Quarterly Report • Feb 25, 2022
Quarterly Report
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Net revenue was somewhat lower than in the corresponding quarter of last year. Longer delivery times from suppliers, due to raw material and component shortages, as well as some impact of Covid-19 are the main causes. A payment of SEK 7.5 million in severance pay to the outgoing CEO has also negatively affected results.
Net revenue for the whole year amounted to SEK 743.2 (695.2) million, an increase of 6.9 percent. In comparative terms, this was a decrease of 6.6 percent.
EBITA was SEK 30.9 (42.2) million and the EBITA margin was 4.2 (6.1) percent.
| SEK thousands | Oct–Dec 2021 |
Oct–Dec 2020 |
Change % | Jan–Dec 2021 |
Jan–Dec 2020 |
Change % |
|---|---|---|---|---|---|---|
| Net revenue | 192,615 | 195,164 | -1,3% | 743,209 | 695,169 | 6,9% |
| Operating profit | -4,681 | 9,321 | -150,2% | 30,046 | 40,705 | -26,2% |
| EBITA | -4,460 | 9,485 | -147,0% | 30,885 | 42,167 | -26,8% |
| Order intake | 201,122 | 164,173 | 22,5% | 739,138 | 625,731 | 18,1% |
| Earnings per share | -0,27 | 0,37 | -172,6% | 1,21 | 1,66 | -27,0% |
| Cash flow for the period | 6,212 | -39,103 | 115,9% | 28,995 | 23,720 | 22,2% |
| EBITA-margin | -2,3% | 4,9% | 4,2% | 6,1% | ||
| Return on equity (R12) | 15,9% | 22,6% | 15,9% | 22,6% |
2021 has been a challenging year in many respects. Order intake increased during the second quarter and was also strong in the fourth quarter. However, the pandemic has led to a shortage of components in certain areas, as well as longer lead and delivery times, which affected invoicing and results in the fourth quarter.
As we communicated in the report for the third quarter, we are clearly seeing longer lead and delivery times in primarily three areas. In Process facilities, these have increased from 12–16 weeks to 20–24 weeks. In Technical plastics and Vibration technology, lead and delivery times have increased from 4–6 weeks to 12–16 weeks. This has meant that delivery and invoicing for some orders were postponed until the new year and, in the same way, new orders will also take longer to deliver. These factors had a negative impact on revenue and results in the fourth quarter.
We have also experienced a mixed effect, as a larger project with a lower gross margin has been delivered to China. This, together with provisions for the CEO and extended lead times, meant that we made a loss for the quarter and the Group's EBITA margin amounted to minus 2.3 (4.9) percent. Adjusted for non-recurring items, related to the upcoming change of CEO, of SEK 7.5 million, the EBITA margin was 1.6 percent. Revenue decreased by 1.3 percent to SEK 192.6 (195.2) million. For the whole year, the EBITA margin amounted to 4.2 (6.1) percent, while revenue increased by 6.9 percent to SEK 743.2 (695.2) million.
In Sweden, the EBITA margin was 8.5 (9.5) percent for the year as a whole. Order intake, during both the fourth quarter and the whole year, was good and we are seeing stable demand in the market.
Zander & Ingeström experienced another good year and GF Swedenborg, which we acquired on May 1, had a very strong year with record results. Christian Berner AB increased its profitability, in comparison with the year before, but there is still room for further improvements in profitability.
Norway's performance deteriorated at the end of the year. Despite this, its EBITA margin was 6.4 (6.7) percent for the year as a whole. Order intake, during the year, was weaker in Process & Environment, although it improved somewhat during the last quarter. We are continuing to see good development with
our vibration-damping materials for the construction industry and infrastructure projects.
In Denmark, we experienced both a weak fourth quarter and a weak year, with an EBITA margin of 4.3 (5.7) percent. This is due to reduced order intake over an extended period, as the process industry, in particular, is reluctant to invest.
Finland had a weak year with an EBITA margin of 1.7 (6.3) percent. Sales of vibration-damping material to the construction industry, in the Helsinki area, continued well, although we lacked major machine investments from the process industry.
Longer lead and delivery times continue to affect the business, but we consider underlying demand to be stable and the strong order intake during the fourth quarter confirms this.
CEO, Christian Berner Tech Trade AB
2
In the fourth quarter, the Group's net revenue amounted to SEK 192.6 (195.2) million, a decrease of 1.3 percent. In comparative terms, this represents a decrease of 7.6 percent. The Group's EBITA decreased to SEK -4.5 (9.5) million, with an EBITA margin of -2.3 (4.9) percent.
The lower net revenue was caused by longer delivery times among our suppliers. As in the third quarter, raw material and component shortages affected the fourth quarter, due to increased delivery times. Covid-19 has affected deliveries but has not led to any lost business. Results in the fourth quarter were also affected by a severance payment of SEK 7.5 million to the outgoing CEO.
Activity in the Group's markets remains good and is reflected by a higher order intake than last year.
In the fourth quarter, Sweden's net revenue amounted to SEK 138.8 (143.2) million, a decrease of 3.1 percent. EBITA amounted to 9.4 (18.4) million, which gave an EBITA margin of 6.8 (12.9) percent.
Denmark's net revenue increased to SEK 3.4 (3.0) million. Its EBITA was SEK 0.0 (-0.3) million, which gave an EBITA margin of 0.4 (-10.6) percent.
Norway's net revenue for the fourth quarter was SEK 32.2 (31.2) million. Its EBITA closed at SEK 0.2 (0.7) million, with an EBITA margin of 0.6 (2.4) percent.
Net revenue in Finland increased to SEK 18.3 (17.8) million in the fourth quarter. Its EBITA amounted to SEK 0.5 (-0.1) million, with an EBITA margin of 2.9 (-0.6) percent.
For the year as a whole, the Group's net revenue amounted to SEK 743.2 (695.2) million. This was an improvement over the previous year of 6.9 percent. The Group's order intake for 2021 increased by 18.1 percent, compared with the same period last year. EBITA was SEK 30.9 (42.2) million, a decrease of 26.8 percent, which produced an EBITA margin of 4.2 (6.1) percent. In 2021, the parent company experienced a profit of SEK 10.8 (26.2) million.
The Swedenborg company was acquired during the second quarter. This acquisition has made a positive contribution of SEK 33.5 million in net revenue during the year and SEK 4.0 million in EBITA.
The lower results and EBITA margin, compared to 2020, are mainly due to component shortages and delivery delays among our suppliers during the fourth quarter and delivery for a project in China with a low margin. In addition, a severance payment of SEK 7.5 million was made to the outgoing CEO.
Sweden achieved a net revenue of SEK 526.4 (483.9) million in 2021, which was an increase of 8.8 percent. EBITA amounted to 44.6 (46.2) million, which gave a corresponding margin of 8.5 (9.5) percent.
Denmark has performed less well compared to 2020. Net revenue was SEK 18.1 (22.4) million, a decrease of 19.1 percent. EBITA amounted to SEK 0.8 (1.3) million, with an EBITA margin of 4.3 (5.7) percent.
Norway's net revenue amounted to SEK 129.6 (100.4) million, a 29.1 percent increase compared to 2020. Its EBITA was SEK 8.3 (6.7) million, with an EBITA margin of 6.4 (6.7) percent.
Finland experienced reduced sales compared to 2020 and profits decreased due to a weak quarter in the Process & Environment business area. Net revenue amounted to SEK 69.1 (88.5) million, a decrease of 21.9 percent. Its EBITA amounted to SEK 1.2 (5.6) million, with an EBITA margin of 1.7 (6.3) percent.
Christian Berner Tech Trade's Process & Environment business area comprises product areas focused on customers who primarily need processing equipment and whole systems.
Net revenue for the Process & Environment business area amounted to SEK 147.6 (146.6) million in the fourth quarter, with an EBITA of SEK 7.6 (14.7) million. The EBITA margin was 5.1 (10.1) percent. Since the fourth quarter of 2020, the business area has been supplemented by the acquisition of the Swedenborg company, which is contributing to increased sales. Process & Environment is developing well in Sweden, with strong sales and an improved gross margin. Process equipment, Environment & fluid technology and Swedenborg have all performed well. Delivery for a major project in China has reduced the margin, compared to the fourth quarter of 2020.
For the year as a whole, Process & Environment achieved a net revenue of SEK 540.3 (470.7) million, an increase of 14.8%. EBITA amounted to SEK 36.9 (38.2) million, with an EBITA margin of 6.8 (8.1) percent.
| SEK thousands | Oct–Dec 2021 |
Oct–Dec 2020 |
Change % | Jan–Dec 2021 |
Jan–Dec 2020 |
Change % |
|---|---|---|---|---|---|---|
| Net revenue | 147,641 | 146,645 | 0,7% | 540,346 | 470,729 | 14,8% |
| EBITA | 7,598 | 14,743 | -48,5% | 36,938 | 38,165 | -3,2% |
| EBITA-margin | 5,1% | 10,1% | 6,8% | 8,1% |
Christian Berner Tech Trade's Materials Technology business area comprises product areas focused on sales of various materials, including plastics and solutions in vibration and noise dampening.
Materials Technology achieved a net revenue of SEK 45.0 (48.5) million in the fourth quarter, which is a decrease of 7.3 percent. EBITA amounted to SEK 2.6 (4.0) million, with an EBITA margin of 5.7 (8.3) percent. The business area's revenue decreased, compared to the fourth quarter of 2020, partly due to previous structural changes in the Technical plastics business. Vibration technology was weaker during the fourth quarter, although it performed well over the year as a whole in Finland and Norway. Swedish operations in Vibration technology had a weaker year, in terms of its results. Material technology was also affected during the fourth quarter by longer delivery times, due to the current shortage of raw materials. This has not led to lost business but has lengthened lead times from order intake to revenue.
For the year as a whole, Materials Technology achieved a net revenue of SEK 202.9 (224.4) million, which is a decrease of 9.6%. EBITA amounted to SEK 17.9 (21.6) million, with an EBITA margin of 8.8 (9.6) percent.
| SEK thousands | Oct–Dec 2021 |
Oct–Dec 2020 |
Change % | Jan–Dec 2021 |
Jan–Dec 2020 |
Change % |
|---|---|---|---|---|---|---|
| Net revenue | 44,974 | 48,518 | -7,3% | 202,863 | 224,439 | -9,6% |
| EBITA | 2,586 | 4,011 | -35,5% | 17,909 | 21,586 | -17,0% |
| EBITA-margin | 5,7% | 8,3% | 8,8% | 9,6% |
CEO Bo Söderqvist will leave the company during the first half of 2022.
The Board has appointed Caroline Reuterskiöld as the new CEO of Christian Berner Tech Trade AB. Most recently, Caroline was the business area manager within Lagercrantz Groups division Niche Products.
Cash flow from ongoing business was SEK -3.7 (13.2) million. Total cash flow for the period was SEK 6.2 (-39.1) million. Liquid assets, at the date of the balance sheet, were SEK 79.8 (49.4) million. The equity ratio, as of December 31, was 30.7 (34.3) percent.
No significant investments were made during the reporting period.
At the end of the reporting period, the number of employees was 209 (198), of whom 55 (48) were women and 154 (150) men.
The company issued a profit warning on January 17 for the fourth quarter of 2021.
Current CEO Bo Söderqvist will leave the company on 28 April, 2022, after the Annual General Meeting, and Caroline Reuterskiöld will become the new CEO on that date.
The business is affected by a number of different factors, some of which are within the company's control, while others are not. For Christian Berner, its operations are affected by,
among other things, business-related risks such as recruitment, project risks, competition and price pressure, as well as the ability to enter into framework agreements. Market-related risks include economic/inflation risks. Financial risks include exchange rate and interest rate risks. Christian Berner conducts business in four different countries, with a large number of customers in different industries and a large number of suppliers. These factors limit its business and financial risks. During Q4, component shortages and long delivery times from our suppliers affected the business. These factors are closely monitored and we maintain an ongoing dialogue with our customers in order to mitigate the effects of these risks and uncertainties. Another major uncertainty, of course, is the impact of the Covid-19 pandemic on our business. The board and management closely monitor the development of the pandemic and update their assessment of the coronavirus' potential impact on the company's operations based on how the situation develops.
Transactions between Christian Berner Tech Trade AB and PSW Fastighets AB, which is owned by the CEO of AB GF Swedenborg, for rental of premises for AB GF Swedenborg have been undertaken to the value of SEK 0.5 million during the year. This service has been purchased according to normal market conditions.
The parent company's primary purpose is to be responsible for business development, acquisitions, financing, governance and analysis. No sales activity takes place within the parent company. The net revenue of SEK 1.4 (1.6) million for the period relates to invoicing for internal Group services. EBITA was SEK -12.8 (-5.9) million. As of December 31, the parent company held cash amounting to SEK 41.9 (14.7) million.
| 3 months | 12 months | |||
|---|---|---|---|---|
| SEK thousands | Oct–Dec 2021 | Oct–Dec 2020 | Jan–Dec 2021 | Jan–Dec 2020 |
| Operating income | ||||
| Net revenue | 192,615 | 195,164 | 743,209 | 695,169 |
| Other operating income | 2,890 | 2,003 | 4,093 | 2,080 |
| Total operating income | 195,505 | 197,167 | 747,302 | 697,249 |
| Goods for resale | -119,487 | -111,114 | -449,655 | -425,211 |
| Other external costs | -17,006 | -24,788 | -56,581 | -57,838 |
| Staff costs | -55,980 | -45,367 | -181,742 | -149,181 |
| Depreciation of property, plant and equipment and amortisation of intangible assets |
-7,471 | -6,577 | -29,277 | -24,045 |
| Other operating cost | -241 | – | – | -268 |
| Total operating expenses | -200,186 | -187,846 | -717,256 | -656,543 |
| Operating profit/loss | -4,681 | 9,321 | 30,046 | 40,706 |
| Financial income | 206 | 288 | 3,840 | 3,858 |
| Financial expenses | -1,664 | -1,213 | -5,108 | -4,727 |
| Net financial expenses | -1,458 | -925 | -1,268 | -870 |
| Profit/loss before tax | -6,139 | 8,396 | 28,778 | 39,836 |
| Income tax | 1,111 | -1,469 | -6,050 | -8,720 |
| Profit/loss for the period | -5,028 | 6,927 | 22,729 | 31,116 |
| Other comprehensive income | ||||
| Items that can be transferred to profit and loss for the period |
||||
| Translation differences | 1,486 | 1,408 | 2,013 | 988 |
| Total comprehensive income for the period | -3,542 | 8,335 | 24,742 | 32,104 |
| Earnings per share | ||||
| Earnings per share before and after dilution (SEK) | -0,27 | 0,37 | 1,21 | 1,66 |
8
| SEK thousands | 2021-12-31 | 2020-12-31 |
|---|---|---|
| ASSETS | ||
| Intangible assets | ||
| Goodwill | 193,678 | 179,528 |
| Distribution rights | 1,562 | 1,508 |
| Trademarks | 32,497 | 17,000 |
| Internally developed software | 1,413 | 1,755 |
| Total intangible assets | 229,151 | 199,792 |
| Property, plant and equipment | ||
| Machinery and equipment | 21,280 | 18,200 |
| ROU assets, leasing | 84,409 | 92,847 |
| Total property, plant and equipment | 105,689 | 111,047 |
| Financial assets | ||
| Other non-current receivables | 292 | 268 |
| Total financial assets | 292 | 268 |
| Deferred tax assets | 793 | 310 |
| Total non-current assets | 335,925 | 311,416 |
| Current assets | ||
| Inventories | ||
| Inventories | 84,741 | 60,500 |
| Advance payments to suppliers | 1,718 | 1,515 |
| Total inventories, etc. | 86,459 | 62,016 |
| Current receivables | ||
| Trade receivables | 99,263 | 75,127 |
| Current tax assets | – | 2,909 |
| Other current receivables | 4,159 | 6,533 |
| Prepaid expenses and accrued income | 3,655 | 5,711 |
| Cash and cash equivalents | 79,821 | 49,401 |
| Total current receivables | 186,897 | 139,682 |
| Total current assets | 273,357 | 201,698 |
| TOTAL ASSETS | 609,282 | 513,115 |
| SEK thousands | 2021-12-31 | 2020-12-31 |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Share capital | 625 | 625 |
| Other capital contributions | 41,228 | 41,228 |
| Reserves | 3,499 | 1,486 |
| Retained earnings | 141,475 | 132,816 |
| Total equity | 186,827 | 176,155 |
| LIABILITIES | ||
| Non-current liabilities | ||
| Non-current leasing liability | 61,137 | 72,654 |
| Deferred tax liabilities | 8,465 | 6,047 |
| Provisions | 1,203 | 1,335 |
| Other non-current liabilities | 102 | 8,257 |
| Total non-current liabilities | 70,908 | 88,292 |
| Current liabilities | ||
| Liabilities to credit institutions | 175,000 | 100,339 |
| Current leasing liability | 21,365 | 21,229 |
| Advance payments from customers | 14,080 | 13,501 |
| Trade payables | 50,569 | 46,243 |
| Current tax liabilities | 295 | – |
| Other current liabilities | 34,356 | 26,102 |
| Accrued expenses and prepaid income | 55,882 | 41,255 |
| Total current liabilities | 351,547 | 248,669 |
| TOTAL EQUITY AND LIABILITIES | 609,282 | 513,115 |
| SEK thousands | 2021-12-31 | 2020-12-31 |
|---|---|---|
| Opening equity for the period | 176,155 | 153,471 |
| Total comprehensive income for the period | 24,742 | 32,104 |
| Dividend | -14,070 | -11,256 |
| Issue of common shares in business combinations | — | 1,835 |
| Closing equity for the period | 186,827 | 176,155 |
| 3 months | 12 months | |||
|---|---|---|---|---|
| SEK thousands | Oct–Dec 2021 | Oct–Dec 2020 | Jan–Dec 2021 | Jan–Dec 2020 |
| Profit/loss before financial items | -4,681 | 9,322 | 30,046 | 40,706 |
| Adjustment for non-cash items | -4,739 | 6,584 | 16,887 | 24,144 |
| Interest paid and similar items | -1,426 | 4,373 | -5,108 | -4,727 |
| Interest received and similar items | -32 | -5,792 | 3,840 | 859 |
| Income tax paid/refunded | 2,582 | -2,213 | -4,319 | -16,506 |
| Cash flow from operating activities before changes in working capital | -8,296 | 12,274 | 41,346 | 44,476 |
| Increase/decrease in inventories | -21,519 | 9,145 | -20,325 | 12,798 |
| Increase/decrease in operating receivables | 10,953 | 19,881 | -11,323 | 15,975 |
| Increase/decrease in operating liabilities | 15,171 | -28,110 | 12,660 | -10,275 |
| Total change in working capital | 4,605 | 916 | -18,988 | 18,498 |
| Cash flow from operating activities | -3,691 | 13,190 | 22,358 | 62,974 |
| Acquisition of subsidiaries | 6,000 | -31,903 | -22,584 | -34,403 |
| Investments in tangible assets | 9,980 | -3,510 | -7,316 | -4,851 |
| Investments in intangible assets | — | -217 | — | -581 |
| Cash flow from investing activities | 15,980 | -35,630 | -29,900 | -39,835 |
| Loans | — | — | 75,000 | 100,000 |
| Repayment of loans | — | -15 | -339 | -68,974 |
| Dividend | — | -11,256 | -14,070 | -11,256 |
| Payment for finance leases | -6,077 | -5,392 | -24,054 | -19,189 |
| Cash flow from financing activities | -6,077 | -16,663 | 36,537 | 581 |
| Cash flow for the period | 6,212 | -39,103 | 28,995 | 23,720 |
| Cash and cash equivalents at the start of the period | 73,173 | 89,067 | 49,401 | 26,740 |
| Exchange difference in cash and cash equivalents | 435 | -564 | 1,425 | -1,059 |
| Cash and cash equivalents at end of the period | 79,821 | 49,401 | 79,821 | 49,401 |
| 3 months | 12 months | |||
|---|---|---|---|---|
| SEK thousands | Oct–Dec 2021 | Oct–Dec 2020 | Jan–Dec 2021 | Jan–Dec 2020 |
| Operating income | ||||
| Net revenue | 1,376 | 1,619 | 5,781 | 6,761 |
| Total | 1,376 | 1,619 | 5,781 | 6,761 |
| Operating expenses | ||||
| Purchased services | -310 | -132 | -1,598 | -615 |
| Other external costs | -1,905 | -4,020 | -4,978 | -8,282 |
| Staff costs | -12,003 | -3,385 | -22,007 | -11,496 |
| Total operating expenses | -14,218 | -7,537 | -28,583 | -20,393 |
| Operating profit/loss | -12,842 | -5,917 | -22,802 | -13,632 |
| Profit from participations in Group companies | 4,102 | 6,497 | 4,102 | 6,497 |
| Interest and similar income | 168 | 250 | 3,706 | 879 |
| Interest and similar expenses | -1,238 | -587 | -3,224 | -3,064 |
| Total profit/loss from financial items | 3,032 | 6,160 | 4,585 | 4,312 |
| Profit/loss before tax | -9,810 | 243 | -18,218 | -9,320 |
| Appropriations | 30,000 | 41,000 | 30,000 | 41,000 |
| Tax on profit for the period | -3,382 | -7,558 | -939 | -5,454 |
| Profit/loss for the period | 16,808 | 33,684 | 10,843 | 26,226 |
| SEK thousands | 2021-12-31 | 2020-12-31 |
|---|---|---|
| ASSETS | ||
| Financial assets | ||
| Shares in Group companies | 314,979 | 280,370 |
| Total financial assets | 314,979 | 280,370 |
| Total non-current assets | 314,979 | 280,370 |
| Current assets | ||
| Current receivables | ||
| Receivables from Group companies | 37,849 | 55,291 |
| Other receivables | 719 | 677 |
| Current tax assets | 240 | — |
| Prepaid expenses and accrued income | 382 | 245 |
| Total current receivables | 39,190 | 56,213 |
| Cash and bank balances | 41,874 | 14,711 |
| Total current assets | 81,064 | 70,924 |
| TOTAL ASSETS | 396,043 | 351,294 |
| EQUITY AND LIABILITIES | ||
| Restricted equity | ||
| Share capital | 625 | 625 |
| Revaluation reserve | 37,000 | 37,000 |
| Statutory reserve | — | 1 |
| Total restricted equity | 37,625 | 37,626 |
| Non-current liabilities | ||
| Liabilities to Group companies | 107,001 | 94,843 |
| Liabilities for acquired companies | 10,843 | 26,226 |
| Total non-current liabilities | 117,844 | 121,069 |
| Total equity | 155,469 | 158,695 |
| LIABILITIES | ||
| Non-current liabilities | ||
| Liabilities to Group companies | 120 | 840 |
| Liabilities for acquired companies | — | 8,256 |
| Total non-current liabilities | 120 | 9,096 |
| Current liabilities | ||
| Liabilities to Group companies | 40,885 | 72,775 |
| Liabilities for acquired companies | 10,757 | - |
| Liabilities to credit institutions | 175,000 | 100,000 |
| Trade payables | 1,415 | 1,920 |
| Current tax liabilities | — | 5,247 |
| Other current liabilities | 354 | 361 |
| Accrued expenses and prepaid income | 12,045 | 3,200 |
| Total current liabilities | 240,454 | 183,503 |
| TOTAL EQUITY AND LIABILITIES | 396,043 | 351,294 |
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and RFR 1 Supplementary Accounting Rules for Groups. The parent company's quarterly report has been prepared in accordance with the Swedish Annual Accounts Act and Swedish Financial Reporting Recommendations RFR 2 Accounting for Legal Entities. Disclosures in accordance with IAS 34.16A appear not only in the financial statements and their accompanying notes but also in other parts of the interim report. The reporting of exchange rate differences has changed compared with the previous year. Exchange rate gains are now
reported as other operating income and exchange rate losses as other operating expenses. In previous years, the net sum has been reported as goods for resale in the income statement. The comparative items have been adjusted as a result of this change.
No new accounting standards came into effect in 2021.
For further information regarding Christian Berner's accounting principles, please refer to the company's 2020 annual report, Note 2 Accounting Principles and Note 1 in this report.
| Assets | 2021-12-31 | 2020-12-31 |
|---|---|---|
| ROU assets | 84,409 | 92,847 |
| Total | 84,409 | 92,847 |
| Leasing liabilities | 2021-12-31 | 2020-12-31 |
|---|---|---|
| Short-term | 21,365 | 21,229 |
| Long-term | 61,137 | 72,654 |
| Total | 82,502 | 93,883 |
| October–December | January–December | ||||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| Depreciation of ROU assets | -6,077 | -5,392 | -24,054 | -19,189 | |
| Interest expenses | -421 | -482 | -1,810 | -1,461 | |
| Total | -6,498 | -5,874 | -25,864 | -20,650 |
On 15 April, 2021, Christian Berner Tech Trade acquired AB GF Swedenborg Ingeniörsfirma and had access as of 3 May. AB GF Swedenborg Ingeniörsfirma markets and sells well-known pumping products and bursting discs. They also manufacture industrial dampers that are sold under their own brand. In 2020, the company's sales amounted to SEK 45.1 million, with an EBITDA of SEK 6.3 million. At the end of 2020, the company had 13 employees. The acquisition is expected to have a positive impact on Christian Berner Tech Trade's earnings per share in the current financial year. The purchase consideration amounted to SEK 34.2 million (of which SEK 6 million is additional purchase price) on a debt-free basis and is financed through available cash and newly raised loans. The value of the additional purchase price is based on the company's financial results in 2021. Transaction expenses amounted to SEK 1.9 million. In 2021, the company's net revenue amounted to SEK 49.5 million, of which SEK 33.5 million is included in the Group's revenue, with an EBITA of SEK 8.0 million, of which SEK 4.0 million is included in the Group's results.
| Purchase price | 34,179 |
|---|---|
| Net assets measured at fair value | 21,874 |
| Goodwill | 12,305 |
| Net assets consist of the values below (SEK thousands) |
Fair value in the Group |
|---|---|
| Intangible assets excluding goodwill | 15,497 |
| Tangible fixed assets | 686 |
| Financial fixed asstes | 0 |
| Current assets | 19,217 |
| Provisions | -3,192 |
| Non-current liabilities | 0 |
| Current liabilties | -10,334 |
| Net assets | 21,874 |
Cash and cash equivalents in acquired operations amounted to SEK 5.6 million
On 7 October 2020, Christian Berner Tech Trade signed an agreement on the acquisition of all shares in Alfa Tec Sweden AB (http://alfatec.se), a company that markets and sells Alfa Laval's products in thermal processes and fluid technology. In 2019, the company's sales amounted to SEK 32.2 million with an EBITDA of SEK 3.4 million. At the end of 2019, the company had five employees. The purchase consideration amounted to SEK 12.2 million and includes an additional purchase price of SEK 3.5 million and SEK 1.8 million shares . The acquisition is financed through available cash, own shares and newly raised loans. Based on the company's results for 2021-2022, an additional purchase price of no more than SEK 7.0 million may be payable. Transaction expenses amounted to SEK 1.5 million.
| SEK thousands | |
|---|---|
| Purchase price | 12,189 |
| Net assets measured at fair value | 2,031 |
| Goodwill | 10,158 |
| Net assets consist of the values below (SEK thousands) |
Fair value in the Group |
|---|---|
| Intangible assets excluding goodwill | 0 |
| Tangible fixed assets | 0 |
| Financial fixed asstes | 0 |
| Current assets | 5,553 |
| Provisions | 0 |
| Non-current liabilities | 0 |
| Current liabilties | -3,522 |
| Net assets | 2,031 |
Cash and cash equivalents in acquired operations amounted to SEK 2.3 million
On 1 October 2020, Christian Berner Tech Trade acquired Empakk AS (http://empakk.no), a company which markets and sells solutions for packaging, storage and transport of food in public and private operations in the Norwegian market. The company has its registered office in Fredrikstad and, in 2019, revenue amounted to NOK 47.3 million, with an EBITDA of NOK 4.8 million (EBITA SEK 4.3 million). At the end of 2019, the company had 15 employees. For the first half of 2020, the company's sales amounted to NOK 28.3 million, with an EBITDA of NOK 3.4 million (EBITA NOK 3.3 millions).
The purchase consideration amounted to SEK 38.1 million (of which SEK 5 million is additional purchase price) and is financed through available cash and newly raised loans. Based on the company's results for 2021-2022, an additional purchase price of no more than NOK 5.0 million may be payable. Transaction expenses amount to SEK 1 million.
| SEK thousands | |
|---|---|
| Purchase price (SEK thousands) | 38,083 |
| Net assets measured at fair value | 15,017 |
| Goodwill | 23,066 |
| Net assets consist of the values below (SEK millions) |
Fair value in the Group |
|---|---|
| Intangible assets excluding goodwill | 0 |
| Tangible fixed assets | 1,861 |
| Financial fixed asstes | 84 |
| Current assets | 22,161 |
| Provisions | |
| Non-current liabilities | -331 |
| Current liabilties | -8,758 |
| Net assets | 15,017 |
Cash and cash equivalents in acquired operations amounted to NOK 6.3 million (recalculated to 5,9 MSEK).
| Segment revenue | Oct–Dec 2021 |
Oct–Dec 2020 |
Change % | Jan–Dec 2021 |
Jan–Dec 2020 |
Change % |
|---|---|---|---|---|---|---|
| Sweden | 138 763 | 143 225 | -3,1% | 526 397 | 483 901 | 8,8% |
| Norway | 32 205 | 31 184 | 3,3% | 129 567 | 100 379 | 29,1% |
| Finland | 18 281 | 17 776 | 2,8% | 69 109 | 88 481 | -21,9% |
| Denmark | 3 366 | 2 980 | 13,0% | 18 136 | 22 409 | -19,1% |
| Total | 192 615 | 195 164 | -1,3% | 743 209 | 695 169 | 6,9% |
| Sales between segments | 6 618 | 2 707 | 144,5% | 19 164 | 11 239 | 70,5% |
| Segment EBITA | Oct–Dec 2021 |
Oct–Dec 2020 |
Change % | Jan–Dec 2021 |
Jan–Dec 2020 |
Change % |
|---|---|---|---|---|---|---|
| Sweden | 9,446 | 18,428 | -48,7% | 44,606 | 46,170 | -3,4% |
| Norway | 197 | 740 | -73,4% | 8,310 | 6,711 | 23,8% |
| Finland | 526 | -100 | 624,3% | 1,151 | 5,596 | -79,4% |
| Denmark | 15 | -317 | 104,7% | 780 | 1,274 | -38,8% |
| Group as a whole | -14,644 | -9,266 | -58,0% | -23,962 | -17,584 | -36,3% |
| Total | -4,460 | 9,485 | -147,0% | 30,885 | 42,167 | -26,8% |
| Amortisation of intangible assets | -221 | -163 | -35,3% | -839 | -1,460 | 42,5% |
| Net financial items | -1,458 | -925 | -57,7% | -1,268 | -869 | -45,9% |
| Profit/loss before tax | -6,139 | 8,397 | -173,1% | 28,778 | 39,838 | -27,8% |
Christian Berner's revenue streams are reported according to Segment and Business area, where segments correspond to the market for revenue.
All business areas are represented in all segments, described in more detail below. The Process & Environment business area has a business model, which to a greater extent, falls into categories 1 and 2, while the Materials Technology business area has a larger share in category 3. However, all three categories are found in all segments and business areas.
Commission Sales, where Christian Berner acts as a sales channel for suppliers by contacting end customers. Revenue comes from agreed commissions that Christian Berner receives from suppliers, which is usually received on delivery of products to end customers or thereafter. Christian Berner does not control the sales flow and is normally dependent on the supplier and customer agreeing and completing the transaction before we receive final payment.
Project Sales refers to revenue streams where Christian Berner has a number of performance commitments. This means that the agreement not only consists of a service or product but also covers a number of different parts. Revenue consists mainly of pre-agreed fees that are usually paid by advance invoicing and invoicing as milestones are reached, depending on the size of the project. These projects can run for long periods and, depending on their nature, income and costs are reported as various completion stages are reached. For larger projects, the resulting profit depends on the validity of calculations and on the successful completion of the project. Due to this, there exists a degree of uncertainty regarding the profitability of projects before completion.
Sales of Goods and Services. This category refers to goods and services sold separately. These may involve services, installations or products and spare parts from our warehouse, among other commodities. These are sold at rates agreed with customers, usually based on price lists. Revenues are reported for these goods and services at the time control is transferred to the customer. Invoicing usually occurs on delivery. In these cases, the greatest uncertainty occurs if customers are unable to pay for the services or products we have supplied.
| Net revenue, SEK thousands | Sweden | Norway | Finland | Denmark | Group as a whole |
|---|---|---|---|---|---|
| Process & Environment | 112,685 | 25,625 | 7,104 | 2,227 | 147,641 |
| Materials Technology | 26,078 | 6,580 | 11,177 | 1,139 | 44,974 |
| Total | 138,763 | 32,205 | 18,281 | 3,366 | 192,615 |
| October–December 2020 Net revenue, SEK thousands |
Sweden | Norway | Finland | Denmark | Group as a whole |
|---|---|---|---|---|---|
| Process & Environment | 112,306 | 23,823 | 8,280 | 2,236 | 146,645 |
| Materials Technology | 30,916 | 7,362 | 9,496 | 744 | 48,518 |
| Total | 143,225 | 31,184 | 17,776 | 2,980 | 195,164 |
| January–December 2021 Net revenue, SEK thousands |
Sweden | Norway | Finland | Denmark | Group as a whole |
|---|---|---|---|---|---|
| Process & Environment | 408,858 | 94,950 | 24,446 | 12,092 | 540,346 |
| Materials Technology | 117,539 | 34,617 | 44,663 | 6,044 | 202,863 |
| Total | 526,397 | 129,567 | 69,109 | 18,136 | 743,209 |
| January–December 2020 Net revenue, SEK thousands |
Sweden | Norway | Finland | Denmark | Group as a whole |
|---|---|---|---|---|---|
| Process & Environment | 358,155 | 58,906 | 41,392 | 12,276 | 470,729 |
| Materials Technology | 125,744 | 41,473 | 47,089 | 10,133 | 224,439 |
| Total | 483,901 | 100,379 | 88,481 | 22,409 | 695,169 |
Financial assets valued at amortised cost
| Assets on the Balance Sheet | 2021-12-31 | 2020-12-31 |
|---|---|---|
| Other non-current receivables | 292 | 268 |
| Trade receivables | 99,263 | 75,127 |
| Cash and cash equivalents | 79,821 | 49,401 |
| Total | 179,375 | 124,796 |
| 2021-12-31 | 2020-12-31 | |
|---|---|---|
| Liabilities to credit institutions | 175,000 | 100,339 |
| Leasing liabilities | 82,502 | 93,883 |
| Trade payables | 50,569 | 46,243 |
| Accrued expenses and prepaid income | 55,882 | 41,255 |
| Additional purchase considerations at fair value | 10,757 | 8,257 |
| Total | 374,710 | 289,977 |
| 2021-12-31 | |
|---|---|
| Opening balance | 8,257 |
| Acquisition | 6,000 |
| Valuation adjustments | - 3,500 |
| Closing balance | 10,757 |
CBTT holds various financial instruments and most of these are valued at their amortised cost, with the exception of liabilities for additional purchase considerations, which are calculated at fair value, over the consolidated statement of income. A liability to pay additional purchase considerations is a financial instrument whose value depends on assumptions and assessments made by the company (level 3 instruments). In this case, the value of the liability depends on the acquired company's performance in 2021. In cases where financial instruments are reported at their amortised cost, this value corresponds, in all cases, to their fair value. During the year, the additional purchase consideration for Alfa Tec Svenska AB was not due and was adjusted, against the results, by SEK 3.5 million.
| Non-IFRS performance indicators | Description | Reason for use of indicator | ||
|---|---|---|---|---|
| Operating income | Revenue, including net revenue and other income | Operating income is a combination of how the Compa ny's various product areas and markets perform |
||
| Net revenue growth | Increase in the net revenue as a percentage of the total revenue of the previous year |
Indicator of the company's growth relative to the pre vious period, which illustrates the company's trend and enables the underlying driving forces to be tracked |
||
| EBITA | Earnings before impairment of goodwill and impairment and amortisation of other intangible assets that arose in connection with business combinations and equiva lent transactions |
As a manufacturing company, EBITA is an important indicator of the company's profitability before interest, taxes and impairments |
||
| EBITA-margin | EBITA as a percentage of net revenue | The EBITA margin illustrates the company's profit gene ration before interest, taxes and amortisation, relative to operating income. A performance indicator that is appropriate for companies such as Christian Berner |
||
| Operating profit/loss | Operating profit/loss before financial items and taxes | Operating profit/loss gives an overall picture of the company's profit generation in its operating activities. |
||
| Operating margin | Operating profit/loss before financial items and taxes, as a percentage of operating income |
The operating margin is a traditional comparison indi cator that illustrates the company's profit generation relative to operating income |
||
| Net financial items | The difference between financial income and financial expenses |
Net financial items shows the difference between financial income and financial expenses |
||
| 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 financing 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 at the close of the 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 |
| SEK thousand | Oct–Dec 2021 |
Oct–Dec 2020 |
Change % | Jan–Dec 2021 |
Jan–Dec 2020 |
Change % |
|---|---|---|---|---|---|---|
| Net revenue | 192,615 | 195,164 | -1,3% | 743,209 | 695,169 | 6,9% |
| EBITA | -4,460 | 9,485 | -147,0% | 30,885 | 42,167 | -26,8% |
| Total assets | 609,282 | 513,115 | 18,7% | 609,282 | 513,115 | 18,7% |
| Equity | 186,827 | 176,155 | 6,1% | 186,827 | 176,155 | 6,1% |
| Revenue growth | -1,3% | -9,3% | 6,9% | -1,4% | ||
| Gross margin, % | 39,3% | 43,9% | 40,2% | 39,5% | ||
| Equity ratio, % | 30,7% | 34,3% | 30,7% | 34,3% | ||
| EBITA-margin, % | -2,3% | 4,9% | 4,2% | 6,1% | ||
| Return on equity (R12) | 15,9% | 22,6% | 15,9% | 22,6% |
The Board of Directors and the CEO warrant that this interim report for Christian Berner Tech Trade AB (publ), 556026-3666 provides a true and fair picture of the parent company's and the Group's operations, financial position and results, and describes the significant risks and uncertainties of the parent company and the companies included in the Group.
Joachim Berner Chairman of the Board
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____________________________________ Bertil Persson Board Member
Bo Söderqvist CEO
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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
This interim report has not been subject to review by the company's auditor.
The information in this report is published in accordance with the EU Market Abuse Regulation and the Securities Market Act. The information was submitted through the following contact people for publication on 25 February 2022, at 12:00.
Annual General Meeting 2022 Interim report for the first quarter 2022
18 August, 2022 Interim report for the second quarter 2022
Bo Söderqvist, CEO Christian Berner Tech Trade AB +46 (0) 70-18 66 910 E-mail: [email protected]
Lars Westlund, CFO Christian Berner Tech Trade AB +46 (0) 70-18 66 968 E-mail: [email protected]
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