to MSEK 217 (530). Interest-bearing liabilities totalled MSEK 282 (590), excluding expensed pension obligations of MSEK 536 (628). Liabilities to credit institutions amounted to MSEK 220 (533), net. Cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 880 (667).
The equity/assets ratio at the end of the financial year was 51 percent, compared with 45 percent at the beginning of the year.
Equity per share totalled SEK 92.20 at the end of the financial year, compared with SEK 82.80 at the beginning of the year. Equity per share after dilution totalled SEK 92.25 at the end of the financial year, compared with SEK 82.65 at the beginning of the year.
2 Comparable units, measured in local currency and adjusted for the number of trading days this year compared with the preceding year.
3 Working capital = Inventories + Accounts receivable – Accounts payable.
1 APRIL 2015 – 31 MARCH 2016
The Swedish tax rate, which also applies to the Parent Company, was 22 percent during the financial year. The Group's normalised tax rate, with its current geographic mix, is approximately 23 percent.
At the end of the financial year, share capital totalled MSEK 56.9. The distribution by class of share is as follows:
| CLASS OF SHARE | AS OF 31 MARCH 2016 |
|---|---|
| Class A shares | 1,063,780 |
| Class B shares | 27,372,636 |
| Total number of shares before repurchasing | 28,436,416 |
| Less: Repurchased Class B shares | –340,000 |
| Total number of shares after repurchasing | 28,096,416 |
As of 31 March 2015, the number of Class B shares held in treasury totalled 340,000. There were no changes to the holding of treasury shares during the financial year. Accordingly, the number of Class B shares held in treasury as of 31 March 2016 amounted to 340,000, corresponding to 1.2 percent of the total number of shares and 0.9 percent of the total number of votes. Of the total number of shares held in treasury, 338,000 are reserved to cover the Company's obligations in the two call option programmes issued to senior management in the Group in September 2013 and September 2014, respectively.
The redemption price for call options issued in connection with the share-based incentive programme for 2013 is SEK 101.90 and the redemption period is from 12 September 2016 until 9 June 2017, inclusive. The redemption price for call options issued in connection with the share-based incentive programme for 2014 is SEK 176.50 and the redemption period is from 11 September 2017 until 8 June 2018, inclusive. At 31 March 2016, the share price was SEK 149.50. For more information about the dilution effect of call options issued, refer to page 11.
There have been no changes in the holding of treasury shares after the end of the financial year.
As reported in the Interim Report for the first quarter of 2015/2016, a previously concluded pension obligation for the benefit of a former CEO, who is now Chairman of the Board of B&B TOOLS AB, was conveyed to one of the Chairman's related companies during the quarter. No other transactions having a material impact on the Group's position or earnings otherwise occurred between B&B TOOLS and its related parties during the financial year.
During the financial year, no significant changes occurred with respect to risks and uncertainties, for either the Group or the Parent Company. For information about the Group's risks and uncertainties, refer to page 29 of B&B TOOLS' Annual Report for 2014/2015.
The Financial Report for the Group was prepared in accordance with IFRS and by applying IAS 34, Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Securities Market Act. The Financial Report for the Parent Company was prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, which conforms to the provisions detailed in RFR 2, Accounting for Legal Entities.
The same accounting policies and bases of judgement as in the Annual Report for 2014/2015 have been applied.
B&B TOOLS AB's Annual General Meeting will be held on Thursday, 25 August 2016, at 4:30 p.m. at IVA's Conference Centre, Grev Turegatan 16, Stockholm, Sweden.
The Board of B&B TOOLS AB proposes a dividend of SEK 5.00 (4.00) per share. Taking into account the repurchased Class B shares held in treasury, the proposed dividend corresponds to a total of approximately MSEK 140 (112).
The Board also intends to propose that the Annual General Meeting resolve to authorise a repurchase of own shares. In brief, this proposal entails that the Annual General Meeting would authorise the Board, during the period until the next Annual General Meeting, to repurchase a maximum number of own shares through Nasdaq Stockholm so that the Company's holding of treasury shares at no time exceeds 10 percent of the total number of shares in the Company. This authorisation would enable the Board to use repurchased shares to pay for acquisitions or to sell the shares in a manner other than through Nasdaq
1 APRIL 2015 – 31 MARCH 2016
Stockholm in order to finance acquisitions and to fulfil the Company's obligations in connection with share-based incentive programmes for senior management.
On February 8, B&B TOOLS announced that the Group would be introducing new operating segments as of 1 April 2016. To further increase competitiveness and streamline the operations, certain businesses have been transferred between the two segments compared with the division of segments initially presented – refer to page 2 for more information. The changes compared with the previously announced organisation represent a natural evolution and next step in the development of the operations. The names of the new segments have been resolved to Bergman & Beving (product companies) and Momentum Group (market companies), respectively.
The new operating segments will be reported externally for the first time in the Interim Report for the first quarter of the 2016/2017 financial year, which will be published on 19 July 2016. Pro form financial statements for the new operating segments for the 2015/2016 financial year will be presented in a separate press release prior to the publication of this report.
As of 1 April 2016, B&B TOOLS Group management comprises: Ulf Lilius, President & CEO and overall responsible for the operating segment Momentum Group; Pontus Boman, Executive Vice President and overall responsible for the operating segment Bergman & Beving; and Eva Hemb, Executive Vice President and CFO.
The Board of Directors of B&B TOOLS also decided today to assign Group management the task of investigating the possibility of splitting the Group's new operating segments into two separate listed companies in the future. The purpose of the split would be to increase the Group's earnings growth through a clearer focus on the ongoing development of strong brands and attractive market channels. Further information on the results of the investigation will be presented by the Board during the financial year.
No other significant events affecting the Group have occurred after the end of the financial year.
Stockholm, 11 May 2016
Ulf Lilius President & Chief Executive Officer
This report has not been subject to special review by the Company's auditors.
Ulf Lilius, President & CEO, Tel: +46 10 454 77 00 Mats Karlqvist, Head of Investor Relations, Tel: +46 70 660 31 32
Comprehensive contact information for B&B TOOLS and forthcoming information dates are presented on page 13.
This document is in all respects a translation of the Swedish original Financial Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.
| QUARTER (3 MOS) | FULL-YEAR (12 MOS) | ||||
|---|---|---|---|---|---|
| JAN-MAR | 2015/ | 2014/ | |||
| MSEK | 2016 | 2015 | 2016 | 2015 | |
| TOOLS / Momentum | 1,199 | 1,281 | 4,970 | 5,120 | |
| Product Companies | 987 | 1,028 | 4,011 | 4,025 | |
| Group-wide | 131 | 145 | 544 | 618 | |
| Eliminations | –382 | –460 | –1,704 | –1,860 | |
| The B&B TOOLS Group | 1,935 | 1,994 | 7,821 | 7,903 |
| REVENUE BY QUARTER | 2015/2016 | 2014/2015 | ||||||
|---|---|---|---|---|---|---|---|---|
| MSEK | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| TOOLS / Momentum | 1,199 | 1,295 | 1,162 | 1,314 | 1,281 | 1,332 | 1,194 | 1,313 |
| Product Companies | 987 | 1,007 | 965 | 1,052 | 1,028 | 1,008 | 960 | 1,029 |
| Group-wide | 131 | 139 | 135 | 139 | 145 | 153 | 154 | 166 |
| Eliminations | –382 | –448 | –423 | –451 | –460 | –466 | –457 | –477 |
| The B&B TOOLS Group | 1,935 | 1,993 | 1,839 | 2,054 | 1,994 | 2,027 | 1,851 | 2,031 |
| QUARTER (3 MOS) | FULL-YEAR (12 MOS) | |||||
|---|---|---|---|---|---|---|
| JAN-MAR | 2015/ | 2014/ | ||||
| MSEK | 2016 | 2015 | 2016 | 2015 | ||
| TOOLS / Momentum | 42 | 41 | 188 | 187 | ||
| Product Companies | 74 | 78 | 279 | 291 | ||
| Group-wide | –15 | –8 | –3 | –26 | ||
| Eliminations | 10 | 0 | 22 | –2 | ||
| The B&B TOOLS Group | 111 | 111 | 486 | 450 |
| OPERATING PROFIT BY QUARTER 2015/2016 |
2014/2015 | |||||||
|---|---|---|---|---|---|---|---|---|
| MSEK | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| TOOLS / Momentum | 42 | 49 | 57 | 40 | 41 | 41 | 58 | 47 |
| Product Companies | 74 | 59 | 70 | 76 | 78 | 59 | 80 | 74 |
| Group-wide | –15 | 0 | 3 | 9 | –8 | 0 | –5 | –13 |
| Eliminations | 10 | 7 | 1 | 4 | 0 | 4 | –3 | –3 |
| The B&B TOOLS Group | 111 | 115 | 131 | 129 | 111 | 104 | 130 | 105 |
* As of 1 April 2016, the B&B TOOLS Group comprises two new operating segments – Bergman & Beving and Momentum Group. For more detailed information, refer to pages 2 and 7.
| QUARTER (3 MOS) | FULL-YEAR (12 MOS) | |||
|---|---|---|---|---|
| MSEK | JAN-MAR 2016 |
2015 | 2015/ 2016 |
2014/ 2015 |
| Revenue | 1,935 | 1,994 | 7,821 | 7,903 |
| Shares of profit in associated companies | 0 | 0 | 0 | 0 |
| Other operating income | 2 | 25 | 34 | 48 |
| Total operating income | 1,937 | 2,019 | 7,855 | 7,951 |
| Cost of goods sold | –1,131 | –1,178 | –4,598 | –4,660 |
| Personnel costs | –434 | –422 | –1,682 | –1,675 |
| Depreciation, amortisation, impairment losses and reversal of impairment losses |
–7 | –7 | –28 | –28 |
| Other operating expenses | –254 | –301 | –1,061 | –1,138 |
| Total operating expenses | –1,826 | –1,908 | –7,369 | –7,501 |
| Operating profit | 111 | 111 | 486 | 450 |
| Financial income and expenses | –4 | –11 | –18 | –42 |
| Profit after financial items | 107 | 100 | 468 | 408 |
| Taxes | –20 | –25 | –106 | –102 |
| Net profit | 87 | 75 | 362 | 306 |
| Of which, attributable to: Parent Company shareholders |
87 | 75 | 362 | 306 |
| Earnings per share, SEK – Before dilution |
3.10 | 2.70 | 12.90 | 10.90 |
| – After dilution | 3.10 | 2.65 | 12.85 | 10.85 |
| QUARTER (3 MOS) FULL-YEAR (12 MOS) |
||||||
|---|---|---|---|---|---|---|
| JAN-MAR | 2015/ | 2014/ | ||||
| MSEK | 2016 | 2015 | 2016 | 2015 | ||
| Net profit | 87 | 75 | 362 | 306 | ||
| OTHER COMPREHENSIVE INCOME | ||||||
| Components that will not be reclassified to net profit | ||||||
| Remeasurement of defined-benefit pension plans |
–73 | –94 | 94 | –170 | ||
| Tax attributable to components that will not | ||||||
| be reclassified | 16 | 20 | –21 | 37 | ||
| –57 | –74 | 73 | –133 | |||
| Components that will be reclassified to net profit | ||||||
| Translation differences | 8 | 13 | –51 | 35 | ||
| Effects of hedge accounting | –11 | –3 | –8 | 14 | ||
| Tax attributable to components that will | ||||||
| be reclassified | 3 | 1 | 1 | –3 | ||
| 0 | 11 | –58 | 46 | |||
| Other comprehensive income, net after tax | –57 | –63 | 15 | –87 | ||
| Total comprehensive income | 30 | 12 | 377 | 219 | ||
| Of which, attributable to: | ||||||
| Parent Company shareholders | 30 | 12 | 377 | 219 |
1 APRIL 2015 – 31 MARCH 2016
| MSEK | 31 MAR 2016 | 31 MAR 2015 |
|---|---|---|
| ASSETS | ||
| Intangible non-current assets | 1,821 | 1,803 |
| Tangible non-current assets | 100 | 113 |
| Financial non-current assets | 5 | 5 |
| Shares in associated companies | 11 | 11 |
| Deferred tax assets | 88 | 122 |
| Inventories | 1,505 | 1,525 |
| Accounts receivable | 1,232 | 1,296 |
| Other current receivables | 216 | 197 |
| Cash and cash equivalents | 62 | 57 |
| Total assets | 5,040 | 5,129 |
| EQUITY AND LIABILITIES | ||
| Equity | 2,591 | 2,326 |
| Non-current interest-bearing liabilities | 150 | 365 |
| Provisions for pensions | 536 | 628 |
| Other non-current liabilities and provisions | 88 | 73 |
| Current interest-bearing liabilities | 132 | 225 |
| Accounts payable | 896 | 859 |
| Other current liabilities | 647 | 653 |
| Total equity and liabilities | 5,040 | 5,129 |
| Operational net loan liability * | 217 | 530 |
* Interest-bearing current and non-current liabilities, excluding net pension provisions, less cash and cash equivalents and interest-bearing receivables.
| MSEK | 31 MAR 2016 | 31 MAR 2015 |
|---|---|---|
| Opening equity | 2,326 | 2,203 |
| Dividend, Parent Company shareholders | –112 | –98 |
| Sale of call options | – | 2 |
| Total comprehensive income attributable to: | ||
| Parent Company shareholders | 377 | 219 |
| Closing equity | 2,591 | 2,326 |
| QUARTER (3 MOS) | FULL-YEAR (12 MOS) | ||||
|---|---|---|---|---|---|
| MSEK | JAN-MAR 2016 |
2015 | 2015/ 2016 |
2014/ 2015 |
|
| Operating activities before changes in working capital | 87 | 88 | 416 | 384 | |
| Changes in working capital | –22 | –65 | 77 | –54 | |
| Cash flow from operating activities | 65 | 23 | 493 | 330 | |
| Investments in intangible & tangible non-current assets | –16 | –3 | –57 | –41 | |
| Proceeds from sale of intangible & tangible non-current assets | 0 | 0 | 2 | 1 | |
| Acquisition of subsidiaries & other business units | 0 | 1 | –11 | –3 | |
| Proceeds from sale of subsidiaries & other business units | 1 | 9 | 30 | 102 | |
| Cash flow before financing | 50 | 30 | 457 | 389 | |
| Financing activities | –36 | –50 | –445 | –395 | |
| Cash flow for the period | 14 | –20 | 12 | –6 | |
| Cash and cash equivalents at the beginning of the period | 48 | 75 | 57 | 53 | |
| Exchange-rate differences in cash and cash equivalents | 0 | 2 | –7 | 10 | |
| Cash and cash equivalents at the end of the period | 62 | 57 | 62 | 57 |
B&B TOOLS measures financial instruments at fair value or cost in the balance sheet depending on their classification. In addition to items in the financial net debt, financial instruments also include accounts receivable and accounts payable. According to IFRS 7, financial instruments measured at fair value in the balance sheet are included in level 2 of the fair value hierarchy. The carrying amounts for financial assets and liabilities correspond to fair value in all material respects.
| EXTERNAL REVENUE |
REVENUE FROM INTERNAL CUSTOMERS |
TOTAL REVENUE |
OPERATING PROFIT |
|||||
|---|---|---|---|---|---|---|---|---|
| MSEK | 2015/ 2016 |
2014/ 2015 |
2015/ 2016 |
2014/ 2015 |
2015/ 2016 |
2014/ 2015 |
2015/ 2016 |
2014/ 2015 |
| TOOLS / Momentum | 4,963 | 5,113 | 7 | 7 | 4,970 | 5,120 | 188 | 187 |
| Product Companies | 2,849 | 2,776 | 1,162 | 1,249 | 4,011 | 4,025 | 279 | 291 |
| Total operating segment | 7,812 | 7,889 | 1,169 | 1,256 | 8,981 | 9,145 | 467 | 478 |
| Group-wide | 9 | 14 | 535 | 604 | 544 | 618 | –3 | –26 |
| Eliminations | – | – | –1,704 | –1,860 | –1,704 | –1,860 | 22 | –2 |
| The B&B TOOLS Group | 7,821 | 7,903 | 0 | 0 | 7,821 | 7,903 | 486 | 450 |
During the year, the Group's operating segments comprised TOOLS / Momentum (with four operating areas) and the Group's Product Companies (with five operating areas). The operating segments are consolidations of the operational organisation, as used by Group management and the Board of Directors to monitor operations.
TOOLS / Momentum comprised the Group's reseller operations in Sweden, Norway and Finland (which operate within the framework of TOOLS) and Momentum, which together form the Group's market channels for industrial consumables and industrial components for Nordic industry. The Group's Product Companies conduct operations in various product and application areas (tools and machinery, personal protective equipment, fastening elements, consumables and work environment) and provide TOOLS and other market channels with industrial consumables and related services. Group-wide includes the Group's management, accounting, support functions, infrastructure operations and property management. The support functions include HR, internal communications, IR and legal affairs. The infrastructure operations comprise IT and Supply Chain.
Intra-Group pricing between the operating segments occurs on market terms. There are no assets in the operating segments that are affected by material changes compared with the most recent Annual Report. The accounting policies are the same as those applied in the consolidated financial statements.
| QUARTER (3 MOS) | FULL-YEAR (12 MOS) | ||||
|---|---|---|---|---|---|
| SEK | JAN-MAR 2016 |
2015 | 2015/ 2016 |
2014/ 2015 |
|
| Earnings before dilution | 3.10 | 2.70 | 12.90 | 10.90 | |
| Earnings after dilution | 3.10 | 2.65 | 12.85 | 10.85 | |
| Equity, at the end of the period | 92.20 | 82.80 | |||
| Equity after dilution, at the end of the period | 92.25 | 82.65 | |||
| NUMBER OF SHARES OUTSTANDING IN THOUSANDS | |||||
| Number of shares outstanding before dilution | 28,096 | 28,096 | 28,096 | 28,096 | |
| Weighted number of shares outstanding before dilution | 28,096 | 28,096 | 28,096 | 28,096 | |
| Weighted number of shares outstanding after dilution | 28,131 | 28,143 | 28,127 | 28,144 |
4 Dilution effect based on issued and outstanding call options on repurchased Class B shares as of 31 March 2016.
3 months 0.1% 2015/2016 0.1% 2014/2015 0.2%
| QUARTER (3 MOS) | FULL-YEAR (12 MOS) | |||
|---|---|---|---|---|
| JAN-MAR | 2015/ | 2014/ | ||
| MSEK | 2016 | 2015 | 2016 | 2015 |
| Revenue | 5 | 17 | 36 | 39 |
| Other operating income | 0 | – | 0 | – |
| Total operating income | 5 | 17 | 36 | 39 |
| Operating expenses | –13 | –13 | –34 | –47 |
| Operating profit | –8 | 4 | 2 | –8 |
| Financial income and expenses | 15 | 16 | 316 | 245 |
| Profit after financial items | 7 | 20 | 318 | 237 |
| Appropriations | 157 | 125 | 157 | 125 |
| Profit before taxes | 164 | 145 | 475 | 362 |
| Taxes | –36 | –32 | –50 | –42 |
| Net profit | 128 | 113 | 425 | 320 |
| QUARTER (3 MOS) | FULL-YEAR (12 MOS) | ||||
|---|---|---|---|---|---|
| MSEK | JAN-MAR 2016 |
2015 | 2015/ 2016 |
2014/ 2015 |
|
| Net profit | 128 | 113 | 425 | 320 | |
| OTHER COMPREHENSIVE INCOME | |||||
| Effects of hedge accounting | –11 | –3 | –8 | 14 | |
| Taxes attributable to other comprehensive income | 3 | 0 | 1 | –3 | |
| Other comprehensive income, net after tax | –8 | –3 | –7 | 11 | |
| Total comprehensive income | 120 | 110 | 418 | 331 |
| MSEK | 31 MAR 2016 | 31 MAR 2015 |
|---|---|---|
| ASSETS | ||
| Intangible non-current assets | 0 | 0 |
| Tangible non-current assets | 0 | 1 |
| Financial non-current assets | 3,408 | 3,653 |
| Current receivables | 510 | 390 |
| Cash and cash equivalents | 0 | 0 |
| Total assets | 3,918 | 4,044 |
| EQUITY, PROVISIONS AND LIABILITIES | ||
| Equity | 2,212 | 1,906 |
| Untaxed reserves | 268 | 206 |
| Provisions | 45 | 47 |
| Non-current liabilities | 210 | 456 |
| Current liabilities | 1,183 | 1,429 |
| Total equity, provisions and liabilities | 3,918 | 4,044 |
| 12 MONTHS ENDING | ||||
|---|---|---|---|---|
| 31 MAR 2016 | 31 MAR 2015 | 31 MAR 2014 | 31 MAR 2013 | |
| Revenue, MSEK | 7,821 | 7,903 | 7,648 | 7,666 |
| Operating profit, MSEK | 486 | 450 | 340 | 289 |
| Profit after financial items, MSEK | 468 | 408 | 286 | 216 |
| Net profit, MSEK | 362 | 306 | 214 | 222 |
| Operating margin | 6.2% | 5.7% | 4.4% | 3.8% |
| Profit margin | 6.0% | 5.2% | 3.7% | 2.8% |
| P/WC (Operating profit/Working capital*) | 27% | 25% | 20% | 15% |
| Return on capital employed | 14% | 13% | 10% | 8% |
| Return on equity | 15% | 14% | 10% | 11% |
| Operational net loan liability (closing balance), MSEK | 217 | 530 | 819 | 914 |
| Equity (closing balance), MSEK | 2,591 | 2,326 | 2,203 | 2,065 |
| Equity/assets ratio | 51% | 45% | 43% | 39% |
| Operational net debt/equity ratio | 0.08 | 0.23 | 0.37 | 0.44 |
| Number of employees at the end of the period | 2,623 | 2,682 | 2,655 | 2,780 |
* Working capital = Inventories + Accounts Receivable – Accounts Payable.
| 12 MONTHS ENDING | |||||
|---|---|---|---|---|---|
| 31 MAR 2016 | 31 MAR 2015 | 31 MAR 2014 | 31 MAR 2013 | ||
| Earnings, SEK | 12.90 | 10.90 | 7.60 | 7.90 | |
| Earnings after dilution, SEK | 12.85 | 10.85 | 7.60 | 7.90 | |
| Cash flow from operating activities, SEK | 17.55 | 11.75 | 7.45 | 9.30 | |
| Equity, SEK | 92.20 | 82.80 | 78.40 | 73.50 | |
| Share price, SEK | 149.50 | 141.00 | 119.00 | 85.00 |
The Annual Report for the 2015/2016 financial year will be distributed to shareholders who so have requested in mid-July 2016 and will be available at the Company's head office and website as of the same date.
The Interim Report for 1 April – 30 June 2016 will be presented on 19 July 2016.
B&B TOOLS AB's Annual General Meeting 2016 will be held on 25 August 2016, at 4:30 p.m. at IVA's Conference Centre, Grev Turegatan 16, Stockholm, Sweden.
Visit www.bbtools.com to order reports and press releases.
The information in this report is such that it shall be disclosed by B&B TOOLS in accordance with the Swedish Securities Market Act, the Swedish Financial Instruments Trading Act or requirements imposed in the Rulebook for Issuers on Nasdaq Stockholm. The information was submitted for publication on 11 May 2016 at 13:40 p.m.
Mail address PO Box 10024 SE-100 55 Stockholm Sweden Visit Linnégatan 18 Stockholm Tel +46 10 454 77 00 Fax +46 10 454 77 01 Org No 556034-8590 Reg office Stockholm Web www.bbtools.com
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