Quarterly Report • Apr 28, 2022
Quarterly Report
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In this report, Alligo's former subsidiary Momentum Group AB (the Components & Services business area) is reported as discontinued operations in accordance with IFRS 5. The Alligo business area represents continuing operations. Comments and figures relate to continuing operations unless otherwise specified. Comparison figures in the consolidated income statement have been recalculated. For more information,
see Note 1 Accounting policies and Note 7 Discontinued operations.
l Alligo's Annual General Meeting 2022 will be held on 11 May 2022 and notice of the meeting was published on 7 April 2021. A dividend of SEK 1.75 per share (1.50) is proposed. A long-term incentive programme is also proposed for senior executives. The Nomination Committee proposes the re-election of Göran Näsholm, Stefan Hedelius, Cecilia Marlow, Johan Sjö and Christina Åqvist and the election of Pontus Boman. Johan Eklund has declined re-election. It is proposed that Göran Näsholm be re-elected Chair of the Board.
| Group, MSEK | 2022 JAN–MAR |
2021 JAN–MAR |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|---|---|
| Revenue, MSEK | 2,095 | 1,968 | 8,544 | 8,417 |
| Operating profit, MSEK | 80 | 67 | 440 | 427 |
| Operating margin, % | 3.8 | 3.4 | 5.1 | 5.1 |
| EBITA, MSEK | 105 | 82 | 668 | 645 |
| EBITA margin, % | 5.0 | 4.2 | 7.8 | 7.7 |
| Return on equity1.3, % | 14 | 13 | ||
| Equity per share4 , SEK |
60.50 | 67.95 | ||
| Equity/assets ratio5 , % |
40 | 40 |
1) Adjusted for the impact on earnings of the distribution of Momentum Group AB.
2) Before and after dilution.
DISCONTINUED OPERATIONS
3) Refers to the Group total (continuing operations and discontinued operations).
5) KPI calculated on the basis of the figures reported in the financial statements. This means that profit/loss items for previous periods are recalculated and based on continuing operations, while balance sheet items for previous periods are not recalculated.
4) Refers to equity attributable to the Parent Company's shareholders.
I t has been a very busy first quarter, with major changes for our business. Momentum Group was distributed to the shareholders and our integration work continued at a rapid pace. At the same time, the uncertainty prevailing in the world around us has created challenging market conditions and driven inflation higher.
Alligo does not have any direct exposure to Russia or Ukraine, but the uncertainty on the market makes the impact on the Group hard to predict. We are monitoring developments closely and our thoughts go out to all those suffering from the devastating effects of the war.
Following the decision of the General Meeting on 23 March to vote through a proposal from the Board of Directors, Alligo's subsidiary Momentum Group has been distributed to the shareholders.
The distribution will give each business area better opportunities to develop based on their own focus areas. At Alligo, we are looking forward to continuing to focus on streamlining and growth, through coordination, synergies and continued acquisitions. I am convinced that Momentum Group will achieve success by continuing to focus on acquisition-driven growth.
Group revenue amounted to MSEK 2,095 (1,968). This increase of 6.5 per cent in relation to the comparison period was mainly driven by larger industrial customers, calendar and currency effects, sales campaigns and recent acquisitions. Winter sales being earlier than usual and high sick leave rates at both customers and Alligo had a negative impact on sales.
We find ourselves in a challenging market situation. Russia's war in Ukraine has led small and medium-sized enterprises, which represent the majority of our customers in Sweden, to show a certain amount of restraint. High fuel prices are also hitting these customers hard, particularly within the Agriculture and forestry segment and Transport and storage. Demand from large industrial customers improved during the quarter, particularly in Finland but also in Sweden. This customer group is not showing the same sensitivity to the uncertain global situation.
Group EBITA amounted to MSEK 105 (82), corresponding to an EBITA margin of 5.0 per cent (4.2). This improvement in profit is driven mainly by development in Sweden, where the integration of Swedol and Tools has created synergies and we have succeeded in passing on price increases from our suppliers.
Operations in Norway remained stable. The pandemic continued to have a negative impact on sales, although the acquisition of Lunna AS made a positive contribution.
Sales developed positively in Finland, driven by acquisitions and growth from larger industrial customers. Profitability remained weak, mainly as a result of an unfavourable customer mix. We are continuing to work with range and sales management in order to improve profitability. Our integrated organisation involves a new way of working and we have found that we need new leadership in order to drive the business forward. The country manager for Finland left the company in March and for a transitional period Håkan Wanselius, Head of Assortment and Procurement, will be Acting Country Manager.
So far, we have been able to handle the challenges on the freight market and secure cost-effective deliveries of our own brands. Large-scale lockdowns in Asia as a result of the pandemic, combined with energy rationing in China, a continued shortage of containers, higher fuel prices and staff shortages, which may result from the war in Ukraine, may create further challenges in the supply chain in the future.
We are continuing to work closely with our suppliers and together do everything we can to handle the challenges we face as best we can.
The shared platform we now have in place enables us to increase the focus on our sustainability work. To ensure effective management of the integrated company, we have established five new shared non-financial targets that will give us a common direction in our work to become the unbeatable leader in sustainable development in our industry.
The integration of Swedol and Tools stores is in its final phase. Two stores were integrated during the quarter and only four stores remain to be integrated.
The quarter was dominated by preparations ahead of the migration to a new common Nordic pricing system in Sweden and the implementation of our joint IT and business system in Tools in Sweden, which is set to be completed in early May. At the same time, the relocation of logistics operations from Alingsås to Örebro began. The intensive integration work that is currently under way involves major operational changes and we are taking preventive measures to reduce the risk of disruption. This is particularly challenging, given the concerning global situation and uncertain market conditions. That being said, I would like to add that I am convinced we are focusing on the right things. We are streamlining the business and creating better opportunities for range and sales management, which in turn improves the conditions for organic growth and ultimately also for future acquisitions. All our investments are made in order to invest in the future and build a strong and profitable company.
Clein Johansson Ullenvik Group President and CEO
Alligo is a leading player within workwear, personal protective equipment, tools and consumables in the Nordic region. Its offering has a clear focus on consumables and includes a standardised product range of goods and services that enable companies to function. The range consists of a balanced mix of own brands and external brands and is characterised by high quality, value for money and product safety, combined with a good service level and availability.
Alligo's main markets of Sweden, Norway and Finland generate total revenue of approximately SEK 50 billion per year. Its customers are a balanced mix of small and medium-sized enterprises, large companies and public-sector agencies within eight defined industry segments: Manufacturing, Construction industry, Public sector, Transport and storage, Repair and maintenance, Agriculture and forestry, Fishing and aquaculture and Oil and gas.
Through the concept brands Swedol, Tools, Grolls and Univern, alongside local independent stores, we meet professional users throughout the Nordic region in the channels where they want to meet us, whether this is a store, field sales, digital channels or on-site service.
Since Alligo was formed through the merger of Swedol and Tools in 2020, intensive work has been under way to construct an integrated company with a common platform that provides economies of scale within key areas such as concept and market, Assortment and Procurement, logistics, finance, IT, HR and sales.
Based on common values, strategies and objectives, we will work together to achieve the vision of becoming unbeatable as a partner to our customers and suppliers, as an employer to our employees and as a leader of sustainable development in our industry.
SWEDEN: Mercus, Company Line, Reklamproffsen, Industriprofil, TriffiQ, Profilmakarna & Defacto. NORWAY: Lunna. FINLAND: Metaplan, Imatran Pultti & Liukkosen Pultti.
Revenue increased by 6.5 per cent to MSEK2,095 (1,968). Revenue from like-for-like sales, measured in local currency and adjusted for the number of trading days, increased by 2.7 per cent compared with the corresponding quarter last year. The growth in like-for-like sales corresponds to organic growth, as no new stores were established during the period. A favourable calendar effect in the form of a late Easter had a positive impact on the quarter. The proportion of own brands during the quarter was 16.8 per cent (19.3). This reduction is mainly the result of the divestment of Gigant and Nytello during the fourth quarter last year; adjusted for this, the proportion of own brands is on a par with the corresponding period last year (16.6). Currency translation effects had a positive impact on revenue of MSEK 51, mainly as a result of the development of NOK, but also of EUR. The quarter contained one trading day more than last year.
| SALES TREND | 2022 JAN–MAR |
20211 JAN–DEC |
|---|---|---|
| Change in revenue from: | ||
| Like-for-like sales in local currency,% | 2.7 | 4.3 |
| Currency effects, % | 2.6 | 0.0 |
| Number of trading days, % | 1.7 | 0.4 |
| New stores established in local currency, % | - | - |
| Other units2 , % |
-0.5 | 0.2 |
| Total change | 6.5 | 4.9 |
1) Swedol is included in like-for-like sales as though the acquisition had closed on 1 April 2020.
2) Acquisitions and divestments during 2020-2022 (excluding Swedol).
* As the Group changed its financial year to the calendar year, the 2020 financial year covered the period 1 April–31 December 2020 (9 months).
Operating profit amounted to MSEK 80 (67). EBITA (operating profit excluding items affecting comparability and amortisation of intangible assets arising in connection with corporate acquisitions) increased by 28 per cent to MSEK 105 (82), corresponding to an EBITA margin of 5.0 per cent (4.2). Profits were negatively affected by an unfavourable country mix and product mix. Operating profit has been charged with items affecting comparability of MSEK -9 (-), which comprise costs ahead of the separate listing of Momentum Group of MSEK 5 and severance costs in connection with a change of management in Finland of MSEK 4.
The coordination of Tools and Swedol is proceeding according to plan and two stores in Sweden were integrated during the quarter. Acquisitions have increased the net total number of Alligo stores by two, from 203 to 204. During the quarter, MSEK 13 was utilised from the restructuring reserve from the third quarter of 2020 and the remaining reserve is MSEK 33 (originally MSEK 97). The restructuring reserve originating from the third quarter of 2021 remains unchanged from the turn of the year and amounts to MSEK 107, compared with an initial MSEK 108.
The effective tax rate was -21.1 per cent (-21.1). Profit after financial items was MSEK 71 (57) and profit after tax was MSEK 56 (45), which corresponds to earnings per share for continuing operations of SEK 1.10 (0.90) for the quarter.
The Group's profitability, measured as the return on equity, amounted to 14 per cent for the most recent 12-month period, corresponding to a return on capital employed of 7 per cent.
Total profit from the Group amounted to MSEK 3,637 (77), of which MSEK 56 (45) is attributable to continuing operations, MSEK 28 (32) to discontinued operations, and MSEK 3,553 to the impact on earnings of the distribution of Momentum Group.
As a result of the distribution of Momentum Group (Components & Services business area), Alligo has adapted its segment reporting so that it reflects how continuing operations are organised and monitored. As of Q1 2022, Alligo reports three operating segments: Sweden, Norway and Finland.
Revenue in Sweden was on a par with last year and amounted to MSEK 1,192 (1,191) during the quarter. Market uncertainty as a result of the war in Ukraine and increased fuel prices has led small and medium-sized enterprises to show a certain amount of restraint during the quarter, although demand has improved in the industrial segment. The quarter was also negatively affected by early winter sales, but this was offset by an additional trading day, an early Easter last year and a sales campaign linked to the coordination of logistics in Sweden. During the quarter, two stores were integrated and there are now only four more remaining to be completed in the integration project. The number of stores at the end of the period was 107 (119). EBITA for the quarter amounted to MSEK 89 (72) and the EBITA margin to 7.5 per cent (6.0). The improvement in profit is driven by synergies and price increases.
Revenue in Norway during the quarter amounted to MSEK 599 (541). This increase of around 11 per cent was positively affected by the acquisitions of RAF Romerike Arbeidstøy AS and Lunna AS. Sales also benefited from positive currency and calendar effects in the form of an additional trading day and a late Easter this year, but suffered from a high spread of infection and an early winter, which particularly hit sales to small and medium-sized enterprises. Development within the oil and gas industry remained weak, but is expected to improve in the future. The number of stores at the end of the period was 58 (60). EBITA for the quarter amounted to MSEK 17 (12) and the EBITA margin to 2.8 per cent (2.2). The improvement in profit is driven by higher volumes and synergies.
Revenue in Finland during the quarter amounted to MSEK 351 (291). The acquisitions of Imatran Pultti Oy and Liukkosen Pultti Oy made a positive contribution to this, alongside growth in larger industrial customers and favourable currency and calendar effects. EBITA for the quarter amounted to MSEK 3 (1) and the EBITA margin to 0.9 per cent (0.2). The improvement in profit is driven by higher volumes, but was negatively affected by an unfavourable customer mix and difficulties in passing on price increases from our suppliers. The number of stores at the end of the period was 40 (37). Work is ongoing to strengthen the sales and assortment management and Mika Kärki left his role as Country Manager for Finland during the quarter.
17% Finland
55% Sweden
Cash flow from operating activities before changes in working capital for the period totalled MSEK 157 (134). Inventories increased during the period by MSEK 74 as a result of adaptations to the range and disruption in the supply chain, while operating receivables reduced by MSEK 27. Operating liabilities fell by MSEK 140. Cash flow from operating activities for the period therefore amounted to MSEK -30 (173). Cash flow for the period was also impacted by a net amount of MSEK -35 (-37) pertaining to investments in and divestments of non-current assets, and by MSEK -88 (-) pertaining to acquisitions of subsidiaries. Investments in non-current assets principally relate to the implementation of a new common business system in Sweden, store modifications and the continued expansion of the Group's warehousing and logistics facility in Örebro.
At the end of the period, the Group's financial net loan liability amounted to MSEK 2,533, compared with MSEK 2,272 at the beginning of the financial year. The Group's operational net loan liability at the end of the period amounted to MSEK 1,519, compared with MSEK 1,259 at the beginning of the year. Cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 1,190 compared with MSEK 1,334 at the beginning of the year. The business was refinanced during the quarter as a result of the distribution of Momentum Group. The equity/assets ratio at the end of the period was 40 per cent. Equity per share was SEK 60.50 at the end of the period, compared with SEK 67.95 at the beginning of the financial year.
Continuing operations at Alligo made two corporate acquisitions with closing during 2022.
On 5 January 2022, Alligo signed an agreement to acquire 100 per cent of the shares in Liukkosen Pultti Oy. Liukkosen Pultti operates a store in Lahti that sells workwear and tools and the acquisition strengthens Alligo's presence on the Finnish market. Liukkosen Pultti generates annual revenue of approximately MEUR 4.5 with favourable profitability and has 12 employees. Closing took place on 1 February 2022.
As at 8 March 2022, Alligo has acquired 100 per cent of the shares in Lunna AS, which has three stores north of Oslo and sells industrial components, tools, workwear and personal protective equipment. The acquisition strengthens Alligo's position as a leading supplier to Norwegian industry. Lunna generates annual revenue of approximately MNOK 82 with favourable profitability and has 26 employees. Closing took place in conjunction with the acquisition.
At the end of the period, the number of employees in the Group amounted to 2,328 (2,366), compared with 2,319 at the beginning of the year. The increase in the number of employees is the result of the corporate acquisitions made during the period and the reduction compared with the same period last year is the result of the net effect of the divested operations and the corporate acquisitions made.
No transactions having a material impact on the Group's position or earnings occurred between Alligo and its related parties during the period.
In accordance with a resolution at the Extraordinary General Meeting of 2 December 2021, the Group's parent company has changed its name from Momentum Group AB to Alligo AB.
At the end of the period, the Group comprised the parent company Alligo AB and a total of 29 Swedish and foreign wholly owned subsidiaries. The parent company's operations comprise Group-wide management, including Legal and Investor Relations functions. Income takes the form of a management fee from Group companies for Group-wide services and costs which the parent company has provided. Income from discontinued operations has been received for the period January to October 2021.
The parent company's revenue for the period amounted to MSEK 4 (6) and the loss after financial items totalled MSEK -7 (-2). Items affecting comparability have had an impact on profit of MSEK -4 (-), relating to costs ahead of the separate listing of Momentum Group. The distribution of Momentum Group corresponded to the carrying amount of SEK 42,578,000. The balance sheet total amounted to MSEK 4,129 (4,543), with equity accounting for 47 per cent (45) of total assets. The number of employees at the parent company at the end of the period was 2 (8).
Alligo's profits and financial position, as well as its strategic position, are affected by a number of internal factors over which the Group has control, as well as a number of external factors where the opportunity to influence the course of events is limited. The most significant external risk factors for Alligo are the economic and market situation, as well as the development of the number of employees in the industrial and construction sectors, combined with structural changes and the competitive situation.
The ongoing Covid-19 pandemic has affected the entire global economy since spring 2020, including Alligo and its customers, suppliers and employees. The pandemic has had a negative impact on the Group's demand, but has also led to supply disruptions as a result of production shutdowns and major difficulties on the freight market. These problems
will more than likely continue and worsen during 2022, given developments in Russia and Ukraine, which are a further source of uncertainty. Alligo has no operations in these countries and only limited customer and supplier exposure. Alligo has continually implemented measures and made efforts to ensure the health and safety of its employees, customers and other stakeholders and the continued high availability of products and services, and to protect the companies' strong brands in the market and society at large.
For a more detailed summary of the Group's other risks and uncertainties, see pages 23–25 of the annual report for 2021. The parent company is indirectly affected by the above risks and uncertainties through its function in the Group.
Alligo has set four financial targets with a focus on profitable growth, financial stability and dividend.
>5% Organic growth
Average organic growth shall be more than 5 per cent per year over a business cycle. Further growth shall also be made through acquisitions.
>10% EBITA margin
INDEBTEDNESS
<3X Ratio of net operational liabilities to
Ratio of net operational liabilities to EBITDA excl. IFRS 16 shall be less than a multiple of 3.
The EBITA margin shall be more than 10 per cent per year.
30–50% Dividend from net profit
EBITDA excl. IFRS 16
The dividend as a percentage of net profit shall be 30–50 per cent, taking into account other factors such as financial position, cash flow and growth opportunities.
To become the unbeatable leader in sustainable development in our industry, Alligo has set itself five non-financial targets.
100%
All key suppliers must have signed Alligo's Supplier Code of Conduct.
Signing of Code of Conduct
All concept brands on all of the Group's geographic markets shall achieve a Customer Satisfaction Index (CSI) of more than 75.
Satisfaction Index
Sickness absence shall be less than 5 per cent of total scheduled hours.
Proportion of
The proportion of female managers shall be more than 30 per cent.
Reduced carbon emissions
Reducing our climate impact is a key priority for Alligo. We have begun work on the accurate and reliable measurement of the carbon emissions generated by our business. Once we have established a sound basis, we intend to set a common goal for reduced carbon emissions to guide our business forwards.
In accordance with a resolution at the Extraordinary General Meeting of 2 December 2021, the Group's parent company has changed its name from Momentum Group AB to Alligo AB. As of 15 December 2021, the listed class B share is traded under the short name ALLIGO B with the ISIN code SE0009922305 on Nasdaq Stockholm, otherwise the name change does not affect shareholders or trading in the share.
As part of the preparations for the distribution of Momentum Group, Nordstjernan requested the conversion of 498,363 Class A shares to the corresponding number of Class B shares in Alligo. This resulted in a change to the number of shares and votes in Alligo in February.
At the end of the period, the share capital amounted to MSEK 102. The distribution by class of share at the end of the period on 31 March 2022 was as shown in the table below:
| CLASS OF SHARE | 31/03/2022 |
|---|---|
| Class A shares | 564,073 |
| Class B shares | 50,342,116 |
| Total number of shares before repurchasing | 50,906,189 |
| Less: Repurchased Class B shares | -425,300 |
| Total number of shares after repurchasing | 50,480,889 |
The quotient value is SEK 2.04 per share. Each Class A share entitles the holder to ten votes and each Class B share to one vote. All shares carry equal rights to the company's assets, earnings and dividends. Only the Class B share is listed on the Stockholm Stock Exchange. A conversion provision in the Articles of Association allows for conversion of Class A shares into Class B shares.
Nordstjernan AB is the only shareholder whose shareholding provides total voting rights in excess of one-tenth of the voting rights of all the shares in the company. Nordstjernan's shareholding corresponds to 54.6 per cent of the outstanding shares and 49.6 per cent of the votes in Alligo.
Alligo's holding of Class B treasury shares as at 31 March 2022 amounted to 425,300, corresponding to 0.8 per cent of the total number of shares and 0.8 per cent of the total number of votes. There were no changes in the holding of treasury shares after the end of the period and the holding of treasury shares will be used for future incentive programmes or cancelled.
An Extraordinary General Meeting on 23 March 2022 voted through a proposal from the Board of Directors to distribute all of the company's shares in Momentum Group AB to the shareholders of Alligo. This distribution contained a total of 50,480,889 shares, of which 564,073 were Class A shares and 49,916,816 were Class B shares, corresponding to all of the shares in Momentum Group. One Class A share in Alligo provided entitlement to one Class A share in Momentum Group and one Class B share in Alligo provided entitlement to one Class B share in Momentum Group. This distribution corresponded to a total sum of SEK 42,578,000, based on the carrying amount, constituting a dividend per share of approximately SEK 0.84. Alligo's 425,300 Class B treasury shares did not provide entitlement to allotment of shares in Momentum Group. The record date for the distribution was 25 March 2022.
| MSEK | 2022 JAN–MAR |
2021 JAN–MAR |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|---|---|
| Revenue | 2,095 | 1,968 | 8,544 | 8,417 |
| Other operating income | 27 | 26 | 92 | 91 |
| Total operating income | 2,122 | 1,994 | 8,636 | 8,508 |
| Cost of goods sold | -1,278 | -1,182 | -5,083 | -4,987 |
| Personnel costs | -423 | -423 | -1,640 | -1,640 |
| Depreciation, amortisation, impairment losses and reversal of impairment losses | -124 | -124 | -563 | -563 |
| Other operating expenses | -217 | -198 | -910 | -891 |
| Total operating expenses | -2,042 | -1,927 | -8,196 | -8,081 |
| Operating profit | 80 | 67 | 440 | 427 |
| Financial income | 1 | 1 | 3 | 3 |
| Financial expenses | -10 | -11 | -50 | -51 |
| Net financial items | -9 | -10 | -47 | -48 |
| Profit/loss after financial items | 71 | 57 | 393 | 379 |
| Taxes | -15 | -12 | -91 | -88 |
| Profit/loss for the period, continuing operations | 56 | 45 | 302 | 291 |
| Profit/loss for the period, discontinued operations | 3,581 | 32 | 3,688 | 139 |
| Profit/loss for the period, Group total | 3,637 | 77 | 3,990 | 430 |
| Profit/loss for the period attributable to: | ||||
| Parent Company shareholders | 3,637 | 77 | 3,989 | 429 |
| Profit/loss for the period, continuing operations | 56 | 45 | 302 | 291 |
| Profit/loss for the period, discontinued operations excluding impact on earnings of the distribution of Momentum Group |
28 | 32 | 134 | 138 |
| Impact on earnings of the distribution of Momentum Group | 3,553 | - | 3,553 | - |
| Non-controlling interests | 0 | 0 | 1 | 1 |
| Profit/loss for the period, continuing operations | 0 | 0 | 0 | 0 |
| Profit/loss for the period, discontinued operations | 0 | 0 | 1 | 1 |
| Earnings per share, SEK | ||||
| Continuing operations¹ | 1.10 | 0.90 | 5.95 | 5.75 |
| Discontinued operations excluding impact on earnings of the distribution of Momentum Group¹ | 0.55 | 0.65 | 2.65 | 2.75 |
| Impact on earnings of the distribution of Momentum Group¹ | 70.40 | - | 70.40 | - |
| MSEK | 2022 JAN–MAR |
2021 JAN–MAR |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|---|---|
| Profit/loss for the period | 3,637 | 77 | 3,990 | 430 |
| OTHER COMPREHENSIVE INCOME FOR THE PERIOD | ||||
| Components that will not be reclassified to profit/loss for the period: | ||||
| Remeasurement of defined benefit pension plans | 0 | 3 | -2 | 1 |
| Tax attributable to components that will not be reclassified | 0 | -1 | 1 | 0 |
| 0 | 2 | -1 | 1 | |
| Components that will be reclassified to profit/loss for the period: | ||||
| Translation differences | 28 | 47 | 32 | 51 |
| Fair value changes for the period in cash flow hedges | -1 | 15 | 5 | 21 |
| Tax attributable to components that will be reclassified | 0 | -3 | -1 | -4 |
| 27 | 59 | 36 | 68 | |
| Other comprehensive income for the period | 27 | 61 | 35 | 69 |
| Comprehensive income for the period | 3,664 | 138 | 4,025 | 499 |
| Profit/loss for the period attributable to: | ||||
| Parent Company shareholders | 3,664 | 138 | 4,024 | 498 |
| Non-controlling interests | 0 | 0 | 1 | 1 |
1) Before and after dilution.
| MSEK | 31/03/2022 | 31/03/2021 | 31/12/2021 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible non-current assets | 2,633 | 2,864 | 2,577 |
| Right-of-use assets | 951 | 1,018 | 935 |
| Tangible non-current assets | 545 | 526 | 532 |
| Financial investments | 0 | 1 | 0 |
| Other non-current receivables | 14 | 0 | 14 |
| Deferred tax assets | 76 | 71 | 75 |
| Total non-current assets | 4,219 | 4,480 | 4,133 |
| Current assets | |||
| Inventories | 1,959 | 1,828 | 1,856 |
| Accounts receivable | 1,213 | 1,233 | 1,154 |
| Other current receivables | 240 | 189 | 277 |
| Cash and cash equivalents | 40 | 370 | 286 |
| Discontinued operations, assets held for distribution | - | - | 973 |
| Total current assets | 3,452 | 3,620 | 4,546 |
| TOTAL ASSETS | 7,671 | 8,100 | 8,679 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Equity attributable to Parent Company shareholders | 3,055 | 3,159 | 3,429 |
| Non-controlling interests | 2 | 24 | 19 |
| Total equity | 3,057 | 3,183 | 3,448 |
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | 1,558 | 1,545 | 1,421 |
| Non-current lease liabilities | 669 | 715 | 674 |
| Provisions for pensions | 0 | 31 | 0 |
| Other non-current liabilities and provisions | 399 | 400 | 399 |
| Total non-current liabilities | 2,626 | 2,691 | 2,494 |
| Current liabilities | |||
| Current interest-bearing liabilities | 1 | 124 | 124 |
| Current lease liabilities | 345 | 344 | 339 |
| Accounts payable | 1,006 | 1,064 | 1,144 |
| Other current liabilities | 636 | 694 | 620 |
| Discontinued operations, liabilities held for distribution | - | - | 510 |
| Total current liabilities | 1,988 | 2,226 | 2,737 |
| TOTAL LIABILITIES | 4,614 | 4,917 | 5,231 |
| TOTAL EQUITY AND LIABILITIES | 7,671 | 8,100 | 8,679 |
| Equity attributable to Parent Company shareholders | ||||||
|---|---|---|---|---|---|---|
| Retained earnings | ||||||
| MSEK | Share capital | Reserves | incl. profit/loss for the year |
Total | Non-controlling interests |
Total equity |
| Opening equity, 01/01/2021 | 102 | -73 | 3,008 | 3,037 | 14 | 3,051 |
| Profit/loss for the period | 77 | 77 | 0 | 77 | ||
| Other comprehensive income | 59 | 2 | 61 | 61 | ||
| Repurchase of share options | -3 | -3 | -3 | |||
| Sale of treasury shares | 2 | 2 | 2 | |||
| Acquisitions of partly owned subsidiaries | - | 10 | 10 | |||
| Option liability, acquisitions¹ | -15 | -15 | -15 | |||
| Closing equity, 31/03/2021 | 102 | -14 | 3,071 | 3,159 | 24 | 3,183 |
| Opening equity, 01/01/2021 | 102 | -73 | 3,008 | 3,037 | 14 | 3,051 |
| Profit/loss for the period | 429 | 429 | 1 | 430 | ||
| Other comprehensive income | 68 | 1 | 69 | 69 | ||
| Dividend | -76 | -76 | -76 | |||
| Repurchase of share options | -20 | -20 | -20 | |||
| Sale of treasury shares | 9 | 9 | 9 | |||
| Acquisitions of partly owned subsidiaries | - | 10 | 10 | |||
| Changes in ownership share in partly owned subsidiaries | -5 | -5 | -5 | -10 | ||
| Dividends paid in partly owned subsidiaries | - | -1 | -1 | |||
| Change in value of option liability² | 2 | 2 | 2 | |||
| Option liability, acquisitions¹ | -16 | -16 | -16 | |||
| Closing equity, 31/12/2021 | 102 | -5 | 3,332 | 3,429 | 19 | 3,448 |
| Opening equity, 01/01/2022 | 102 | -5 | 3,332 | 3,429 | 19 | 3,448 |
| Profit/loss for the period | 3,637 | 3,637 | 3,637 | |||
| Other comprehensive income | 27 | 27 | 27 | |||
| Distribution of shares in Momentum Group3 | -4,038 | -4,038 | -17 | -4,055 | ||
| Closing equity, 31/03/2022 | 102 | 22 | 2,931 | 3,055 | 2 | 3,057 |
1) Pertains to the value of the put options in relation to non-controlling interests in the acquired subsidiary Mekano AB which grant the shareholders the right to sell shares to Alligo. The price of the options is dependent on the results achieved at the company and may be extended by one year at a time from 2025 onwards.
2) Pertains to a change in the value of the put options in relation to non-controlling interests issued in conjunction with acquisitions of partly owned subsidiaries.
3) Distribution of Momentum Group AB. Corresponds to the market value of Momentum Group at listing on Nasdaq Stockholm on 31 March 2022 (based on the opening price).
| MSEK | 2022 JAN–MAR |
2021 JAN–MAR |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|---|---|
| Operating activities | ||||
| Profit/loss after financial items | 71 | 57 | 393 | 379 |
| Adjustment for non-cash items | 132 | 123 | 665 | 656 |
| Income taxes paid | -46 | -46 | -113 | -113 |
| Cash flow from operating activities before changes in working capital | 157 | 134 | 945 | 922 |
| Change in inventories | -74 | -16 | -329 | -271 |
| Change in operating receivables | 27 | 33 | -228 | -222 |
| Change in operating liabilities | -140 | 22 | 159 | 321 |
| Cash flow from operating activities | -30 | 173 | 547 | 750 |
| Investing activities | ||||
| Net investments in non-current assets | -35 | -37 | -164 | -166 |
| Acquisition of subsidiaries and other business units | -88 | - | -119 | -31 |
| Divestment of subsidiaries and other business units | - | - | -23 | -23 |
| Cash flow from investing activities | -123 | -37 | -306 | -220 |
| Financing activities | ||||
| Borrowings | 1,550 | 0 | 1,550 | 0 |
| Repayment of loans | -1,643 | -95 | -2,034 | -486 |
| Other transactions with shareholders | - | - | -15 | -15 |
| Repurchase/sale of share options | - | -3 | -17 | -20 |
| Repurchase/sale of treasury shares | - | 2 | 7 | 9 |
| Dividends paid | - | - | -76 | -76 |
| Cash flow from financing activities | -93 | -96 | -585 | -588 |
| Cash flow for the period, continuing operations | -246 | 40 | -344 | -58 |
| Cash flow for the period, discontinued operations (see note 7) | 7 | -46 | 80 | 27 |
| Cash flow for the period, Group total | -239 | -6 | -264 | -31 |
| Cash and cash equivalents at the beginning of the period | 345 | 375 | 370 | 375 |
| Exchange difference in cash and cash equivalents | 0 | 1 | 0 | 1 |
| Cash and cash equivalents in discontinued operations | -66 | - | -66 | - |
| Cash and cash equivalents at the end of the period | 40 | 370 | 40 | 3451 |
1) In comparison with cash and cash equivalents on the balance sheet, MSEK 286 can be found on the line Cash and cash equivalents and MSEK 59 on the line Assets held for distribution.
| MSEK | 2022 JAN–MAR |
2021 JAN–MAR |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|---|---|
| Revenue | 4 | 6 | 21 | 23 |
| Other operating income | 0 | 2 | 3 | 5 |
| Total operating income | 4 | 8 | 24 | 28 |
| Operating expenses | -12 | -11 | -49 | -48 |
| Operating profit | -8 | -3 | -25 | -20 |
| Financial income and expenses | 1 | 1 | 5 | 5 |
| Profit/loss after financial items | -7 | -2 | -20 | -15 |
| Appropriations | - | - | 42 | 42 |
| Profit/loss before tax | -7 | -2 | 22 | 27 |
| Taxes | 1 | 0 | -5 | -6 |
| Profit/loss for the period | -6 | -2 | 17 | 21 |
There are no items at the parent company that are recognised under other comprehensive income. Total comprehensive income therefore corresponds to the profit/loss for the period.
| MSEK | 31/03/2022 | 31/03/2021 | 31/12/2021 |
|---|---|---|---|
| ASSETS | |||
| Intangible non-current assets | 0 | 0 | 0 |
| Tangible non-current assets | - | 0 | 0 |
| Financial non-current assets | 3,639 | 3,908 | 3,685 |
| Total non-current assets | 3,639 | 3,908 | 3,685 |
| Current receivables | 485 | 320 | 197 |
| Cash and bank | 5 | 315 | 251 |
| Total current assets | 490 | 635 | 448 |
| TOTAL ASSETS | 4,129 | 4,543 | 4,133 |
| EQUITY, PROVISIONS AND LIABILITIES | |||
| Restricted equity | 102 | 102 | 102 |
| Non-restricted equity | 1,841 | 1,953 | 1,889 |
| Total equity | 1,943 | 2,055 | 1,991 |
| Provisions | 4 | - | 4 |
| Non-current liabilities | 1,550 | 1,545 | 1,421 |
| Current liabilities | 632 | 943 | 717 |
| TOTAL EQUITY, PROVISIONS AND LIABILITIES | 4,129 | 4,543 | 4,133 |
At the Extraordinary General Meeting of 2 December 2021, it was decided, in accordance with the proposal of the Board of Directors, to amend Article 1 of the Articles of Association and change the company name from Momentum Group AB to Alligo AB. The new company name was registered with the Swedish Companies Registration Office on 13 December.
The interim report for the Group has been prepared in accordance with IFRS, with the application of IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Securities Markets Act. Disclosures in accordance with paragraph 16A of IAS 34 are made in the financial statements and related notes, as well as in other sections of the report. The interim report for the parent company has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Markets Act, which is consistent with the provisions of Recommendation RFR 2 Accounting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies and assessment criteria applied are the same as in the annual report for 2021.
Amounts quoted in the interim report are stated in millions of Swedish kronor (MSEK) unless otherwise indicated. Amounts in parentheses refer to the comparison period.
The operations of Momentum Group are reported in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The distribution of Momentum Group has been reported in accordance with IFRIC 17 Distributions of Non-cash Assets to Owners. The shares in the discontinued operations of Momentum Group were distributed to the shareholders of Alligo with a record date of 25 March and reported as discontinued operations in accordance with IFRS 5. Discontinued operations are recognised separately from continuing operations in the income statement, with retroactive effect for earlier periods. Momentum Group's earnings up to the point of distribution, and the non-cash gain that the distribution of Momentum Group has generated in accordance with IFRIC 17, are recognised on a line in the income
As of Q1 2022, the Group's operating segments consist of the geographic segments of Sweden, Norway and Finland. The operating segments reflect the operational organisation, as used by Group management and the Board of Directors to monitor operations. Group-wide includes the Group's management and support functions. The support functions include
statement. The gain reflects the difference between the market value of Momentum Group's shares (based on the opening price on the first day of trading, 31 March 2022) and the carrying amount of the company on the consolidated balance sheet. The Group also reports a profit/loss after tax from the distributed operations up to the point of distribution. See Note 7 Discontinued operations for further information.
In the Q1 report for 2022, certain components that were previously recognised as revenue (approximately MSEK 58 for 2021) have been reclassified as other income in order to better reflect the underlying operations.
As a result of Momentum Group (Components & Services business area) being defined as discontinued operations during Q1 2022, Alligo is adapting its segment reporting so that it reflects how continuing operations are organised and monitored. As of Q1 2022, Alligo reports three operating segments: Sweden, Norway and Finland. See Note 2 Operating segments for further information.
As a result of Momentum Group (Components & Services business area) being defined as discontinued operations during Q1 2022, Alligo is adapting the Group's revenue categories to better reflect the continuing operations. As of Q1 2022, the revenue categories are expanded to include an additional breakdown: own brands and external brands. See Note 3 Revenue distribution for further information.
Investor Relations and Legal. Financial items and taxes are not broken down by operating segment and are instead reported as a whole in Groupwide. Intra-Group pricing between the operating segments takes place on market terms. The accounting policies are the same as for the consolidated financial statements.
| JAN–MAR 2022 | |||||||
|---|---|---|---|---|---|---|---|
| MSEK | Sweden | Norway | Finland¹ | Total segments | Group-wide | Eliminations | Group total |
| External revenue | 1,150 | 594 | 351 | 2,095 | 2,095 | ||
| Internal revenue | 42 | 5 | 0 | 47 | -47 | - | |
| Revenue | 1,192 | 599 | 351 | 2,142 | - | -47 | 2,095 |
| EBITA | 89 | 17 | 3 | 109 | -4 | 0 | 105 |
| Items affecting comparability2 | -1 | - | -4 | -5 | -4 | -9 | |
| Amortisation of intangible assets in connection with corporate acquisitions | -11 | -4 | -1 | -16 | -16 | ||
| Operating profit | 77 | 13 | -2 | 88 | -8 | 0 | 80 |
| Non-current assets | 3,045 | 672 | 412 | 4,129 | 0 | 4,129 |
| JAN–MAR 2021 | |||||||
|---|---|---|---|---|---|---|---|
| MSEK | Sweden | Norway | Finland¹ | Total segments | Group-wide | Eliminations | Group total |
| External revenue | 1,139 | 538 | 291 | 1,968 | 1,968 | ||
| Internal revenue | 52 | 3 | - | 55 | -55 | 0 | |
| Revenue | 1,191 | 541 | 291 | 2,023 | - | -55 | 1,968 |
| EBITA | 72 | 12 | 1 | 85 | -3 | - | 82 |
| Items affecting comparability | 1 | -1 | 0 | 0 | 0 | ||
| Amortisation of intangible assets in connection with corporate acquisitions | -11 | -3 | -1 | -15 | - | -15 | |
| Operating profit | 62 | 8 | 0 | 70 | -3 | 67 | |
| Non-current assets | 3,108 | 573 | 374 | 4,055 | 2 | 4,057 | |
| JAN–DEC 2021 | |||||||
| MSEK | Sweden | Norway | Finland¹ | Total segments | Group-wide | Eliminations | Group total |
| External revenue | 4,920 | 2,177 | 1,320 | 8,417 | 8,417 | ||
| Internal revenue | 231 | 21 | - | 252 | -252 | 0 | |
| Revenue | 5,151 | 2,198 | 1,320 | 8,669 | - | -252 | 8,417 |
| EBITA | 560 | 80 | 19 | 659 | -14 | 0 | 645 |
| Items affecting comparability3 | -130 | -19 | 0 | -149 | -6 | -155 |
Amortisation of intangible assets in connection with corporate acquisitions -44 -14 -5 -63 - -63 Operating profit 386 47 14 447 -20 427
Non-current assets 3,054 593 397 4,044 0 4,044
1) The Finland operating segment also includes Estonia.
2) Items affecting comparability in Sweden and Group-wide relate to costs ahead of the separate listing of Momentum Group. Items affecting comparability in Finland relate to severance costs in connection with a change of management.
3) Items affecting comparability in Sweden and Norway relate to restructuring costs in connection with the coordination of logistics. In Sweden, this coordination concerns the relocation of the Swedish logistics operations of Tools to Alligo's central warehouses, consisting primarily of writedowns of non-current assets and right-of-use assets (Alingsås lease agreement) and of losses on divestment of operations. Items affecting comparability in Group-wide relate to costs for advisers in connection with the investigation of the conditions for a possible division of the Group.
| JAN–MAR | JAN–MAR | 2021 JAN–DEC |
|---|---|---|
| 1,150 | 1,139 | 4,920 |
| 594 | 538 | 2,177 |
| 351 | 291 | 1,320 |
| 2,095 | 1,968 | 8,417 |
| 2022 | 2021 |
| PRODUCT BRANDS | |||
|---|---|---|---|
| MSEK | 2022 JAN–MAR |
2021 JAN–MAR |
2021 JAN–DEC |
| Own brands | |||
| Sweden | 257 | 271 | 1,217 |
| Norway | 73 | 87 | 402 |
| Finland | 22 | 21 | 97 |
| Own brands | 352 | 379 | 1,716 |
| External brands | |||
| Sweden | 893 | 868 | 3,703 |
| Norway | 521 | 451 | 1,775 |
| Finland | 329 | 270 | 1,223 |
| External brands | 1,743 | 1,589 | 6,701 |
| Total revenue | 2,095 | 1,968 | 8,417 |
The Group has financial instruments where level 3 has been used to determine the fair value. Financial liabilities measured at fair value through profit or loss pertain to additional purchase considerations not yet paid and at the beginning of the period amounted to MSEK 4.6. No additional purchase considerations were paid during the period January to March 2022. New additional purchase considerations amounted to MSEK 3.8 from the acquisition of Liukkosen Pultti Oy. Additional purchase considerations not yet paid amounted to MSEK 8.4 at the end of the period. In all cases, the additional purchase considerations are based on gross profit for the years 2022 and 2023. The additional purchase considerations are valued on an ongoing basis using a probability assessment, where an evaluation is made of whether they will be paid at the agreed amounts. Management has taken into account here the risk for the outcome of future cash flows, where the time factor, given current interest rates, is not considered to be material. The fair value of the Group's financial assets and liabilities is estimated to be the same as their carrying amount. The Group does not use net recognition for any of its material assets or liabilities. There were no transfers between levels or measurement categories during the period.
Alligo made two corporate acquisitions with closing during 2022. None of these acquisitions is deemed significant enough to require a separate presentation of the acquisition analysis. On 5 January 2022, Alligo signed an agreement to acquire 100 per cent of the shares in Liukkosen Pultti Oy. Liukkosen Pultti operates a store in Lahti that sells workwear and tools and the acquisition strengthens Alligo's presence on the Finnish market. The acquired company generates annual revenue of approximately MEUR 4.5 with favourable profitability and has 21 employees. Closing took place on 1 February 2022. On 8 March 2022, Alligo acquired 100 per cent of the shares in Lunna AS. Lunna has three stores north of Oslo and sells industrial components, tools, workwear and personal protective equipment. The acquisition strengthens Alligo's position as a leading supplier to Norwegian industry. The acquired company generates annual revenue of approximately MNOK 82 with favourable profitability and has 26 employees. Closing took place in conjunction with the acquisition.
Calculated as if closing had taken place on 1 January 2022, the acquired companies have contributed MSEK 33 to the Group's revenue and MSEK 0 to the Group's EBITA.
The total purchase consideration for the acquisitions amounted to MSEK 92, of which MSEK 3.8 comprised additional purchase considerations. The additional purchase considerations were valued using a probability assessment, where it was determined that they will be paid at the agreed amount, totalling MSEK 3.8. Acquisition costs of approximately MSEK 1 were recognised as other operating expenses in 2022.
No additional purchase considerations were paid during the period.
Alligo made two corporate acquisitions with closing during 2021. None of these acquisitions is deemed significant enough to require a separate presentation of the acquisition analysis. At the end of April 2021, Alligo acquired 100 per cent of the shares in Imatran Pultti Oy, together with its subsidiary Beranger Oy. Imatran Pultti has two stores in Imatra in the south-east of Finland, which sell personal protective equipment, tools, fittings and industrial components. The acquisition further strengthens the position of Tools as a leading supplier to Finnish industry. The acquired companies together generate annual revenue of approximately MEUR 5 with favourable profitability and have 11 employees. Closing took place in late April 2021. On 4 October 2021, Alligo acquired 100 per cent of the shares in RAF Romerike Arbeidstøy AS. The acquisition further strengthens the position of Alligo as a leading supplier on the Norwegian market. The acquired company generates annual revenue of approximately MNOK 16 with favourable profitability. Closing took place in conjunction with the acquisition and is considered to have had a slight positive impact on the Group's earnings per share in 2021.
The total purchase consideration for the acquisitions amounted to MSEK 40, of which MSEK 4.6 comprised additional purchase considerations. The additional purchase considerations were valued using a probability assessment, where it was determined that they will be paid at the agreed amount, totalling MSEK 4.6. Acquisition costs of approximately MSEK 1 were recognised as other operating expenses in 2021.
No additional purchase considerations were paid during the period.
Some of the surplus value in the preliminary acquisition analyses has been allocated to customer relations, while the unallocated surplus value has been assigned to goodwill. Goodwill relates to unidentifiable intangible assets and synergies within procurement, logistics, IT and administration, for example, that are expected to arise as a result of the acquisition.
According to the preliminary acquisition analyses, the assets and liabilities included in the operations acquired during 2022 amount to the following. The main reason why the acquisition analyses are considered to be preliminary is that only a short time has passed since the acquisitions.
| MSEK | Carrying amount |
Fair value adjustment |
Fair value |
|---|---|---|---|
| ACQUIRED ASSETS | |||
| Intangible non-current assets | 20 | 20 | |
| Right-of-use assets | 22 | 22 | |
| Other non-current assets | 1 | 2 | 3 |
| Inventories | 41 | -9 | 32 |
| Other current assets | 26 | 26 | |
| Total assets | 68 | 35 | 103 |
| ACQUIRED PROVISIONS AND LIABILITIES | |||
| Non-current liabilities | 12 | 12 | |
| Lease liabilities | 22 | 22 | |
| Deferred tax liability | 4 | 4 | |
| Current operating liabilities | 23 | 23 | |
| Total provisions and liabilities | 35 | 26 | 61 |
| NET OF IDENTIFIED ASSETS AND LIABILITIES | 33 | 9 | 42 |
| Goodwill | 50 | ||
| Purchase consideration | 92 | ||
| Of which additional purchase consideration | -4 | ||
| Cash and cash equivalents in acquired companies |
-4 | ||
| Loans settled on acquisition | 4 | ||
| EFFECT ON THE GROUP'S CASH AND CASH EQUIVALENTS |
88 |
Goodwill has an indefinable useful life and is not amortised but is tested for impairment annually or where there are indications of a decline in value. The estimated value of customer relations is amortised over an estimated useful life of 10 years.
According to the acquisition analyses, the assets and liabilities included in the operations acquired during 2021 amount to the following.
| MSEK | Carrying amount |
Fair value adjustment |
Fair value |
|---|---|---|---|
| ACQUIRED ASSETS | |||
| Intangible non-current assets | 13 | 13 | |
| Right-of-use assets | 7 | 7 | |
| Other non-current assets | 1 | 1 | |
| Inventories | 10 | -1 | 9 |
| Other current assets | 12 | 12 | |
| Total assets | 23 | 19 | 42 |
| ACQUIRED PROVISIONS AND LIABILITIES | |||
| Non-current liabilities | - | ||
| Lease liabilities | 7 | 7 | |
| Deferred tax liability | 3 | 3 | |
| Current operating liabilities | 11 | 11 | |
| Total provisions and liabilities | 11 | 10 | 21 |
| NET OF IDENTIFIED ASSETS AND LIABILITIES | 12 | 9 | 21 |
| Goodwill | 19 | ||
| Purchase consideration | 40 | ||
| Of which additional purchase consideration | -5 | ||
| Cash and cash equivalents in acquired companies |
-4 | ||
| Loans settled on acquisition | - | ||
| EFFECT ON THE GROUP'S CASH AND CASH EQUIVALENTS |
31 |
| CORPORATE ACOUISITIONS CONDUCTED FROM THE 2015/2016 FINANCIAL YEAR ONWARD | |||
|---|---|---|---|
| --------------------------------------------------------------------------- | -- | -- | -- |
| CORPORATE ACQUISITIONS CONDUCTED FROM THE 2015/2016 FINANCIAL YEAR ONWARDS | Closing | Revenue¹ | Number of employees¹ |
|---|---|---|---|
| Tønsberg Maskinforretning AS, NO | April 2016 | MNOK 20 | 10 |
| Astrup Industrivarer AS, NO | November 2016 | MNOK 240 | 50 |
| TriffiQ Företagsprofilering AB², SE | September 2017 | MSEK 70 | 18 |
| AB Knut Sehlins Industrivaruhus, SE | October 2017 | MSEK 40 | 14 |
| Reklamproffsen Skandinavien AB², SE | March 2018 | MSEK 35 | 12 |
| Profilmakarna i Södertälje AB, SE | April 2018 | MSEK 25 | 8 |
| MFG Components Oy³, FI | October 2018 | MEUR 1 | 3 |
| TOOLS Løvold AS, NO | January 2019 | MNOK 95 | 28 |
| Lindström Group's PPE business³, FI | April 2019 | MEUR 6 | 5 |
| Company Line Förvaltning AB², SE | June 2019 | MSEK 75 | 25 |
| AMJ Papper AB, SE | March 2020 | MSEK 15 | 6 |
| Swedol AB, SE/NO/FI4 | April 2020 | MSEK 3,650 | 1,046 |
| Imatran Pultti Oy, FI | April 2021 | MEUR 5 | 11 |
| RAF Romerike Arbeidstøy AS, NO | October 2021 | MNOK 16 | 4 |
| Liukkosen Pultti Oy, FI | February 2022 | MEUR 4.5 | 12 |
| Lunna AS, NO | March 2022 | MNOK 82 | 26 |
1) Refers to full-year information at the time of acquisition.
2) Alligo initially acquired 70 per cent of the shares in each company. Alligo currently owns 100 per cent of the shares in TriffiQ Företagsprofilering AB and Reklamproffsen Skandinavien AB, as well as around 90 per cent of the shares in Company Line Förvaltning AB.
3) The acquisition was carried out as a conveyance of assets and liabilities.
4) Following the closure of the public offering to the shareholders of Swedol AB, Alligo's holding amounted to approximately 99 per cent of the shares. The compulsory redemption of the remaining shares outstanding in Swedol was called for and preferential rights to the shares were granted by the arbitration board in the compulsory redemption dispute proceedings in early July 2020. Alligo subsequently owns 100 per cent of the shares and votes in Swedol AB.
On 5 October 2021, Alligo signed an agreement on the divestment of 100 per cent of the shares in Gigant AB, together with its subsidiaries. The divestment focuses Alligo on its role as a partner to end customers, primarily within the industrial and construction sectors, while at the same time giving Gigant better conditions for developing its business.
Gigant was included in the consolidated financial statements up to and including the transfer completion date of 1 November 2021. The maximum purchase consideration is MSEK 30. As at 1 November 2021, the capital loss amounted to MSEK -37, including the redemption of premiums for pension liabilities to Alecta. The redemption of premiums was financed by Alligo Holding AB providing a loan to Gigant AB of MSEK 14, which corresponds to the size of the pension liability. The capital loss has been recognised under other operating expenses in the income statement.
In the event of Gigant's business achieving certain profitability targets during the period 1 November 2021 to 31 October 2022, in accordance with a contingent purchase consideration clause in the purchase agreement, an additional cash consideration of up to MSEK 5 will be received. At the time of sale, the fair value of the contingent purchase consideration was MSEK 4. It has been recognised as a financial asset measured at fair value through profit or loss.
| Purchase consideration received or that will be received: | |
|---|---|
| Cash | 25 |
| Fair value of contingent purchase consideration | 4 |
| Total selling price | 29 |
| Carrying amount of net assets sold on transfer on 1 November 2021 | -66 |
| Profit/loss before tax | -37 |
| Income tax | - |
| Profit/loss on sale after tax | -37 |
ASSETS AND LIABILITIES INCLUDED IN DIVESTMENT
| MSEK | 01/11/2021 |
|---|---|
| ASSETS | |
| Total non-current assets | 13 |
| Total current assets | 144 |
| TOTAL ASSETS | 157 |
| LIABILITIES | |
| Total non-current liabilities | -35 |
| Total current liabilities | -57 |
| TOTAL LIABILITIES | -91 |
| Group, MSEK | 31/03/2022 | 31/03/2021 | 31/12/2021 |
|---|---|---|---|
| Pledged assets | 3 | - | 3 |
| Contingent liabilities | 17 | 17 | 17 |
| Parent Company, MSEK | 31/03/2022 | 31/03/2021 | |
| 31/12/2021 | |||
| Pledged assets | - | - | - |
Alligo's subsidiary Momentum Group AB (Components & Services business area) was classified during the fourth quarter of 2021 as discontinued operations and since then has been recognised in accordance with the applicable accounting policies of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The distribution of the business was completed during the first quarter of 2022, when Momentum Group was distributed to the shareholders and listed on Nasdaq Stockholm on 31 March 2022. Momentum Group's net assets prior to distribution were MSEK 486. Remeasurement to fair value on distribution, corresponding to the market value of MSEK 4,038 of Momentum Group on listing, resulted in an impact on earnings of MSEK 3,553.
Momentum Group is recognised as discontinued operations in the consolidated statement of comprehensive income for the period
January to March 2022 and for the period January to December 2021. The consolidated statement of comprehensive income for the comparison periods of January to March 2021 and the 12 months up to and including 31 March 2022 has been recalculated according to the same principles. The profit/loss of Momentum Group has been excluded from the individual rows of the consolidated income statement and the net profit/loss is instead reported as "Profit/loss for the period, discontinued operations". On the balance sheet as at 31 December 2021, assets and liabilities relating to Momentum Group are recognised as "Discontinued operations, assets held for distribution" and "Discontinued operations, liabilities held for distribution" respectively.
Information on the income statement, balance sheet and cash flows for discontinued operations is presented below.
| INCOME STATEMENT Group, MSEK |
2022 JAN–MAR |
2021 JAN–MAR |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|---|---|
| Revenue | 399 | 350 | 1,540 | 1,491 |
| Other operating income | 2 | 1 | 5 | 4 |
| Total operating income | 401 | 351 | 1,545 | 1,495 |
| Cost of goods sold | -211 | -191 | -815 | -795 |
| Personnel costs | -101 | -80 | -363 | -342 |
| Depreciation, amortisation, impairment losses and reversal of impairment losses | -15 | -11 | -58 | -54 |
| Other operating expenses | -37 | -28 | -136 | -127 |
| Total operating expenses | -364 | -310 | -1,372 | -1,318 |
| Operating profit | 37 | 41 | 173 | 177 |
| Net financial items | -1 | 0 | -2 | -1 |
| Profit/loss after financial items | 36 | 41 | 171 | 176 |
| Taxes | -8 | -9 | -36 | -37 |
| Profit/loss for the period, Components & Services | 28 | 32 | 135 | 139 |
| Reclassification of translation differences from other comprehensive income | 1 | - | - | - |
| Impact on earnings of the distribution of Momentum Group | 3,552 | - | - | - |
| Profit/loss for the period, discontinued operations | 3,581 | 32 | 135 | 139 |
| MSEK | 31/03/2022 | 31/12/2021 |
|---|---|---|
| ASSETS | ||
| Intangible non-current assets | - | 284 |
| Right-of-use assets | - | 127 |
| Tangible non-current assets | - | 17 |
| Other non-current receivables | - | 1 |
| Deferred tax assets | - | 1 |
| Total non-current assets | - | 430 |
| Inventories | - | 211 |
| Accounts receivable | - | 255 |
| Other current receivables | - | 18 |
| Cash and cash equivalents | - | 59 |
| Total current assets | - | 543 |
| TOTAL ASSETS held for distribution | - | 973 |
| LIABILITIES | ||
| Non-current interest-bearing liabilities | - | 9 |
| Non-current lease liabilities | - | 81 |
| Other non-current liabilities and provisions | - | 57 |
| Total non-current liabilities | - | 147 |
| Current interest-bearing liabilities | - | 0 |
| Current lease liabilities | - | 41 |
| Accounts payable | - | 154 |
| Other current liabilities | - | 168 |
| Total current liabilities | - | 363 |
| TOTAL LIABILITIES held for distribution | - | 510 |
| NET ASSETS held for distribution | - | 463 |
| CASH FLOW STATEMENT | 2022 | 2021 | 31/03/2022 | 2021 |
|---|---|---|---|---|
| Group, MSEK | JAN–MAR | JAN–MAR | 12 months to | JAN–DEC |
| Cash flow from operating activities | 8 | 42 | 159 | 193 |
| Cash flow from investing activities | 0 | -79 | -46 | -125 |
| Cash flow from financing activities | -1 | -9 | -33 | -41 |
| Cash flow for the period from discontinued operations | 7 | -46 | 80 | 27 |
The Board of Directors and the Chief Executive Officer deem that the interim report gives a true and fair view of the business, financial position and performance of the company and of the Group and describes the significant risks and uncertainties faced by the company and the constituent companies of the Group.
Stockholm, 28 April 2022 Alligo AB (publ)
Göran Näsholm Chair of the Board
Johan Eklund Board member Stefan Hedelius Board member
Johan Sjö Board member
Cecilia Marlow Board member Christina Åqvist Board member
Rasmus Flodin Board member Employee representative
Clein Johansson Ullenvik Group President and CEO
This interim report has not been reviewed by the company's auditors.
The information in this report is such that Alligo AB (publ) is obliged to publish under the EU Market Abuse Regulation. The information was submitted for publication through the agency of the Chief Executive Officer on 28 April 2022 at 08:00 CEST.
| Group, MSEK | 2022 JAN–MAR |
2021 JAN–MAR |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|---|---|
| IFRS KEY PERFORMANCE INDICATORS | ||||
| Earnings per share, SEK | ||||
| Continuing operations¹ | 1.10 | 0.90 | 5.95 | 5.75 |
| Discontinued operations1,2 | 0.55 | 0.65 | 2.65 | 2.75 |
| Impact on earnings of the distribution of Momentum Group¹ | 70.40 | - | 70.40 | - |
| ALTERNATIVE KEY PERFORMANCE INDICATORS | ||||
| Income statement-based KPIs | ||||
| Revenue, MSEK | 2,095 | 1,968 | 8,544 | 8,417 |
| Operating profit, MSEK | 80 | 67 | 440 | 427 |
| Items affecting comparability | -9 | - | -164 | -155 |
| Amortisation of intangible assets in connection with corporate acquisitions | -16 | -15 | -64 | -63 |
| EBITA, MSEK | 105 | 82 | 668 | 645 |
| Depreciation/amortisation of tangible and other intangible non-current assets3 | -27 | -25 | -118 | -116 |
| EBITDA excl. IFRS 16, MSEK | 128 | 103 | 772 | 747 |
| Profit after financial items, MSEK | 71 | 57 | 393 | 379 |
| Operating margin, % | 3.8 | 3.4 | 5.1 | 5.1 |
| EBITA margin, % | 5.0 | 4.2 | 7.8 | 7.7 |
| Profit margin, % | 3.4 | 2.9 | 4.6 | 4.5 |
| Profitability KPIs | ||||
| Return on working capital (EBITA/WC)4 , % |
36 | 36 | ||
| Return on capital employed 4 , % |
7 | 7 | ||
| Return on equity2.5, % | 14 | 13 | ||
| Financial position KPIs | ||||
| Net financial liabilities, MSEK | 2,533 | 2,352 | 2,533 | 2,272 |
| Net operational liabilities, MSEK | 1,519 | 1,331 | 1,519 | 1,259 |
| Ratio of net operational liabilities to EBITDA excl. IFRS 16 | 2.0 | 1.7 | ||
| Equity 6, MSEK | 3,055 | 3,159 | 3,055 | 3,429 |
| Equity/assets ratio4 , % |
40 | 39 | 40 | 40 |
| Other KPIs | ||||
| No. of employees at the end of the period | 2,328 | 2,366 | 2,328 | 2,319 |
| Share price at the end of the period, SEK | 139 | 155 | 139 | 192 |
1) Before and after dilution.
2) Adjusted for the impact on earnings of the distribution of Momentum Group AB.
3) Total depreciation/amortisation of tangible and intangible non-current assets, excluding amortisation of intangible assets in connection with corporate acquisitions and the effects of IFRS 16.
4) KPI calculated on the basis of the figures reported in the financial statements. This means that profit/loss items for previous periods are recalculated and based on continuing operations, while balance sheet items for previous periods are not recalculated.
5) Refers to the Group total (continuing operations and discontinued operations).
6) Refers to equity attributable to the Parent Company's shareholders.
Alligo reports key performance indicators in order to describe the underlying profitability of the business and improve comparability. The Group applies ESMA's guidelines on alternative key performance indicators.
Revenue from like-for-like sales refers to sales in local currency from stores that were part of the Group during the current period and the entire corresponding period in the preceding year.
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, excluding growth driven by newly opened stores.
Operating profit adjusted for items affecting comparability and before any impairment of goodwill and amortisation and impairment of other intangible assets incurred in connection with corporate acquisitions and equivalent transactions. Used to present the Group's earnings generated from operating activities.
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).
Operating profit adjusted for items affecting comparability before any depreciation and write-down of tangible non-current assets and any amortisation and impairment of goodwill and other intangible non-current assets incurred in connection with corporate acquisitions and equivalent transactions, excluding effects on operating profit of reporting in accordance with IFRS 16.
This key performance indicator is used to calculate the debt ratio, excluding the effects of IFRS 16.
Used to analyse the financial risk in the Group and show how much of the Group's assets are financed by equity.
Items affecting comparability include revenue and expenses that do not arise regularly in the operating activities.
Excluding items affecting comparability increases the comparability of results between periods.
Net financial liabilities 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.
Net operational liabilities 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.
Profit before financial items and tax
Used to present the Group's earnings before interest and taxes.
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.
Organic growth refers to sales in local currency from stores that were part of the Group during the current period and the entire corresponding period in the preceding year, as well as sales from new stores opened during the year.
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, including growth driven by newly opened stores.
Other units refers to acquired or divested units during the corresponding period.
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.
This key performance indicator shows the multiple of the EBITDA result for the most recent 12-month period, excluding the effects of IFRS 16, that would be needed in order to settle net operational liabilities. As a debt ratio, the indicator shows the Group's resilience and interest rate sensitivity.
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-interestbearing 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.
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.
Alligo uses certain financial key performance indicators in its analysis of the business and its performance that are not calculated in accordance with IFRS. The company believes that these alternative key performance indicators provide valuable information for the company's Board of Directors, owners and investors, as they enable a more accurate assessment of current trends and Alligo's performance when combined with other key performance indicators calculated in accordance with IFRS. As not all listed companies calculate these financial key performance indicators in the same way, there is no guarantee that the information is comparable with other companies' key performance indicators of the same name. Hence, these financial key performance indicators must not be viewed as a replacement for those measures calculated in accordance with IFRS.
| EBITA MSEK |
2022 JAN–MAR |
2021 JAN–MAR |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|---|---|
| Operating profit | 80 | 67 | 440 | 427 |
| Items affecting comparability | ||||
| Restructuring costs | 4¹ | - | 112² | 108² |
| Divestment of operations | - | - | 37 | 37 |
| Split and listing expenses | 5 | - | 15 | 10 |
| Amortisation and impairment of intangible assets in connection with corporate acquisitions | 16 | 15 | 64 | 63 |
| EBITA | 105 | 82 | 668 | 645 |
| Operating profit excl. IFRS 16 | 76 | 63 | 426 | 413 |
| Amortisation and impairment of other intangible non-current assets | 10 | 11 | 41 | 42 |
| Depreciation and write-downs of tangible non-current assets | 17 | 14 | 77 | 74 |
| EBITDA excl. IFRS 16 | 128 | 103 | 772 | 747 |
1) Restructuring costs in connection with change of management in Finland.
2) Restructuring costs in connection with relocation of the Swedish logistics operations of Tools to Alligo's central warehouses in Örebro.
| WORKING CAPITAL | 2022 | 2021 | 31/03/2022 | 2021 |
|---|---|---|---|---|
| MSEK | JAN–MAR | JAN–MAR | 12 months to | JAN–DEC |
| Average operating assets | ||||
| Average inventories | 1,789 | 1,735 | 1,789 | 1,722 |
| Average accounts receivable | 1,065 | 1,093 | 1,065 | 1,050 |
| Total average operating assets | 2,855 | 2,828 | 2,855 | 2,772 |
| Average operating liabilities | ||||
| Average accounts payable | -991 | -919 | -991 | -973 |
| Total average operating liabilities | -991 | -919 | -991 | -973 |
| Average working capital | 1,864 | 1,909 | 1,864 | 1,799 |
| EBITA | 668 | 645 | ||
| Return on working capital (EBITA/WC), % | 36 | 36 |
| CAPITAL EMPLOYED MSEK |
2022 JAN–MAR |
2021 JAN–MAR |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|---|---|
| Average balance sheet total | 8,188 | 6,900 | 8,188 | 8,217 |
| Average non-interest-bearing liabilities and provisions | ||||
| Average non-interest-bearing non-current liabilities | -375 | -300 | -375 | -371 |
| Average non-interest-bearing current liabilities | -1,608 | -1,479 | -1,608 | -1,615 |
| Total average non-interest-bearing liabilities and provisions | -1,983 | -1,779 | -1,983 | -1,986 |
| Average capital employed | 6,205 | 5,121 | 6,205 | 6,231 |
| Operating profit | 440 | 427 | ||
| Financial income | 3 | 3 | ||
| Total operating profit + financial income | 443 | 430 | ||
| Return on capital employed, % | 7 | 7 |
| RETURN ON EQUITY MSEK |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|
| Average equity3 | 3,221 | 3,218 |
| Profit/loss for the period3 | 436 | 429 |
| Return on equity, % | 14 | 13 |
3) Refers to equity or profit attributable to the parent company's shareholders.
| NET FINANCIAL LIABILITIES MSEK |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|
| Non-current interest-bearing liabilities | 2,227 | 2,095 |
| Current interest-bearing liabilities | 346 | 463 |
| Cash and cash equivalents | -40 | -286 |
| Net financial liabilities | 2,533 | 2,272 |
| NET OPERATIONAL LIABILITIES MSEK |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|
| Net financial liabilities | 2,533 | 2,272 |
| Financial lease liabilities | -1,014 | -1,013 |
| Net provisions for pensions | 0 | 0 |
| Net operational liabilities | 1,519 | 1,259 |
| EBITDA excl. IFRS 16, rolling 12 months | 772 | 747 |
| Ratio of net operational liabilities to EBITDA excl. IFRS 16 | 2.0 | 1.7 |
| EQUITY/ASSETS RATIO MSEK |
2022 JAN–MAR |
2021 JAN–MAR |
31/03/2022 12 months to |
2021 JAN–DEC |
|---|---|---|---|---|
| Balance sheet total (closing balance) | 7,671 | 8,134 | 7,671 | 8,679 |
| Equity3 | 3,055 | 3,159 | 3,055 | 3,429 |
| Equity/assets ratio, % | 40 | 39 | 40 | 40 |
3) Refers to equity or profit attributable to the parent company's shareholders.
Alligo's strategic map is based on our mission and values and it guides us towards our vision of becoming unbeatable as a partner to our customers, as an employer for our employees, as a partner to our suppliers and as a leader in sustainable development in our industry.
If we do our job right, our customers will have what they need to do their job right – both as companies and as employees. They have tools and consumables where they need them, when they need them. They have workwear and personal protective equipment that protects them against the weather and against hazards. With our expertise, we can help customers to develop their business and make it safer and more efficient.
Alligo's values are based on three pillars that together define who we are and how we interact with our customers and other stakeholders.
| ❚ | ❚ | ❚ |
|---|---|---|
| Commitment | Collaboration | Competence |
Our vision describes what we want to achieve in the longer term. We must not be satisfied with being one of the leaders in the industry, we must be unbeatable. To achieve this, we must meet – and exceed – the expectations of our stakeholders. If we are the best partner for our customers, this will drive our sales. To make positive contributions to our customers, we need to have committed and skilled employees. To be able to provide our customers with the best offering, we need to have good relationships with the best suppliers. To be able to contribute to a sustainable society – as well as being relevant to our customers and employees – we must take sustainability issues seriously.
Alligo's strategies are connected to four strategic objectives that, in turn, are connected to our vision. These strategic objectives give our business a common direction and are all designed to deliver profitable growth.
We provide our customers with what they need in a friendly way
We are the workplace where the best people want to work and we help them grow
We have our industry's most efficient operations and reliable processes
We are known as the leader in sustainable development in our industry
Alligo supports Agenda 2030 and aims to achieve the UN Global Goals for Sustainable Development. The goals where we have the biggest impact and can make the greatest difference are connected with our material sustainability
issues that clearly go hand in hand with our vision. By working with sustainability as an integrated part of our strategy and business planning, we aim to become the unrivalled leader of sustainable development in our sector.
CLEIN JOHANSSON ULLENVIK President and CEO +46 70 558 84 17 [email protected]
IRENE WISENBORN BELLANDER CFO +46 72 452 60 40 [email protected]
Postal address: Box 631 135 26 Tyresö, Sweden Visiting address: Vindkraftsvägen 2 135 70 Stockholm Tel.: +46 8 727 27 20 Co. reg. no.: 559072-1352 IR contact: [email protected]
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