Annual Report • Feb 9, 2024
Annual Report
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The year ended strongly with a fourth quarter EBITA of SEK 15.7 (5.4) million, totaling an EBITA of SEK 69.5 (40.5) million for the year. With a focus on customer businesses at the heart of society's challenges and continued strive for decentralization, the year has shown good growth in order intake, strong sales growth, and significantly improved earnings.
• The Norwegian subsidiary Christian Berner AS signed a major contract for the delivery of vibration damping material for a railway tunnel in Drammen.
• There were no significant events after the end of the reporting period.
| Oct–Dec | Jan–Dec | |||||
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | Δ% | 2023 | 2022 | Δ% |
| Orders | 211.6 | 257.6 | -17.9 | 975.2 | 915.7 | 6.5 |
| Net sales | 234.9 | 247.7 | -5.2 | 942.8 | 842.0 | 12.0 |
| EBITA | 15.7 | 5.4 | 189.6 | 69.5 | 40.5 | 71.6 |
| EBITA margin, % | 6.7 | 2.2 | – | 7.3 | 4.8 | – |
| EBIT | 15.3 | 5 ,2 | 194.4 | 68.2 | 39.6 | 72.2 |
| Earnings per share before and after dilution | 0.58 | 0.10 | 472.5 | 2.42 | 1.30 | 86.5 |
| Cash flow for the period | -7.6 | 14.7 | – | 14.7 | -24.1 | – |
| Return on equity, % | 24.0 | 6.1 | – | 26.8 | 16.4 | – |
| Net interest-bearing debt, excluding IFRS 16 | 79.7 | 118.1 | -32.6 | 79.7 | 118.1 | -32.6 |
| Net interest-bearing debt, including IFRS 16 | 170.8 | 188.2 | -9.2 | 170.8 | 188.2 | -9.2 |
The last quarter of the year saw an almost threefold increase in EBITA compared to the previous year. We closed the full year with almost SEK 70 million in EBITA, the highest result in the Group's history and more than 70 percent better than the previous year. We see the strength of our various businesses driven by the societal transformation, and the force that is released when our subsidiaries and employees are given more freedom to build their businesses around their customers, suppliers and employees.
Our businesses have a broad base in many different markets, but the common thread is that we operate at the heart of the societal challenges. Over the past year, we have seen both increased inflationary pressures and subsequent interest rate hikes and the continued impact of more difficult and costly energy supplies on our environment. The clearest sign for us has at times been slightly longer decision-making processes, resulting in a slightly lower order intake in the quarter. With orders 6.5 percent higher than last year for the full year and exceeding sales for the year, we have ended the year with a larger order book than we started the year with, ensuring prime conditions for the coming quarters. Again, you can see the strength of our Group, where different businesses take turns towing each other.
For example, in 2023 we have seen excellent growth in flow technology and electric steam generation, as well as our Finnish and Norwegian operations overall, while the smaller portion that focuses on building construction has had significantly lower activity during the year and will probably continue this trend well into 2024. An example of a growing area for both us and the world is carbon capture, where Swedenborg's sealed dampers enable systems with both lower operating costs and lower energy requirements.
"The effects of our work were demonstrated during the year – we achieved the highest earnings in the Group's history"
Some parts of Technology & Distribution have been impacted by the interest rate hikes. First, decision-making processes have slowed, affecting the second half of the year, but underlying demand exists in several areas. The continued investment in rail transport, for example, is exciting and generates business for us. Another such example is our Norwegian subsidiary Christian Berner AS, that won a contract of more than NOK 10 million for vibration damping material for the railway tunnel in Drammen. This makes for a calmer and quieter environment for activities on and around the new tunnel – while allowing for longer service intervals. We create innovative technical solutions for a sustainable society.
We continue to develop the decentralized structure and help each subsidiary towards its potential. During the year we have
been able to see the effects of our work, achieving the highest result in the Group's history and nearly tripling EBITA in the fourth quarter. Although much has been done, some work remains, and we are not yet seeing the full impact of measures already implemented. The pace of organic improvements is, however expected to slow somewhat going forward. Instead, we hope to free up more time for acquisitions. We closely monitor the global situation and are ready to take action if we see a deterioration in the future.
The margin for the year ended up at over 7 percent, almost 3 percentage points better than the previous year, and when all our companies perform at their potential, we can do more. As we improve the results, we also see the cash generation our businesses generate. In anticipation of being able to put this cash to work, we chose to pay SEK 25 million of our outstanding debt during the quarter, to avoid incurring interest costs unnecessarily. We continue having good possibilities for financing, creating great flexibility.
We look forward to 2024.
President and CEO, Christian Berner Tech Trade AB
Net sales for the fourth quarter totaled SEK 234.9 (247.7) million, a contraction of SEK 12.9 million, whereof SEK 12.8 million organic, with strong comparative figures for the quarter. The fourth quarter contained high activity in Energy & Environment, while Technology & Distribution faced a cooler climate in the last months of the year.
| SEK million | |||||
|---|---|---|---|---|---|
| Oct–Dec | Currency effect foreign sub |
Acquired | Organic | Total | Oct–Dec |
| 2022 | sidiaries | growth | growth | growth | 2023 |
| 247.7 | -0.4% | – | -4.8% | -5.2% | 234.9 |
Net sales
The Group's EBITA for the fourth quarter was SEK 15.7 (5.4) million, an improvement of SEK 10.3 million. The contribution margins for the quarter are significantly improved compared to the previous year, which is partly due to organic improvements and, to some extent, low comparative figures. In addition, positive impact is realized as the result of reducing costs.
Depreciation/amortization and investments
ter. Depreciation/amortization primarily consists of depreciation of right-of-use assets. During the quarter, the Group invested in property, plant and equipment in the amount of SEK -0.4 (-2.8) million. Investments in intangible assets totaled SEK -0.5 (-3.6) million.
Consolidated net financial items for the fourth quarter were SEK -1.6 (-2.2) million. The amortization of the loan during the quarter, together with improved loan conditions due to reduced indebtedness, explains the lower interest costs.
Consolidated tax expenses for the fourth quarter were SEK -2.8 (-1.1) million. The effective tax rate for the quarter was 20.5 percent.
Net sales for the year totaled SEK 942.8 (842.0) million, an increase of SEK 100.8 million, whereof SEK 99.6 million organic growth. With the exception of a few segments, growth has been strong in all businesses. The Group's offerings stand strong to help customers in their businesses, not least in view of transitions in areas of sustainability.
| Jan–Dec 2022 |
Currency effect foreign sub sidiaries |
Acquired growth |
Organic growth |
Total growth |
Jan–Dec 2023 |
|---|---|---|---|---|---|
| 842.0 | 0.1% | – | 11.9% | 12.0% | 942.8 |
The Group's EBITA for the full year was SEK 69.5 (40.5) million, an improvement of SEK 29 million. Most areas show stable and consistent development of contribution margins. In addition, efforts to improve the business' efficiency have had an impact during the year and, overall, increased activities have been compensated for by savings, resulting in earnings growth.
Depreciation totaled SEK -34.1 (-29.3) million during the year. Depreciation/amortization consists primarily of depreciation of right-of-use assets. During the year, the Group invested in property, plant and equipment in the amount of SEK -2.5 (-5.1) million.
Investments in intangible assets totaled SEK -5.5 (-8.4) million. Investments in intangible assets consist mainly of the finalized change of business system.
Consolidated net financial items for the year totaled SEK -10.2 (-7.8) million. The increase is explained by higher interest costs due to higher interest rates. During the last quarter, the nominal borrowing costs have been reduced by the improved financial situation, partly through a voluntary amortization during the fourth quarter of SEK 25 million and partly through improved interest margins.
Consolidated tax expenses for the year were SEK -12.6 (-7.4) million. The effective tax rate for the period was 21.7 percent (23.4).
The Technology & Distribution business area combines distribution activities and own products in water treatment, packaging equipment, vibration damping, technical plastics and process technology. The business area helps customers in industry and the public sector to reduce resource consumption, improve their environmental footprint or streamline their own operations.
Christian Berner AB Christian Berner Oy Christian Berner AS A/S Christian Berner Empakk
The business area's net sales for the fourth quarter totaled SEK 132.7 (151.4) million, a decrease of SEK 18.7 million. The business area has encountered hesitance among customers in some subsegments, while the main parts of the business area have seen stable development. During the quarter, the companies in the business area received several good orders, including for vibration and noise dampening materials for rail traffic.
| Oct–Dec 2022 |
Currency effect foreign sub sidiaries |
Acquired growth |
Organic growth |
Total growth |
Oct–Dec 2023 |
|---|---|---|---|---|---|
| 151.4 | -0.8% | – | -11.6% | -12.4% | 132.7 |
The business area's EBITA in the fourth quarter was SEK 5.5 (7.4) million, a decrease of SEK 1.9 million. In the quarter's business mix, the contribution margin improved by two percentage points compared to the previous year. In addition, reduced costs have helped to compensate for the reduced revenues, although not fully.
The business area's net sales for the fourth quarter totaled SEK 532.7 (539.3) million, a decrease of SEK 6.6 million, SEK 7.4 million of which was organic. The good start to the year was followed by a later period in which some segments were slower, pressuring earnings. Trading activities have shown good levels of commission sales in the latter part of the year.
| Jan–Dec 2022 |
Currency effect, foreign sub sidiaries |
Acquired growth |
Organic growth |
Total growth |
Jan–Dec 2023 |
|---|---|---|---|---|---|
| 539.3 | 0.2% | – | -1.4% | -1.2% | 532.7 |
The business area's EBITA was SEK 28.6 (30.6) million during the year. The contribution margin in the businesses showed levels comparable to the previous year. Cost levels developed positively in the second half of the year, with increased deliveries to customers strengthening earnings overall, while the mix of customer deliveries has put a certain level of pressure on earnings.
| Oct–Dec | Jan–Dec | |||||
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | Δ% | 2023 | 2022 | Δ% |
| Net sales | 132.7 | 151.4 | -12.4 | 532.7 | 539.3 | -1.2 |
| EBITA | 5.5 | 7.4 | -26.2 | 28.6 | 30.6 | -6.5 |
| EBITA margin, % | 4.1 | 4.9 | – | 5.3 | 5.7 | – |
The Energy & Environment business area combines large parts of the Group's pump activities and equipment targeting the energy and process industries. The business area increases the sustainability of the energy, process and manufacturing industry through reduced emissions, reduced energy losses and/or improved working environment.
Zander & Ingeström Swedenborg Bullerbekämparen
The business area's net sales for the fourth quarter were SEK 102.6 (99.7) million, an increase of SEK 2.9 million, with the full increase constituting organic growth. During the quarter, deliveries and customer assignments followed the positive trend previously established by the business area. All units in the business area have ended the year at good levels, together with a positive product mix.
| SEK million | |||||
|---|---|---|---|---|---|
| Currency effect, |
|||||
| Oct–Dec 2022 |
foreign sub sidiaries |
Acquired growth |
Organic growth |
Total growth |
Oct–Dec 2023 |
| 99.7 | – | – | 2.9% | 2.9% | 102.6 |
The business area's EBITA in the fourth quarter was SEK 9.2 (1.4) million, an increase of SEK 7.8 million compared to the previous year. The quarter's sales with a favorable product mix have resulted in a strong EBITA in the quarter, despite higher costs due to growing organizations.
The business area's net sales for the year were SEK 411.2 (324.4) million, an increase of SEK 86.8 million, with the total increase constituting organic growth. Strong order intake during the year as well as good execution of deliveries to customers have contributed to a 26.8% increase in sales. Deliveries of both standard and new types of business have been successfully completed.
In addition, high order intake indicates continued good development.
| SEK million | |||||
|---|---|---|---|---|---|
| Currency effect, |
|||||
| Jan–Dec 2022 |
foreign sub sidiaries |
Acquired growth |
Organic growth |
Total growth |
Jan–Dec 2023 |
The business area's EBITA for the year was SEK 57.0 (21.1) million, an increase of SEK 35.9 million compared to the previous year. The increased sales have been accompanied by strengthened contribution margins, thereby yielding higher results despite growing organizations and increased marketing activities.
| Oct–Dec | Jan–Dec | |||||
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | Δ% | 2023 | 2022 | Δ% |
| Net sales | 102.6 | 99.7 | 2.9 | 411.2 | 324.4 | 26.8 |
| EBITA | 9.2 | 1.4 | 513.0 | 57.0 | 21.1 | 186.1 |
| EBITA margin, % | 9.1 | 1.4 | – | 13.8 | 6.5 | – |
During the fourth quarter, work continued on improving working capital, resulting in funds for voluntary repayment on the loan (SEK 25 million) and an improved debt ratio.
At December 31, the Group had SEK 70.3 million (56.9 million at December 31, 2022) in cash and cash equivalents. Cash flow from operating activities during the fourth quarter was SEK 24.4 (21.2) million. During the fourth quarter, SEK -0.9 (-6.5) million in investments were made.
The cash flow from operating activities for the year was SEK 81.5 (25.1) million. During the year, SEK -8.1 million (-13.5) in investments were made. Dividends of SEK 11.3 (14.1) million were paid during the year.
At the end of the period, there were 214 employees (220 at December 31, 2022), of which 47 (51) were women and 167 (169) were men.
Operations were affected by a wide range of factors, some of which are within the company's control and others outside. Market-related risks include cyclical risks. Financial risks include exchange rate risks and interest rate risks. Christian Berner Tech Trade operates in four different countries, with a large number of customers in different industries and a large number of suppliers, which limits the business and financial risks. The business environment has improved with regard to the previous problems involving component shortages and long delivery times in the supply chain. Such issues cannot be ruled out for future business, but clear improvements have been seen during the year. These risks are carefully monitored, and communication with customers is ongoing to mitigate the effects of these risks and uncertainties. Another uncertainty is, of course, the war in Ukraine and its impact on our operations. The Group has no operations in the countries directly impacted, but is affected by price changes and may also be affected by a general economic downturn.
The Board of Directors and management closely monitor developments and update their assessment of the potential impact of the war on the company's operations based on how the situation develops. Furthermore, cyber security is high on the agenda, and the company is constantly working to improve security against potential intrusions.
Price increases in goods have, to some extent, slowed in recent months. Continued price increases on energy and fuel would entail a short-term risk for the Christian Berner Group before the new cost levels could be fully reflected in price levels. The Group is working actively with pricing, both when there are cost increases, but also in order to be an attractive supplier when costs are adjusted downwards.
If inflation takes hold and remains high for an extended period of time, it will entail even higher interest expenses for borrowing, which primarily affects the parent company. The liquidity and financing risk thereby increases but is deemed to remain at an acceptable level, taking probable interest rate hikes into account.
For the subsidiaries, the effect of interest rate hikes is limited. On the other hand, continued high inflation may entail a general economic downturn, which may ultimately affect the availability of business for the subsidiaries. However, the assessment is that the areas at which the Group mainly directs its offerings are in need of solutions, deliveries and products independently of economic cycles. Exposure to the residential construction sector, which has already been affected by interest rate increases, is limited but partially visible in Technology & Distribution.
During the year, the Group had the following transactions with affiliated parties. The services were purchased on normal business terms on a commercial basis.
Transactions in the amount of SEK 1.0 (0.8) million concerning the lease of premises for Swedenborg have taken place between Christian Berner Tech Trade AB's subsidiary AB GF Swedenborg Ingeniörsfirma (Swedenborg) and PSW Fastighets AB, which is owned by a board member of Swedenborg.
The Group has sold goods to RB Glas och Plast AB, which is owned by a board member of Christian Berner Tech Trade AB. The value of the transaction is SEK 0.6 (0.6) million.
The Group has sublet a small part of the office in Stockholm to Gårdaverken AB for SEK 0.5 (0.3) million. The Group also leases art, located in a subsidiary's office, from Gårdaverken AB for a minor amount.
The main functions of the parent company Christian Berner Tech Trade AB (CBTT) are to work with business development, acquisitions, financing, governance, analysis and communication. At the end of December, there were two employees (two at December 31, 2022).
The parent company's net sales, which consist of intra-Group invoicing of services, totaled SEK 3.2 (3.5) million in the fourth quarter. During the fourth quarter, operating expenses totaled SEK -7.8 (-7.6) million, which was related to personnel expenses and current external costs. EBIT for the fourth quarter totaled SEK -4.6 (-4.1) million, financial items totaled SEK -1.6 (8.0) million, and profit/loss and comprehensive income for the period was SEK 30,3 (31.3) million. During the quarter, Group contributions totaled SEK 44.5 (32.9) million.
The parent company's sales for the year totaled SEK 12.1 million (9.2), and operating expenses totaled SEK -27.5 (-23.2) million. EBIT thus totaled SEK -15.4 (-14.0) million. Financial items totaled SEK 8.9 (3.5) million, and profit/loss and comprehensive income for the period totaled SEK 16.0 (19.8) million.
The parent company has pledged shares in subsidiaries as collateral. Pledged shares total SEK 143.0 (143.0) million in the parent company. For the Group, pledged assets total SEK 203.3 million (203.5 million at December 31, 2022).
In April 2022, the Annual General Meeting decided to issue a maximum of 400,000 warrants to staff in senior positions within the Group over 2022/2025. The warrants have been offered against market remuneration according to Black & Scholes. Subscription for the shares may take place during the period 09/01/2025–09/30/2025. The program currently does not give rise to any dilution effect. As of December 31, 2023, the number of outstanding warrants is 310,000, as well as 90,000 in own custody.
In April 2023, the Annual General Meeting authorized the Board to decide on a new issue of a maximum of 1,875,400 shares, corresponding to a dilution of 10 percent, with or without preferential rights for the company's shareholders. Furthermore, the Board of Directors was authorized, during the period until
the next annual general meeting, to decide on the repurchase and transfer of own shares for a maximum of 10 percent of all outstanding shares.
At the annual general meeting on 04/27/2023, CBTT decided to distribute 60 öre per share, pursuant to the Board's proposal. The dividend amounts to a total of SEK 11.3 million and corresponds to 46.2 percent of profit after tax. The policy of distributing 30–50 percent of profit after tax over the long term remains unchanged.
The ten largest shareholders as of December 31 are shown in the table below. As of the end of December 2023, the company had 2,826 shareholders, and the closing price of the share on that date was SEK 30.6.
The number of outstanding shares at the end of the period amounted to 18,759,398 divided into 1,250,000 A shares and 17,509,398 B shares. A shares have a voting value of 10 per share, while B shares have a value of 1 per share. The share is listed on Nasdaq OMX Stockholm's main list Small Cap with the ticker "CBTT".
| Name | Number of shares |
Percent age of capital, % |
Percent age of votes, % |
|---|---|---|---|
| Gårdaverken AB | 4,462,383 | 23.8 | 52.4 |
| Cervantes Capital | 2,108,149 | 11.2 | 7.0 |
| Concejo AB | 1,932,323 | 10.3 | 6.4 |
| Isolde Stensdotter Berner | 1,630,572 | 8.7 | 5.4 |
| Lannebo Fonder | 970,558 | 5.2 | 3.2 |
| Ksenia Berner | 796,920 | 4.3 | 2.7 |
| Unionen | 745,000 | 4.0 | 2.5 |
| Avanza Pension | 484,756 | 3.0 | 2.3 |
| Nordnet Pensionsförsäkringar | 471,570 | 3.0 | 1.9 |
| Mikael Gunnarsson | 358,000 | 2.0 | 1.2 |
| Others | 4,799,167 | 24.6 | 15.0 |
| Total | 18,759,398 | 100.0 | 100.0 |
| Oct–Dec | Jan–Dec | ||||
|---|---|---|---|---|---|
| SEK thousand | 2023 | 2022 | 2023 | 2022 | |
| Sales | |||||
| Net sales | 234,855 | 247,730 | 942,756 | 842,000 | |
| Other sales | 792 | 881 | 4,657 | 2,766 | |
| Total sales | 235,647 | 248,611 | 947,413 | 844,766 | |
| Goods for resale | -139,293 | -159,648 | -566,031 | -518,655 | |
| Other external costs | -20,462 | -23,446 | -80,671 | -73,853 | |
| Personnel costs | -50,569 | -52,604 | -195,664 | -182,548 | |
| Depreciation of property, plant and equipment and amortization of intangible assets1) |
-8,810 | -7,415 | -34,133 | -29,268 | |
| Other operating expenses | -1,248 | -312 | -2,763 | -872 | |
| Total operating expenses | -220,382 | -243,425 | -879,262 | -805,196 | |
| EBIT | 15,265 | 5,186 | 68,151 | 39,570 | |
| Financial income | 1,611 | 177 | 2,056 | 246 | |
| Financial expenses | -3,216 | -2,386 | -12,263 | -8,024 | |
| Net financial items | -1,605 | -2,209 | -10,207 | -7,778 | |
| Profit/loss before tax | 13,660 | 2,977 | 57,944 | 31,792 | |
| Income tax | -2,795 | -1,079 | -12,552 | -7,449 | |
| Profit/loss for the period | 10,865 | 1,898 | 45,392 | 24,343 | |
| Other comprehensive income | |||||
| Items that may later be transferred to profit and loss for the period |
|||||
| Translation differences for the period on translation of foreign subsidiaries |
-3,136 | 1,036 | -4,445 | 3,385 | |
| Change in hedging reserves for the period | 818 | – | 818 | – | |
| Other comprehensive income for the period | -2 318 | 1,036 | -3,627 | 3,385 | |
| Comprehensive income for the period | 8 547 | 2,934 | 41,765 | 27,728 | |
| Earnings per share | |||||
| Earnings per share before and after dilution (SEK) | 0.58 | 0.10 | 2.42 | 1.30 |
1) The item depreciation/amortization consists of the following subitems:
| Oct–Dec | Jan–Dec | |||
|---|---|---|---|---|
| SEK thousand | 2023 | 2022 | 2023 | 2022 |
| Depreciation of property, plant and equipment | -1,232 | -1,226 | -5,554 | -4,687 |
| Amortization of intangible assets | -447 | -239 | -1,359 | -938 |
| Depreciation of right-of-use assets | -7,131 | -5,950 | -27,220 | -23,643 |
| Total depreciation/amortization | -8,810 | -7,415 | -34,133 | -29,268 |
| SEK thousand | 12/31/2023 | 12/31/2022 |
|---|---|---|
| ASSETS | ||
| Fixed assets | ||
| Intangible assets | ||
| Goodwill | 196,279 | 198,417 |
| Distribution rights | 825 | 1,211 |
| Trademark | 32,497 | 32,497 |
| Internally developed software | 703 | 1,169 |
| Intangible assets in progress | – | 8,059 |
| Other intangible assets | 13,090 | – |
| Total intangible assets | 243,394 | 241,353 |
| Machinery and equipment | 15,691 | 20,889 |
| Right-of-use assets | 90,792 | 71,920 |
| Financial assets | ||
| Other noncurrent receivables | 969 | 941 |
| Deferred tax assets | 1,282 | 372 |
| Total financial assets | 2,251 | 1,313 |
| Total noncurrent assets | 352,128 | 335,475 |
| Current assets | ||
| Inventories | 85,478 | 77,658 |
| Advance payments to suppliers | 8,143 | 3,267 |
| Contract assets | 7,799 | 10,269 |
| Current tax assets | 0 | 138 |
| Trade receivables | 133,952 | 145,474 |
| Prepaid expenses and accrued income | 5,877 | 5,525 |
| Derivative instruments | 1,325 | – |
| Other receivables | 6,046 | 3,029 |
| Cash and cash equivalents | 70,347 | 56,866 |
| Total current assets | 318,967 | 302,226 |
| TOTAL ASSETS | 671,095 | 637,701 |
| SEK thousand | 12/31/2023 | 12/31/2022 |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| Equity | ||
| - attributable to the parent company's shareholders | 231,641 | 201,068 |
| - attributable to noncontrolling interests | – | – |
| Total equity | 231,641 | 201,068 |
| LIABILITIES | ||
| Noncurrent liabilities | ||
| Lease liability | 68,592 | 49,006 |
| Other noncurrent liabilities | – | 95 |
| Other provisions | 2,047 | 1,216 |
| Deferred tax liabilities | 9,261 | 8,089 |
| Derivative instruments | 108 | – |
| Total noncurrent liabilities | 80,008 | 58,406 |
| Current liabilities | ||
| Borrowings from credit institutions | 150,000 | 175,000 |
| Lease liability | 22,592 | 21,065 |
| Advance payments from customers | 12,891 | 15,737 |
| Trade payables | 63,266 | 77,351 |
| Contract liabilities | 22,638 | 5,138 |
| Current tax liabilities | 10,113 | 3,618 |
| Other liabilities | 26,321 | 30,882 |
| Accrued expenses and prepaid income | 51,225 | 49,436 |
| Derivative instruments | 399 | – |
| Total current liabilities | 359,446 | 378,227 |
| TOTAL EQUITY AND LIABILITIES | 671,095 | 637,701 |
| SEK thousand | 12/31/2023 | 12/31/2022 |
|---|---|---|
| Beginning of period | 201,068 | 186,827 |
| Comprehensive income for the period | 41,765 | 27,728 |
| Transactions with shareholders | ||
| Dividend | -11,256 | -14,070 |
| Option premiums received | 64 | 583 |
| End of period | 231,641 | 201,068 |
| Oct–Dec | Jan–Dec | |||
|---|---|---|---|---|
| SEK thousand | 2023 | 2022 | 2023 | 2022 |
| Profit/loss before tax | 13,660 | 2,977 | 57,944 | 31,792 |
| Adjustment for noncash items | 8,646 | 5,577 | 34,548 | 28,857 |
| Income tax paid | 315 | 5,689 | -5,470 | -4,263 |
| Cash flow from operating activities before changes in working capital |
22,621 | 14,243 | 87,022 | 56,386 |
| Changes to: | ||||
| Inventories | -7,020 | 16,881 | -13,439 | 6,428 |
| Operating receivables | -10,047 | -29,089 | 8,456 | -55,956 |
| Operating liabilities | 18,878 | 19,184 | -515 | 18,198 |
| Total change in working capital | 1,811 | 6,976 | -5,498 | -31,330 |
| Cash flow from operating activities | 24,432 | 21,219 | 81,524 | 25,056 |
| Investments in property, plant and equipment | -421 | -2,814 | -2,527 | -5,124 |
| Sales of property, plant and equipment | 123 | 2,053 | 2,408 | 2,053 |
| Investments in intangible assets | -465 | -3,642 | -5,537 | -8,369 |
| Investments in financial assets | – | – | -36 | -630 |
| Cash flow from investing activities | -763 | -4,403 | -5,692 | -12,070 |
| Option premiums | – | – | 64 | 583 |
| Loan amortization | -25,000 | 16 | -25,000 | – |
| Amortization of lease liabilities | -6,250 | -5,876 | -24,958 | -23,568 |
| Dividend paid | – | – | -11,256 | -14,070 |
| Cash flow from financing activities | -31,250 | -5,860 | -61,150 | -37,055 |
| Cash flow for the period | -7,581 | 10,956 | 14,682 | -24,069 |
| Cash and cash equivalents, beginning of period | 78,690 | 45,645 | 56,866 | 79,821 |
| Effect of exchange rate changes on cash | -762 | 265 | -1,201 | 1,114 |
| Cash and cash equivalents, end of period | 70,347 | 56,866 | 70,347 | 56,866 |
| Oct–Dec | Jan–Dec | |||
|---|---|---|---|---|
| SEK thousand | 2023 | 2022 | 2023 | 2022 |
| Sales | ||||
| Net sales | 3,088 | 3,208 | 11,566 | 8,935 |
| Other sales | 122 | 267 | 553 | 267 |
| Total sales | 3,210 | 3,475 | 12,119 | 9,202 |
| Operating expenses | ||||
| Other external costs | -3,371 | -3,368 | -12,922 | -11,805 |
| Personnel costs | -4,452 | -4,182 | -14,510 | -11,378 |
| Depreciation of property, plant and equipment | -18 | -6 | -70 | -6 |
| Other operating expenses | – | -2 | -23 | -2 |
| Total operating expenses | -7,841 | -7,558 | -27,525 | -23,191 |
| EBIT | -4,631 | -4,083 | -15,406 | -13,989 |
| Profit from participations in Group companies | – | 10,065 | – | 10,065 |
| Interest and similar income | 985 | 9 | 986 | 9 |
| Interest and similar expenses | -2,590 | -2,098 | -9,922 | -6,541 |
| Total profit/loss from financial items | -1,605 | 7,976 | -8,936 | 3,533 |
| Appropriations | 44,500 | 32,905 | 44,500 | 32,905 |
| Profit/loss before tax | 38,264 | 36,798 | 20,158 | 22,449 |
| Income tax | -7,917 | -5,481 | -4,207 | -2,605 |
| Profit/loss for the period | 30,347 | 31,317 | 15,951 | 19,844 |
| SEK thousand | 12/31/2023 | 12/31/2022 |
|---|---|---|
| ASSETS | ||
| Fixed assets | ||
| Property, plant and equipment | ||
| Machinery and equipment | 287 | 193 |
| Total property, plant and equipment | 287 | 193 |
| Financial assets | ||
| Shares in Group companies | 315,484 | 318,583 |
| Other noncurrent receivables | 630 | 630 |
| Total financial assets | 316,114 | 319,213 |
| Total noncurrent assets | 316,401 | 319,406 |
| Current assets | ||
| Trade receivables | – | 143 |
| Receivables from Group companies | 69,129 | 28,901 |
| Other current receivables | 170 | 105 |
| Prepaid expenses and accrued income | 737 | 1,004 |
| Cash and cash equivalents | 58,182 | 10,459 |
| Total current assets | 128,218 | 40,612 |
| TOTAL ASSETS | 444,619 | 360,018 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Total restricted equity | 37,625 | 37,625 |
| Total nonrestricted equity | 127,373 | 122,613 |
| Total equity | 164,998 | 160,238 |
| LIABILITIES | ||
| Noncurrent liabilities | ||
| Liabilities to Group companies | – | 120 |
| Total noncurrent liabilities | – | 120 |
| Current liabilities | ||
| Borrowings from credit institutions | 150,000 | 175,000 |
| Trade payables | 687 | 1,175 |
| Liabilities to Group companies | 115,939 | 12,203 |
| Current tax liabilities | 6,152 | 2,289 |
| Other liabilities | 417 | 557 |
| Accrued expenses and prepaid income | 6,426 | 8,436 |
| Total current liabilities | 279,621 | 199,660 |
| Total liabilities | 279,621 | 199,780 |
| TOTAL EQUITY AND LIABILITIES | 444,619 | 360,018 |
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and RFR 1 Supplemental Accounting Rules for Corporate Groups. The parent company's financial statements are prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's RFR 2 Accounting for Legal Entities. Disclosures in accordance with IAS 34.16A are presented, in addition to the financial statements and its associated notes, in the other parts of the interim report as well.
There are no new accounting standards entering into effect in 2023 that impact the Group.
For further information regarding Christian Berner Tech Trade's accounting principles, refer to the company's annual report for 2022, Note 2 Accounting Principles and Note 1 in this report.
| Assets, SEK thousand | 12/31/2023 | 12/31/2022 |
|---|---|---|
| Right-of-use assets | 90,792 | 71,920 |
| Total | 90,792 | 71,920 |
| Lease liabilities, SEK thousand | 12/31/2023 | 12/31/2022 |
|---|---|---|
| Current | 22,592 | 21,065 |
| Noncurrent | 68,592 | 49,006 |
| Total | 91,184 | 70,071 |
| Oct–Dec | Jan–Dec | |||
|---|---|---|---|---|
| SEK thousand | 2023 | 2022 | 2023 | 2022 |
| Depreciation of right-of-use assets | -7,131 | -5,950 | -27,220 | -23,643 |
| Interest expenses | -2100 | -360 | -2,499 | -1,535 |
| Total | -9,231 | -6,310 | -29,719 | -25,178 |
Christian Berner Tech Trade's revenue streams are presented by business area, where the business area corresponds to the market for the revenue.
Both the Technology & Distribution and Energy & Environment business areas have revenues from all three categories below.
Commission sales, where Christian Berner Tech Trade subsidiaries act as sales channels for suppliers through contact with the end customer. The revenue is an agreed commission that our subsidiaries receive from the suppliers and is usually received from suppliers in connection with or after the product is delivered to the end customer. The respective subsidiary does not check the sales flow and is normally dependent on suppliers and customers agreeing and closing the deal in order for us to be able to receive final payment from the supplier.
Project sales refer to the revenue streams where Christian Berner Tech Trade subsidiaries have several performance commitments, i.e., it is not only comprised of one service or product, but the agreement comprises several different parts.
The revenue is mainly comprised of remuneration agreed in advance for the projects and usually paid through advance invoicing and invoicing at various milestones in the projects, depending on the size of the projects. These projects can run for a long time, and depending on their nature, the income and expenses are also recognized gradually as the degree of completion advances. The earnings outcome for larger projects depends on the estimate holding and the project being successful. Accordingly, there is always an uncertainty regarding the profitability of the project before it is completed.
| Oct–Dec | Jan–Dec | |||
|---|---|---|---|---|
| SEK thousand | 2023 | 2022 | 2023 | 2022 |
| Goods and services recorded at a given time | 202,199 | 235,569 | 851,954 | 800,048 |
| Goods and services recognized over time | 32,656 | 12,161 | 90,802 | 41,952 |
| Total | 234,855 | 247,730 | 942,756 | 842,000 |
Financial assets measured at cost and fair value
| Assets on the Balance Sheet | 12/31/2023 | 12/31/2022 |
|---|---|---|
| Trade receivables | 133,952 | 145,474 |
| Cash and cash equivalents | 70,347 | 56,866 |
| Other noncurrent receivables | 969 | 941 |
| Total | 205,268 | 203,281 |
| Financial liabilities measured at amortized cost | 12/31/2023 | 12/31/2022 |
|---|---|---|
| Borrowings from credit institutions | 150,000 | 175,000 |
| Lease liabilities | 91,184 | 70,071 |
| Trade payables | 63,266 | 77,351 |
| Accrued expenses and prepaid income | 51,225 | 49,436 |
| Total | 355,675 | 371,858 |
| Additional purchase consideration measured at fair value | 12/31/2023 | 12/31/2022 |
|---|---|---|
| Opening balance | – | 14,361 |
| Utilization | – | -15,422 |
| Purchase | – | – |
| Exchange rate differences | – | 1,061 |
| Closing balance | – | – |
| Derivative instruments recognized at fair value | 12/31/2023 | 12/31/2022 |
|---|---|---|
| Current receivable | 1,321 | – |
| Noncurrent liabilities | 108 | – |
| Current liabilities | 399 | – |
| Net | 818 | – |
CBTT holds various financial instruments, and all are measured at their amortized cost with two exceptions. Earn-out liability is measured, instead, at its fair value through profit or loss. A liability to pay an additional purchase consideration is a financial instrument the value of which is dependent on assumptions and assessments made by the company (level 3 instruments). In the current case, the value of the liability depends on the acquired company's performance in 2021. Where financial instruments are recognized at their amortized
cost, these values correspond in all cases to the fair values of the items. During the first quarter of 2022, a debt obligation of SEK 3.6 million was adjusted regarding Empakk's acquisition calculation, which was subsequently paid out in April 2022.
The derivative instruments, which are currency future contracts, have been recognized at fair value as at 12/31/2023, These have been recognized in other comprehensive income and are accumulated in the equity's hedge reserve.
| Oct–Dec | Jan–Dec | |||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | Δ% | 2023 | 2022 | Δ% | |
| 235,647 | 248,611 | -5.2 | 947,413 | 844,766 | 12.2 | |
| 234,855 | 247,730 | -5.2 | 942,756 | 842,000 | 12.0 | |
| 15,712 | 5,425 | 189.6 | 69,510 | 40,508 | 71.6 | |
| 6.7 | 2.29 | – | 7.3 | 4.8 | – | |
| 671,095 | 637,701 | 5.2 | 671,095 | 637,701 | 5.2 | |
| 231,641 | 201,068 | 15.2 | 231,641 | 201,068 | 15.2 | |
| -5.2 | 27.2 | – | 12.2 | 13.0 | – | |
| 40.7 | 35.6 | – | 40.0 | 38.4 | – | |
| 34.5 | 31.5 | – | 34.5 | 31.5 | – | |
| 24.0 | 6.1 | – | 26.8 | 16.4 | – | |
| 79,653 | 118,134 | -32.6 | 79,653 | 118,134 | 32.6 | |
| 170,837 | 188,205 | -9.2 | 170,837 | 188,205 | -9.2 | |
| 214 | 215 | – | 214 | 215 | – | |
| 18,759,398 | 18,759,398 | – | 18,759,398 | 18,759,398 | – | |
| 0.58 | 0.10 | 472,4 | 2.42 | 1.30 | 86.5 | |
| Non-IFRS performance indicators | Description | Objective |
|---|---|---|
| Sales | Net sales and other sales. | Total sales is a combination of how the company's vari ous business areas and markets perform. |
| Total sales growth | Increase in sales as a percentage of the revenue of the previous year. |
Indicator of the company's growth relative to the previ ous period, which illustrates the company's direction and enables the underlying driving forces to be tracked. |
| EBITA | Earnings before impairment of goodwill and impairment and amortization of other intangible assets that arose in connection with business combinations and equiva lent transactions (Earnings Before Interest, Tax and Amortization). |
As a manufacturing company, EBITA is an important indicator of the company's profitability before interest payments, taxes and impairments. |
| EBITA margin | EBITA as a percentage of sales. | The EBITA margin illustrates the company's profit gen eration before interest, taxes and amortization, relative to sales. A performance indicator that is appropriate for companies such as Christian Berner Tech Trade. |
| EBIT | EBIT before financial items and taxes. | EBIT gives an overall picture of the company's profit generation in its operating activities. |
| Earnings margin | EBIT before financial items and taxes, as a percentage of sales. |
The earnings margin is a traditional comparison indica tor that illustrates the company's profit generation rela tive to sales. |
| Net financial items | The difference between financial income and financial expenses. |
Net financial items shows the difference between financial income and financial expenses. |
| Profit/loss for the period | Profit after tax. | Profit/loss for the period: This indicator is relevant because it is the profit for the period that the Board of Directors decides to distribute to shareholders or rein vest in the company. |
| Balance sheet total | The company's total assets. | Total assets indicates the company's total assets that are at the disposal of the company in order to generate returns for shareholders. |
| Equity ratio | Equity as a percentage of total assets. | A traditional indicator showing financial risk expressed as the proportion of adjusted equity that is financed by the shareholders. |
| Return on equity | Profit/loss after financial items as a percentage of average equity. |
Shows the return on the shareholders' invested capital from the perspective of the shareholders. |
| Cash flow for the period | Total of the cash flow from operating activities, cash flow from investing activities and cash flow from financ ing activities. |
The cash flow for the period is an indicator of how much cash and cash equivalents the company generates or loses in each period. |
| Number of shares, end of period | The number of outstanding shares at the end of the reporting period. |
The number of shares in the company is important, as it forms the basis of the calculation of earnings per share. |
| Average equity | The average of the total of opening equity for the period added to closing equity for the period. |
Average equity is a more conventional comparison indi cator and is used as a component in a number of other key performance indicators. |
| Net interest-bearing debt, exclud ing IFRS 16 |
Interest-bearing liabilities, excluding lease liabilities (IFRS 16), less cash and cash equivalents at the end of the period. |
This indicator should be seen as a complement to Net interest-bearing debt, including IFRS 16, as lease liabil ities in certain contexts and by certain stakeholders can be seen as a special type of debt. |
| Net interest-bearing debt, includ ing IFRS 16 |
Interest-bearing liabilities, including lease liabilities (IFRS 16), less cash and cash equivalents at the end of the period. |
Net debt/net cash and cash equivalents is a key perfor mance indicator that shows the company's total debt/ equity ratio. |
| Gross margin / Contribution mar gin |
Net sales minus goods for resale through net sales. | Gross margin provides a picture of the contribution margin generated by operating activities. |
| Average number of employees | The number of employees in the company translated into full-time positions, i.e., the number of full-time employees who worked during the period. |
This key performance indicator can be analyzed in rela tion to total revenue to assess the company's efficiency based on the number of employees. |
| Earnings per share (SEK) | Profit for the period attributable to the parent compa ny's shareholders divided by the average number of shares. |
Earnings per share (SEK), the measure is relevant because it shows how much of the profit for the period is allocated to each share. |
| SEK thousand | Oct–Dec | Jan–Dec | ||
|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| Business area | ||||
| Technology & Distribution | 132,707 | 151,408 | 532,741 | 539,288 |
| Energy & Environment | 102,623 | 99,728 | 411,221 | 324,372 |
| Other + intra-Group | -475 | -3,406 | -1,206 | -21,660 |
| Total net sales | 234,855 | 247,730 | 942,756 | 842,000 |
| EBITA | ||||
| EBIT | 15,265 | 5,186 | 68,151 | 39,570 |
| Amortization of intangible assets | 447 | 239 | 1,359 | 938 |
| EBITA | 15,712 | 5,425 | 69,510 | 40,508 |
| EBITA margin, % | ||||
| Total sales | 235,647 | 248,611 | 947,413 | 844,766 |
| EBITA | 15,712 | 5,425 | 69,510 | 40,508 |
| EBITA margin, % | 6.7 | 2.2 | 7.3 | 4.8 |
| Gross margin, % | ||||
| Net sales | 234,855 | 247,730 | 942,756 | 842,000 |
| Goods for resale | -139,293 | -159,648 | -566,031 | -518,655 |
| Gross margin, % | 40.7 | 35.6 | 40.0 | 38.4 |
| Equity ratio, % | ||||
| Balance sheet total | 671,095 | 637,701 | 671,095 | 637,701 |
| Closing balance equity | 231,641 | 201,068 | 231,641 | 201,068 |
| Equity ratio, % | 34.5 | 31.5 | 34.5 | 31.5 |
| Net interest-bearing debt, excluding IFRS 16 | ||||
| Total interest-bearing liabilities | 241,184 | 245,071 | 241,184 | 245,071 |
| Less lease liabilities | -91,184 | -70,071 | -91,184 | -70,071 |
| Less cash and cash equivalents | -70,347 | -56,866 | -70,347 | -56,866 |
| Net interest-bearing debt, excluding IFRS 16 | 79,653 | 118,134 | 79,653 | 118,134 |
| Net interest-bearing debt, including IFRS 16 | ||||
| Total interest-bearing liabilities | 241,184 | 245,071 | 241,184 | 245,071 |
| Less cash and cash equivalents | -70,347 | -56,866 | -70,347 | -56,866 |
| Net interest-bearing debt, including IFRS 16 | 170,837 | 182,205 | 170,837 | 188,205 |
| Earnings per share, SEK | ||||
| Profit/loss for the period | 10,865 | 1,898 | 45,392 | 24,343 |
| Number of shares, end of period | 18,759,398 | 18,759,398 | 18,759,398 | 18,759,398 |
| Earnings per share, SEK | 0.58 | 0.10 | 2.42 | 1.30 |
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The Board of Directors and CEO certify that the interim report for Christian Berner Tech Trade AB (publ), 556026-3666, gives a true and fair view of the parent company's and the Group's operations, position and results and describes the significant risks and uncertainties facing the parent company and the Group companies.
Joachim Berner Chairman of the Board
Caroline Reuterskiöld Chief Executive Officer
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Bertil Persson Board Member Carl Adam Rosenblad Board Member
Stina Wollenius Board Member
Lars Gatenbeck Board Member
Kerstin Gillsbro Board Member
Sara Mattsson Board Member
Sandra Fundin Employee Representative Robert Sätterberg Employee Representative The information in this report is published in accordance with the EU Market Abuse Regulation 596/2014. The information was provided by the below-mentioned contact persons for publication on February 9, 2024, at 08:30 a.m.
April 25, 2024 Interim report, Q1 2024
July 19, 2024 Interim report for Q2 2024
November 5, 2024 Interim report for Q3 2024
Caroline Reuterskiöld, CEO Christian Berner Tech Trade AB Tel: +46 (0)31-33 66 900 Email: [email protected]
Henrik Nordin, CFO Christian Berner Tech Trade AB Tel: +46 (0)31-33 66 900 Email: [email protected]
This interim report has not been reviewed by the company's auditor. English convenience translation of Swedish original. In case of discrepancies between the Swedish original and the English translation, the Swedish original shall prevail.
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