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Momentum Group
Earnings Release • Feb 14, 2025
3077_10-k_2025-02-14_8c945ca8-e1dd-4395-93fe-1b7c1b3e0079.pdf
Earnings Release
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Organic growth and strong cash flow in the last quarter of the year
The Group's operations delivered organic revenue growth of 1 per cent during the quarter. The Group's revenue increased by a total of 12% year on year, where acquired businesses contributed in particular to this growth. EBITA was unchanged during the quarter compared to last year. In 2024, 8 companies were acquired, of which 1 in the fourth quarter, adding combined annual revenue of approximately SEK 260 million.
Fourth quarter 2024
- Revenue increased by 12% to SEK 745 million (667), of which 1% for comparable units.
- Operating profit was charged with costs affecting comparability of SEK –5 million (-) and amounted to SEK 53 million (61), corresponding to an operating margin of 7.1% (9.1).
- EBITA amounted to SEK 70 million (70), corresponding to an EBITA margin of 9.4% (10.5).
- Profit for the quarter amounted to SEK 34 million (44), corresponding to earnings per share of SEK 0.65 (0.85).
- Acquisition of Indoma that specialises in products for installation and maintenance for industry.
| Q4 | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | Δ | 2024 | 2023 | Δ | |
| Revenue | 745 | 667 | 12% | 2,873 | 2,298 | 25% |
| Operating profit | 53 | 61 | -13% | 273 | 237 | 15% |
| of which: Items affecting comparability | -5 | - | -5 | - | ||
| of which: Amortisation of intangible assets in connection with acquisitions |
-12 | -9 | -44 | -28 | ||
| EBITA | 70 | 70 | - | 322 | 265 | 22% |
| Net profit | 34 | 44 | -23% | 186 | 173 | 8% |
| Earnings per share before and after dilution, SEK | 0.65 | 0.85 | -24% | 3.60 | 3.45 | 4% |
| Operating margin | 7.1% | 9.1% | 9.5% | 10.3% | ||
| EBITA margin | 9.4% | 10.5% | 11.2% | 11.5% | ||
| Return on working capital (EBITA/WC) | 59% | 59% | ||||
| Equity/assets ratio | 36% | 33% |
A quarterly presentation is available on the company's website, momentum.group, where Ulf Lilius, CEO and Niklas Enmark, CFO present the report and provide an update on operations.
Full-year 2024
- Revenue increased by 25% to SEK 2,873 million (2,298), of which 3% for comparable units.
- Operating profit rose by 15% to SEK 273 million (237), corresponding to an operating margin of 9.5% (10.3).
- EBITA increased by 22% to SEK 322 million (265), corresponding to an EBITA margin of 11.2% (11.5).
- Profit for the period amounted to SEK 186 million (173), corresponding to earnings per share of SEK 3.60 (3.45).
- The return on working capital (EBITA/WC) was 59% (59).
- The equity/assets ratio was 36% (33) at the end of the period.
- The Board proposes a dividend of SEK 1.30 per share (1.10).
- As of 31 December 2024, the number of repurchased shares of series B amounted to 1,053,766.
- As of 1 January 2024, the business is divided into the two business areas Industry and Infrastructure.
- During the first quarter, PW Kullagerteknik was acquired. During the second quarter, KmK Instrument, Hydjan, WH-Service, Sikama, ZRS Testing Systems and Minrox were acquired.
Events after the end of the period
- Acquisition of HVT, a specialist in valve service primarily to industrial customers in northern Sweden, with expected closing in Q1 2025.
- Acquisition of Heinolan Hydrauliikkapalvelu Oy, a specialist in hydraulic services and components for industry, with closing in Q1 2025.
Content
- Industry business area
- Infrastructure business area
- Financial position
- Business combinations
- Other
- Consolidated financial statements
- Parent Company financial statements
- Notes
- Performance measures
- About Momentum Group
A successful year and well-positioned for continued growth
Momentum Group concluded 2024 with continued organic growth, despite challenging market conditions. For the full-year, we exceeded all our financial targets, completed eight acquisitions, and generated strong cash flow, enabling continued expansion and value creation.
Business climate in Q4
The business climate in our main Nordic markets was generally stable during the fourth quarter. However, behind this general description lies a relatively fragmented picture. After a stable development earlier in the year, we saw lower demand in the automotive sector in the quarter, which particularly affected our Power Transmission operations and parts of Technical Solutions. At the same time, other customer segments experienced more favourable demand, especially for our Flow Technology operations.
A successful year – exceeding all our targets
Looking back at 2024, there is much to be pleased about. Despite a challenging macroeconomic environment, we delivered organic revenue growth in all four quarters. We completed eight acquisitions and once again exceeded all our financial targets. This, in my view, demonstrates the strength of our business, where our independent companies can adapt and accelerate based on their specific conditions. This flexibility allows us to develop our business at the group level with profitability and earnings growth.
Another important aspect of our business culture is the drive for continuous improvement. Throughout the year, we have seen examples of how our companies find ways to collaborate. In the fourth quarter, I would particularly like to highlight the collaboration between Momentum Industrial and Mekano, where Mekano took over two of Momentum Industrial's workshops in Gothenburg and
Trollhättan. At the same time, Momentum Industrial started the relocation of its central warehouse, which is progressing according to plan without any impact on deliveries.
During the year, we increased EBITA by 22 per cent, exceeding our financial target of at least 15 per cent annual growth. Our profitability, measured as EBITA in relation to utilised working capital (WC), reached 59 per cent, well above our target of at least 45 per cent. This enabled us to generate strong operating cash flow of SEK 323 million. The cash flow not only financed our acquisitions, investments, and a dividend to shareholders of SEK 54 million – we also successfully reduced our operational net loan liability by SEK 74 million.
For 2024, a dividend of 1.30 SEK per share (1.10) is proposed, corresponding to a payout ratio of 36 per cent – also exceeding our target of at least 30 per cent.
Continued focus on growth and value creation
After a 2024 marked by challenging market conditions, we look forward to 2025 with great confidence. We will continue to invest in our existing businesses and execute value-creating acquisitions to strengthen our market position and create long-term value for our shareholders.
Since our listing in March 2022, Momentum Group has almost doubled its revenue and welcomed 23 companies into our group. With a solid balance sheet, strong cash flow, available cash and cash equivalents of approximately SEK 860 million and good acquisition opportunities, we will continue our successful growth journey.
Finally, I would like to extend my gratitude to all employees, customers, and partners for the past year. I look forward to another exciting year, where we continue to work together to contribute to a more profitable and sustainable industry in the Nordics.
Stockholm, February 2025
Ulf Lilius President & CEO
Content
Summary President's statement Group financial development Industry business area Infrastructure business area Financial position Business combinations Other Consolidated financial statements Parent Company financial statements Notes Performance measures About Momentum Group
Sales performance
Comments on the market
The business climate in the Group's main markets in the Nordic region was generally stable in the fourth quarter, though with variations across segments and geographies. Demand declined in the aftermarket operations for the automotive segment in Sweden, while segments such as metals and mining as well as electricity and heat production had a positive development. Project sales remained at a generally low level. The industrial market in Finland remained cautious, while the Danish market was positively impacted by segments such as pharmaceuticals and green technology.
Purchasing prices and costs increased at a moderate rate, and the companies in the Group displayed overall good delivery capacity during the quarter.
The operating environment remains challenging, characterised by an uncertain global security situation and subdued industrial activity, which probably means that the Group's customers will continue to be restrained in their demand.
The Group's companies are continually adopting measures to the prevailing market situation. The Group's decentralised structure, with decisions made close to customers and suppliers, has proven to be a major strength in these efforts.
The current situation has not led to any changes in material bases of judgement compared with those applied in the annual report for 2023.
Performance in the fourth quarter of 2024
The Group posted an overall positive sales development during the quarter. The exception was the automotive segment, where demand declined during the quarter, which particularly affected the Power Transmission operations and parts of Technical Solutions.
During the fourth quarter, revenue increased 12 per cent compared with the year-earlier period and amounted to SEK 745 million (667). Growth in comparable units was 1 per cent. The quarter included one less trading day than the corresponding quarter in the preceding year.
Content
Summary
- Group financial development
- Parent Company financial statements
- Notes
- Performance measures
- About Momentum Group
Growth in comparable units compared with Q4 2023
+1%
Sales performance
| Q4 | Jan-Dec | |
|---|---|---|
| % | 2024 | 2024 |
| Comparable units in local currency | 0.9% | 2.5% |
| Currency effects | 0.1% | 0.0% |
| Number of trading days | -1.3% | 0.0% |
| Acquisitions | 12.0% | 22.5% |
| Total change | 11.7% | 25.0% |
Earnings performance
Fourth quarter 2024
Operating profit decreased by 13% to SEK 53 million (61), corresponding to an operating margin of 7.1% (9.1). Operating profit was charged with costs affecting comparability of SEK –5 million (-), relating to the relocation of Momentum Industrial's central warehouse, and amortisation of intangible non-current assets arising from acquisitions of SEK –12 million (–9) and depreciation of other intangible non-current assets, right-of-use assets and tangible non-current assets of SEK –22 million (–21). No exchange-rate translation effects were reported during the quarter (0).
EBITA amounted to SEK 70 million (70), corresponding to an EBITA margin of 9.4 per cent (10.5). Acquisitions made a positive contribution to the quarter's earnings.
Profit after financial items totalled SEK 45 million (58). Earnings were impacted by an increase in financial expenses due to of currency translations and changes in value of, among other things, acquisition-related liabilities. Profit after tax totalled SEK 34 million (44), corresponding to earnings per share of SEK 0.65 (0.85) for the quarter.
Full-year 2024
Operating profit rose by 15 per cent to SEK 273 million (237), corresponding to an operating margin of 9.5 per cent (10.3).
Operating profit was charged with costs affecting comparability of SEK –5 million (-) and amortisation of intangible non-current assets arising from acquisitions of SEK –44 million (–28) and depreciation of other intangible non-current assets, right-of-use assets and tangible non-current assets of SEK –93 million (–72). No exchange-rate translation effects were reported during the quarter (0). Acquisition-related expenses impacted earnings by SEK –4 million (–6).
EBITA increased by 22 per cent to SEK 322 million (265), corresponding to an EBITA margin of 11.2 per cent (11.5).
Profit after financial items totalled SEK 240 million (222). Profit after tax totalled SEK 186 million (173), corresponding to earnings per share of SEK 3.60 (3.45) for the period.
| Revenue, SEK million | |
|---|---|
Content
- Group financial development
- Business combinations
- Other
- Consolidated financial statements
- Parent Company financial statements
- Notes
- Performance measures
- About Momentum Group
| Q4 | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | Δ | 2024 | 2023 | Δ |
| Revenue | 745 | 667 | 12% | 2,873 | 2,298 | 25% |
| of which: Industry | 439 | 425 | 3% | 1,728 | 1,610 | 7% |
| of which: Infrastructure | 312 | 247 | 26% | 1,163 | 704 | 65% |
| of which: Group-wide and eliminations | -6 | -5 | -18 | -16 | ||
| Operating profit | 53 | 61 | -13% | 273 | 237 | 15% |
| EBITA | 70 | 70 | - | 322 | 265 | 22% |
| of which: Industry | 54 | 57 | -5% | 232 | 221 | 5% |
| of which: Infrastructure | 26 | 22 | 18% | 122 | 71 | 72% |
| of which: Group-wide and eliminations | -10 | -9 | -32 | -27 | ||
| Operating margin | 7.1% | 9.1% | 9.5% | 10.3% | ||
| EBITA margin | 9.4% | 10.5% | 11.2% | 11.5% |
EBITA and operating profit, SEK million
Industry business area
Offers components and related services primarily to aftermarket customers and OEMs in the industrial sector in the Nordic region. The companies are mainly resellers, but with certain proprietary products and system construction, with a significant focus on industrial improvements. The business area consists of the Power Transmission and Specialist business units.
Operations
Sales and earnings in Power Transmission, which consists of the company Momentum Industrial, declined during the quarter. During the quarter, lower demand was noted from customers in the automotive segment. On the other hand, demand in the metal and mining industries developed positively and remained stable in paper and pulp. During the quarter, a provision was made for expected customer losses related to Northvolt for the remaining receivable of SEK 1 million. The relocation of the central warehouse is progressing according to plan and is expected to take place in the first quarter of 2025. During the fourth quarter, relocation costs of SEK 5 million were taken, which are reported as items affecting comparability.
Specialist posted increased sales with stable profit levels in comparable units. In addition, acquired businesses contributed sales of SEK 15 million with a positive contribution to earnings. The Swedish operations noted generally stable demand. The situation remained cautious in Finland, while demand in Denmark was stable.
Financial performance in the fourth quarter of 2024
Revenue rose by 3 per cent to SEK 439 million (425) compared with the same quarter last year. Revenue for comparable units, measured in local currency and adjusted for the number of trading days, increased by 1 per cent compared to the previous year.
EBITA decreased by 5 per cent to SEK 54 million (57), corresponding to an EBITA margin of 12.3 per cent (13.4). The business area's profitability measured as return on working capital (EBITA/WC) amounted to 68 per cent (69).
Revenue Q4 2024, SEK million
Revenue R12
EBITA, SEK million
Content
Consolidated financial statements
Parent Company financial statements
| Q4 | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | Δ | 2024 | 2023 | Δ |
| Revenue | 439 | 425 | 3% | 1,728 | 1,610 | 7% |
| EBITA | 54 | 57 | -5% | 232 | 221 | 5% |
| EBITA margin | 12.3% | 13.4% | 13.4% | 13.7% | ||
| Return on working capital (EBITA/WC) | 68% | 69% |
Infrastructure business area
Offers products, services and solutions to industrial infrastructure customers that are critical for a functioning society. The companies are resellers and service companies, and often deliver solutions focused on secure operation, longer service life, increased efficiency and precise measurability. The business area comprises the Flow Technology and Technical Solutions business units.
Operations
The companies in Flow Technology generally performed well during the quarter, with favourable sales growth and margin development for comparable units. Overall, demand was good in Sweden and continued to strengthen in Denmark during the quarter, driven by the pharmaceutical sector and investments in green technology. In Finland, there was a slight increase in activity from low levels. Acquired businesses contributed revenue of SEK 23 million with a positive contribution to earnings in the quarter.
In Technical Solutions, reduced sales and lower earnings for comparable units were noted during the quarter. The capacity utilisation in the workshops was negatively impacted by lower activity among customers mainly in the automotive sector, and towards the end of the quarter also by holiday leave. Demand in the measurement technology and control operations remained positive during the quarter and the companies are experiencing a good business climate with numerous customer dialogues regarding larger systems. Acquired businesses contributed SEK 43 million to revenue during the quarter with healthy margins.
Financial performance in the fourth quarter of 2024
Revenue rose by 26 per cent to SEK 312 million (247) compared with the same quarter last year. Revenue for comparable units, measured in local currency and adjusted for the number of trading days, increased by 1 per cent. EBITA increased by 18 per cent to SEK 26 million (22), corresponding to an EBITA margin of 8.3 per cent (8.9). The business area's profitability, measured as the return on working capital (EBITA/WC), amounted to 60 per cent (55).
Revenue Q4 2024, SEK million
Content
Summary
Consolidated financial statements
Parent Company financial statements
| Q4 | Jan-Dec | ||||
|---|---|---|---|---|---|
| 2024 | 2023 | Δ | 2024 | 2023 | Δ |
| 312 | 247 | 26% | 1,163 | 704 | 65% |
| 26 | 22 | 18% | 122 | 71 | 72% |
| 8.3% | 8.9% | 10.5% | 10.1% | ||
| 60% | 55% | ||||
Profitability, cash flow and financial position
Profitability
The Group's profitability, measured as the return on working capital (EBITA/WC), amounted to 59 per cent (59) for the most recent 12-month period. The return on equity for the same period was 27 per cent (31).
Cash flow for full-year 2024
Cash flow from operating activities before changes in working capital for the reporting period was SEK 311 million (280). Cash flow was impacted by paid tax of SEK –73 million (–40). In the reporting period, inventories decreased by SEK 8 million. Operating receivables increased by SEK 4 million and operating liabilities increased by SEK 8 million. Accordingly, cash flow from operating activities for the reporting period amounted to SEK 323 million (260).
Cash flow from investing activities for the reporting period amounted to SEK –116 million (–436). Cash flow includes business combinations of SEK –93 million (–414), settlements of deferred payments regarding acquisitions
of SEK –12 million (–10) and net investments in noncurrent assets of SEK –11 million (–12).
Cash flow from financing activities for the reporting period, which amounted to SEK –227 million (206), was mainly attributable to the net change in interest-bearing liabilities of SEK –174 million (239) and the dividend paid of SEK –58 million (–50), of which SEK –4 million (–1) pertained to the dividend to non-controlling interests in subsidiaries. Cash flow for the reporting period was also impacted in an amount of SEK 5 million (17) by sales of own shares in connection with acquisitions.
Financial position
The Group's financial net loan liability at the end of the reporting period was SEK 459 million, compared with SEK 514 million at the beginning of the year. At the end of the period, the Group's operational net loan liability amounted to SEK 252 million, compared with SEK 326 million at the beginning of the financial year. The difference is largely attributable to cash flow from operating activities, acquisitions and dividends paid during the period.
Cash and cash equivalents, including unutilised granted credit facilities, totalled SEK 859 million. Granted credit facilities comprise the company's revolving facility of SEK 800 million with a remaining maturity until 31 December 2026 and a committed credit facility totalling SEK 300 million with a maturity of one year (extended in April 2025). Of the company's revolving facility and committed credit facility, SEK 594 million and SEK 238 million, respectively, were unutilised at the end of the reporting period. At the end of the reporting period, the Group had met all financial obligations to lenders.
The equity/assets ratio at the end of the reporting period was 36 per cent (33). Equity per share totalled SEK 14.70 at the end of the reporting period, compared with SEK 12.50 at the beginning of the year.
The balance-sheet total at the end of the reporting period was SEK 1,999 million, compared with SEK 1,862 million at the beginning of the year. In addition to changes in working capital, the change during the year was partly attributable to acquisitions, and acquired assets and liabilities are presented in Note 4.
Content
- President's statement
- Group financial development
- Industry business area
- Infrastructure business area
- Financial position Business combinations Other Consolidated financial statements
- Parent Company financial statements
- Notes
- Performance measures
- About Momentum Group
Equity/assets ratio
36%
Available cash and cash equivalents (SEK million)
EBITA/WC (R12 per quarter)
Business combinations
During 2024 Momentum Group has acquired eight companies, with combined annual revenue of approximately SEK 260 million. These acquisitions have further strengthened Momentum Group's position as a specialist company for customers in industry and industrial infrastructure in the Nordic region. The acquisitions contributed positively to Momentum Group's earnings per share during the period.
PW Kullagerteknik
In February, the subsidiary Agera acquired PW Kullagerteknik AB, a specialist in ball and rolling bearings.
KmK Instrument
In April, KmK Instrument AB, a specialist in measurement technology, non-destructive testing and material testing for Swedish industry, was acquired.
Hydjan
In May, Hydjan Oy, a specialist in hydraulics and pneumatics in Finland, was acquired.
WH-Service
In May, WH-Service AB, a leading comprehensive supplier of rotating equipment primarily for the energy production sector in northern Sweden, was acquired.
Sikama
In May, Sikama AB, a specialist in gas and fluid handling for Swedish industry, was acquired.
ZRS Testing Systems
In May, ZRS Testing Systems AB, a leading specialist in material testing and calibration for industrial customers in Sweden and Norway, was acquired.
| Acquisitions during 2024 | Closing | Share | Revenue¹ | Employees¹ Business Area | |
|---|---|---|---|---|---|
| PW Kullagerteknik AB, SE | 13 February 2024 | 100% | 12 MSEK | 3 | Industry |
| KmK instrument AB, SE² | 4 April 2024 | 70% | 70 MSEK | 16 | Infrastructure |
| Hydjan Oy, FI | 2 May 2024 | 100% | 1.2 MEUR | 6 | Industry |
| WH-Service AB, SE² | 14 May 2024 | 70% | 35 MSEK | 11 | Infrastructure |
| Sikama AB, SE² | 15 May 2024 | 60% | 55 MSEK | 20 | Infrastructure |
| ZRS Testing Systems AB, SE | 29 May 2024 | 100% | 32 MSEK | 8 | Infrastructure |
| Minrox AB, SE | 10 June 2024 | 100% | 34 MSEK | 2 | Infrastructure |
| Indoma AB, SE | 2 December 2024 | 100% | 10 MSEK | 3 | Industry |
| After the reporting period | |||||
| Hörlings Ventilteknik AB, SE | 100% | 20 MSEK | 10 | Infrastructure | |
| Heinolan Hydrauliikkapalvelu Oy, FI | 14 January 2025 | 100% | 0.6 MEUR | 5 | Industry |
Minrox
In June, the subsidiary BPS acquired Minrox AB, a specialist in flow technology for challenging environments and extremely abrasive processes for industrial customers in Sweden. Part of the purchase price was paid through transfer of own B shares.
Indoma
In December, the subsidiary Momentum Industrial acquired Indoma AB, which specialises in products for installation and maintenance for industry.
HVT
In December, the subsidiary Askalon's acquisition of Hörlings Ventilteknik AB, a specialist in valve service primarily to industrial customers in northern Sweden, was announced. Closing is expected to take place in Q1 2025.
Heinola Hydraulic Service
In January 2025, the subsidiary Hydjan acquired Heinolan Hydrauliikkapalvelu Oy, a specialist in hydraulic services and components for industry.
For acquisition analyses and other disclosures about the acquisitions closed during the reporting period, refer to Note 4. Closing dates and acquired holdings are presented in the table.
1 Refers to information for the full year on the date of acquisition. 2 Momentum Group initially acquired 60–80 per cent of the shares in each company. For the remaining 20–40 per cent, the sellers have a put option and Momentum Group has a call option. The price of the options is dependent on certain results being achieved in the companies.
Content
- President's statement
- Group financial development
- Industry business area
- Infrastructure business area
- Financial position
- Business combinations
- Other
- Parent Company financial statements
- Notes
- Performance measures
- About Momentum Group
Other
Parent Company full -year 2024
The Parent Company's revenue for the reporting period amounted to SEK 22 million (17) and the loss after finan cial items totalled SEK –24 million ( –28). The loss after tax for the reporting period amounted to SEK 39 million (54).
Employees
At the end of the reporting period, the number of emplo yees in the Group amounted to 809 , compared with 749 at the beginning of the year.
The share
Momentum Group's Class B share (ticker MMGR B) has been listed on Nasdaq Stockholm since 31 March 2022. The share price as of 31 December 2024 was SEK 177.80 SEK (130.50).
On 7 May 202 4, the Board decided, with the authorisation of the Annual General Meeting, to establish a repurchase programme to adapt the capital structure and to enable future acquisitions of businesses and operations to be paid for using treasury shares. The decision applies to repurchases of a maximum of 10 per cent of the number of Class B shares outstanding until the 202 5 Annual General Meeting.
During the second quarter, Minrox AB was acquired, which was partly paid for through the transfer of 29,260 own Class B shares to the sellers at a price per share of SEK 170.87. The price corresponds to the volume weighted average price of the company's Class B share on Nasdaq Stockholm during the ten trading days immediately preceding the closing date.
As of 3 1 December 2024, the holding of Class B treasury shares totalled 1,053,766 shares, corresponding to approximately 2 per cent of the total number of shares. At the end of the period, the share capital amounted to SEK 25.2 million. The distribution by class of share was as follows:
Class of share
| Total number of shares after repurchasing | 49,427,123 |
|---|---|
| Less: Repurchased Class B shares | – 1 ,053 ,766 |
| Total number of shares before repurchasing | 50,480,889 |
| Class B shares (1 vote/share) | 49,916,816 |
| Class A shares (10 votes/share) | 564,073 |
Long -term incentive program
The Annual General Meeting in May 2024 resolved to implement a long -term incentive program ("LTIP 2024") aimed at senior executives. The program, which is based on own investment, entails that a maximum of 99,750 Class B shares may be issued, which corresponds to approximately 0.2 per cent of all shares and votes in Momentum Group, before any recalculations. Allotment of performance shares is based on a number of different performance criteria, including the development of the company's earnings per share. Read more at momentum.group
AGM 2025
Momentum Group's Annual General Meeting will be held on 7 May 2025 at 4:00 p.m. in Stockholm. All AGM documents will be available at the company's head office and on momentum.group no later than three weeks prior to the AGM. The Annual Report for 2024 will be published during week 14 2025 .
Content
Summary President's statement Group financial development Industry business area Infrastructure business area Financial position Business combinations Other Consolidated financial statements Parent Company financial statements Notes Performance measures About Momentum Group
Shareholders who wish to submit proposals to the Election Committee or wish to have a matter addressed at the AGM shall do so in writing by e-mail to: [email protected] or by post to:
Momentum Group AB Östermalmsgastan 87 E SE-114 59 Stockholm
To ensure that any proposals received can be addressed in a constructive manner, all proposals must be received by the Election Committee or Board of Directors at least seven weeks prior to the Meeting.
Proposed dividend
The Board of Directors has proposed a dividend of SEK 1.30 per share (1.10), totalling approximately SEK 64.3 million (54), corresponding to a pay-out ratio of 36 per cent (32) in relation to profit for the period. Momentum Group's dividend policy states that the target is for the dividend to exceed 30 per cent of the Group's average profit over a business cycle.
Transactions with related parties
No transactions having a material impact on the Group's position or earnings occurred between Momentum Group and its related parties during the reporting period. The related-party transactions in place pertain primarily to lease expenses in acquired companies. These leases have been entered into on market terms. The remuneration of senior executives follows the guidelines established by the General Meeting.
Risks and uncertainties
Momentum Group's earnings, financial position and strategic position are impacted by a number of factors that are within the control of Momentum Group as well as a number of external factors. The most important external risk factors for Momentum Group are the economic and market situation for the industrial sector. Other risks include the competitive situation in the Group's markets and the significance of efficient logistics with high accessibility, in which the accessibility of the Group's logistics centres are important for certain flows of goods, as well as a dependence on identifying and developing relationships with qualified suppliers. The Group's opportunities and risks also include the completion of acquisitions and related capital requirements and the intangible surplus value that this can result in. Cyberrelated risks are also considered important.
The future trend in the market and in demand may be impacted by the challenging security situation. Delivery times and the availability of components as well as rising prices, interest rates and inflation could also impact market conditions. The Parent Company is impacted indirectly by the above risks and uncertainties through its function in the Group.
Events after the end of the period
In December, the acquisition of HVT, a specialist in valve service primarily to industrial customers in northern Sweden, was announced, with expected closing in Q1 2025.
In January, Heinolan Hydrauliikkapalvelu Oy, a specialist in hydraulic services and components for industry, was acquired.
Stockholm, 14 February 2025
Ulf Lilius
President & CEO
This report has not been reviewed by the Company's auditors.
Dates for forthcoming financial information
29 April 2025 Interim report for the first quarter 2025
7 May 2025 Annual General Meeting 2025
18 July 2025 Interim report for the second quarter 2025
24 October 2025 Interim report for the third quarter 2025
18 February 2026 Year-end report 2025
Contact information
Ulf Lilius, President & CEO [email protected] Tel: +46 70 358 29 31
Niklas Enmark, CFO [email protected] Tel: +46 70 393 66 73
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Summary President's statement Group financial development Industry business area Infrastructure business area Financial position Business combinations Other Consolidated financial statements Parent Company financial statements Notes Performance measures About Momentum Group
Content
Group
| Q4 | Jan-Dec | |||
|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 |
| Revenue | 745 | 667 | 2,873 | 2,298 |
| Other operating income | 2 | 0 | 7 | 4 |
| Total operating income | 747 | 667 | 2,880 | 2,302 |
| Cost of goods sold | -397 | -347 | -1,510 | -1,201 |
| Personnel costs | -195 | -165 | -710 | -555 |
| Depreciation, amortisation, impairment losses and reversal of impairment losses |
-34 | -30 | -137 | -100 |
| Other operating expenses | -68 | -64 | -250 | -209 |
| Total operating expenses | -694 | -606 | -2,607 | -2,065 |
| Operating profit | 53 | 61 | 273 | 237 |
| Financial income | 2 | 4 | 4 | 6 |
| Financial expenses | -10 | -7 | -37 | -21 |
| Net financial items | -8 | -3 | -33 | -15 |
| Profit after financial items | 45 | 58 | 240 | 222 |
| Taxes | -11 | -14 | -54 | -49 |
| Net profit | 34 | 44 | 186 | 173 |
| Of which attributable to: | ||||
| Parent Company shareholders | 32 | 43 | 178 | 170 |
| Non-controlling interests | 2 | 1 | 8 | 3 |
| Earnings per share (SEK) | ||||
| Before dilution | 0.65 | 0.85 | 3.60 | 3.45 |
| After dilution | 0.65 | 0.85 | 3.60 | 3.45 |
Condensed income statement Condensed statement of comprehensive income
| Q4 | Jan-Dec | |||
|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 |
| Net profit | 34 | 44 | 186 | 173 |
| Other comprehensive income for the period |
||||
| Components that will not be reclassified to net profit |
||||
| Total components that will not be reclassified to net profit |
- | - | - | - |
| Components that will be reclassified to net profit |
||||
| Translation differences | 2 | -6 | 4 | -6 |
| Fair value changes for the year in cash-flow hedges |
0 | -1 | 1 | -1 |
| Tax attributable to components that were or can be reclassified to net profit |
0 | 0 | 0 | 0 |
| Total components that will be reclassified to net profit |
2 | -7 | 5 | -7 |
| Other comprehensive income for the period |
2 | -7 | 5 | -7 |
| Comprehensive income for the period |
36 | 37 | 191 | 166 |
| Of which attributable to: | ||||
| Parent Company shareholders | 34 | 37 | 183 | 164 |
| Non-controlling interests | 2 | 0 | 8 | 2 |
Content
Summary
Group financial development
Infrastructure business area
Business combinations
Consolidated financial statements Parent Company financial statements
Performance measures
Condensed balance sheet
| MSEK | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Intangible non-current assets | 857 | 789 |
| Tangible non-current assets | 29 | 27 |
| Right-of-use assets | 214 | 194 |
| Financial non-current assets | 3 | 2 |
| Deferred tax assets | 3 | 2 |
| Total non-current assets | 1 106 | 1 014 |
| Current assets | ||
| Inventories | 379 | 366 |
| Accounts receivable | 432 | 388 |
| Other current receivables | 55 | 47 |
| Cash and cash equivalents | 27 | 47 |
| Total current assets | 893 | 848 |
| MSEK | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Equity attributable to Parent Company shareholders |
726 | 617 |
| Non-controlling interests | 59 | 39 |
| Total equity | 785 | 656 |
| Non-current liabilities | ||
| Non-current interest-bearing liabilities | 216 | 303 |
| Non-current lease liabilities | 125 | 116 |
| Other non-current liabilities and provisions | 211 | 209 |
| Total non-current liabilities | 552 | 628 |
| Current liabilities | ||
| Current interest-bearing liabilities | 63 | 70 |
| Current lease liabilities | 82 | 72 |
| Accounts payable | 246 | 228 |
| Other current liabilities | 271 | 208 |
| Total current liabilities | 662 | 578 |
| TOTAL LIABILITIES | 1 214 | 1 206 |
| TOTAL EQUITY AND LIABILITIES | 1 999 | 1 862 |
Summary President's statement Group financial development Industry business area Infrastructure business area Financial position Business combinations Other Consolidated financial statements Parent Company financial statements Notes Performance measures About Momentum Group
Content
| Equity attributable to Parent Company shareholders |
||||||
|---|---|---|---|---|---|---|
| MSEK | Share capital | Reserves | profit/loss for earnings incl. Retained the year |
Total | Non-controlling interests |
Total equity |
| Closing equity, 31 Dec 2022 | 25 | 4 | 469 | 498 | 27 | 525 |
| Net profit | 170 | 170 | 3 | 173 | ||
| Other comprehensive income | -6 | 0 | -6 | -1 | -7 | |
| Dividend | -49 | -49 | -49 | |||
| Sales of own shares¹ | 17 | 17 | 17 | |||
| Acquisitions of partly owned subsidiaries | 0 | 11 | 11 | |||
| Dividends paid in partly owned subsidiaries | 0 | -1 | -1 | |||
| Option liability, acquisitions² | -15 | -15 | -15 | |||
| Change in value of option liability³ | 2 | 2 | 2 | |||
| Closing equity, 31 Dec 2023 | 25 | -2 | 594 | 617 | 39 | 656 |
| Net profit | 178 | 178 | 8 | 186 | ||
| Other comprehensive income | 5 | 0 | 5 | - | 5 | |
| Dividend | -54 | -54 | -54 | |||
| Sales of own shares⁴ | 5 | 5 | 5 | |||
| Share-based payments | 1 | 1 | 1 | |||
| Acquisitions of partly owned subsidiaries | 0 | 16 | 16 | |||
| Dividends paid in partly owned subsidiaries | 0 | -4 | -4 | |||
| Option liability, acquisitions⁵ | -26 | -26 | -26 | |||
| Change in value of option liability³ | 0 | 0 | 0 | |||
| Closing equity, 31 Dec 2024 | 25 | 3 | 698 | 726 | 59 | 785 |
Statement of changes in equity Condensed cash-flow statement
| Q4 | Jan-Dec | |||
|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 |
| Operating activities Cash flow from operating activities |
71 | 86 | 311 | 280 |
| before changes in working capital | ||||
| Changes in working capital | 38 | 15 | 12 | -20 |
| Cash flow from operating activities |
109 | 101 | 323 | 260 |
| Investing activities Purchase of intangible and tangible non-current assets |
-2 | -3 | -10 | -12 |
| Acquisition of subsidiaries and other business units |
-3 | -85 | -105 | -424 |
| Purchase of financial non-current assets |
- | - | -1 | - |
| Cash flow from investing activities | -5 | -88 | -116 | -436 |
| Cash flow before financing | 104 | 13 | 207 | -176 |
| Financing activities | ||||
| Financing activities | -142 | 2 | -227 | 206 |
| Cash flow for the period | -38 | 15 | -20 | 30 |
| Cash and cash equivalents at the beginning of the period |
65 | 32 | 47 | 17 |
| Exchange-rate differences in cash and cash equivalents |
0 | 0 | 0 | 0 |
| Cash and cash equivalents at period-end |
27 | 47 | 27 | 47 |
1 Pertains to the transfer of 154,830 own Class B shares in conjunction with the acquisitions of Conclean AB and transfer of 21,768 own Class B shares in connection with the acquisition of Swerub AB.
- 2 Pertains to the value of put options in relation to non-controlling interests in the acquired subsidiaries Hydmos Industriteknik AB, Conclean AB and Cobalch ApS, which entail that the shareholders are entitled to sell their shares to Momentum Group. The price of the options is dependent on certain results being achieved in the companies and may be extended from 2026 (Hydmos) and 2027 (Conclean and Cobalch), respectively, by one year at a time.
- 3 Pertains to a change in the value of the put options in relation to non-controlling interests issued in conjunction with the acquisitions of partially owned subsidiaries.
- 4 Pertains to the transfer of 29,260 own Class B shares in conjunction with the acquisitions of Minrox AB.
- 5 Pertains to the value of put options in relation to non-controlling interests in the acquired subsidiaries KmK Instrument AB, WH-Service AB and Sikama AB, which entail that the shareholders are entitled to sell their shares to Momentum Group. The price of the options is dependent on certain results being achieved in the companies and may be extended from 2027 by one year at a time.
Content
Summary
- President's statement
- Group financial development
- Industry business area
- Infrastructure business area
- Financial position
- Business combinations
Other
Parent Company
Condensed income statement Condensed balance sheet
| Q4 | Jan-Dec | |||
|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 |
| Revenue | 6 | 5 | 22 | 17 |
| Other operating income | 0 | 1 | 4 | 3 |
| Total operating income | 6 | 6 | 26 | 20 |
| Operating expenses | -17 | -16 | -55 | -51 |
| Operating loss | -11 | -10 | -29 | -31 |
| Financial income and expenses |
1 | 2 | 5 | 3 |
| Loss after financial items | -10 | -8 | -24 | -28 |
| Appropriations | 75 | 97 | 75 | 97 |
| Profit before tax | 65 | 89 | 51 | 69 |
| Taxes | -14 | -19 | -12 | -15 |
| Net profit | 51 | 70 | 39 | 54 |
In December 2024, the Parent Company received a group contribution of SEK 75 million (120), that is recognised in the line item appropriations.
| MSEK | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| ASSETS | ||
| Intangible non-current assets | - | - |
| Tangible non-current assets | - | - |
| Financial non-current assets | 43 | 43 |
| Current receivables | 816 | 810 |
| Cash and cash equivalents | - | - |
| TOTAL ASSETS | 859 | 853 |
EQUITY, PROVISIONS AND LIABILITIES
| Restricted equity | 25 | 25 |
|---|---|---|
| Non-restricted equity | 109 | 118 |
| Total equity | 134 | 143 |
| Untaxed reserves | 69 | 69 |
| Provisions | - | - |
| Non-current liabilities | 206 | 298 |
| Current liabilities | 450 | 343 |
| TOTAL EQUITY, PROVISIONS AND LIABILITIES | 859 | 853 |
The Parent Company has its own internal bank function tasked with coordinating the Group's financial activities and ensuring that systems are available for efficient cash management. To support this, the Parent Company is the holder of the Group's cash pool and the Parent Company's current receivables and liabilities essentially comprise the subsidiaries' utilisation of credit facilities and the subsidiaries' surplus in the cash pool. At the end the year, current receivables includes Group contributions of SEK 75 million (120), which will be settled during the first quarter 2025.
Content
Summary
Group financial development
Other
Consolidated financial statements
Parent Company financial statements
Performance measures
Notes
1. Accounting policies
The Interim Report for the Group was prepared in accordance with IFRS and by applying IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Securities Market Act. In addition to the financial statements and associated notes, other disclosures in accordance with IAS 34.16A are also presented in other sections of the report. The Interim Report for the Parent Company was prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, which conforms to the provisions detailed in RFR 2 Accounting for Legal Entities. The same accounting policies and bases of judgement as in the annual report for 2023 have been applied. IASB has issued additions and amendments to standards that will take effect for the Group on or after 1 January 2024. These additions and amendments are deemed not to be material for the consolidated financial statement.
Parent Company accounting policies
The Parent Company applies the Swedish Annual Accounts Act (1995:1554) and recommendation RFR 2 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. RFR 2 stipulates that the Parent Company, in the annual accounts for the legal entity, is to apply all IFRS and statements adopted by the EU to the greatest extent possible within the framework of the Swedish Annual Accounts Act and with due consideration given to the relationship between accounting and taxation. The recommendation states which exceptions/additions should be made from/to IFRS. Combined, this results in differences between the Group's and the Parent Company's accounting policies in the primary areas of subsidiaries, leased assets, taxes, Group contributions and shareholder contributions.
2. Financial instruments
Momentum Group measures financial instruments at fair value or amortised cost in the balance sheet depending on their classification. In addition to items in financial net debt, financial instruments also include accounts receivable and accounts payable. The carrying amount of all of the Group's financial assets is deemed to be a reasonable approximation of their fair value. Assets and liabilities measured at fair value comprise hedging instruments for which fair value is based on observable market data and which are therefore included in level 2 according to IFRS 13 and liabilities for contingent purchase considerations that are measured using discounted cash flow and which are thus included in level 3.
| MSEK | 31 Dec 2024 | 31 Dec 2023 | |
|---|---|---|---|
| The Interim Report for the Group was prepared in accordance with IFRS and by | |||
| applying IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and the | |||
| Swedish Securities Market Act. In addition to the financial statements and associated | 0 | 0 | |
| notes, other disclosures in accordance with IAS 34.16A are also presented in other sections of the report. The Interim Report for the Parent Company was prepared in |
0 | 0 | |
| accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, which conforms to the provisions detailed in RFR 2 Accounting for Legal Entities. The same accounting policies and bases of judgement as in the annual report for 2023 have been applied. IASB has issued additions and amendments to standards that will take effect for the Group on or after 1 January 2024. These additions and amendments are deemed not to be material for the consolidated financial statement. The Parent Company applies the Swedish Annual Accounts Act (1995:1554) and |
|||
| Long-term receivables | 3 | 2 | |
| Accounts receivable | 432 | 388 | |
| Other current receivables | 1 | 1 | |
| Financial assets measured at fair value Financial investments Derivative hedging instruments Financial assets measured at amortised cost Cash and cash equivalents Total financial assets Financial liabilities measured at fair value Derivative hedging instruments Contingent purchase considerations Financial liabilities measured at amortised cost Option liability Deferred payment acquired business, non interest bearing Interest-bearing liabilities Accounts payable Total financial liabilities Contingent purchase considerations Opening balance Acquisitions during the period Change in value Change in value related to discounting factor Confirmed or settled during the period Closing balance |
27 | 47 | |
| 463 | 438 | ||
| recommendation RFR 2 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. RFR 2 stipulates that the Parent Company, in the annual accounts for the legal entity, is to apply all IFRS and statements adopted by the EU to the greatest extent possible within the framework of the Swedish Annual Accounts Act and with due consideration given to the relationship between accounting and taxation. The recommendation states which exceptions/additions should be made from/to IFRS. Combined, this results in differences between the Group's and the Parent Company's accounting policies in the primary areas of subsidiaries, leased assets, taxes, Group contributions and shareholder contributions. Momentum Group measures financial instruments at fair value or amortised cost in the balance sheet depending on their classification. In addition to items in financial net debt, financial instruments also include accounts receivable and accounts payable. The carrying amount of all of the Group's financial assets is deemed to be a reasonable approximation of their fair value. Assets and liabilities measured at fair value comprise hedging instruments for which fair value is based on observable |
|||
| 0 | 2 | ||
| 35 | 30 | ||
| 79 | 53 | ||
| 16 | 16 | ||
| 486 | 561 | ||
| 246 | 228 | ||
| 862 | 890 | ||
| Jan-Dec | Jan-Dec | ||
| 2024 | 2023 | ||
| 30 | 11 | ||
| market data and which are therefore included in level 2 according to IFRS 13 and liabilities for contingent purchase considerations that are measured using discounted |
8 | 23 | |
| 0 | 0 | ||
| 2 | 1 | ||
| -5 | -5 | ||
| The accounting policies for the Group and the Parent Company are | 35 | 30 | |
Content
| Summary |
|---|
| President's statement |
| Group financial development |
| Industry business area |
| Infrastructure business area |
| Financial position |
| Business combinations |
| Other |
| Consolidated financial statements |
| Parent Company financial statements |
| Notes |
| Performance measures |
| About Momentum Group |
Group total
3. Operating segments and information on income
Since 1 January 2024, the Group's operating segments have consisted of the Industry and Infrastructure business areas. The operating segments are consolidations of the operating organisation, as used by the Group management and Board of Directors to monitor operations. Group management, comprising the CEO and CFO, are the Group's chief operating decision makers. Industry consists of businesses that offer components and related
services primarily to aftermarket customers and OEMs in the industrial sector in the Nordic region. Infrastructure consists of businesses offering products, services and solutions to customers in industrial infrastructure that are critical to a functioning society. Group-wide includes the Group's management, finance and support functions. The support functions include internal communications, investor relations, M&A and legal affairs.
Financial items and taxes are not distributed by operating segment but recognised in their entirety in Group-wide. Intra-Group pricing between the operating segments occurs on market terms. The accounting policies are the same as those applied in the consolidated financial statements. Revenue presented for the geographic markets below is based on the domicile of the customers.
| Jan-Dec 2024 | Jan-Dec 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Infra | Elimin | Group | Infra | Elimin | Group | ||||||
| MSEK | Industry | structure Group-wide | ations | total | MSEK | Industry | structure Group-wide | ations | total | ||
| Revenue | Revenue | ||||||||||
| From external customers per country | From external customers per country | ||||||||||
| Sweden | 1,417 | 940 | - | - | 2,357 | Sweden | 1,357 | 603 | - | - | 1,960 |
| Norway | 54 | 22 | - | - | 76 | Norway | 49 | 8 | - | - | 57 |
| Denmark | 174 | 94 | - | - | 268 | Denmark | 155 | 43 | - | - | 198 |
| Finland | 38 | 76 | - | - | 114 | Finland | 7 | 34 | - | - | 41 |
| Other countries | 38 | 20 | - | - | 58 | Other countries | 37 | 5 | - | - | 42 |
| From other segments | 7 | 11 | 10 | -28 | - | From other segments | 5 | 11 | 13 | -29 | - |
| Total | 1,728 | 1,163 | 10 | -28 | 2,873 | Total | 1,610 | 704 | 13 | -29 | 2,298 |
| Revenue | Revenue | ||||||||||
| From external customers by class of revenue |
From external customers by class of revenue |
||||||||||
| Sale of goods | 1,589 | 881 | - | - | 2,470 | Sale of goods | 1,477 | 479 | - | - | 1,956 |
| Service assignments | 129 | 261 | - | - | 390 | Service assignments | 125 | 209 | - | - | 334 |
| Other income | 3 | 10 | - | - | 13 | Other income | 3 | 5 | - | - | 8 |
| From other segments | 7 | 11 | 10 | -28 | - | From other segments | 5 | 11 | 13 | -29 | - |
| Total | 1,728 | 1,163 | 10 | -28 | 2,873 | Total | 1,610 | 704 | 13 | -29 | 2,298 |
| EBITA | 232 | 122 | -32 | - | 322 | EBITA | 221 | 71 | -27 | - | 265 |
| Items affecting comparability | -5 | - | - | - | -5 | Items affecting comparability | - | - | - | - | - |
| Amortisation of intangible assets in connection with corporate acquisitions |
-15 | -29 | - | - | -44 | Amortisation of intangible assets in connection with corporate acquisitions |
-10 | -18 | - | - | -28 |
| Operating profit/loss | 212 | 93 | -32 | 0 | 273 | Operating profit/loss | 211 | 53 | -27 | 0 | 237 |
Content
- President's statement
- Group financial development
- Industry business area
- Infrastructure business area
- Financial position
- Business combinations
- Other
- Consolidated financial statements
- Parent Company financial statements
- Notes
- Performance measures
- About Momentum Group
4. Business combinations
Momentum Group conducted eight business combination with closing during the reporting period. The acquisitions are described on page 9.
Acquisition analysis – business combinations with closing during the reporting period
The total purchase consideration for the acquisitions was SEK 166 million, excluding acquisition costs. Acquisition costs totalling approximately SEK 3 million were recognised in the item other operating expenses. In accordance with the acquisition analysis presented below, SEK 68 million of the purchase consideration has been allocated to goodwill and SEK 40 million to customer relations. The acquisition analyses for acquisitions completed during the fourth quarter is considered preliminary, while the purchase price allocations for other acquisitions are final.
The allocation to customer relationships is based on the discounted value of future cash flows attributable to each asset class, where an assessment was conducted that included margin, tied-up capital and turnover rate of the customer base, among other things. Goodwill on the acquisition date refers to the amount by which the cost of the acquired net assets exceeds their fair value. Goodwill is motivated by the anticipated future sales performance and profitability as well as the fact that the subsidiaries' position in their current markets is expected to be strengthened.
The acquisition analysis that is considered preliminary are largely because the acquisition was closed only recently.
Impact on the Group's cash and cash equivalents
In addition to the acquisitions completed during the reporting period, cash flow from the acquisition of subsidiaries has also been affected by the settlement of a deferred payment of SEK 12 million.
| MSEK | recognised in the Group |
|---|---|
| Acquired assets: | |
| Intangible non-current assets | 40 |
| Right-of-use assets | 20 |
| Other non-current assets | 4 |
| Inventories | 19 |
| Other current assets incl. cash and cash equivalents | 109 |
| Total assets | 192 |
| Acquired provisions and liabilities: Interest-bearing liabilities |
- |
| Lease liabilities | 20 |
| Deferred tax liability | 13 |
| Current operating liabilities | 45 |
| Total provisions and liabilities | 78 |
| Net of identified assets and liabilities | 114 |
| Goodwill¹ | 68 |
| Non-controlling interests² | -16 |
| Purchase consideration | 166 |
| Less: Net cash in acquired business | -65 |
| Less : Contingent purchase consideration³ | -8 |
| Effect on the Group's cash and cash equivalents | 93 |
1 Of recognised goodwill of SEK 68 million, non is expected to be tax deductible.
2 Non-controlling interest is calculated as the proportional share of the identified net assets.
3 Contingent purchase considerations is recognised at a value corresponding to some 45 per cent in average of a maximum outcome. The outcome of the contingent purchase considerations will be determined continuously during 2025-2027 and is dependent on the earnings of the acquired subsidiary. The potential undiscounted amount to be paid amounts to approximately SEK 18 million.
| Content |
|---|
| Summary |
| President's statement |
| Group financial development |
| Industry business area |
| Infrastructure business area |
| Financial position |
| Business combinations |
| Other |
| Consolidated financial statements |
| Parent Company financial statements |
| Notes |
| Performance measures |
| About Momentum Group |
Performance measures
Momentum Group uses certain financial performance measures in its analysis of the operations and their performance that are not defined in accordance with IFRS. Momentum Group believes that these alternative performance measures provide valuable information for the company's Board of Directors, owners and investors, since they enable a more accurate assessment of current trends and the company's performance when combined with other performance measures calculated in accordance with IFRS.
| Q4 | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 | ||
| IFRS performance measures | ||||||
| Revenue | 745 | 667 | 2,873 | 2,298 | ||
| Profit for the period | 34 | 44 | 186 | 173 | ||
| IFRS performance measures per share (SEK) |
||||||
| Earnings per share before dilution | 0.65 | 0.85 | 3.60 | 3.45 | ||
| Earnings per share after dilution | 0.65 | 0.85 | 3.60 | 3.45 | ||
| Other performance measures per share |
||||||
| Equity per share before dilution, at the end of the period |
14.70 | 12.50 | ||||
| Equity per share after dilution, at the end of the period |
14.70 | 12.50 | ||||
| Number of shares (thousands of shares) |
||||||
| Number of shares before dilution | 49,427 | 49,398 | 49,427 | 49,398 | ||
| Weighted number of shares before dilution |
49,427 | 49,383 | 49,412 | 49,300 | ||
| Weighted number of shares after dilution |
49,427 | 49,383 | 49,412 | 49,300 | ||
| Other performance measure | ||||||
| No. of employees at the end of the period |
809 | 749 | ||||
| Share price, SEK | 177.80 | 130.50 |
Since not all listed companies calculate these financial performance measures in the same way, there is no guarantee that the information is comparable with other companies' performance measures of the same name. Hence, these financial performance measures must not be viewed as a replacement for those measures calculated in accordance with IFRS.
| Q4 | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 | ||
| ALTERNATIVE PERFORMANCE MEASURES Income statement-based performance measures |
||||||
| Operating profit | 53 | 61 | 273 | 237 | ||
| of which: Items affecting comparability |
-5 | - | -5 | - | ||
| of which: Amortisation of intangible non-current assets in connection with acquisitions |
-12 | -9 | -44 | -28 | ||
| EBITA | 70 | 70 | 322 | 265 | ||
| Profit after financial items | 45 | 58 | 240 | 222 | ||
| Operating margin | 7.1% | 9.1% | 9.5% | 10.3% | ||
| EBITA margin | 9.4% | 10.5% | 11.2% | 11.5% | ||
| Profit margin | 6.0% | 8.7% | 8.4% | 9.7% | ||
| Profitability performance measures Return on working capital (EBITA/WC) 59% 59% |
||||||
| Return on capital employed 21% 25% |
||||||
| Return on equity 27% |
||||||
| 31% Performance measures on financial position |
||||||
| Financial net loan liability 459 514 |
||||||
| Operational net loan liability/receivable +/- 252 326 |
||||||
| Equity attributable to Parent Company shareholders 726 617 |
||||||
| Equity/assets ratio 36% 33% |
Content
Consolidated financial statements
Parent Company financial statements
Operating profit
Profit before financial items and tax. Used to present the Group's earnings before interest and tax.
Items affecting comparability
Items affecting comparability include revenue and expenses that do not arise regularly in the operating activities. Items affecting comparability for the period pertain to costs for preparations ahead of the separate listing and mainly pertain to advisory costs, review costs and separation costs. The separate disclosure of items affecting comparability clarifies the development of operational activities.
EBITA
Operating profit adjusted for items affecting comparability and before any impairment of goodwill and amortisation and impairment of other intangible assets arising in connection with acquisitions and equivalent transactions. Used to present the Group's earnings generated from operating activities.
Operating margin, %
Operating profit relative to revenue. Used to measure the Group's earnings generated before interest and tax and provides an understanding of the earnings performance over time. Specifies the percentage of revenue remaining to cover interest payments and tax and to provide profit after the Group's expenses have been paid.
EBITA margin, %
.
EBITA as a percentage of revenue. Used to measure the Group's earnings generated before interest and tax and provides an understanding of the earnings performance over time. The EBITA margin based on revenue from both external and internal customers is presented per business area (operating segment).
Profit margin, %
Profit after financial items as a percentage of revenue. Used to assess the Group's earnings generated before tax and presents the share of revenue that the Group may retain in earnings before tax.
Return on working capital (EBITA/WC), %
EBITA for the most recent 12-month period divided by average working capital measured as total working capital (accounts receivable and inventories less accounts payable) at the end of each month for the most recent 12-month period and the opening balance at the start of the period divided by 13. The Group's internal profitability target, which encourages high EBITA and low tied-up capital. Used to analyse profitability in the Group and its various operations.
Return on capital employed, %
Operating profit plus financial income for the most recent 12 month period divided by average capital employed measured as the balance-sheet total less non-interest-bearing liabilities and provisions at the end of the most recent four quarters and the opening balance at the start of the period divided by five. Presented to show the Group's return on its externally financed capital and equity, meaning independent of its financing.
Return on equity, %
Net profit for the most recent 12-month period divided by average equity measured as total equity attributable to Parent Company shareholders at the end of the most recent four quarters and the opening balance at the start of the period divided by five. Used to measure the return generated on the capital invested by the Parent Company's shareholders.
Financial net loan liability
Financial net loan liability measured as non-current interestbearing liabilities and current interest-bearing liabilities, less cash and cash equivalents at the end of the period. Used to monitor the debt trend and analyse the Group's total indebtedness including lease liabilities.
Operational net loan liability / Net loan receivable
Operational net loan liability measured as non-current interestbearing liabilities and current interest-bearing liabilities excluding lease liabilities less cash and cash equivalents at the end of the period. Used to monitor the debt trend and analyse the Group's total indebtedness excluding lease liabilities.
Equity/assets ratio, %
Equity attributable to Parent Company shareholders as a percentage of the balance-sheet total at the end of the period. Used to analyse the financial risk in the Group and show how much of the Group's assets are financed by equity.
Change in revenue for comparable units
Comparable units refer to sales in local currency from units that were part of the Group during the current period and the entire corresponding period in the preceding year. Trading days refer to the effect on sales in local currency depending on the difference in the number of trading days compared with the comparative period. Other units refer to the acquisition or divestment of units during the corresponding period. Used to analyse the underlying sales growth driven by changes in volume, the product and service offering, and the price for similar products and services across different periods. Refer to the reconciliation table on page 4.
Content
- Group financial development
- Industry business area
- Infrastructure business area
- Financial position
- Business combinations
- Other
- Consolidated financial statements
- Parent Company financial statements
- Notes
- Performance measures About Momentum Group
Derivation of alternative performance measures1
| Q4 | Jan-Dec | ||||
|---|---|---|---|---|---|
| EBITA | 2024 | 2023 | 2024 | 2023 | |
| Operating profit | 53 | 61 | 273 | 237 | |
| Items affecting comparability | 5 | - | 5 | - | |
| Amortisation of intangible non current assets in connection with corporate acquisitions |
12 | 9 | 44 | 28 | |
| EBITA | 70 | 70 | 322 | 265 | |
| Items affecting comparability | |||||
| Restructuring costs | -5 | - | -5 | - | |
| Total items affecting comparability |
-5 | - | -5 | - | |
| Operating margin | |||||
| Operating profit | 53 | 61 | 273 | 237 | |
| Revenue | 745 | 667 | 2,873 | 2,298 | |
| Operating margin | 7.1% | 9.1% | 9.5% | 10.3% | |
| EBITA margin | |||||
| EBITA | 70 | 70 | 322 | 265 | |
| Revenue | 745 | 667 | 2,873 | 2,298 | |
| EBITA margin | 9.4% | 10.5% | 11.2% | 11.5% | |
| Profit margin | |||||
| Profit after financial items | 45 | 58 | 240 | 222 | |
| Revenue | 745 | 667 | 2,873 | 2,298 | |
| Profit margin | 6.0% | 8.7% | 8.4% | 9.7% | |
| EBITA/WC | |||||
| Average inventories | 384 | 324 | |||
| Average accounts receivable | 416 | 335 | |||
| Total average operating assets | 800 | 659 | |||
| Average accounts payable | -253 | -212 | |||
| Average working capital (WC) | 547 | 447 | |||
| EBITA | 322 | 265 | |||
| EBITA/WC | 59% | 59% |
| Jan-Dec | ||||
|---|---|---|---|---|
| Return on capital employed | 2024 | 2023 | ||
| Average balance sheet total | 1 992 | 1 540 | ||
| Average non-interest-bearing non-current liabilities | -225 | -155 | ||
| Average non-interest-bearing current liabilities | -475 | -400 | ||
| Average capital employed | 1 292 | 985 | ||
| Operating profit | 273 | 237 | ||
| Financial income | 4 | 6 | ||
| Total operating profit + financial income | 277 | 243 | ||
| Return on capital employed | 21% | 25% | ||
| Return on equity | ||||
| Average equity attributable to parent company shareholders | 667 | 553 | ||
| Profit for the period attributable to the Parent Company shareholders |
178 | 170 | ||
| Return on equity | 27% | 31% | ||
| Financial net loan liability Non-current interest-bearing liabilities |
341 | 419 | ||
| Current interest-bearing liabilities | 145 | 142 | ||
| Current investments | - | - | ||
| Cash and cash equivalents | -27 | -47 | ||
| Financial net loan liability | 459 | 514 | ||
| Operational net loan liability/receivable +/- Financial net loan liability |
459 | 514 | ||
| Lease liability | -207 | -188 | ||
| Operational net loan liability/receivable +/- | 252 | 326 | ||
| Equity/assets ratio | ||||
| Balance-sheet total | 1 999 | 1 862 | ||
| Equity attributable to the Parent Company shareholders | 726 | 617 | ||
| Equity/assets ratio | 36% | 33% |
1 Pertains to balance-sheet items, and performance measures related to financial position pertain to the closing balance for each year.
| Content |
|---|
| Summary |
| President's statement |
| Group financial development |
| Industry business area |
| Infrastructure business area |
| Financial position |
| Business combinations |
| Other |
| Consolidated financial statements |
| Parent Company financial statements |
| Notes |
| Performance measures |
Historical financial information1
| R12 | |||||||
|---|---|---|---|---|---|---|---|
| MSEK | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2020 | 31 Mar 2020 | 31 Mar 2019 |
| Revenue | 2 873 | 2 298 | 1 739 | 1 491 | 1 163 | 1 254 | 1 196 |
| Operating profit | 273 | 237 | 185 | 155 | 130 | 130 | 111 |
| EBITA | 322 | 265 | 204 | 171 | 134 | 134 | 114 |
| Net profit | 186 | 173 | 140 | 117 | 99 | 99 | 84 |
| Intangible non-current assets | 857 | 789 | 383 | 284 | 175 | 177 | 165 |
| Right-of-use assets | 214 | 194 | 138 | 127 | 51 | 60 | - |
| Other non-current assets | 35 | 31 | 22 | 19 | 12 | 8 | 7 |
| Inventories | 379 | 366 | 285 | 213 | 176 | 193 | 191 |
| Current receivables | 487 | 435 | 328 | 271 | 175 | 227 | 220 |
| Cash and cash equivalents and current investments | 27 | 47 | 17 | 70 | 145 | 31 | 29 |
| Total assets | 1 999 | 1 862 | 1 173 | 984 | 734 | 696 | 612 |
| Equity attributable to Parent Company shareholders | 726 | 617 | 498 | 458 | 337 | 259 | 143 |
| Non-controlling interests | 59 | 39 | 27 | 17 | 6 | 5 | - |
| Interest-bearing liabilities and provisions | 486 | 561 | 198 | 132 | 147 | 193 | 141 |
| Non-interest-bearing liabilities and provisions | 728 | 645 | 450 | 377 | 244 | 239 | 328 |
| Total equity and liabilities | 1 999 | 1 862 | 1 173 | 984 | 734 | 696 | 612 |
| Operating margin | 9,5% | 10,3% | 10,6% | 10,4% | 11,2% | 10,4% | 9,3% |
| EBITA margin | 11,2% | 11,5% | 11,7% | 11,5% | 11,5% | 10,7% | 9,5% |
| Return on working capital (EBITA/WC) | 59% | 59% | 61% | 61% | 54% | 52% | 46% |
| Return on equity | 27% | 31% | 29% | 30% | 35% | 49% | 51% |
| Financial net loan liability | 459 | 514 | 181 | 62 | 2 | 162 | 112 |
| Operational net loan liability/receivable +/- | 252 | 326 | 48 | -61 | -45 | 107 | 112 |
| Equity/assets ratio | 36% | 33% | 42% | 47% | 46% | 37% | 23% |
| Earnings per share before and after dilution, SEK | 3,60 | 3,45 | 2,70 | 2,30 | 1,90 | 1,95 | 1,65 |
| Equity per share, SEK | 14,70 | 12,50 | 10,10 | 9,05 | 6,70 | 5,15 | 2,85 |
| Share price, SEK | 177,80 | 130,50 | 58,51 | - | - | - | - |
| No. of employees at the end of the period | 809 | 749 | 558 | 484 | 329 | 339 | 335 |
1 Pertains to balance-sheet items, and performance measures related to financial position pertain to the closing balance for each year.
growth is measured against the corresponding R12 period of the preceding year. 2 Number of employees as of 31 Dec 2024.
Developing and acquiring successful sustainable companies in the Nordic region
Momentum Group is a leading company offering sustainable products and services and related value-creating services to the industrial sector. Momentum Group is an active owner that focuses on developing and acquiring companies in the product and service categories where we possess knowledge, expertise and experience. Momentum Group traces its origins to Bergman & Beving, which has built a number of successful operations over a period of more than 100 years.
| Revenue SEK million1 | Mission | Business concept | Vision | Our focus areas | Business combinations |
|---|---|---|---|---|---|
| 2,873 EBITA growth1 22% Profitability EBITA/WC1 59% Employees2 809 Our financial targets EBITA growth: >15% Profitability EBITA/WC: >45% Dividend: >30% |
Together for a sustainable industry Our operations, together with their customers, partners and other stakeholders, must contribute to creating a sustainable industry in the Nordic region from a social, environmental and financial perspective. |
We will make the everyday lives of our customers easier, safer and more profitable – by offering sustainable products and services For the Group's customers, it is important to maintain good profitability in their opera tions. Our companies sell quality products and related services that create value for the customer throughout the life of the product or service. |
The customer's best sustainable choice Our various companies focus on understanding customer needs in order to offer the best solution for the customer, based on their situation and needs. |
We develop Business development through active ownership. We build culture Business development through decentralised responsibility and employee development. We acquire Growth through acquisitions of sustainable companies. |
Other Consolidated financial statements Parent Company financial statements Notes Performance measures About Momentum Group |
| 1 Refers to R12 until 31 Dec 2024. EBITA |
Momentum Group AB
Östermalmsgatan 87 E, SE-114 59 Stockholm, Org No: 559266-0699, Board of Directors' registered office: Stockholm Tel: +46 8 92 90 00, momentum.group