Quarterly Report • Jul 26, 2007
Quarterly Report
Open in ViewerOpens in native device viewer
Nederman Holding AB (publ) (556576-4205)
| 1 April - 30 June | 1 January - 30 June | Full Year | July - June | |||
|---|---|---|---|---|---|---|
| TSEK | 2007 | 2006 | 2007 | 2006 | 2006 | 12 months |
| Net sales | 242 752 | 207 311 | 484 745 | 418 321 | 877 794 | 944 218 |
| Gross margin, % | 50,0 | 49,2 | 50,1 | 49,8 | 49,1 | 49,3 |
| EBITDA *) | 29 860 | 19 682 | 59 343 | 44 311 | 104 384 | 119 416 |
| EBITDA margin, % *) | 12,3 | 9,5 | 12,2 | 10,6 | 11,9 | 12,6 |
| EBIT *) | 25 747 | 18 733 | 51 217 | 39 378 | 85 376 | 97 215 |
| EBIT margin *) | 10,6 | 9,0 | 10,6 | 9,4 | 9,7 | 10,3 |
| EBT *) | 23 258 | 16 337 | 47 087 | 34 342 | 75 609 | 82 354 |
| Net profit *) | 18 014 | 12 503 | 33 413 | 26 001 | 54 953 | 58 045 |
| Earnings per share, SEK * )**) | 1,54 | 1,09 | 2,85 | 2,26 | 4,73 | 5,32 |
| Operating cash flow *) | 62 805 | 39 579 | 70 891 | 94 117 | ||
| Return on equity, % *) | 17,0 | 15,4 | 15,7 | 15,4 | ||
| Return on operating capital, % *) | 29,7 | 19,2 | 15,9 | 45,3 | ||
| Net debt | 141 476 | 184 756 | 163 893 | 141 476 | ||
| Net debt to equity ratio, % | 34,5 | 53,2 | 43,5 | 34,5 | ||
| Net debt/EBITDA, x *) | 1,6 | 1,2 | ||||
| EBITDA/financial net, x *) | 10,7 | 13,5 | ||||
| Average number of employees | 547 | 501 | 528 | 525 |
*) Before IPO charges of 6 000 pre tax
**) Before dilution; for 2007 there is no dilution
The most significant event for the company in the first six months of the year was the launch of Nederman on the stock market. The first day of trading was 16 May 2007. The launch was successful and the offering was oversubscribed by a factor of ten. The launch price was SEK 87. Nederman, which is listed as "NMAN" on the OMX Nordic Market Small Cap list, currently has around 7,000 shareholders.
In addition to the established customer categories of metal engineering and the automotive aftermarket industry, Nederman has been strongly involved in new sectors in the past year, such as composite materials, schools and other education centres. This resulted in a number of interesting orders from both sectors during the first half of 2007. In the first quarter Nederman received several significant orders for working environment units for the wind power industry in China, India and Denmark. All three countries are among the world leaders in this sector. In mid July Nederman received another major order from one of the leading producers of wings for wind power stations.
Over the past six months Nederman has made a breakthrough in the schools sector. State and municipal authorities in various parts of the world are setting stricter demands to ensure that students and staff have a healthy working environment. As previously reported, Nederman Spain received in June an order worth around SEK 5m from the Catalan authorities to equip over 60 education centres for welders. Similar orders worth around SEK 7m have been received from, among other countries, Denmark, the US and Kazakhstan.
During the second quarter Nederman established in New Zealand by signing a distribution agreement with Atsource Extraction Systems. The company, which previously marketed similar products, will in future solely market Nederman's products and systems.
In June Nederman acquired the Brazilian company AtSource Exaustao Localizada, Ltda. The company is wellestablished on the Brazilian market and staff have extensive knowledge of Nederman's products and applications.
The purchase sum was EUR 450,000, which was paid in cash. At the time of acquisition there was zero debt. As a result of the acquisition the Group's net sales are expected to increase by at least SEK 5m this year. Group profit in 2007 is not expected to be greatly affected.
Nederman's investments in new markets is successful and it is especially the markets outside North America and Europe which are growing fastest. Fast growth in Japan, China and other countries in South East Asia is setting greater demands for increased availability and sourcing closer to markets. The company has therefore decided to establish a Sourcing Unit in Shanghai, China, with central warehousing for the region and local assembly similar to the Sourcing Unit for the North American market that was opened in Canada in 2005. The Shanghai unit is expected to be in operation during the first quarter of 2008 with insignificant effects on the 2007 profit.
In February Nederman opened a representation office in Russia. According to the company's strategy, the initial focus will be on building a representative retail network in key segments.
The Austrian market, previously part of the German company, will be organised as an independent sales company during the third quarter with a separate national manager.
In line with the objective to further develop the North American market, Nederman has implemented an organisational change during the early part of the year. Krister Johnsson, previously the business area manager for Extraction & Filter Systems (EFS), has been appointed to be the regional manager for North America as of May 21. Per Lind has been appointed to be the business area manager in EFS.
The company expects demand in 2007 to remain good on the markets on which it is active. Continued expansion is expected on markets outside North America and Europe. The business cycle in Western Europe remains strong while Eastern Europe continues to experience high growth and investment in production facilities. The North American market is expected to remain relatively unchanged
Net sales for the period April-June amounted to SEK 243m (207), an increase of 17 per cent compared with same period last year. In local currency, the increase in net sales was 19 per cent. Net sales for the first six months of the year were SEK 485m (418), an increase of 16 per cent compared with the first half of 2006 and 19 per cent in local currency.
Incoming orders in the second quarter were SEK 266m (224), which is an increase of 18 per cent compared with the previous year. The increase in local currency was 20 per cent. Incoming orders for the first six months of the year were SEK 505m (444), which is an increase of 14 per cent compared with the previous year. The increase in local currency was 17 per cent.
The consolidated operating profit in the second quarter was SEK 26m (19), which corresponds to an operating margin of 10.6 per cent (9.0). This is an increase of 37 per cent compared with the second quarter of 2006. The gross margin was 50.0 per cent, (49.2).
Quarterly Invoicing MSEK 100 120 140 160 180 200 220 240 260 04q4 05q1 05q2 05q3 05q4 06q1 06q2 06q3 06q4 07q1 07q2 Quarter 500 600 700 800 900 1000 Rolling 4 quarter
Quarterly Orders Received MSEK
The consolidated operating profit in the first six months of the year before one-time costs in connection with the IPO process increased to SEK 51m (39), which corresponds to an operating margin of 10.6 per cent (9.4). Expenses connected with the IPO process are calculated at SEK 6m for 2007, which were charged completely to the first quarter. Operating profit after IPO expenses was SEK 45m. Operating profit climbed by 30 per cent in the first six months of 2007 compared with the first six months of 2006.
The gross margin was stable during the period at 50.1 per cent, compared with 49.8 per cent in the first half of 2006 and 49.1 per cent in the full year.
Earnings before tax increased to SEK 47m (34) before one-time expenses and SEK 41m after one-time expenses. Net profit increased to SEK 33m (26) before IPO expenses and SEK 29m after IPO expenses. Currency changes did not affect results significantly.
Gross investments during the period amounted to SEK 9m (15).
The liquidity in the Group during the reporting period increased by SEK 11.2m (–3.5). At the close of the period, the Group had SEK 61m in cash and cash equivalents and SEK 30m in available but unutilised overdraft facilities.
Shareholders' equity in the Group amounts to SEK 410m. Following the 10:1 split decided at the extraordinary general meeting held on 11 April 2007, the total number of shares at the close of the period was 11,715,340.
The Group's equity/assets ratio was 50.3 per cent as at 30 June 2007 (46.5) and the net debt/equity ratio, calculated as the financial net interest-bearing debt divided by shareholders' equity, was 34.5 per cent (53.2).
The average number of employees during the first six months of the year was 547 (501). The number of employees at the end of the period was 550 (518).
In the business area Extraction & Filter Systems, net sales increased to SEK 201m (177) or with 13 per cent compared with the second quarter of 2006. Net sales during the first six months of the year were SEK 401m (354), which was also an increase of 13 per cent compared with the first half of 2006.
Operating profit in the second quarter increased to SEK 27m (22), corresponding to an operating margin of 13.5 per cent (12.5). Profit for the first six months of the year was SEK 53m (43), or an operating margin of 13.3 per cent (12.3).
In the business area Hose & Cable Reels, net sales in the second quarter increased to SEK 42m (30) or with 39 per cent compared with the second quarter of 2006. Net sales during the first six months of the year were SEK 84 (64), an increase of 32 per cent compared with the first half of 2006. The acquisition of the Belgian installation and service company, Leda, was responsible for 11 per cent of this increase. The investment within car repair workshops in certain selected markets has also positively contributed to the increase in sales within the business area.
The business area's operating profit in the second quarter was SEK 4.4m (3.2), which was equivalent to an operating margin of 10.5 per cent (10.5). The operating profit during the first half of the year was SEK 8.3m (7.1), equivalent to an operating margin of 9.8 per cent (11.1).
Nederman's investments in new markets have resulted in a good growth during the first half of 2007. The sales in Other Markets, which are markets outside of Europe and North America, increased by around 90 per cent compared with the same period the previous year, though from low levels. The net sales in the Nordic Region increased by 21 per cent compared with the first half of 2006. There was good growth in all sub-markets. The growth in Denmark, a result of the changes made during 2006, was especially pleasing.
The Group and the parent company are exposed to a number of risks primarily connected with the buying and selling of products in foreign currency. These risks are described in detail on pages 10 and 11 of the listing prospectus dated 30 April 2007 and in note 26 in the company's annual report for the 2006 financial year. During the reporting period no circumstances have arisen to change the assessment of the identified risks.
This interim report has been prepared in accordance with International Financial Reporting Standards, IFRS, as approved by the EU Commission for application within the EU. The interim report is also prepared in accordance with IAS 34, Interim Financial Reporting, which is in accordance with the requirements of recommendation RR31, Interim Reports for Groups, of the Swedish Financial Accounting Standards Council. For a description of the Group's accounting principles and definitions, please see the 2006 annual report. The principles applied are unchanged. Annual reports and interim reports published prior to the end of June 2006 were prepared in accordance with the Swedish Annual Accounts Act and the general guidance of the Swedish Accounting Standards Board. In connection with the preparation of the listing prospectus, historical financial information for comparable periods was re-stated in accordance with IFRS.
| 1 April - 30 June | 1 January - 30 June | Full year | July – June | |||
|---|---|---|---|---|---|---|
| TSEK | 2007 | 2006 | 2007 | 2006 | 2006 | 12 months |
| Net sales | 242 752 | 207 311 | 484 745 | 418 321 | 877 794 | 944 218 |
| Cost of goods sold | -121 316 | -105 217 | -242 070 | -210 181 | -446 529 | -478 418 |
| Gross profit | 121 436 | 102 094 | 242 675 | 208 140 | 431 265 | 465 800 |
| Other operating income | 1 218 | 1 103 | 1 740 | 3 193 | 7 886 | 6 433 |
| Selling expense | -76 463 | -66 088 | -152 105 | -132 189 | -275 757 | -295 673 |
| Administrative expenses | -16 185 | -15 550 | -37 038 | -30 243 | -58 967 | -65 762 |
| Research and development expenses | -3 689 | -3 508 | -6 956 | -7 314 | -14 356 | -13 998 |
| Other operating expenses | -570 | 682 | -3 099 | -2 209 | -4 695 | -5 585 |
| Operating profit | 25 747 | 18 733 | 45 217 | 39 378 | 85 376 | 91 215 |
| Financial income | 123 | 230 | 985 | 230 | 794 | 1 549 |
| Financial expenses | -2 612 | -2 626 | -5 115 | -5 266 | -10 561 | -10 410 |
| Net from financial items | -2 489 | -2 396 | -4 130 | -5 036 | -9 767 | -8 861 |
| Profit/loss before taxes | 23 258 | 16 337 | 41 087 | 34 342 | 75 609 | 82 354 |
| Taxes | -5 244 | -3 834 | -11 994 | -8 341 | -20 656 | -24 309 |
| Net profit/loss | 18 014 | 12 503 | 29 093 | 26 001 | 54 953 | 58 045 |
| Earnings per share, SEK | 1,54 | 1,09 | 2,48 | 2,26 | 4,73 | 4,95 |
| Earnings per share after dilution, SEK | 1,54 | 1,06 | 2,48 | 2,19 | 4,66 | 4,95 |
| Number of shares before dilution, | ||||||
| average | 11 715 340 | 11 512 340 | 11 715 340 | 11 512 340 | 11 613 010 | 11 715 175 |
| Number of shares after dilution, average |
||||||
| Number of shares at end of period | 11 715 340 | 11 809 341 | 11 715 340 | 11 887 156 | 11 786 430 | 11 715 340 |
| 11 715 340 | 11 512 340 | 11 715 340 | 11 512 340 | 11 715 340 |
| As of June 30 | Dec 31 | ||
|---|---|---|---|
| TSEK | 2007 | 2006 | 2006 |
| Assets | |||
| Goodwill | 360 663 | 346 734 | 348 010 |
| Other intangible fixed assets | 23 438 | 23 141 | 22 885 |
| Tangible fixed assets | 38 270 | 38 126 | 37 451 |
| Long term receivables | 901 | 2 027 | 772 |
| Deferred tax assets | 12 296 | 12 867 | 12 210 |
| Total fixed assets | 435 568 | 422 895 | 421 328 |
| Inventories | 106 180 | 84 349 | 89 776 |
| Accounts receivable | 188 131 | 159 898 | 187 815 |
| Other short term receivable | 24 475 | 28 812 | 24 081 |
| Cash and cash equivalents | 61 388 | 51 496 | 50 235 |
| Total current assets | 380 174 | 324 555 | 351 907 |
| Total assets | 815 742 | 747 450 | 773 235 |
| Total equity | 410 212 | 347 386 | 376 587 |
| Liabilities | |||
| Long term interest bearing liabilities | 140 626 | 169 615 | 146 264 |
| Other long term liabilities | 3 407 | 2 269 | 0 |
| Provision for pensions | 29 270 | 27 963 | 28 389 |
| Deferred tax liabilities | 10 558 | 12 590 | 13 258 |
| Total long term liabilities | 183 861 | 212 437 | 187 911 |
| Short term interest bearing liabilities | 32 968 | 38 674 | 39 475 |
| Accounts payable | 92 995 | 69 954 | 84 160 |
| Other short term liabilities | 95 706 | 78 999 | 85 102 |
| Total short term liabilities | 221 669 | 187 627 | 208 737 |
| Total Liabilities | 405 530 | 400 064 | 396 648 |
| Total equity and liabilities | 815 742 | 747 450 | 773 235 |
| 1 January - 30 June | Full Year | July - June | ||
|---|---|---|---|---|
| TSEK | 2007 | 2006 | 2006 | 12 months |
| Operating Profit | 45 217 | 39 378 | 85 376 | 91 215 |
| Adjustments for: | ||||
| Depreciation on fixed assets | 11 803 | 8 609 | 19 008 | 22 202 |
| Other adjustments | 0 | 0 | -4 550 | -4 550 |
| Received and paid interest | -4 023 | -6 044 | -9 299 | -7 278 |
| Paid taxes | -12 937 | -10 118 | -15 201 | -18 020 |
| Cash flow from current operations before | ||||
| changes in working capital | 40 060 | 31 825 | 75 334 | 83 569 |
| Cash flow from changes in working capital | 8 885 | 6 769 | -14 259 | -12 143 |
| Cash flow from current operations | 48 945 | 38 594 | 61 075 | 71 426 |
| Cash flow from capital expenditure | -9 100 | -15 177 | -14 684 | -8 607 |
| Investments in subsidiaries | -14 608 | -4 708 | -19 316 | |
| Cash flow before financing activities | 25 237 | 23 417 | 41 683 | 43 503 |
| Cash flow from financing activities | -15 453 | -26 435 | -44 955 | -33 973 |
| Cash flow for the period | 9 784 | -3 018 | -3 272 | 9 530 |
| Cash at the beginning of the year | 50 235 | 55 038 | 55 038 | 50 235 |
| Exchange rate differences in cash | 1 369 | -524 | -1 531 | 362 |
| Cash at the end of the period | 61 388 | 51 496 | 50 235 | 60 127 |
| Specification of acquisitions | ||||
| Purchase price including direct cost | 14 608 | 4 708 | 19 316 | |
| Real value of net assets | 2 505 | 3 324 | 5 829 | |
| Goodwill | 12 103 | 1 384 | 13 487 | |
| Acquired assets and liabilities | ||||
| Tangible fixed assets | 936 | 8 | 944 | |
| Deferred tax | 3 | 3 | ||
| Current asset | 4 535 | 3 316 | 7 851 | |
| Cash | 6 632 | 6 632 | ||
| Current liabilities | -2 969 | -2 969 | ||
| 9 137 | 3 324 | 12 461 | ||
| Whereof cash in acquired units | -6 632 | -6 632 | ||
| Total | 2 505 | 3 324 | 5 829 |
| As of June 30 | Dec 31 | ||
|---|---|---|---|
| TSEK | 2007 | 2006 | 2006 |
| Equity January 1 | 376 587 | 325 246 | 325 246 |
| Changes in translation reserve for the period | 4 532 | -3 861 | -9 499 |
| Profit/loss for the period | 29 093 | 26 001 | 54 953 |
| Conversion of loans | 0 | 0 | 5 887 |
| Equity end of period | 410 212 | 347 386 | 376 587 |
| 1 April - 30 June | 1 January - 30 June | Full Year July - June | ||||
|---|---|---|---|---|---|---|
| TSEK | 2007 | 2006 | 2007 | 2006 | 2006 | 12 months |
| Operating profit/loss | -3 467 | -4 179 | -12 324 | -6 944 | -12 235 | -17 615 |
| Financial items | -1 959 | 1 573 | -3 383 | -367 | 20 497 | 17 481 |
| Profit/loss after financial items | -5 426 | -2 606 | -15 707 | -7 311 | 8 262 | -134 |
| Transfers to/from untaxed reserves | 0 | 0 | 2 181 | 2 181 | ||
| Profit/loss before taxes | -5 426 | -2 606 | -15 707 | -7 311 | 10 443 | 2 047 |
| 0 | 0 | 0 | ||||
| Tax | 1 505 | 730 | 4 370 | 2 033 | 4 721 | 7 058 |
| Net profit/loss | -3 921 | -1 876 | -11 337 | -5 278 | 15 164 | 9 105 |
| As of June 30 | Dec 31 | ||
|---|---|---|---|
| TSEK | 2007 | 2006 | 2006 |
| Assets | |||
| Total fixed assets | 529 823 | 525 509 | 525 135 |
| Total current | |||
| assets | 13 220 | 8 327 | 22 078 |
| Total assets | 543 043 | 533 836 | 547 213 |
| Equity | |||
| Total equity | 337 286 | 308 448 | 348 623 |
| Untaxed reserves | 1 016 | 3 197 | 1 016 |
| Liabilities | |||
| Total long term liabilities | 135 000 | 171 613 | 140 000 |
| Total current liabilities | 69 741 | 50 578 | 57 574 |
| Total liabilities | 204 741 | 222 191 | 197 574 |
| Total equity and liabilities | 543 043 | 533 836 | 547 213 |
This interim report has not been subject to any review by the company's auditors.
Interim report January – September, 3rd quarter 26 October 2007 Release of unaudited annual earnings figures 14 February 2008
The interim report gives a fair picture of the Group's and parent company's activities, position and results. The report also describes the significant risks and uncertainties facing the parent company and Group companies.
Helsingborg, Sweden 25th July 2007
Anders Scharp Chairman of the Board
Board member Board member Board member
Hans Stråberg Peter Möller Gunnar Gremlin
Caspar Callerström Jan Eric Larson Sven Kristensson Board member Board member President & CEO
Bengt Olsson Rolf Rånes Employee Representative Employee Representative
Sven Kristensson, CEO Telephone +46 (0)42-18 87 00 e-mail: [email protected]
Anders Agering, CFO Telephone +46 (0)42-18 87 00 e-mail: [email protected]
For additional information, see Nederman's website www.nederman.com
Telephone +46 (0) 42-18 87 00 Telefax +46 (0) 42-18 77 11
Nederman Holding AB (publ) has its registered office in Helsingborg, Sweden Organisation number 556576-4205
Nederman is one of the world's leading companies with products and systems for extraction of dust, smoke, automobile exhaust fumes, and with equipment for industrial cleaning. These are based on a vacuum technology, which encompasses the entire range from high vacuum to middle and low vacuum. Nederman also has an extensive programme of hose and selfretractable cable reels for water, air, oil, and other media.
Nederman's systems contribute in several ways to creating clean, efficient and safe workplaces all over the world.
The company's commitments to customers encompass everything from preliminary studies and project planning to installation, operational start-up and service.
The manufacturing is certified according to ISO 9001 and ISO 14000. Units for production and assembly are located in Sweden, Norway and Canada.
Nederman's products and systems are marketed by our own subsidiaries in 24 countries, and by agents and distributors in more than 50 countries.
The Group has approximately 540 employees.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.