Quarterly Report • Apr 29, 2021
Quarterly Report
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• The Board of Directors to investigate the possibility of splitting the Group into two separate listed companies.
On 9 April 2021, the Board of Directors decided to assign Group management the task of investigating the conditions for splitting the Group into two separate listed companies. The aim is to create increased shareholder value through increased focus.
• The business area Tools, Consumables, Workwear & Protective Equipment has changed its name to Alligo.
On 19 April 2021, the business area Tools, Consumables, Workwear & Protective Equipment changed its name to Alligo. The business area will continue to work with its strong concept brands to customers – but with the launch of the common name Alligo, Swedol, TOOLS and the other companies in the business area are taking the next step in their shared journey of growth. The new business area name has been used throughout this report.
Momentum Group's acquisition of Swedol was completed during spring 2020 and closed on 1 April 2020. Any instances where the comparative figures in this report include Swedol for the period prior to the closing date on 1 April 2020 are specifically noted. The bases for the financial history including Swedol are presented in a separate press release dated 24 June 2020 – Supplementary financial information relating to the 2019/20 financial year for the Momentum Group.
Momentum Group AB (publ)
Mail address: PO Box 5900, SE-102 40 Stockholm, Sweden │ Visit: Östermalmsgatan 87 D, Stockholm │ Tel: +46 10 454 54 70
Org No: 559072-1352 Reg office: Stockholm │ www.momentum.group
We are pleased to report that the general demand situation continued to recover slightly compared with the restraint and caution that characterised 2020, although with certain variations between customer segments and countries, with Norway continuing to experience the most significant negative impact. Through the measures to increase efficiency implemented in 2020 and continuously taken as needed, we have succeeded in maintaining our profitability and are continuing to generate significantly higher cash flows. This provides us with favourable conditions for continued profitable growth, both organically and through acquisitions.
In the business area Alligo, the integration of TOOLS and Swedol is the main focus area. The integration of stores is proceeding according to plan, new common purchasing agreements are continuously being signed and the introduction of proprietary product brands is ongoing in several of the business area's operations. In parallel, work is under way to reverse the negative sales trend in the industrial segment in order to create a positive earnings and sales trend going forward.
In the business area Components & Services, we are continuing our efforts to achieve acquisitiondriven growth (while maintaining profitability) and we successfully completed four acquisitions during the first quarter with total revenue of approximately MSEK 285 and favourable profitability. With these new businesses, the business area has strengthened its market position as a solid supplier of industrial components and industrial services in the Nordic region.
In an effort to provide the two business areas with better prerequisites to achieve their goals in an optimal manner and thereby increase shareholder value, the Board of Directors has now assigned us in Group management the task of investigating the possibility of splitting the Group into two separate listed companies as well as the conditions for such a split. In the past, we have shown that an increased focus creates positive effects and improved earnings, and our two business areas, which are already operationally independent, have all of the necessary prerequisites to stand on their own two feet. The Board intends to present further information on the results of the investigation during the financial year.
Stockholm, April 2021
President & CEO
| 3 MONTHS ENDING | 12 MONTHS ENDING | |||||
|---|---|---|---|---|---|---|
| 31 MAR 2021 |
31 MAR 2020 |
Δ | 31 MAR 2021 |
31 MAR 2020 |
Δ | |
| Revenue, MSEK | 2,325 | 1,539 | 51% | 9,171 | 6,135 | 49% |
| Revenue including Swedol 2019/20 1 | 2,325 | 2,368 | –2% | 9,171 | 9,780 | –6% |
| Operating profit, MSEK | 108 | 80 | 35% | 441 | 303 | 46% |
| of which: Items affecting comparability | – | –5 | –101 | –14 | ||
| of which: Amortisation of intangible assets incurred | ||||||
| in connection with corporate acquisitions | –17 | –6 | –67 | –21 | ||
| EBITA, MSEK | 125 | 91 | 37% | 609 | 338 | 80% |
| EBITA including Swedol 2019/20 1 | 125 | 134 | –7% | 609 | 681 | –11% |
| Profit after financial items, MSEK | 98 | 74 | 32% | 392 | 283 | 39% |
| Net profit (after taxes), MSEK | 77 | 54 | 43% | 306 | 217 | 41% |
| Earnings per share, SEK | 1.55 | 1.95 | –21% | 6.10 | 7.70 | –21% |
| Operating margin | 4.6% | 5.2% | 4.8% | 4.9% | ||
| EBITA margin | 5.4% | 5.9% | 6.6% | 5.5% | ||
| EBITA margin including Swedol 2019/20 1 | 5.4% | 5.7% | 6.6% | 7.0% | ||
| Profit margin | 4.2% | 4.8% | 4.3% | 4.6% | ||
| Return on equity | 11% | 16% | ||||
| Return on working capital (EBITA/WC) | 31% | 28% | ||||
| EBITA/WC including Swedol 2019/20 1 | 31% | 30% | ||||
| Equity per share, SEK | 62.65 | 56.95 | 10% | |||
| Equity/assets ratio | 39% | 48% | ||||
| Number of employees at the end of the period | 2,786 | 1,651 | 69% |
1) Calculated as though the acquisition of Swedol had closed on 1 April 2019.
Revenue amounted to MSEK 2,325 (1,539), with the change compared with the previous year primarily attributable to the acquisition of Swedol. Compared with revenue for the corresponding quarter in the preceding year including Swedol (MSEK 2,368), revenue declined by 2 percent. Revenue for comparable units (including Swedol), measured in local currency and adjusted for the number of trading days, increased by 0.8 percent compared with the corresponding quarter in the preceding year. The quarter included one trading day fewer than the preceding year.
Operating profit amounted to MSEK 108 (80), with the change compared with the previous year primarily attributable to the acquisition of Swedol. EBITA (operating profit excluding items affecting comparability and amortisation of intangible assets incurred in connection with corporate acquisitions) amounted to MSEK 125 (91). Compared with EBITA for the corresponding quarter in the preceding year including Swedol (MSEK 134), EBITA declined by 7 percent and the EBITA margin amounted to 5.4 percent (5.7). Operating profit was charged with depreciation of MSEK –15 (–4) on tangible non-current assets and amortisation of MSEK –27 (–9) on intangible non-current assets. Exchange-rate translation effects had a net impact of MSEK –1 (–1) on operating profit.
Profit after financial items totalled MSEK 98 (74) and net profit amounted to MSEK 77 (54), which corresponds to earnings per share of SEK 1.55 (1.95) for the quarter.
* Since Momentum Group changed its financial year to the calendar year, the 2020 financial year covered the 1 April to 31 December 2020 period (9 months).
The Momentum Group comprises two business areas – Alligo and Components & Services. Group-wide includes the Group's management, finance function and support functions (including internal communications, investor relations and legal affairs).
General demand in the first quarter of 2021 recovered slightly compared with the significantly restrained and cautious attitude in Momentum Group's main markets, which characterised the 2020 financial year, primarily driven by the uncertainty regarding the COVID-19 pandemic. The main changes in demand were noted among larger customers in the industrial sector, while small and medium-sized customers have demonstrated greater tolerance to the slowdown. Performances also continued to vary between countries. Towards the end of the quarter, the Group noted increased demand from export-oriented customers, which are widely impacted by developments in the global markets. Accordingly, it is not currently possible to predict with any certainty how the pandemic will affect Momentum Group in the coming quarters of 2021. The current situation has not led to any changes in material bases of judgement compared with those applied in the Annual Report for 2020.
| QUARTER | |
|---|---|
| JAN-MAR 20201 | |
| Change in revenue for: | |
| Comparable units in local currency | 0.8% |
| Currency effects | –1.9% |
| Number of trading days | –2.6% |
| Other units2 | 1.9% |
| Total change | –1.8% |
1) Swedol is included in "Comparable units" as though the acquisition had closed on 1 April 2019.
2) Other acquisitions in 2020-2021 (excluding Swedol).
The business area comprises Swedol and TOOLS with Univern and Grolls, and Gigant, Mercus Yrkeskläder, TriffiQ Företagsprofilering, Reklamproffsen and Company Line, which offer products and services related to tools, consumables, workwear, personal protective equipment, workplace equipment as well as promotional products for the industrial, construction and public sectors in the Nordic region, among others.
We made major strides during the first quarter through the completion of a new set of values for the entire business area and the launch of our new name – Alligo. With a shared mission, vision and values in place, the business area is in a stronger shared position to tackle the future challenges in its operating environment and market. Our goal is to achieve long-term profitable growth, which we can accomplish through modern and sustainable operations that focus on the customer and deliver value by making businesses work.
Other aspects of the integration have proceeded quickly and according to plan. To date, we have carried out eight store integrations in Sweden and three in Norway. The expansion of the logistics centre in Örebro is now finished and the final inspection is complete. As a result, we were able to close Grolls' central warehouse in Hisings Backa (Gothenburg) and move it to Örebro, enabling a higher degree of automation, which will help us to better serve our customers and maintain higher inventory efficiency in the business area. However, the availability of products was negatively impacted by the container shortage currently affecting the market and by the effects of the earlier blockage in the Suez Canal. This resulted in certain delays in deliveries of proprietary brands and new product launches.
The previously announced integration of TOOLS in Finland into our common IT platform was carried out according to plan and without any major difficulties during the quarter. In parallel with this, our legal structure was simplified.
Alligo delivered a stable sales performance during the quarter. All in all, sales declined slightly compared with the corresponding quarter in the preceding year, but adjusted for the number of trading days and currency fluctuations, the business area's sales increased by 1 percent. However, the sales performance in the industrial segment remained weak, and we are implementing numerous purposeful initiatives as part of our targeted, long-term efforts to reverse this trend.
Note: The business area is presented below as of 1 April 2020, with comparative figures as though the acquisition of Swedol and other changes in the business area's structure had taken place as of 1 April 2019. For information about the outcome for each business area (operating segment) for the preceding year excluding Swedol, refer to the table in Note 2.
| 3 MONTHS ENDING | 12 MONTHS ENDING | ||||
|---|---|---|---|---|---|
| 31 MAR 2021 |
31 MAR 2020 |
31 MAR 2021 |
31 MAR 2020 |
||
| REVENUE, MSEK | |||||
| Sweden | 1,207 | 1,153 | 4,947 | 4,841 | |
| Norway | 547 | 606 | 2,094 | 2,502 | |
| Finland | 286 | 326 | 1,201 | 1,313 | |
| Other countries | 6 | 6 | 31 | 29 | |
| Eliminations | –64 | –39 | –256 | –109 | |
| Total BA | 1,982 | 2,052 | 8,017 | 8,576 | |
| EBITA, MSEK | |||||
| Sweden | 73 | 60 | 363 | 382 | |
| Norway | 11 | 17 | 56 | 86 | |
| Finland | 1 | 15 | 45 | 66 | |
| Other countries | 0 | –1 | 1 | 0 | |
| Total BA | 85 | 91 | 465 | 534 | |
| EBITA MARGIN, % | |||||
| Sweden | 6.0% | 5.2% | 7.3% | 7.9% | |
| Norway | 2.0% | 2.8% | 2.7% | 3.4% | |
| Finland | 0.3% | 4.6% | 3.7% | 5.0% | |
| Other countries | 0.0% | –16.7% | 3.2% | 0.0% | |
| Total BA | 4.3% | 4.4% | 5.8% | 6.2% | |
| OTHER INFORMATION | |||||
| Return on working capital (EBITA/WC), % | 26% | 26% |
Demand in the business area Alligo was stable during the first quarter of the financial year, and revenue for comparable units in the business area increased by a total of just over 1 percent1 during the quarter. There were major variations between countries, however, with Sweden reporting increased sales for comparable units, while sales in both Norway and Finland declined – which also had a negative impact on the earnings performance of the entire business area. Measures are being taken continuously to increase sales, margins and efficiency.
1 Comparable units (including Swedol), measured in local currency and adjusted for the number of trading days this year compared with the preceding year.
Revenue for the operations in Sweden increased by a total of approximately 2 percent2 during the quarter compared with the previous year. It is still primarily sales to major industrial companies that were negatively impacted by the prevailing cautious approach, while sales to small and medium-sized customers were stable during the quarter. The earnings trend was relatively strong during the quarter, and the integration had a positive impact in the form of synergies and cost-saving measures. The specialist companies within Workwear & Profile Materials contributed positively to the earnings performance during the quarter.
Revenue for the operations in Norway decreased by approximately 2 percent2 during the quarter. The pandemic continued to have a negative impact on overall demand, not least within the oil & gas sector, which had an adverse effect on sales to both retail and direct sales customers during the quarter. This decrease in sales was reflected in earnings for the Norwegian operations. Cost-saving measures continue to be implemented, including in the logistics functions.
Revenue for the operations in Finland decreased by approximately 6 percent2 during the quarter. Demand continued to be negatively impacted by the decline in demand in the relatively export-dependent Finnish industrial sector, including the pulp & paper and shipbuilding industries. The operations are continuously implementing customised cost-saving measures with the aim of reversing the negative earnings trend.
This business area comprises Momentum Industrial, Öbergs i Karlstad, ETAB Industriautomation, Rörick El. Verkstad, Mekano and Mekano i Sävedalen, Carl A Nilssons El. Rep. Verkstad and JNF Køge, which offer spare parts, services and repairs to customers in the industrial sector in the Nordic region.
The business area's operations performed well after a slightly weaker sales performance at the start of the quarter. Measures taken to increase efficiency, price adjustments and a favourable product mix contributed to a continued stable earnings performance, favourable profitability and strong cash flows.
Our newly acquired businesses Öbergs i Karlstad, Mekano and Mekano i Sävedalen all contributed to our positive sales and earnings performance during the quarter and are further strengthening our marketleading position as a supplier of industrial components and industrial services to Nordic industry. On 1 April, we also closed the acquisition of three electromechanical workshops from Assemblin El, which are now part of Rörick El. Verkstad. In total, these four acquisitions will contribute annual revenue of approximately MSEK 285 to the business area.
We are continuing to evaluate attractive acquisition opportunities that would further strengthen our market position and profitability.
| 3 MONTHS ENDING | 12 MONTHS ENDING | ||||
|---|---|---|---|---|---|
| 31 MAR | 31 MAR | 31 MAR | 31 MAR | ||
| REVENUE, MSEK | 2021 | 2020 | 2021 | 2020 | |
| Total BA | 350 | 326 | 1,187 | 1,254 | |
| EBITA, MSEK | |||||
| Total BA | 43 | 45 | 154 | 154 | |
| EBITA MARGIN, % | |||||
| Total BA | 12.3% | 13.8% | 13.0% | 12.3% | |
| OTHER INFORMATION Return on working capital (EBITA/WC), % |
62% | 59% |
Sales in the business area Components & Services were relatively stable during the first quarter of the financial year, with demand gradually improving after a somewhat cautious start to the year. Revenue for comparable units in the business area decreased by approximately 3 percent2 during the quarter, while acquired businesses contributed approximately MSEK 45 in revenue.
For Momentum Industrial, demand gradually increased in all product areas during the quarter, including demand from the steel and metal industry. Many industrial customers are carrying out maintenance work, which continues to contribute to favourable business opportunities for the operations, and improved margins and previously implemented measures to increase cost efficiency contributed to a stable earnings performance.
Öbergs i Karlstad and ETAB Industriautomation, which specialise in industrial components, and Rörick Elektriska Verkstad, the Mekano companies and Carl A Nilsson, which specialise in service and repairs, delivered a stable performance during the quarter and made a positive contribution to the business area's sales and earnings performance.
2 Comparable units (including Swedol), measured in local currency and adjusted for the number of trading days this year compared with the preceding year.
EBITA for "Group-wide and eliminations" amounted to MSEK –3 (–2) for the quarter and items affecting comparability to MSEK 0 (–5). Items affecting comparability in the previous year pertained to costs for advisors and other costs arising from the acquisition of Swedol. Accordingly, an operating loss of MSEK –3 (–7) was reported.
The Parent Company's revenue for the quarter amounted to MSEK 6 (7) and the loss after financial items to MSEK –2 (–1). The results include no Group contributions (–).
At the end of the quarter, the number of employees in the Group amounted to 2,786, compared with 2,670 at the beginning of the year. The change in the number of employees is mainly attributable to the corporate acquisitions that were closed in February 2021.
To date, Momentum Group has conducted four corporate acquisitions with closing during the 2021 financial year.
With the aim of further strengthening the Group's market position in service and maintenance for Swedish industry, an agreement was signed to acquire three electromechanical service workshops from Assemblin El AB in early February 2021. The acquired workshops, which have their origin in NEA workshops (Närkes Elektriska), generate annual revenue of approximately MSEK 90 with favourable profitability and have some 45 employees. The acquisition was conducted as a conveyance of assets and liabilities and closing took place in early April 2021.
Momentum Group also signed an agreement in early February 2021 to acquire 70 percent of the shares of Mekano AB and 100 percent of the shares of Mekano i Sävedalen AB, further strengthening the Group's market position in service and maintenance for Swedish industry. Mekano is one of Sweden's leading suppliers of products and services for the industrial services market, and the two Mekano companies generate combined annual revenue of approximately MSEK 145 with favourable profitability and have some 85 employees. Closing took place in February 2021.
In early February 2021, Momentum Group acquired 100 percent of the shares in Öbergs i Karlstad AB ("Öbergs"). The acquisition of Öbergs, a market-leading specialist company in pneumatics in Sweden, further strengthens the Group's position as a leading supplier of industrial components and related services to Swedish industry. Öbergs generates annual revenue of approximately MSEK 50 with favourable profitability and has 12 employees. Closing took place in conjunction with the acquisition.
Refer to the summary of acquisitions completed since the 2015/16 financial year on page 16.
The Group's profitability, measured as the return on equity, amounted to 11 percent (16) and the return on working capital (EBITA/WC) to 31 percent (28) for the most recent 12-month period. The return on capital employed for the corresponding period was 9 percent (14).
Cash flow from operating activities before changes in working capital for the quarter totalled MSEK 180 (122). During the period, inventories increased by MSEK 20, while operating receivables decreased by MSEK 5. Operating liabilities rose by MSEK 50. Accordingly, cash flow from operating activities for the period amounted to MSEK 215 (105).
Cash flow for the quarter was also impacted in a net amount of MSEK –38 (–4) pertaining to investments in and divestments of non-current assets, and a net amount of MSEK –78 (–8) pertaining to acquisitions of subsidiaries and other business units. Investments in non-current assets mainly pertained to the implementation of a new business system in Finland, store adaptations and the continued expansion of the Group's warehouse and logistics facility in Örebro within the business area Alligo.
At the end of the quarter, the Group's financial net loan liability amounted to MSEK 2,389, compared with MSEK 2,331 at the beginning of the financial year. At the end of the quarter, the Group's operational net loan liability amounted to MSEK 1,299, compared with MSEK 1,293 at the beginning of the financial year. Cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 1,418. The equity/assets ratio at the end of the quarter was 39 percent.
Equity per share totalled SEK 62.65 at the end of the quarter, compared with SEK 60.25 at the beginning of the financial year.
At the end of the quarter, the share capital totalled MSEK 102. The distribution by class of share on 31 March 2021 was as follows:
| CLASS OF SHARE | AS OF 31 MARCH 2021 |
|---|---|
| Class A shares | 1,062,436 |
| Class B shares | 49,843,753 |
| Total number of shares before repurchasing | 50,906,189 |
| Less : Repurchased Class B shares | –486,000 |
| Total number of shares after repurchasing | 50,420,189 |
As of 31 December 2020, Momentum Group's holding of Class B treasury shares totalled 500,000. During the first quarter of 2021, 14,000 call options 2017/21 within the framework of the 2017 share-based incentive programme were redeemed to acquire an equivalent number of repurchased shares, and Momentum Group's holding of Class B treasury shares as of 31 March 2021 thus amounted to 486,000, corresponding to 1.0 percent of the total number of shares and 0.8 percent of the total number of votes.
The shares held in treasury cover the Company's obligations in the call option programmes issued to senior management in December 2017 and September 2018, respectively. The redemption price for the 250,000 call options issued in connection with the 2017 share-based incentive programme is SEK 119.30 per share3 . Each call option in this programme entitled the holder to acquire one repurchased Class B share during the redemption periods of 18-25 February and 12-25 May 2021, respectively. After the redemption of 14,000 and the repurchase of 155,000 call options 2017/21 during the first redemption period in February 2021, the number of outstanding call options 2017/21 amounted to 64,500 as of 31 March 2021.
The redemption price for the 250,000 call options issued in connection with the 2018 share-based incentive programme is SEK 137.30 per share. Each call option in this programme entitles the holder to acquire one repurchased Class B share during the redemption periods of 14-28 February and 16-30 May 2022, respectively. As of 31 March 2021, there were 240,000 call options 2018/22 outstanding.
The share price on 31 March 2021 was SEK 155.00 and the call options outstanding on the shares repurchased by the Company resulted in a dilution effect of approximately 0.02 percent for the first quarter of 2021. Refer also to page 13.
There have been no changes in the holding of treasury shares after the end of the quarter.
No transactions having a material impact on the Group's position or earnings occurred between Momentum Group and its related parties during the quarter.
Momentum Group's earnings, financial position and strategic position are impacted by a number of internal factors that are within the control of Momentum Group as well as a number of external factors where the Group's ability to influence the course of events is limited. The most important external risk factors for Momentum Group are the economic and market situation as well as the development in the number of employees in the industrial and construction sectors combined with structural changes and the competitive situation. The risks and uncertainties impacting the Group are the same as in earlier periods, although uncertainty over future developments in the market and demand is deemed to have increased on account of the ongoing COVID-19 pandemic. For more detailed information about the Group's other risks and uncertainties, refer to page 43 of Momentum Group's Annual Report for 2020. The Parent Company is impacted indirectly by the above risks and uncertainties through its function in the Group.
Momentum Group AB's Annual General Meeting will be held in Stockholm, Sweden on 11 May 2021. Due to the COVID-19 pandemic, the Board has decided that the Annual General Meeting will be held without physical attendance by the shareholders, proxies or outside parties and that shareholders will only be able to exercise their voting rights by post ahead of the Meeting in accordance with Section 22 of the Swedish Act (2020:198) on Temporary Exemptions to Facilitate the Execution of General Meetings in Companies and Associations.
3 The original redemption price per call option for the 2017 share-based incentive programme of SEK 121.60 has been recalculated by Nordea Bank in accordance with the terms of the incentive programme due to paid and adopted dividends between 2018 and 2021.
The Board of Directors of Momentum Group AB proposes a dividend of SEK 1.50 per share, corresponding to a pay-out ratio of 33 percent of the earnings per share for the 2020 financial year. Taking into account the Class B shares repurchased by the Company, the proposed dividend corresponds to a total of approximately MSEK 76. The proposed dividend is in line with the Company's dividend policy, which states that 30–50 percent of earnings per share are to be distributed over a business cycle.
The Board has decided to propose that the Annual General Meeting resolve to renew the authorisation to repurchase own shares. In brief, this motion 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 would at no time exceed 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 Stockholm in order to finance acquisitions and to fulfil the Company's obligations in connection with its share-based incentive programmes for senior management in the Momentum Group.
The Board has also decided to propose that the Annual General Meeting resolve on a renewed authorisation for new share issues of up to 10 percent of the number of shares as a means of payment for acquisitions. In brief, this motion entails that the Annual General Meeting would authorise the Board, on one or more occasions during the period until the next Annual General Meeting, to decide to increase the Company's share capital through a new issue of shares up to a maximum of 10 percent of the number of shares. The new issue of shares may be performed with or without deviation from the shareholders' preferential rights and with or without provisions regarding non-cash issues or right of offset. The purpose of the authorisation and the grounds for the deviation from the shareholders' preferential rights are to improve the Company's opportunities to conduct or finance corporate acquisitions.
For other proposals to the Annual General Meeting and instructions for postal voting, refer to the notice of the Annual General Meeting published on 6 April 2021.
On 9 April 2021, the Board of Directors decided to assign Group management the task of investigating the possibility of splitting the Group into two separate listed companies as well as the conditions for such a split. The aim is to create increased shareholder value in both the short and long term through increased focus. The Board intends to present further information on the results of the investigation during the financial year.
On 19 April 2021, the business area Tools, Consumables, Workwear & Protective Equipment changed its name to Alligo. The new business area name has been used throughout this report.
No other significant events affecting the Group have occurred since the end of the reporting period.
Stockholm, 29 April 2021
Ulf Lilius President & CEO
This report has not been subject to special review by the Company's auditors.
Ulf Lilius, President & CEO, Tel: +46 10 454 54 70 Mats Karlqvist, Head of Investor Relations, Tel: +46 70 660 31 32
Presentation of Interim Report (3 months) – A teleconference will be held today, Thursday, 29 April 2021 at 11:00 a.m. CEST. Refer to www.momentum.group for information about telephone numbers and the link to the webcast.
Momentum Group AB's 2021 Annual General Meeting will be held in Stockholm, Sweden on 11 May 2021.
Interim Report (6 months) – 1 January-30 June 2021 will be presented on 15 July 2021.
Interim Report (9 months) – 1 January-30 September 2021 will be published on 29 October 2021. Financial Report 2021 – 1 January-31 December 2021 will be published on 18 February 2022.
Visit www.momentum.group to subscribe for reports and press releases.
The information in this report is such that Momentum Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CEST on 29 April 2021.
This document is in all respects a translation of the Swedish original Interim Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.
Momentum Group AB (publ) Mail address: PO Box 5900, SE-102 40 Stockholm, Sweden Visit: Östermalmsgatan 87 D, Stockholm Tel: +46 10 454 54 70 Org No: 559072-1352 Reg office: Stockholm www.momentum.group
| MSEK | QUARTER JAN-MAR 2021 |
JAN-MAR 2020 |
ROLLING 12 MON AS OF 31 MAR 2021 |
FINANCIAL YEAR 2020 (9 mon) |
|---|---|---|---|---|
| Revenue | 2,325 | 1,539 | 9,171 | 6,846 |
| Other operating income | 12 | 1 | 27 | 15 |
| Total operating income | 2,337 | 1,540 | 9,198 | 6,861 |
| Cost of goods sold | –1,370 | –969 | –5,547 | –4,177 |
| Personnel costs | –503 | –296 | –1,774 | –1,271 |
| Depreciation, amortisation, impairment losses and reversal of impairment losses |
–135 | –66 | –594 | –459 |
| Other operating expenses | –221 | –129 | –842 | –621 |
| Total operating expenses | –2,229 | –1,460 | –8,757 | –6,528 |
| Operating profit | 108 | 80 | 441 | 333 |
| Financial income | 1 | 1 | 4 | 3 |
| Financial expenses | –11 | –7 | –53 | –42 |
| Net financial items | –10 | –6 | –49 | –39 |
| Profit after financial items | 98 | 74 | 392 | 294 |
| Taxes | –21 | –20 | –86 | –65 |
| Net profit | 77 | 54 | 306 | 229 |
| Of which, attributable to: Parent Company shareholders Non-controlling interest |
77 0 |
54 0 |
305 1 |
228 1 |
| Earnings per share, SEK – before dilution – after dilution |
1.55 1.55 |
1.95 1.95 |
6.10 6.10 |
4.55 4.55 |
| MSEK | QUARTER JAN-MAR 2021 |
JAN-MAR 2020 |
ROLLING 12 MON AS OF 31 MAR 2021 |
FINANCIAL YEAR 2020 (9 mon) |
|---|---|---|---|---|
| Net profit | 77 | 54 | 306 | 229 |
| OTHER COMPREHENSIVE INCOME FOR THE PERIOD | ||||
| Components that will not be reclassified to net profit | ||||
| Remeasurement of defined-benefit | ||||
| pension plans | 3 | 0 | 1 | –2 |
| Tax attributable to components that will | ||||
| not be reclassified | –1 | 0 | –1 | 0 |
| 2 | 0 | 0 | –2 | |
| Components that will be reclassified to net profit | ||||
| Translation differences | 47 | –22 | 10 | –37 |
| Fair value changes for the year in | ||||
| cash-flow hedges | 15 | 3 | –12 | –27 |
| Tax attributable to components that will | ||||
| be reclassified | –3 | 0 | 3 | 6 |
| 59 | –19 | 1 | –58 | |
| Other comprehensive income for the period | 61 | –19 | 1 | –60 |
| Total comprehensive income for the period | 138 | 35 | 307 | 169 |
| Of which, attributable to: Parent Company shareholders Non-controlling interest |
138 0 |
35 0 |
306 1 |
168 1 |
| MSEK | 31 MAR 2021 | 31 MAR 2020 | 31 DEC 2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible non-current assets | 2,864 | 660 | 2,784 |
| Tangible non-current assets | 526 | 61 | 506 |
| Right-of-use assets | 1,018 | 491 | 952 |
| Financial investments | 1 | 2 | 1 |
| Deferred tax assets | 71 | 18 | 70 |
| Total non-current assets | 4,480 | 1,232 | 4,313 |
| Current assets | |||
| Inventories | 1,828 | 985 | 1,761 |
| Accounts receivable | 1,233 | 964 | 1,141 |
| Current receivables - non-cash issue | – | 1,487 | – |
| Other current receivables | 189 | 115 | 222 |
| Cash and cash equivalents | 370 | 1,157 | 375 |
| Total current assets | 3,620 | 4,708 | 3,499 |
| TOTAL ASSETS | 8,100 | 5,940 | 7,812 |
| EQUITY AND LIABILITIES Equity |
|||
| Equity attributable to Parent Company shareholders | 3,159 | 2,869 | 3,037 |
| Non-controlling interest | 24 | 19 | 14 |
| Total equity | 3,183 | 2,888 | 3,051 |
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | 1,545 | 1,125 | 1,544 |
| Non-current lease liabilities | 715 | 305 | 641 |
| Provisions for pensions | 31 | 31 | 34 |
| Other non-current liabilities and provisions | 400 | 61 | 378 |
| Total non-current liabilities | 2,691 | 1,522 | 2,597 |
| Current liabilities | |||
| Current interest-bearing liabilities | 124 | 198 | 124 |
| Current lease liabilities | 344 | 206 | 363 |
| Accounts payable | 1,064 | 764 | 1,022 |
| Other current liabilities | 694 | 362 | 655 |
| Total current liabilities | 2,226 | 1,530 | 2,164 |
| TOTAL LIABILITIES | 4,917 | 3,052 | 4,761 |
| TOTAL EQUITY AND LIABILITIES | 8,100 | 5,940 | 7,812 |
| Financial net loan liability Operational net loan liability |
2,389 1,299 |
708 166 |
2,331 1,293 |
| Equity attributable to Parent Company shareholders | ||||||
|---|---|---|---|---|---|---|
| MSEK | Share capital |
Reserves | Retained earnings, including net profit |
Total | Non-controlling interest |
Total equity |
| Closing equity, 31 December 2019 | 57 | 4 | 1,284 | 1,345 | 18 | 1,363 |
| Net profit | 54 | 54 | 0 | 54 | ||
| Other comprehensive income | –19 | 0 | –19 | –19 | ||
| Non-cash issue1 | 45 | 1,442 | 1,487 | 1,487 | ||
| Acquisitions of partly owned subsidiaries | – | 1 | 1 | |||
| Option liability, acquisitions | –1 | –1 | –1 | |||
| Change in value of option liability2 | 3 | 3 | 3 | |||
| Closing equity, 31 March 2020 | 102 | –15 | 2,782 | 2,869 | 19 | 2,888 |
| Net profit | 228 | 228 | 1 | 229 | ||
| Other comprehensive income | –58 | –2 | –60 | –60 | ||
| Non-cash issue3 | 0 | 0 | 0 | 0 | ||
| Changes in share of partly owned subsidiaries | 1 | 1 | –8 | –7 | ||
| Contributions in partly owned subsidiaries | – | 2 | 2 | |||
| Change in value of option liability2 | –1 | –1 | –1 | |||
| Closing equity, 31 December 2020 | 102 | –73 | 3,008 | 3,037 | 14 | 3,051 |
| Net profit | 77 | 77 | 0 | 77 | ||
| Other comprehensive income | 59 | 2 | 61 | 61 | ||
| Repurchase of share options | –3 | –3 | –3 | |||
| Sale of own shares | 2 | 2 | 2 | |||
| Acquisitions of partly owned subsidiaries | – | 10 | 10 | |||
| Option liability, acquisitions4 | –15 | –15 | –15 | |||
| Closing equity, 31 March 2021 | 102 | –14 | 3,071 | 3,159 | 24 | 3,183 |
1) A new issue of a total of 22,633,876 Class B shares pertaining to the public offer to shareholders in Swedol AB (publ). Capital contributed in kind consisting of the shares in Swedol was conveyed to the Group on 1 April 2020 and was recognised on 31 March 2020 as a current receivable pertaining to the noncash issue.
2) Pertains to a change in the value of the call/put options in relation to non-controlling interests carried out in conjunction with the acquisitions of partly owned subsidiaries.
3) A new issue of a total of 6,897 Class B shares pertaining to the public offer to shareholders in Swedol AB (publ). 4) Refers to the value of call/put options in relation to non-controlling interests in the acquired subsidiary Mekano AB, which entail that: a) Momentum Group is entitled to purchase the remaining shares from the shareholders (call option), and b) the shareholders are entitled to sell their shares to Momentum
Group (put option). The call options expire during the 2025 financial year and can thereafter be extended for a period of one year at a time. The put options can be exercised until the 2024 financial year. The price of the options is dependent on certain results being achieved in the company.
| MSEK | QUARTER JAN-MAR 2021 |
JAN-MAR 2020 |
ROLLING 12 MON AS OF 31 MAR 2021 |
FINANCIAL YEAR 2020 (9 mon) |
|---|---|---|---|---|
| Operating activities | ||||
| Operating activities before changes in | ||||
| working capital Changes in working capital |
180 35 |
122 –17 |
943 358 |
763 323 |
| Cash flow from operating activities | 215 | 105 | 1,301 | 1,086 |
| Investing activities | ||||
| Acquisition of intangible & tangible non current assets |
–38 | –4 | –187 | –149 |
| Sale of intangible & tangible non | ||||
| current assets Acquisition of subsidiaries & other |
0 | 0 | 0 | 0 |
| business units | –78 | –8 | –1,827 | –1,749 |
| Sale of financial non-current assets | 0 | – | 1 | 1 |
| Cash flow from investing activities | –116 | –12 | –2,013 | –1,897 |
| Cash flow before financing | 99 | 93 | –712 | –811 |
| Financing activities | ||||
| Financing activities | –105 | 1,028 | –74 | 31 |
| Cash flow for the period | –6 | 1,121 | –786 | –780 |
| Cash and cash equivalents at the beginning | ||||
| of the period Exchange-rate differences in cash and |
375 | 37 | 1,157 | 1,157 |
| cash equivalents | 1 | –1 | –1 | –2 |
| Cash and cash equivalents at the end of the period |
370 | 1,157 | 370 | 375 |
| SEK | QUARTER JAN-MAR 2021 |
JAN-MAR 2020 |
ROLLING 12 MON AS OF 31 MAR 2021 |
FINANCIAL YEAR 2020 (9 mon) |
|---|---|---|---|---|
| Earnings before dilution | 1.55 | 1.95 | 6.10 | 4.55 |
| Earnings after dilution | 1.55 | 1.95 | 6.10 | 4.55 |
| Equity, at the end of the period | 62.65 | 56.95 | 60.25 | |
| NUMBER OF SHARES OUTSTANDING IN THOUSANDS | ||||
| Number of shares outstanding before dilution | 50,420 | 50,399 | 50,420 | 50,406 |
| Weighted number of shares outstanding before dilution Weighted number of shares outstanding |
50,406 | 27,765 | 50,406 | 50,406 |
| after dilution | 50,431 | 27,765 | 50,411 | 50,406 |
Average number of shares outstanding before or after dilution. Shares held by Momentum Group at any given time are not included in the number of shares outstanding. Dilution effects arise due to any call options issued by the Company that can be settled using shares in share-based incentive programmes. In such cases, the call options have a dilution effect when the average share price during the period is higher than the redemption price of the options.
Momentum Group held 486,000 Class B shares as of 31 March 2021 and had a total of 304,500 outstanding call options for repurchased shares. For the first quarter of 2021, the average share price exceeded the redemption price of SEK 119.30 per call option in the 2017 share-based incentive programme* as well as the redemption price of SEK 137.30 per call option in the 2018 share-based incentive programme, which entailed a dilution effect of approximately 0.02 percent as of 31 March 2021. The share price on 31 March 2021 was SEK 155.00. Refer also to page 7.
* The original redemption price per call option for the 2017 share-based incentive programme of SEK 121.60 has been recalculated by Nordea Bank in accordance with the terms of the incentive programme due to paid and adopted dividends between 2018 and 2021.
| MSEK | QUARTER JAN-MAR 2021 |
JAN-MAR 2020 |
ROLLING 12 MON AS OF 31 MAR 2021 |
FINANCIAL YEAR 2020 (9 mon) |
|---|---|---|---|---|
| Revenue | 6 | 7 | 28 | 22 |
| Other operating income | 2 | 0 | 4 | 2 |
| Total operating income | 8 | 7 | 32 | 24 |
| Operating expenses | –11 | –9 | –44 | –33 |
| Operating profit/loss | –3 | –2 | –12 | –9 |
| Financial income and expenses | 1 | 1 | –3 | –4 |
| Profit/loss after financial items | –2 | –1 | –15 | –13 |
| Appropriations | – | –3 | – | – |
| Profit/loss before taxes | –2 | –4 | –15 | –13 |
| Taxes | 0 | 1 | 3 | 3 |
| Net profit/loss | –2 | –3 | –12 | –10 |
There are no items in the Parent Company recognised as other comprehensive income. Accordingly, total comprehensive income corresponds to net profit for the period.
| MSEK | 31 MAR 2021 | 31 MAR 2020 | 31 DEC 2020 |
|---|---|---|---|
| ASSETS | |||
| Intangible non-current assets | 0 | 0 | 0 |
| Tangible non-current assets | 0 | 0 | 0 |
| Financial non-current assets | 3,908 | 829 | 3,907 |
| Current receivables | 230 | 1,644 | 176 |
| Cash and cash equivalents | 315 | 1,153 | 357 |
| TOTAL ASSETS | 4,453 | 3,626 | 4,440 |
| EQUITY, PROVISIONS AND LIABILITIES | |||
| Restricted equity | 102 | 102 | 102 |
| Non-restricted equity | 1,953 | 1,965 | 1,955 |
| Total equity | 2,055 | 2,067 | 2,057 |
| Untaxed reserves | – | – | – |
| Provisions | – | – | – |
| Non-current liabilities | 1,545 | 1,125 | 1,544 |
| Current liabilities | 943 | 434 | 839 |
| TOTAL EQUITY, PROVISIONS AND LIABILITIES | 4,543 | 3,626 | 4,440 |
The Interim 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. In addition to the financial statements and associated notes, disclosures in accordance with IAS 34.16A are also presented in other sections of the report. The Interim 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
The Group's operating segments comprise the business areas Alligo (formerly Tools, Consumables, Workwear & Protective Equipment) and Components & Services. The operating segments are consolidations of the operational organisation, as used by Group management and the Board of Directors to monitor operations. Group management, comprising the CEO and CFO, are the Group's chief operating decision makers.
Alligo comprises Swedol and TOOLS with Univern and Grolls, and Gigant, Mercus Yrkeskläder, TriffiQ Företagsprofilering, Reklamproffsen Skandinavien and Company Line, which offer products and services related to tools, consumables, workwear, personal protective equipment, workplace equipment as well as promotional products for the industrial, construction and public sectors in the private market in the Nordic region, among others.
Accounting for Legal Entities. The same accounting policies and bases of judgement as in Momentum Group's Annual Report for 2020 have been applied.
IASB has issued additions and amendments to standards that will take effect for the Group on or after 1 January 2021. These additions and amendments are deemed not to be material for the consolidated financial statement.
Components & Services comprises Momentum Industrial, Öbergs i Karlstad, ETAB Industriautomation, Rörick Elektriska Verkstad, Mekano, Mekano i Sävedalen, Carl A Nilssons Elektriska Reparationsverkstad and JNF Køge, which offer spare parts, services and repairs to customers in the industrial sector in the Nordic region.
Group-wide includes the Group's management, finance function and support functions. The support functions include internal communications, investor relations and legal affairs.
Financial items and taxes are not distributed by operating segment but recognised in their entirety in Group-wide.
Intra-Group pricing between the operating segments occurs on market terms. The accounting policies are the same as those applied in the consolidated financial statements. The revenue presented below for the geographic markets is based on the domicile of the customers (compared with the information presented by geographic market for Alligo on page 4, which is based on the geographic domicile of each legal entity).
| JAN-MAR 2021 (3 MON) | |||||||
|---|---|---|---|---|---|---|---|
| MSEK | Alligo | Components & Services |
Group-wide | Eliminations | Group total | ||
| From external customers by geographic area | |||||||
| Sweden | 1,124 | 325 | – | – | 1,449 | ||
| Norway | 542 | 6 | – | – | 548 | ||
| Finland | 270 | 0 | – | – | 270 | ||
| Other countries | 42 | 16 | – | – | 58 | ||
| From other segments | 4 | 3 | 6 | –13 | – | ||
| Revenue | 1,982 | 350 | 6 | –13 | 2,325 | ||
| EBITA | 85 | 43 | –3 | 0 | 125 | ||
| Items affecting comparability | – | – | – | – | – | ||
| Amortisation of intangible assets incurred in connection with corporate acquisitions |
–15 | –2 | – | – | –17 | ||
| Operating profit | 70 | 41 | –3 | 0 | 108 |
| JAN-MAR 2020 (3 MON) | |||||
|---|---|---|---|---|---|
| MSEK | Alligo | Components & Services |
Group-wide | Eliminations | Group total |
| From external customers by geographic area | |||||
| Sweden | 470 | 301 | – | – | 771 |
| Norway | 470 | 6 | – | – | 476 |
| Finland | 249 | 1 | – | – | 250 |
| Other countries | 28 | 14 | – | – | 42 |
| From other segments | 6 | 4 | 7 | –17 | – |
| Revenue | 1,223 | 326 | 7 | –17 | 1,539 |
| EBITA | 48 | 45 | –2 | 0 | 91 |
| Items affecting comparability | – | – | –5 | – | –5 |
| Amortisation of intangible assets incurred in connection with corporate acquisitions |
–5 | –1 | – | – | –6 |
| Operating profit | 43 | 44 | –7 | 0 | 80 |
| 2021 | 2020 (9 mon) | ||||||
|---|---|---|---|---|---|---|---|
| MSEK | Q4 | Q3 | Q2 | Q1 | Q3 | Q2 | Q1 |
| Alligo | 1,982 | 2,242 | 1,781 | 2,012 | |||
| Components & Services | 350 | 296 | 256 | 285 | |||
| Group-wide | 6 | 8 | 7 | 7 | |||
| Eliminations | –13 | –17 | –15 | –16 | |||
| Momentum Group | 2,325 | 2,529 | 2,029 | 2,288 |
| 2021 | 2020 (9 mon) | ||||||
|---|---|---|---|---|---|---|---|
| MSEK | Q4 | Q3 | Q2 | Q1 | Q3 | Q2 | Q1 |
| Alligo | 85 | 164 | 94 | 122 | |||
| Components & Services | 43 | 40 | 37 | 34 | |||
| Group-wide | –3 | –3 | –3 | –1 | |||
| Eliminations | 0 | 0 | 0 | 0 | |||
| Momentum Group | 125 | 201 | 128 | 155 |
Note: Since Momentum Group changed its financial year to the calendar year, the 2020 financial year was shortened to nine months and covers the 1 April to 31 December 2020 period.
Momentum Group measures financial instruments at fair value or amortised 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. The carrying amount of all of the Group's financial assets is deemed to be a reasonable approximation of their fair value. Liabilities measured at fair value comprise hedging instruments for which the fair value is based on observable market data and are therefore included in level 2 according to IFRS 13 and contingent purchase considerations that are measured using discounted cash flow and are thus included in level 3.
| MSEK | 31 MAR 2021 | 31 MAR 2020 | 31 DEC 2020 |
|---|---|---|---|
| Financial assets measured at fair value | |||
| Financial investments | 1 | 1 | 1 |
| Derivative hedging instruments | 4 | 4 | 0 |
| Financial assets measured at amortised cost | |||
| Long-term receivables | 0 | 1 | 0 |
| Accounts receivable | 1,233 | 964 | 1,141 |
| Cash and cash equivalents | 370 | 1,157 | 375 |
| Total financial assets | 1,608 | 2,127 | 1,517 |
| Financial liabilities measured at fair value | |||
| Derivative hedging instruments | 3 | 0 | 14 |
| 10 | 5 | – | |
| Conditional purchase considerations | |||
| Financial liabilities measured at amortised cost | |||
| Option liability | 32 | 35 | 17 |
| Interest-bearing liabilities | 2,728 | 1,834 | 2,672 |
| Accounts payable | 1,064 | 764 | 1,022 |
| Total financial liabilities | 3,837 | 2,638 | 3,725 |
According to the preliminary acquisition analyses, the assets and liabilities in the operations acquired to date in the financial year amounted to the following:
| FAIR VALUE RECOGNISED IN THE GROUP |
|
|---|---|
| MSEK | |
| ACQUIRED ASSETS | |
| Intangible non-current assets | 35 |
| Right-of-use assets | 25 |
| Other non-current assets | 2 |
| Inventories | 11 |
| Other current assets | 62 |
| Total assets | 135 |
| ACQUIRED PROVISIONS AND LIABILITIES | |
| Lease liabilities | 25 |
| Deferred tax liability | 11 |
| Other current liabilities | 29 |
| Total provisions and liabilities | 65 |
| NET OF IDENTIFIED ASSETS AND LIABILITIES | 70 |
| Goodwill | 56 |
| Non-controlling interests1 | –10 |
| PURCHASE CONSIDERATION | 116 |
| Less / additional : Net cash in acquired business2 | –28 |
| Less : Additional purchase consideration | –10 |
| EFFECT ON THE GROUP'S CASH AND CASH EQUIVALENTS | 78 |
Corporate acquisitions carried out since the 2015/16 financial year:
| TIME | NO OF | |||
|---|---|---|---|---|
| ACQUISITION | (possessiton taken) | REVENUE1 | EMPLOYEES1 | BUSINESS AREA |
| AB Carl A. Nilssons El. Rep.verkstad, SE | September 2015 | MSEK 20 | 13 | Components & Services |
| Tønsberg Maskinforretning AS, NO | April 2016 | MNOK 20 | 10 | Alligo |
| Astrup Industrivarer AS, NO | November 2016 | MNOK 240 | 50 | Alligo |
| Arboga Machine Tool AB, SE | March 2017 | MSEK 10 | 5 | Components & Services |
| TriffiQ Företagsprofilering AB2 , SE |
September 2017 | MSEK 70 | 18 | Alligo |
| AB Knut Sehlins Industrivaruhus, SE | October 2017 | MSEK 40 | 14 | Alligo |
| Elka Produkter AB2 , SE |
October 2017 | 3 – |
10 | Alligo |
| Reklamproffsen Skandinavien AB2 , SE |
March 2018 | MSEK 35 | 12 | Alligo |
| Profilmakarna i Södertälje AB, SE | April 2018 | MSEK 25 | 8 | Alligo |
| MRO business from Brammer4 , SE |
May 2018 | MSEK 140 | 33 | Components & Services |
| MFG Components Oy4 , FI |
October 2018 | MEUR 1 | 3 | Alligo |
| TOOLS Løvold AS, NO | January 2019 | MNOK 95 | 28 | Alligo |
| PPE business from Lindström Group4 , FI |
April 2019 | MEUR 6 | 5 | Alligo |
| ETAB Industriautomation AB2 , SE |
June 2019 | MSEK 45 | 9 | Components & Services |
| Company Line Förvaltning AB2 , SE |
June 2019 | MSEK 75 | 25 | Alligo |
| AMJ Papper AB, SE | March 2020 | MSEK 15 | 6 | Alligo |
| Swedol AB5 , SE / NO / FI |
April 2020 | MSEK 3,650 | 1,046 | Alligo |
| Spindle service business from SKF4 , SE |
November 2020 | MSEK 10 | 5 | Components & Services |
| Mekano AB2 & Mekano i Sävedalen AB, SE |
February 2021 | MSEK 145 | 85 | Components & Services |
| Öbergs i Karlstad AB, SE | February 2021 | MSEK 50 | 12 | Components & Services |
| Service workshops from Assemblin El4 , SE |
April 2021 | MSEK 90 | 45 | Components & Services |
1) Refers to information for the full year on the date of acquisition.
2) Momentum Group initially acquired 70 percent of the shares in each company. Momentum Group now owns 100 percent of the shares in TriffiQ Företagsprofilering AB and Reklamproffsen Skandinavien AB.
3) The current operations of Elka Produkter AB were established in autumn 2017. Accordingly, there is no full-year information available regarding comparable revenue.
4) The acquisition was carried out as a conveyance of assets and liabilities.
5) After the completion of the public offer to the shareholders in Swedol AB, Momentum Group's holding amounted to approximately 99 percent of the shares. Compulsory redemption of the remaining shares in Swedol has been called for, and preferential rights to the shares was granted by the arbitration board in the dispute resolution proceeding in early July 2020. Momentum Group subsequently holds 100 percent of the shares and votes in Swedol.
Momentum Group uses certain financial performance measures in its analysis of the operations and their performance that are not defined in accordance with IFRS. Momentum Group believes that these alternative performance measures provide valuable information for the Company's Board of Directors, owners and investors, since they enable a more accurate assessment of current trends and the Company's performance when combined with other performance measures calculated in accordance with IFRS. Since not all listed companies calculate these financial performance measures in the same way, there is no guarantee that the information is comparable with other companies' performance measures of the same name. Hence, these financial performance measures must not be viewed as a replacement for those measures calculated in accordance with IFRS. Insofar as the performance measures are used and commented on by business area (operating segment), the derivation of the performance measures is also presented at this level.
| 12 MONTHS ENDING | ||||||
|---|---|---|---|---|---|---|
| 31 MAR 2021 | 31 DEC 20201 | 31 MAR 2020 | 31 MAR 2019 | |||
| IFRS PERFORMANCE MEASURES | ||||||
| Net profit, MSEK | 306 | 283 | 217 | 231 | ||
| Earnings per share, SEK | 6.10 | 6.50 | 7.70 | 8.20 | ||
| ALTERNATIVE PERFORMANCE MEASURES | ||||||
| Performance measures related to the income statement | ||||||
| Revenue, MSEK | 9,171 | 8,385 | 6,135 | 6,024 | ||
| Operating profit, MSEK | 441 | 413 | 303 | 302 | ||
| of which: Items affecting comparability | –101 | –106 | –14 | – | ||
| of which: Amortisation of intangible assets incurred | ||||||
| in connection with corporate acquisitions | –67 | –56 | –21 | –16 | ||
| EBITA, MSEK | 609 | 575 | 338 | 318 | ||
| of which: Depreciation and amortisaton of tangible | ||||||
| assets 2 and other intangible non-current |
–104 | –86 | –31 | –31 | ||
| Profit after financial items, MSEK | 392 | 368 | 283 | 296 | ||
| Operating margin, % | 4.8% | 4.9% | 4.9% | 5.0% | ||
| EBITA margin, % | 6.6% | 6.9% | 5.5% | 5.3% | ||
| Profit margin, % | 4.3% | 4.4% | 4.6% | 4.9% | ||
| Performance measures related to profitability | ||||||
| Return on working capital (EBITA/WC), % | 31% | 32% | 28% | 27% | ||
| Return on capital employed, % | 9% | 10% | 14% | 19% | ||
| Return on equity, % | 11% | 12% | 16% | 19% | ||
| Performance measures related to financial position | ||||||
| Financial net loan liability (closing balance), MSEK | 2,389 | 2,331 | 708 | 293 | ||
| Operational net loan liability (closing balance), MSEK | 1,299 | 1,293 | 166 | 266 | ||
| Equity (closing balance)3 , MSEK |
3,159 | 3,037 | 2,869 | 1,303 | ||
| Equity/assets ratio, % | 39% | 39% | 48% | 45% | ||
| Other performance measures | ||||||
| Number of employees at the end of the period | 2,786 | 2,670 | 1,651 | 1,684 | ||
| Share price at the end of the period, SEK | 155.00 | 142.00 | 67.50 | 93.40 |
1) These performance measures include the acquisition of Swedol as of 1 April 2020. Refer to the summary on page 2 for performance measures calculated as though the acquisition of Swedol had closed on 1 April 2019.
2) Total depreciation/amortisation of tangible and intangible non-current assets, excluding amortisation of intangible assets arising in connection with corporate acquisitions and IFRS 16 effects.
3) Refers to equity attributable to Parent Company shareholders.
Own invoicing, commission-based revenue from commission sales and side revenue.
Used to present the Group's sales to external customers. Revenue from both external and internal customers is recognised per business area (operating segment).
Profit before financial items and tax.
Used to present the Group's earnings before interest and tax.
Items affecting comparability include revenue and expenses that do not arise regularly in the operating activities.
Operating profit adjusted for items affecting comparability and before any impairment of goodwill and amortisation and impairment of other intangible assets arising in connection with corporate acquisitions and equivalent transactions. Used to present the Group's earnings generated from operating activities.
Operating profit relative to revenue.
Used to measure the Group's earnings generated before interest and tax and provides an understanding of the earnings performance over time. Specifies the percentage of revenue remaining to cover interest payments and tax and to provide profit after the Group's expenses have been paid.
EBITA as a percentage of revenue.
Used to measure the Group's earnings generated from operating activities and provides an understanding of the earnings performance over time. The EBITA margin based on revenue from both external and internal customers is presented per business area (operating segment).
Profit after financial items as a percentage of revenue.
Used to assess the Group's earnings generated before tax and presents the share of revenue that the Group may retain in earnings before tax.
EBITA for the most recent 12-month period divided by average working capital measured as total working capital (accounts receivable and inventories less accounts payable) at the end of each month for the most recent 12-month period and the opening balance at the start of the period divided by 13.
The Group's internal profitability target, which encourages high EBITA and low tied-up capital. Used to analyse profitability in the Group and its various operations.
Operating profit plus financial income for the most recent 12-month period divided by average capital employed measured as the balance-sheet total less non-interest-bearing liabilities and provisions at the end of the most recent four quarters and the opening balance at the start of the period divided by five.
Presented to show the Group's return on its externally financed capital and equity, meaning independent of its financing.
Net profit for the most recent 12-month period divided by average equity measured as total equity attributable to Parent Company shareholders at the end of the most recent four quarters and the opening balance at the start of the period divided by five.
Used to measure the return generated on the capital invested by the shareholders.
Financial net loan liability measured as non-current interest-bearing liabilities and current interest-bearing liabilities, less cash and cash equivalents at the end of the period.
Used to monitor the debt trend and analyse the Group's total indebtedness including lease liabilities.
Operational net loan liability measured as non-current interest-bearing liabilities and current interest-bearing liabilities, excluding lease liabilities and net provisions for pensions, less cash and cash equivalents at the end of the period.
Used to monitor the debt trend and analyse the Group's total indebtedness excluding lease liabilities and net provisions for pensions.
Equity attributable to Parent Company shareholders as a percentage of the balance-sheet total at the end of the period.
Used to analyse the financial risk in the Group and show how much of the Group's assets are financed by equity.
Net profit attributable to the Parent Company shareholders divided by the weighted number of shares. IFRS performance measure.
Comparable units refer to sales in local currency from units that were part of the Group during the current period and the entire corresponding period in the preceding year. Trading days refer to sales in local currency depending on the difference in the number of trading days compared with the comparative period. Other units refer to the acquisition or divestment of units during the corresponding period. Note: Any instances where comparable units include Swedol for periods prior to the closing date of 1 April 2020 are specifically noted.
Used to analyse the underlying sales growth driven by changes in volume, the product and service offering, and the price for similar products and services across different periods. Refer to the reconciliation table on page 3.
| 12 MONTHS ENDING | ||||
|---|---|---|---|---|
| MSEK | 31 MAR 2021 | 31 DEC 2020 | 31 MAR 2020 | 31 MAR 2019 |
| EBITA | ||||
| Operating profit | 441 | 413 | 303 | 302 |
| Items affecting comparability | ||||
| Restructuring expenses | 97 | 97 | – | – |
| Acquisition related expenses | 2 | 7 | 14 | – |
| Integration expenses for the acquisition of Swedol | 2 | 2 | – | – |
| Split and listing expenses | – | – | – | – |
| Amortisation of intangible assets incurred in connection with | ||||
| corporate acquisitions | 67 | 56 | 21 | 16 |
| EBITA | 609 | 575 | 338 | 318 |
1 JANUARY-31 MARCH 2021
| 12 MONTHS ENDING | ||||
|---|---|---|---|---|
| MSEK | 31 MAR 2021 | 31 DEC 2020 | 31 MAR 2020 | 31 MAR 2019 |
| WORKING CAPITAL | ||||
| Average operating assets | ||||
| Average inventories | 1,778 | 1,602 | 1,021 | 975 |
| Average accounts receivable | 1,141 | 1,076 | 966 | 956 |
| Total average operating assets | 2,919 | 2,678 | 1,987 | 1,931 |
| Average operating liabilities | ||||
| Average accounts payable | –948 | –886 | –759 | –736 |
| Total average operating liabilities | –948 | –886 | –759 | –736 |
| Average working capital | 1,971 | 1,792 | 1,228 | 1,195 |
| EBITA | 609 | 575 | 338 | 318 |
| Return on working capital (EBITA/WC), % | 31% | 32% | 28% | 27% |
| 12 MONTHS ENDING | ||||
|---|---|---|---|---|
| MSEK | 31 MAR 2021 | 31 DEC 2020 | 31 MAR 2020 | 31 MAR 2019 |
| CAPITAL EMPLOYED | ||||
| Average balance-sheet total | 6,893 | 5,952 | 3,318 | 2,813 |
| Average non-interest-bearing liabilities and provisions | ||||
| Average non-interest-bearing non-current liabilities | –311 | –244 | –72 | –74 |
| Average non-interest-bearing current liabilities | –1,530 | –1,407 | –1,147 | –1,150 |
| Total average non-interest-bearing liabilities and provisions | –1,841 | –1,651 | –1,219 | –1,224 |
| Average capital employed | 5,052 | 4,301 | 2,099 | 1,589 |
| Operating profit | 441 | 413 | 303 | 302 |
| Financial income | 4 | 4 | 1 | 1 |
| Total operating profit + financial income | 445 | 417 | 304 | 303 |
| Return on capital employed, % | 9% | 10% | 14% | 19% |
| 12 MONTHS ENDING | ||||
|---|---|---|---|---|
| MSEK | 31 MAR 2021 | 31 DEC 2020 | 31 MAR 2020 | 31 MAR 2019 |
| RETURN ON EQUITY | ||||
| Average equity* | 2,689 | 2,326 | 1,333 | 1,220 |
| Net profit* | 305 | 282 | 214 | 229 |
| Return on equity, % | 11% | 12% | 16% | 19% |
* Refers to equity and earnings attributable to Parent Company shareholders.
| 12 MONTHS ENDING | ||||
|---|---|---|---|---|
| MSEK | 31 MAR 2021 | 31 DEC 2020 | 31 MAR 2020 | 31 MAR 2019 |
| FINANCIAL NET LOAN LIABILITY (CLOSING BALANCE) | ||||
| Non-current interest-bearing liabilities | 2,291 | 2,219 | 1,461 | 164 |
| Current interest-bearing liabilities | 468 | 487 | 404 | 137 |
| Cash and cash equivalents | –370 | –375 | –1,157 | –8 |
| Financial net loan liability (closing balance) | 2,389 | 2,331 | 708 | 293 |
| 12 MONTHS ENDING | ||||
|---|---|---|---|---|
| MSEK | 31 MAR 2021 | 31 DEC 2020 | 31 MAR 2020 | 31 MAR 2019 |
| OPERATIONAL NET LOAN LIABILITY (CLOSING BALANCE) | ||||
| Financial net loan liability | 2,389 | 2,331 | 708 | 293 |
| Financial lease liabilities | –1,059 | –1,004 | –511 | – |
| Net provisions for pensions | –31 | –34 | –31 | –27 |
| Operational net loan liability (closing balance) | 1,299 | 1,293 | 166 | 266 |
| 12 MONTHS ENDING | ||||
|---|---|---|---|---|
| MSEK | 31 MAR 2021 | 31 DEC 2020 | 31 MAR 2020 | 31 MAR 2019 |
| EQUITY/ASSETS RATIO | ||||
| Balance-sheet total (closing balance) | 8,100 | 7,812 | 5,940 | 2,914 |
| Equity (closing balance)* | 3,159 | 3,037 | 2,869 | 1,303 |
| Equity/assets ratio, % | 39% | 39% | 48% | 45% |
* Refers to equity attributable to Parent Company shareholders.
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