Quarterly Report • Feb 23, 2023
Quarterly Report
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Christian Berner Tech Trade ended the year on a high note. Both business areas had double-digit organic growth figures in the quarter. We help our customers address their issues using leading technology and the strong growth confirm their trust.
• There were no significant events after the end of the reporting period.
| SEK thousands | 2022 Oct–Dec |
2021 Oct–Dec |
Change | 2022 Jan–Dec |
2021 Jan–Dec |
Change |
|---|---|---|---|---|---|---|
| Orders received | 257,566 | 201,119 | 28.1% | 915,684 | 739,138 | 23.9% |
| Net revenue | 247,730 | 192,615 | 28.60% | 842,000 | 743,209 | 13.30% |
| EBITA | 5,425 | -4,459 | E/T | 40,508 | 30,876 | 31.20% |
| EBITA margin | 2.2% | -2.3% | 4.8% | 4.1% | ||
| Operating profit/loss | 5,186 | -4,680 | E/T | 39,570 | 30,037 | 31.70% |
| Earnings per share | 0.10 | -0.27 | E/T | 1.30 | 1.21 | 7.20% |
| Cash flow for the period | 10,956 | 6,213 | 76.30% | -24,069 | 28,995 | -183.00% |
| Return on equity (R12) | 16.4% | 15.9% |
The covid restrictions have gradually eased and the world has increasingly re-opened. At the same time, we have been reminded that we should not take our freedoms for granted. War in our vicinity, high inflation, and resulting higher interest rates than we have been used to in recent years are placing new demands on our ability to adjust and be flexible. We do not, however, experience any cancellations or postponements from our customers' side.
In times of market turmoil, we rely on our diversified customer base, with primarily eight different operating units in different industries. Our exposure is mainly in areas less sensitive to economic fluctuations, such as energy & infrastructure, water & sewage, and general industry.
Orders booked continued to increase in the fourth quarter (+28% compared with the previous year). New agencies signed during the year e.g., Ultraaqua, have been successfully launched, replacing another solution, which shows the organisation's flexibility and agility. Subsidiaries with their own production such as Bullerbekämparen are scaling up production. We also see potential in the climate transition as several of our offerings contribute to our customers' transformation. In fact, it is an important part of our business to constantly seek more sustainable solutions for our customers' challenges.
Since I started at the end of the first six months 2022 one of my main goals has been to free up the strength and potential that exists in our organisation. Through greater decentralisation we get more out of the technical know-how, experience and dedication already within the Group, while at the same time becoming more agile and therefore less vulnerable in times of fluctuations. In line with this, we launched a new business area setup in December and are working to simplify internal administration. We are finding our way back to the entrepreneurship and businessmanship that our founder Christian Berner injected into the organisation when he founded the company 125 years ago.
During the year, we also had changing of the guard in several parts of the Group. We welcome several driven individuals supplementing us, including a new CFO, new managing directors at Zander & Ingeström and Swedenborg, and after the end of the year also at Bullerbekämparen and Christian Berner AS in Nor-
way. The management team is committed and driven, where everyone has their own clear goals, but is also driven by a joint effort to strengthen th group as a whole. During the year, the group's first option programme was launched, involving subsidiary managing directors and key employees.
At the same time, we have increased governance in certain areas, implementing clearer internal control to ensure that we comply with the high standards of sustainable business and governance that our stakeholders rightly place on us. This is a long-term effort, but we took several important steps forward during the year. One area we have addressed is the management of major projects, particularly in the Energy & Environment business area. As announced in previous quarterly reports, we completed some older projects in the second half of the year. A few of them were accompanied by some problems from previous years and these were dealt with during the autumn.
This negatively impacted earnings during the second half of the year by SEK 7 million. We now stand significantly stronger heading into 2023.
The focus for 2023 is to continue on the chosen path, with a focus on sustainable businesses in every aspect and to continue to develop an efficient and entrepreneurial organisation. We have a long-term goal of acquiring good companies and being a good harbour for them for a long time to come. In the autumn, we noted that the price expectations were somewhat dampened and expect slightly better conditions in 2023. We have a strong history of acquisitions with Swedenborg, Zander & Ingeström and Empakk as great additions to the Group and are happy to wait for the best companies.
Overall, we summarize a 2022 that stands for a reboot and regrouping and we are looking forward to 2023 with confidence.
CEO, Christian Berner Tech Trade AB
2
Net revenue for the fourth quarter was SEK 247.7 (192.6) million, an increase of SEK 55.1 million where organic growth amounted to SEK 51.2 million and SEK 3.9 million positive currency translation difference of foreign subsidiaries. The fourth quarter showed a high level of activity among customers, which was met with a strengthened delivery capacity.
| 2021 Oct-Dec |
Currency effect, for eign sub sidiaries |
Acquired growth |
Organic growth |
Total growth |
2022 Oct-Dec |
|---|---|---|---|---|---|
| 192.6 | 2.0% | - | 26.6% | 28.6% | 247.7 |
The Group's EBITA for the fourth quarter was SEK 5.4 (-4.5) million, an improvement of SEK 9.9 million. SEK 4 million was charged to profit for increased costs in customer deliveries, mainly due to completed projects sold before recent cost increases.
Depreciation/amortisation was SEK -7.4 (-7.5) million in the fourth quarter. Depreciation/amortisation primarily consists of depreciation of right-of-use assets.
During the quarter, the Group invested SEK -2.8 (-) million in property, plant and equipment. Investments in intangible assets amounted to SEK -3.6 (-) million. Investments in intangible assets consist of the change and development of business systems.
Consolidated net financial items for the fourth quarter were SEK -2.2 (-1.5) million. The increase is attributable to higher interest expenses on the same nominal borrowing.
The Group's tax for the fourth quarter was SEK -1.1 (1.1) million. The effective tax rate for the fourth quarter was 36.2%.
EBITA SEK MILLION
Net revenue for the year was SEK 842.0 (743.2) million, an increase of SEK 98.8 million where organic growth amounted to SEK 69 million, acquired growth amounted to SEK 18 million and SEK 12 million was from positive currency translation difference of foreign subsidiaries. Organic growth was reduced by SEK 14 million due to changes in the estimates for revenues that were settled at excessively high levels in previous years.
| 2021 Jan-Dec |
Currency effect, for eign sub sidiaries |
Acquired growth |
Organic growth |
Total growth |
2022 Jan Dec |
|---|---|---|---|---|---|
| 743.2 | 1.6% | 2.4% | 9.3% | 13.3% | 842.0 |
Customer activities have steadily increased during the year with a clear revenue growth in the second half of the year.
The Group's EBITA for the full year was SEK 40.5 (30.9) million, an improvement of SEK 9.6 million. This year's initial delays in the supply chains from suppliers have driven cost increases through the inflation that occurred during the year, which has impacted earnings. During the year, parts of the Group also developed the organisations to meet the growing demand, initially burdening earnings, but building the companies for the next growth phase. The EBITA of the year incurred charges due to changes in the assessment of revenues that were reported
at higher level in previous years with a profit impact of SEK 5 million. A further SEK 2 million was charged to profit for expenses for completed deliveries where higher cost levels compared with previous estimates were impacted by higher purchase prices.
Depreciation/amortisation was SEK -29.3 (-29.3) million during the year. Depreciation/amortisation primarily consists of depreciation of right-of-use assets.
During the quarter, the Group invested SEK -5.1 (-7.3) million in property, plant and equipment. Investments in intangible assets amounted to SEK -8.4 (-) million. Investments in intangible assets consist of a change of business systems.
Consolidated net financial items for the full year were SEK -7.8 (-1.3) million. The increase is attributable to higher interest expenses in 2022 and that in 2021 there was an income of SEK 3.5 million in relation to a non-paid additional purchase consideration.
The Group's tax for the full year was SEK -7.5 (-6.1) million. The effective tax rate for the full-year was 23.4%.
The Technology & Distribution business area gathers distribution activities and own products in water treatment, packaging equipment, vibration damping, technical plastics and process technology. The business area helps customers within industry and the public sector to reduce resource consumption, improve their environmental footprint or streamline their own operations. The business area comprises the four Nordic Christian Berner companies and Empakk.
The business area's net revenue for the fourth quarter was SEK 151.4 (110.3) million, an increase of SEK 41.1 million. Of the increase, SEK 37.2 million was organic growth, and SEK 3.9 million was from positive currency translation difference of foreign subsidiaries. The quarter developed strongly both in comparison with the same period in the previous year and the previous quarters of the year. Delivery time levels from supplier to customer have been returned to a normalised situation after a period of delivery delays.
The order books in the Group's companies have been executed in a good way during the quarter.
| 2021 Oct-Dec |
Currency effect, for eign sub sidiaries |
Acquired growth |
Organic growth |
Total growth |
2022 Oct-Dec |
|---|---|---|---|---|---|
| 110.3 | 3.5% | — | 33.8% | 37.3% | 151.4 |
The business area's EBITA in the fourth quarter was SEK 7.4 (2.4) million, an increase of SEK 5.0 million compared with the corresponding period in the previous year. While the increased deliveries to the customers resulted in earnings improvements, the mix of deliveries to some extent put downward pressure on the margin in the quarter.
The business area's net revenue for the year was SEK 539.3 (480.5) million, a growth of SEK 58.8 million, with organic growth accounting for SEK 46.7 million. The business area saw organic growth during the year and the development follows the positive trend that comes from previous order intake and execution of the same.
The companies have handled the inflationary pressures in a satisfactory manner.
| 2021 Jan-Dec |
Currency effect, for eign sub sidiaries |
Acquired growth |
Organic growth |
Total growth |
2022 Jan Dec |
|---|---|---|---|---|---|
| 480.5 | 2.5% | — | 9.7% | 12.2% | 539.3 |
The business area's EBITA amounts to SEK 30.5 (28.9) million, an increase of SEK 1.6 million. The costs have been impacted by the current inflationary trend, in the form of energy and general costs.
| SEK thousands | 2022 Oct–Dec |
2021 Oct–Dec |
Change | 2022 Jan–Dec |
2021 Jan–Dec |
Change |
|---|---|---|---|---|---|---|
| Net revenue | 151,408 | 110,293 | 37.3% | 539,288 | 480,485 | 12.2% |
| EBITA | 7,420 | 2,336 | 217.6% | 30,571 | 28,861 | 5.9% |
| EBITA margin | 4.9% | 2.1% | 5.7% | 6.0% |
The Energy & Environment business area gathers the Group's pump businesses as well as equipment targeting the energy and process industries. The business area increases the sustainability of the energy, process and manufacturing industries through reduced emissions, reduced energy losses and/or improved working environment. The business area comprises Zander and Ingeström, Swedenborg and Bullerbekämparen.
The business area's net revenue for the fourth quarter was SEK 99.7 (94.4) million, an increase of SEK 5.3 million, with the total increase constituting organic growth. Organic growth has been reduced due to an adjustment of previously reported revenues of SEK 2 million.
The order books in the Group's companies have been executed in a good way during the quarter.
| 2021 Oct-Dec |
Currency effect, for eign sub sidiaries |
Acquired growth |
Organic growth |
Total growth |
2022 Oct-Dec |
|---|---|---|---|---|---|
| 94.4 | — | — | 5.6% | 5.6% | 99.7 |
The business area's EBITA was SEK 1.4 million (7.7) in the fourth quarter, a decrease of SEK 6.3 million compared with the corresponding period in the previous year. Most of this is attributable to the fact that the quarter has been charged SEK 4 million due to higher costs in customer deliveries, mainly due to completed projects being sold before the recent growth in inflation. The cost increases from growth in the organisations and the underlying inflation have not been fully offset by the higher revenue.
The business area's net revenue for the year amounts to SEK 324.4 (288.2) million, an increase of SEK 36.2 million. The business area saw organic growth during the year of 6.5% and the development follows the positive trend that comes from previous order intake and execution of the same. In organic growth, revenue during the year was reduced by SEK 14 million due to changes in estimates of revenue that was reported at too high levels in previous years. Overall, the companies have handled the inflationary pressures in a satisfactory manner.
| 2021 Jan-Dec |
Currency effect, for eign sub sidiaries |
Acquired growth |
Organic growth |
Total growth |
2022 Jan Dec |
|---|---|---|---|---|---|
| 288.2 | — | 6.1% | 6.5% | 12.6% | 324.4 |
The business area's EBITA amounts to SEK 21.1 (27.6) million, a decrease of SEK 6.5 million. The EBITA of the year incurred charges due to changes in the assessment of revenues that were reported at too high levels in previous years with a profit effect of SEK 5 million. A further SEK 2 million was charged to profit for expenses for completed deliveries where higher cost levels compared with previous estimates were impacted by higher purchase prices.
| SEK thousands | 2022 Oct–Dec |
2021 Oct–Dec |
Change | 2022 Jan–Dec |
2021 Jan–Dec |
Change |
|---|---|---|---|---|---|---|
| Net revenue | 99,728 | 94,412 | 5.6% | 324,372 | 288,182 | 12.6% |
| EBITA | 1,427 | 7,717 | -81.5% | 21,103 | 27,621 | -23.6% |
| EBITA margin | 1.4% | 8.2% | 6.5% | 9.6% |
During the quarter, the Group worked intensively to continue changes, development and adjustments to the IT systems. The subsidiary Christian Berner Oy, Finland, brought new business systems into use as of 1 December 2022. Continued development is ongoing where a couple of additional companies in the same business area will begin using new business systems in the first half of 2023. In the fourth quarter, the Group implemented a new group reporting system that supports decentralised governance and reporting, which has been brought into use throughout the Group.
At 31 December, the Group had SEK 56.9 million (79.8 million at 31 December 2021) in cash and cash equivalents. The cash flow from operating activities during the fourth quarter was SEK 21.2 (-3.7) million. In the fourth quarter, investments of SEK 6.5 (-) million were made, primarily in the development of the new IT environment. The cash flow from operating activities for the full year was SEK 25.1 (22.4) million. During the year, investments of SEK 13.5 (7.3) million were made. In the first part of 2022, payments were made for additional purchase considerations of SEK 15.4 million and dividends of SEK 14.1 (14.1) million.
The Group has a loan facility of SEK 200 million, of which SEK 175 million has been utilised, and there are additional overdraft facilities in three currencies of SEK 13 (13) million.
At the end of the period, there were 220 employees (209 at 31 December 2021), of which 51 (55) women and 169 (154) men.
During the year, profit was charged SEK 7 million (of which SEK 4 million during the quarter) for completed deliveries where costs were higher compared to previous estimates. This was a result of rising purchase prices, delivery delays and completions.
During the year, revenue was reduced by SEK 14 million for revenue that was reported at too high levels in previous years.
In December, a new business area structure and Group management were launched to strengthen the Group's decentralised model and enable more efficient governance.
On 13 October, the Christian Berner Group celebrated its 125th anniversary, including all employees.
During the quarter, an agreement was reached with Katarina Munter as the new Managing Director of Bullerbekämparen, beginning on 1 January 2023. An agreement was also reached with Even Magnus Moholdt as the Managing Director of the subsidiary Christian Berner AS, Norway, with a start date of no later than 1 May 2023.
Operations are affected by a number of different factors, some of which are within the company's control while others are not. Market-related risks include economic risks. Financial risks include exchange rate risks and interest rate risks. Christian Berner 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. During the year, component shortages and long delivery times in the supply chain affected our business. These risks are carefully monitored and communication with customers is done continuously 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 down 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 priced into business. The Group actively works with pricing, both when there are cost increases but also 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 increases into account.
For the subsidiaries, the effect of interest rate increases is limited. On the other hand, continued high inflation may implicate a general economic downturn, which may ultimately affect the availability of business for the subsidiaries. However, the assessment is that the areas the Group mainly directs its offerings at are in need of solutions, deliveries and products even during economic fluctuations. Exposure to the residential building sector, which has already been affected by interest rate increases, is limited.
Transactions between Christian Berner Tech Trade AB's subsidiary AB GF Swedenborg AB and PSW Fastighets AB, which is owned by the former president of AB GF Swedenborg, regarding the lease of premises for AB GF Swedenborg, took place in an amount of SEK 0.8 (0.5) million during the year. The service was purchased at normal business terms on a commercial basis. The Group has entered into a lease agreement for offices in Stockholm from 1 September 2022, where a smaller part of the premises are rented out to Gårdaverken AB. The Group also leases art, located in a subsidiary's office, from Gårdaverken AB for a small sum.
The main functions of the parent company Christian Berner are to work with business development, acquisitions, financing, governance, analysis and communication. At the end of December, there were 2 employees (3 at 31 December 2021). The parent company's revenue, which consists exclusively of intra-Group invoicing of services, amounted to SEK 2.5 (1.4) million in the fourth quarter. During the quarter, operating expenses amounted to SEK -7.6 (-14.2) million, which was related to personnel expenses and current external costs. Operating profit for the quarter amounted to SEK -4.1 (-12.8) million, financial items amounted to +8.0 (+3.0) and profit and comprehensive income for the period amounted to SEK 31.3 (15.2) million. During the quarter, SEK 32.9 million was received in Group contributions. For the full year, the parent company's revenue amounted to SEK 9.2 (5.8) million and operating expenses were SEK -23.2 (-28.6) million. Operating loss was accordingly SEK 14.0 (22.8) million. Financial items amounted to SEK 3.5 (4.6) million where SEK 10.1 million related to dividends. Group contributions of SEK 32.9 (28.0) million were received and profit and comprehensive income for the period amounted to SEK 19.8 (9.3) million.
The parent company has pledged shares in subsidiaries as collateral. Pledged shares amount to SEK 143.0 (315.0) million in the parent company. For the Group, pledged assets total SEK 203.0 (350.0) million.
| 3 months | 12 months | |||
|---|---|---|---|---|
| SEK thousands | 2022 Oct–Dec | 2021 Oct–Dec | 2022 Jan–Dec | 2021 Jan–Dec |
| Operating income | ||||
| Net revenue | 247,730 | 192,615 | 842,000 | 743,209 |
| Other operating income | 881 | 2,890 | 2,766 | 4,093 |
| Total operating income | 248,611 | 195,505 | 844,766 | 747,302 |
| Goods for resale | -159,648 | -119,487 | -518,655 | -449,655 |
| Other external costs | -23,446 | -17,006 | -73,853 | -56,581 |
| Staff costs | -52,604 | -55,980 | -182,548 | -181,742 |
| Depreciation of property, plant and equipment and amortisation of intangible assets 1) |
-7,415 | -7,471 | -29,268 | -29,277 |
| Other operating expenses | -312 | -241 | -872 | -10 |
| Total operating expenses | -243,425 | -200,185 | -805,196 | -717,265 |
| Operating profit/loss | 5,186 | -4,680 | 39,570 | 30,037 |
| Financial income | 177 | 206 | 246 | 3,840 |
| Financial expenses | -2,386 | -1,664 | -8,024 | -5,098 |
| Net financial items | -2,209 | -1,458 | -7,778 | -1,258 |
| Profit/loss before tax | 2,977 | -6,138 | 31,792 | 28,779 |
| Income tax | -1,079 | 1,111 | -7,449 | -6,050 |
| Profit/loss for the period | 1,898 | -5,027 | 24,343 | 22,729 |
| Other comprehensive income | ||||
| Items that may later be transferred to profit and loss for the period |
||||
| Translation differences | 1,036 | 1,486 | 3,385 | 2,013 |
| Total comprehensive income for the period | 2,934 | -3,541 | 27,728 | 24,742 |
| Earnings per share Earnings per share before and after dilution (SEK) |
0.10 | -0.27 | 1.30 | 1.21 |
1) The item depreciation/amortisation consists of the following sub-items:
| 3 months | 12 months | |||
|---|---|---|---|---|
| SEK thousands | 2022 Oct–Dec | 2021 Oct–Dec | 2022 Jan–Dec | 2021 Jan–Dec |
| Depreciation of property, plant and equipment | -1,226 | -1,173 | -4,687 | -4,384 |
| Amortisation of intangible assets | -239 | -221 | -938 | -839 |
| Depreciation of right-of-use assets | -5,950 | -6,077 | -23,643 | -24,054 |
| Total depreciation/amortisation | -7,415 | -7,471 | -29,268 | -29,277 |
| SEK thousands | 31/12/2022 | 31/12/2021 |
|---|---|---|
| ASSETS | ||
| Intangible assets | ||
| Goodwill* | 198,417 | 197,524 |
| Distribution rights | 1,211 | 1,562 |
| Trademark | 32,497 | 32,497 |
| Internally developed software | 1,169 | 1,413 |
| Intangible assets in progress | 8,059 | — |
| Total intangible assets | 241,353 | 232,996 |
| Machinery and equipment | ||
| Machinery and equipment | 20,889 | 21,280 |
| ROU assets | 71,920 | 84,409 |
| Total property, plant and equipment | 92,809 | 105,689 |
| Financial fixed assets | ||
| Other non-current receivables | 941 | 292 |
| Deferred tax assets | 372 | 793 |
| Total financial assets | 1,313 | 1,085 |
| Total non-current assets | 335,475 | 339,770 |
| Current assets | ||
| Inventories | ||
| Inventories | 77,658 | 84,741 |
| Advance payments to suppliers | 3,267 | 1,718 |
| Total inventories, etc. | 80,925 | 86,459 |
| Current receivables | ||
| Contract assets | 10,269 | — |
| Tax receivables | 138 | — |
| Trade receivables | 145,474 | 99,263 |
| Prepaid expenses and accrued income | 5,525 | 3,655 |
| Other receivables | 3,029 | 4,159 |
| Cash and cash equivalents | 56,866 | 79,821 |
| Total current receivables | 221,301 | 186,898 |
| Total current assets | 302,226 | 273,357 |
| TOTAL ASSETS | 637,701 | 613,127 |
*The comparative figure for goodwill is adjusted as per 31 December 2021. The adjustment refers to the previously communicated correction of Empakk's acquisition calculation, which has the effect that goodwill has increased, with the respective period's exchange rate, and the corresponding amount is considered to be a debt obligation. Published figures since earlier are 193,678, and the corresponding for other current liabilities is 34,356. The debt was paid in the first half of 2022.
| SEK thousands | 31/12/2022 | 31/12/2021 |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| Equity | ||
| - attributable to the parent company's shareholders | 201,068 | 186,827 |
| - attributable to non-controlling interests | — | — |
| Total equity | 201,068 | 186,827 |
| LIABILITIES | ||
| Non-current liabilities | ||
| Non-current leasing liability | 49,006 | 61,137 |
| Other non-current liabilities | 95 | 102 |
| Other provisions | 1,216 | 1,203 |
| Deferred tax liabilities | 8,089 | 8,465 |
| Total non-current liabilities | 58,406 | 70,907 |
| Current liabilities | ||
| Liabilities to credit institutions | 175,000 | 175,000 |
| Current leasing liability | 21,065 | 21,365 |
| Advance payments from customers | 15,737 | 14,080 |
| Trade payables | 77,351 | 50,569 |
| Contract liabilities | 5,138 | — |
| Tax liabilities | 3,618 | 295 |
| Other liabilities | 30,882 | 38,202 |
| Accrued expenses and prepaid income | 49,436 | 55,882 |
| Total current liabilities | 378,227 | 355,393 |
| TOTAL EQUITY AND LIABILITIES | 637,701 | 613,127 |
11
| SEK thousands | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Amount at the beginning of the period | 186,827 | 176,155 |
| Comprehensive income for the period | 27,728 | 24,742 |
| Transactions with shareholders | ||
| Dividend | -14,070 | -14,070 |
| Option premiums received | 583 | — |
| Amount at end of period | 201,068 | 186,827 |
| 3 months | 12 months | ||||
|---|---|---|---|---|---|
| SEK thousands | 2022 Oct–Dec | 2021 Oct–Dec | 2022 Jan–Dec | 2021 Jan–Dec | |
| Profit/loss before tax | 2,977 | -6,138 | 31,792 | 28,779 | |
| Adjustment for non-cash items | 5,577 | -4,739 | 28,857 | 16,886 | |
| Tax paid/refunded | 5,689 | 2,582 | -4,263 | -4,319 | |
| Cash flow from operating activities before changes in working capital | 14,243 | -8,295 | 56,386 | 41,346 | |
| Increase (-)/decrease (+) in inventories | 16,881 | -21,519 | 6,428 | -20,325 | |
| Increase (-)/decrease (+) in operating receivables | -29,089 | 10,953 | -55,956 | -11,323 | |
| Increase (+)/decrease (-) in operating liabilities | 19,184 | 15,171 | 18,198 | 12,660 | |
| Total change in working capital | 6,976 | 4,605 | -31,330 | -18,988 | |
| Cash flow from operating activities | 21,219 | -3,690 | 25,056 | 22,358 | |
| Acquisition of property, plant and equipment | -2,814 | 9,980 | -5,124 | -7,316 | |
| Disposal of property, plant and equipment | 2,053 | — | 2,053 | — | |
| Acquisition of intangible assets | -3,642 | — | -8,369 | — | |
| Acquisition of subsidiaries, net liquidity impact | — | 6,000 | — | -22,584 | |
| Acquisition of financial assets | — | — | -630 | — | |
| Cash flow from investing activities | -4,403 | 15,980 | -12,070 | -29,900 | |
| Option premiums received | — | — | 583 | — | |
| Loans raised | — | — | — | 75,000 | |
| Repayment of loans | 16 | — | — | -339 | |
| Repayment of lease liabilities | -5,876 | -6,077 | -23,568 | -24,054 | |
| Dividend paid | — | — | -14,070 | -14,070 | |
| Cash flow from financing activities | -5,860 | -6,077 | -37,055 | 36,537 | |
| Cash flow for the period | 10,956 | 6,213 | -24,069 | 28,995 | |
| Cash and cash equivalents at the start of the period | 45,645 | 73,173 | 79,821 | 49,401 | |
| Exchange rate difference in cash and cash equivalents | 265 | 435 | 1,114 | 1,425 | |
| Cash and cash equivalents at the end of the period | 56,866 | 79,821 | 56,866 | 79,821 |
| 3 months | 12 months | |||
|---|---|---|---|---|
| SEK thousands | 2022 Oct–Dec | 2021 Oct–Dec | 2022 Jan–Dec | 2021 Jan–Dec |
| Operating income | ||||
| Net revenue | 3,208 | 1,376 | 8,935 | 5,781 |
| Other operating income | 267 | - | 267 | - |
| Total | 3,475 | 1,376 | 9,202 | 5,781 |
| Operating expenses | ||||
| Other external costs | -3,368 | -2,215 | -11,805 | -6,576 |
| Staff costs | -4,182 | -12,003 | -11,378 | -22,007 |
| Depreciation of property, plant and equipment and amortisation of intangible assets |
-6 | - | -6 | - |
| Other operating expenses | -2 | - | -2 | - |
| Other operating expenses | -7,558 | -14,218 | -23,191 | -28,583 |
| Operating profit/loss | -4,083 | -12,842 | -13,989 | -22,802 |
| Profit from participations in Group companies | 10,065 | 4,102 | 10,065 | 4,102 |
| Interest and similar income | 9 | 168 | 9 | 3,706 |
| Interest and similar expenses | -2,098 | -1,238 | -6,541 | -3,224 |
| Total profit/loss from financial items | 7,976 | 3,032 | 3,533 | 4,584 |
| Appropriations* | 32,905 | 28,000 | 32,905 | 28,000 |
| Profit/loss before tax | 36,798 | 18,190 | 22,449 | 9,782 |
| Income tax | -5,481 | -2,970 | -2,605 | -527 |
| Profit/loss for the period | 31,317 | 15,220 | 19,844 | 9,255 |
* The comparative figure for appropriations is adjusted at 31 December 2021 by 2,000; income tax has also been adjusted by 412.
| SEK thousands | 31/12/2022 | 31/12/2021 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Property, plant and equipment | ||
| Machinery and equipment | 193 | — |
| Total property, plant and equipment | 193 | — |
| Financial fixed assets | ||
| Shares in Group companies | 318,583 | 318,583 |
| Other non-current receivables | 630 | — |
| Total financial assets | 319,213 | 318,583 |
| Total non-current assets | 319,406 | 318,583 |
| Current assets | ||
| Current receivables | ||
| Trade receivables | 143 | — |
| Receivables from Group companies | 28,901 | 37,849 |
| Current tax assets | — | 652 |
| Other current receivables | 105 | 719 |
| Prepaid expenses and accrued income | 1,004 | 382 |
| Total current receivables | 30,153 | 39,602 |
| Cash and bank balances | 10,459 | 41,874 |
| Total current assets | 40,612 | 81,476 |
| TOTAL ASSETS | 360,018 | 400,059 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Total restricted equity | 37,625 | 37,625 |
| Total non-restricted equity | 122,613 | 116,256 |
| Total equity | 160,238 | 153,881 |
| LIABILITIES | ||
| Non-current liabilities | ||
| Liabilities to Group companies | 120 | 120 |
| Total non-current liabilities | 120 | 120 |
| Current liabilities | ||
| Liabilities to credit institutions | 175,000 | 175,000 |
| Trade payables | 1,175 | 1,415 |
| Liabilities to Group companies | 12,203 | 42,885 |
| Current tax liabilities | 2,289 | - |
| Other liabilities | 557 | 14,713 |
| Accrued expenses and prepaid income | 8,436 | 12,045 |
| Total current liabilities | 199,660 | 246,058 |
| Total liabilities | 199,780 | 246,178 |
| TOTAL EQUITY AND LIABILITIES | 360,018 | 400,059 |
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 that enter into effect in 2022 with an impact on the Group.
For further information regarding Christian Berner's accounting principles, refer to the company's annual report for 2021, Note 2 Accounting principles and Note 1 in this report.
| Assets | 31/12/2022 | 31/12/2021 |
|---|---|---|
| ROU assets | 71,920 | 84,409 |
| Total | 71,920 | 84,409 |
| Lease liabilities | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Current | 21,065 | 21,365 |
| Non-current | 49,006 | 61,137 |
| Total | 70,071 | 82,502 |
| Oct–Dec | Jan–Dec | |||
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| Depreciation of ROU | -5,950 | -6,077 | -23,643 | -24,054 |
| Interest expenses | -360 | -421 | -1,535 | -1,810 |
| Total | -6,310 | -6,498 | -25,178 | -25,864 |
Christian Berner'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 acts as a sales channel for suppliers through contact with the end customer. The revenue is an agreed commission that Christian Berner receives from the supplier and is usually received from suppliers in connection with or after the product is delivered to the end customer. Christian Berner does not control 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 has 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 recognised gradually as the degree of completion develops. 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.
Sales of goods and services. This category pertains to the goods and services sold separately. It may be about 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 does not have payment capacity to pay us for services rendered or products delivered.
Financial assets measured at amortised cost
| Assets on the Balance Sheet | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Trade receivables | 145,474 | 99,263 |
| Cash and cash equivalents | 56,866 | 79,821 |
| Other non-current receivables | 941 | 292 |
| Total | 203,281 | 179,376 |
| 31/12/2022 | 31/12/2021 | |
|---|---|---|
| Liabilities to credit institutions | 175,000 | 175,000 |
| Lease liabilities | 70,071 | 82,502 |
| Trade payables | 77,351 | 50,569 |
| Accrued expenses and prepaid income | 49,436 | 55,882 |
| Additional purchase consideration measured at fair value | — | 14,361 |
| Total | 371,858 | 378,314 |
| Additional purchase consideration measured at fair value | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Opening balance | 14,361 | 11,861 |
| Utilisation | -15,422 | -3,179 |
| Purchase | — | 9,179 |
| Change in value | — | -3,500 |
| Exchange rate differences | 1.061 | - |
| Closing balance | — | 14,361 |
CBTT holds various financial instruments and most of them are measured at their amortised cost with the exception of liabilities for additional purchase considerations that are measured instead at their 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 recognised at their amortised cost, these values correspond in all cases to the fair values of the items. During the year, a debt obligation of SEK 3.6 million was adjusted for Empakk's acquisition calculation, which was paid out in April 2022.
| AMOUNTS IN SEK THOUSANDS | Oct–Dec 2022 |
Oct–Dec 2021 |
Change | Jan–Dec 2022 |
Jan–Dec 2021 |
Change |
|---|---|---|---|---|---|---|
| Operating income | 248,611 | 195,505 | 27.2% | 844,766 | 747.302 | 13.0% |
| Net revenue | 247,730 | 192,615 | 28.6% | 842,000 | 743,209 | 13.3% |
| EBITA | 5,425 | -4,459 | E/T | 40,508 | 30,876 | 31.2% |
| EBITA margin, % | 2.29 | neg | 4.8% | 4.1% | ||
| Total assets | 637,701 | 613,127 | 637,701 | 613,127 | ||
| Equity | 201,068 | 186,827 | 201,068 | 186,827 | ||
| Revenue growth | 27.2% | -0.8% | 13.0% | 7.2% | ||
| Gross margin, % | 35.6% | 38.0% | 38.4% | 39.5% | ||
| Equity ratio, % | 31.5% | 30.5% | 31.5% | 30.5% | ||
| Return on equity (R12) | 16.4% | 15.9% | ||||
| Net debt (+) /Net cash and cash equivalents (-) excluding IFRS 16 |
118,134 | 95,179 | 118,134 | 95,179 | ||
| Average number of employees, FTE (count) | 215 | 209 | 215 | 209 | ||
| Number of shares at the balance sheet date | 18,759,398 | 18,759,398 | 18,759,398 | 18,759,398 | ||
| Earnings per share (SEK) | 0.10 | -0.27 | 1.30 | 1.21 |
| Non-IFRS performance indicators | Description | Objective |
|---|---|---|
| Operating income | Net revenue and other operating income | Operating income is a combination of how the compa ny's various business areas and markets perform |
| Revenue growth | Increase operating income as a percentage of the reve nue of the previous year |
Indicator of the company's growth relative to the previ ous 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 (Earnings Before Interest, Tax and Amortisation). |
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 operating income. | The EBITA margin illustrates the company's profit gen eration before interest, taxes and amortisation, relative to operating income. A performance indicator that is appropriate for companies such as Christian Berner Tech Trade. |
| 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 |
| 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. |
| Total assets | 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 at close 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 debt (+) /Net cash and cash equivalents (-) excluding IFRS 16 |
Interest-bearing liabilities, excluding 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 | Net revenue less goods for resale through net revenue | 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 did work during the period. |
This key performance indicator can be analysed 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 thousands | 2022 Oct–Dec | 2021 Oct–Dec | 2022 Jan–Dec | 2021 Jan–Dec |
|---|---|---|---|---|
| Business area | ||||
| Technology & Distribution | 151,408 | 110,293 | 539,288 | 480,485 |
| Energy & Environment | 99,728 | 94,412 | 324,372 | 288,182 |
| Other | 9,463 | 7,811 | 36,470 | 33,169 |
| Intra-Group | -12,869 | -19,901 | -58,130 | -58,627 |
| Total net revenue | 247,730 | 192,615 | 842,000 | 743,209 |
| EBITA | ||||
| Operating profit/loss | 5,186 | -4,680 | 39,570 | 30,037 |
| Amortisation of intangible assets | 239 | 221 | 938 | 839 |
| EBITA | 5,425 | -4,459 | 40,508 | 30,876 |
| EBITA margin, % | ||||
| Total revenue | 248,611 | 195,505 | 844,766 | 747,302 |
| EBITA | 5,425 | -4,459 | 40,508 | 30,876 |
| EBITA margin, % | 2.2% | -2.3% | 4.8% | 4.1% |
| Gross margin, % | ||||
| Net revenue | 247,730 | 192,615 | 842,000 | 743,209 |
| Goods for resale | -159,648 | -119,487 | -518,655 | -449,655 |
| Gross margin, % | 35.6% | 38.0% | 38.4% | 39.5% |
| Equity ratio | ||||
| Total assets | 637,701 | 613,127 | 637,701 | 613,127 |
| Closing balance of equity | 201,068 | 186,827 | 201,068 | 186,827 |
| Equity ratio, % | 31.5% | 30.5% | 31.5% | 30.5% |
| Net debt (+) /Net cash and cash equivalents (-) excluding IFRS 16 | ||||
| Total interest-bearing liabilities | 245,071 | 257,502 | 245,071 | 257,502 |
| Less lease liabilities | -70,071 | -82,502 | -70,071 | -82,502 |
| Less cash and cash equivalents | -56,866 | -79,821 | -56,866 | -79,821 |
| Net interest-bearing debt, excluding IFRS 16 | 118,134 | 95,179 | 118,134 | 95,179 |
| Earnings per share (SEK) | ||||
| Profit/loss for the period | 1,898 | -5,027 | 24,343 | 22,729 |
| Number of shares at the balance sheet date | 18,759,398 | 18,759,398 | 18,759,398 | 18,759,398 |
| Earnings per share (SEK) | 0.10 | -0.27 | 1.30 | 1.21 |
The Board of Directors and the CEO assure that the interim report for Christian Berner Tech Trade AB (publ), 556026-3666, provides a true and fair view of the parent company's and the Group's operations, position and performance and describes the material risks and uncertainties faced by the parent company and the companies included in the Group.
Joachim Berner Chairman of the Board of Directors
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Bertil Persson Board Member Caroline Reuterskiöld Chief Executive Officer
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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 The information in this report is published in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was provided by the above-mentioned contact person to be published on 23 February 2023 at 12:00 p.m.
27 April 2023 Interim report for the first quarter 2023 Annual General Meeting 2023
21 July 2023 Interim report for the second quarter 2023
Caroline Reuterskiöld, CEO Christian Berner Tech Trade AB Tel +46-31-33 66 900 Email: [email protected]
Henrik Nordin, CFO Christian Berner Tech Trade AB Tel +46-31-33 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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