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Christian Berner Tech Trade

Annual Report Feb 9, 2024

3145_10-k_2024-02-09_2e1b2a3b-4793-49d9-8096-9e9a24c7eddc.pdf

Annual Report

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Year-end report 2023

Strong finish to a successful year

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.

Fourth quarter 2023

  • Order intake totaled SEK 211.6 (257.6) million, a contraction of 18 percent.
  • Net sales for the fourth quarter were SEK 234.9 (247.7) million, down 5.2 percent, whereof 4.8 percentage points organic.
  • EBITA totaled SEK 15.7 (5.4) million, an increase of 190 percent. EBITA margin was 6.7 percent (2.2).
  • Earnings per share before and after dilution were SEK 0.58 (0.10).
  • Cash flow from operating activities was SEK 24.4 (21.2) million. Total cash flow for the period was SEK -7.6 (11.0) million, including voluntary amortization of SEK 25 million.
  • The Board of Directors proposes a dividend of SEK 0.90 (0.60) per share.

January 1 to December 31, 2023

  • Order intake totaled SEK 975.2 (915.7) million, an increase of 6.5 percent.
  • Net sales totaled SEK 942.8 (842.0) million, an increase of 12.0 percent.
  • EBITA totaled SEK 69.5 (40.5) million, an increase of 71.6 percent. EBITA margin was 7.3 percent (4.8).
  • Earnings per share before and after dilution were SEK 2.42 (1.30).
  • Cash flow from operating activities was SEK 81.5 (25.1) million. Total cash flow for the period was SEK 14.7 (-24.1) million.

Significant events in the fourth quarter

• The Norwegian subsidiary Christian Berner AS signed a major contract for the delivery of vibration damping material for a railway tunnel in Drammen.

Significant events after the end of the reporting period

• There were no significant events after the end of the reporting period.

Financial summary

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

A strong finish to an exciting year

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.

EBITA almost tripled in the fourth quarter

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.

Caroline Reuterskiöld

President and CEO, Christian Berner Tech Trade AB

Christian Berner Tech Trade in brief

Group development in the fourth quarter Net sales

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

EBITA

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 totaled SEK -8.8 (-7.4) million in the fourth quar-

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.

Net financial items

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.

Tax

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.

Christian Berner Tech Trade in brief, continued

Group development January 1–December 31 Net sales

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.

SEK million

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

EBITA

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/amortization and investments

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.

Net financial items

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.

Tax

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).

Technology & Distribution

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.

SUBSIDIARIES

Christian Berner AB Christian Berner Oy Christian Berner AS A/S Christian Berner Empakk

Development of the business area in the fourth quarter Net sales

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.

SEK million

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

EBITA

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.

Business area development, January 1–December 31 Net sales

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.

SEK million

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

EBITA

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

Energy & Environment

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.

SUBSIDIARIES

Zander & Ingeström Swedenborg Bullerbekämparen

Development of the business area in the fourth quarter Net sales

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

EBITA

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.

Business area development, January 1–December 31 Net sales

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

EBITA

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

Other information

Other financial information

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.

Cash flow, investments and financial position

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.

Employees

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.

Risks and risk management

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.

Affiliated-party transactions

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.

Other information, continued

Parent company

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.

Pledged assets

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).

The share and owners Warrants

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.

Authorization of the Board of Directors

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.

Dividend

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.

Owners

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.

Shares

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

Consolidated Statement of Comprehensive Income

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

Condensed Consolidated Statement of Financial Position

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

Condensed Consolidated Statement of Financial Position

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

Condensed Consolidated Statement of Changes in Equity

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

Consolidated Statement of Cash Flows

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

Parent Company Income Statement

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

Condensed Balance Sheet for the Parent Company

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

NOTE 1 Accounting principles

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.

New standards entering into effect in 2023

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.

NOTE 2 Leasing

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

NOTE 3 Distribution of revenue

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.

Christian Berner Tech Trade has revenue in three categories:

  1. 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.

  2. 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.

  1. Sales of goods and services. This category pertains to the goods and services sold separately. It may concern a service or installation, a product or spare part from our inventory. These goods are sold at the amounts agreed with the customer, usually based on price lists. The time for revenue recognition of these goods and services is usually when control is transferred to the customer, at which time our undertaking is fulfilled. Invoicing usually takes place in connection with delivery. The largest uncertainty here would be if the customer did not have payment capacity to pay us for services rendered or products delivered.
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

NOTE 4 Financial instruments by category

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.

Group – KPIs

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

Definitions

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.

Calculation of Key Performance Indicators

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

Statement by the Board of Directors

___________________________________

_________________________________

_________________________________

_________________________________

_________________________________

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.

Stockholm, Sweden February 9, 2024

Joachim Berner Chairman of the Board

Caroline Reuterskiöld Chief Executive Officer

_________________________________

_________________________________

__________________________________

_________________________________

_________________________________

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.

Upcoming events

April 25, 2024 Interim report, Q1 2024

July 19, 2024 Interim report for Q2 2024

November 5, 2024 Interim report for Q3 2024

Contact details

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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