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Proact IT Group Earnings Release 2024
3095_10-k_2025-02-11_d18a0f60-e9ff-4ad9-ae7c-7e3de2164925.pdf
Earnings Release
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Better results than previously communicated and record in new cloud service agreements
October – December 2024 January – December 2024
- Revenues decreased by 6.7 per cent to SEK 1,268.5 million (1,360.0).
- Adjusted EBITA decreased by 12.0 per cent and amounted to SEK 80.2 million (91.1), corresponding to an adjusted EBITA margin of 6.3 per cent (6.7).
- Earnings before tax amounted to SEK 63.7 million (82.6).
- Earnings after tax amounted to SEK 50.3 million (65.5).
- Earnings per share amounted to SEK 1.87 (2.39).
- New contracts relating to cloud services worth SEK 224.3 million (197.0) were contracted, an increase by 13.9 per cent.
- Recurring revenues (revenues from cloud and support services) amounted to SEK 445.3 million (436.9), corresponding to an annualised rate of SEK 1,781.0 million (1,747.6) and an increase of 1.9 per cent.
- Jonas Hasselberg steps down as President and CEO of Proact IT Group, and the Board of Directors begins a search for his successor.
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Proact issues a profit warning as revenue for Q4 2024 are expected to decrease by 10-15% and adjusted EBITA by 20-30% compared to the previous year. The deviation is explained by a temporary decline in the systems business and a continued challenging market in Germany.
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Revenues increased by 0.3 per cent to SEK 4,864.2 million (4,847.3).
- Adjusted EBITA increased by 16.1 per cent and amounted to SEK 350.6 million (302.1), corresponding to an adjusted EBITA margin of 7.2 per cent (6.2).
- Earnings before tax amounted to SEK 278.0 million (218.3).
- Earnings after tax amounted to SEK 219.9 million (173.1).
- Earnings per share amounted to SEK 8.15 (6.29).
- New contracts relating to cloud services worth SEK 643.1 million (548.0) were contracted, an increase by 17.4 per cent.
- Recurring revenues (revenues from cloud and support services) amounted to SEK 1,755.5 million (1,692.5), an increase of 3.7 per cent.
- On July 12, the Board of Directors decided to launch a share buyback program during the third quarter 2024, in accordance with the decision taken by the Annual General Meeting in May.
- The Board of Directors proposes that the Annual General Meeting resolves on a dividend of SEK 2.40 (2.00) per share.
Financial summary
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|
| Amounts in SEK million | 2024 | 2023 | 2024 | 2023 |
| Total Revenues | 1,268.5 | 1,360.0 | 4,864.2 | 4,847.3 |
| Growth, % | -6.7 | -5.6 | 0.3 | 1.9 |
| of which currency rate effects, % | 0.5 | 1.8 | -0.1 | 3.8 |
| of which effects from acquisitions and divestments, % | - | -0.4 | -0.2 | 0.5 |
| Organic growth, %¹ | -7.2 | -6.9 | 0.6 | -2.3 |
| Adjusted EBITA² | 80.2 | 91.1 | 350.6 | 302.1 |
| Adjusted EBITA margin, % | 6.3 | 6.7 | 7.2 | 6.2 |
| Operating profit (EBIT) | 66.5 | 77.3 | 295.5 | 229.8 |
| Operating margin (EBIT), % | 5.2 | 5.7 | 6.1 | 4.7 |
| Earnings before tax | 63.7 | 82.6 | 278.0 | 218.3 |
| Net Margin, % | 5.0 | 6.1 | 5.7 | 4.5 |
| Earnings after tax | 50.3 | 65.5 | 219.9 | 173.1 |
| Profit Margin, % | 4.0 | 4.8 | 4.5 | 3.6 |
| Earnings per share (outstanding shares), SEK³ | 1.87 | 2.39 | 8.15 | 6.29 |
| Return on capital employed, %⁴ | - | - | 19.7 | 16.3 |
| Cash flow from operations | 207.1 | 240.5 | 524.1 | 532.0 |
1) Organic growth refers to growth excluding currency rate effects and acquired and divested companies.
2) EBITA before items affecting comparability. 3) Proact has long-term performance-based share programs that could result in dilution of maximum 2.36 per cent.
The company has bought back own shares which affects the key ratios above.
4) Calculated only for full year and rolling 12 months
About Proact
Proact is Europe's leading specialist in data and information management with a focus on cloud services and data centre solutions. We help our customers to store, connect, protect, secure and drive value through their data whilst increasing agility, productivity and efficiency.
We have completed thousands of successful projects around the world, have more than 4 000 customers and currently manage hundreds of petabytes of information in the cloud. We employ over 1 200 people in 12 countries in Europe and in North America.
Founded in 1994, our parent company, Proact IT Group AB (publ) was listed on Nasdaq Stockholm in 1999 (under the symbol PACT).
Comments from the CEO of Proact
In the fourth quarter of 2024, we saw a temporary decline in revenue, particularly in the systems business, which led to a profit warning towards the end of the quarter. Happily, the quarter ended with a better contribution from the systems business and lower costs than expected, resulting in a smaller profit decline. What is even more pleasing is that, despite the lower fourth-quarter result, we delivered a record full-year performance, with EBITA up 16 per cent to SEK 351 million (302).
Our cash flow is also strong, and the gross margin continues to develop favorably. This is in line with our expectations and is a result of our strategic focus on efficiency improvements and a shift towards the service business. We also set a new record for the value of new cloud service agreements in the quarter, further strengthening our market position.
Record in new cloud services agreements
Revenue for the quarter amounted to SEK 1,269 million (1,360), a decrease of 6.7 per cent, of which 7.2 per cent was organic. As previously reported, the decline is mainly attributable to the systems business, with the NOBA and Central Business Areas posting the largest declines. The services business grew by 0.8 per cent compared to last year, with good sequential growth from the third quarter of 2024, mainly due to the start-up of new customer projects.
Recurring revenues from contracted cloud and support services increased by 1.9 per cent to an annual rate of SEK 1,781 million (1,748), with good growth mainly in Business Unit NOBA. New agreements for cloud services were signed in the amount of SEK 224 million (197), which is a new quarterly record. The increase was mainly driven by Business Units UK and NOBA. In addition, a large number of existing cloud agreements were renewed during the quarter, which is good evidence of our customers satisfaction.
Improved gross margin
The gross margin increased to 24.2 per cent (22.2) during the quarter, with both the systems and services businesses strengthening. Adjusted EBITA for the quarter decreased by 12.0 per cent to SEK 80 million (91), giving a margin of 6.3 per cent (6.7). Earnings in the quarter were affected both by the temporary decline in the systems business and somewhat by increased sales costs and investments in the service portfolio. We continue to have a strong operating cash flow, which totaled SEK 207 million (241) in the fourth quarter. Our financial position therefore remains strong.
Increased customer satisfaction and further efficiency improvements
In the autumn, we conducted our annual customer survey, which again produced good results. The Net Promoter Score (NPS) rose to 62 (59). An NPS score of over 50 is considered very strong, and our result was well above the industry average of around 40. It is pleasing to see that our continued focus on customer experience and quality is paying off.
Our focus on hybrid cloud solutions has had a positive impact on our ability to win new customers in the quarter. For example, we have a new customer in London-based law firm Teacher Stern, to whom we have sold a hybrid cloud solution with associated security services. Another new customer is Dole Nordic in Sweden, which has also invested in a hybrid cloud solution and to which we have also sold our modern application development platform.
An important milestone in our work to develop and streamline the business was reached towards the end of the year, when we completed the integration of ahd in Germany, which we acquired at the end of 2021. This means that organisation, service portfolio, delivery processes and support systems are improved and shared, which in turn should lead to even better quality and efficiency.
Good outlook for the future
Demand in our markets is good, although macroeconomic improvements and expected demand growth rates are still considered to lie ahead of us. Our customers' needs to digitise their businesses, strengthen cybersecurity and increase the use of artificial intelligence are important underlying drivers. Although the comparative figures for the quarter are tough, we look forward to 2025 with confidence.
Our strategy is clear and Proact is well positioned to support our customers in an increasingly complex digital world. We see good opportunities to continue growing organically, both with our existing clients and by attracting new ones. With a solid financial position and stable cash flow, we also see good opportunities for complementary acquisitions in existing markets in Europe, when the opportunity arises.
Solna, 11 February 2025
Jonas Hasselberg, CEO and President
The Group's development October- December
Revenues and result
For the fourth quarter, total revenues amounted to SEK 1,268.5 million (1,360.0), a decrease by 6.7 per cent. Currency rate effects affected positively by 0.5 per cent and organically, revenues decreased by 7.2 per cent.
System revenues decreased by 12.0 per cent to SEK 714.5 million (812.0) and organically they decreased by 12.3 per cent, compared to the same period previous year.
Service revenues increased by 0.8 per cent to SEK 551.6 million (547.3) and the organic increase was 0.1 per cent. The increase is attributable to higher supporting income compared to previous year. Service revenues accounted for 43.5 per cent (40.2) of the company´s total revenues during the quarter.
New contracts relating to cloud services worth SEK 224.3 million (197.0) were contracted during the quarter. The contracts normally have a term of three to five years. Total revenues from cloud services increased by 0.6 per cent and amounted to SEK 283.9 million (282.2). Organically they decreased by 0.4 per cent. Recurring revenues, revenues from cloud and support services, amounted to SEK 445.3 million (436.9), corresponding to an annualised rate of SEK 1,781.0 million (1,747.6). This corresponds to an increase of 1.9 per cent in the quarter. Organically they increased by 1.1 per cent.
The gross margin after depreciation increased in the quarter, compared to the same period previous year, and amounted to 24.2 per cent (22.2), where both the system business and the service business show an increased gross margin in the quarter.
Sales and administration expenses increased by 6.8 per cent, excluding currency effects the increase was 6.2 per cent. The increase is attributable to higher sales costs in the quarter, and investment in the service portfolio.
Adjusted EBITA amounted to SEK 80.2 million (91.1), a decrease with 12.0 per cent compared to the same period previous year, as a result of lower sales in the systems businesses. Adjusted EBITA margin decreased to 6.3 per cent (6.7). Earnings before tax amounted to SEK 63.7 million (82.6). Earnings before tax 2023, specifically the financial net, was positively affected by a write-down of an earn-out related to the acquisition of sepago by SEK 7.7 million.
Proact reports items affecting comparability separately to show the development in the underlying business. Items affecting comparability refer to items that are non-recurring and are not part of the ordinary business. During the fourth quarter of 2024, non-recurring items amounted to SEK 0.0 million (0.0).
Revenues Adjusted EBITA
Recurring Revenues Earnings per share, and return on equity 12 months, %
The Group's development January-December
Revenues and result
During the year, total revenues amounted to SEK 4,864.2 million (4,847.3), an increase by 0.3 per cent.
Currency rate changes affected the revenue negatively by 0.1 per cent. Acquisitions and divestments affected negatively by 0.2 per cent. Organically, revenues increased by 0.6 per cent.
System revenues decreased by 0.5 per cent to SEK 2,685.7 million (2,698.0) and organically they decreased by 0.2 per cent.
Service revenues increased by 1.2 per cent to SEK 2,170.8 million (2,144.6) and the organic increase was 1.4 per cent. Service revenues accounted for 44.6 per cent (44.2) of the company´s total revenues for the year.
New contracts relating to cloud services worth SEK 643.1 million (548.0) were contracted during the year. The contracts normally have a term of three to five years. Total revenues from cloud services increased by 3.0 per cent and amounted to SEK 1,130.0 million (1,097.4). Organically they increased by 2.8 per cent.
The gross margin increased during the year, compared to the same period previous year, and amounted to 24.8 per cent (22.5), driven by the positively development and increased efficiency in the services business.
Sales and administration expenses increased by 8.3 per cent, excluding currency effects the increase was 8.6 per cent, primarily driven by increased sales costs, Proact's 30th anniversary and investments in the service portfolio.
Adjusted EBITA increased by 16.1 per cent compared to the same period previous year and amounted to SEK 350.6 million (302.1) mainly as a result of improved gross margin. Adjusted EBITA margin amounted to 7.2 per cent (6.2).
Revenue by industry
| Amounts in | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
|---|---|---|---|---|
| SEK million | 2024 | 2023 | 2024 | 2023 |
| Telecom | 113.8 | 71.4 | 371.0 | 356.1 |
| Bank, Finance | 57.8 | 60.1 | 339.4 | 293.7 |
| Energy | 71.4 | 76.4 | 364.4 | 266.0 |
| Manufacturing | 121.8 | 148.7 | 532.2 | 532.0 |
| Media | 9.4 | 44.2 | 73.4 | 128.3 |
| Trading & Services | 202.7 | 309.2 | 858.3 | 987.7 |
| Public sector | 503.9 | 490.9 | 1,637.3 | 1,570.3 |
| Other | 187.8 | 159.1 | 688.2 | 713.2 |
| Total revenue | 1,268.5 | 1,360.0 | 4,864.2 | 4,847.3 |
Earnings before tax amounted to SEK 278.0 million (218.3), where the increase is explained by improved EBITA and the effect of items affecting comparability in previous year. Earnings before tax 2023, specifically the financial net was positively affected by a write-down of future additional purchases price related to the acquisition of sepago by SEK 14.6 million.
During the year, non-recurring items amounted to SEK 0.0 million (-16.7).
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|
| Amounts in SEK million | 2024 | 2023 | 2024 | 2023 |
| Total revenues | 1,268.5 | 1,360.0 | 4,864.2 | 4,847.3 |
| Cost of goods and services sold, excl. amortisations and depreciations | -925.2 | -1,018.2 | -3,506.3 | -3,597.6 |
| Gross profit excl. amortisations and depreciations | 343.3 | 341.9 | 1,357.9 | 1,249.7 |
| Gross margin excl. amortisations and depreciations, % | 27.1 | 25.1 | 27.9 | 25.8 |
| Operational expenses, excl. amortisations and depreciations | -223.3 | -208.2 | -848.3 | -775.2 |
| Adjusted EBITDA¹ | 120.0 | 133.6 | 509.6 | 474.5 |
| Adjusted EBITDA margin, % | 9.5 | 9.8 | 10.5 | 9.8 |
| Depreciations and write-downs of tangible assets | -39.8 | -42.5 | -158.9 | -172.4 |
| Adjusted EBITA¹ | 80.2 | 91.1 | 350.6 | 302.1 |
| Adjusted EBITA margin, % | 6.3 | 6.7 | 7.2 | 6.2 |
| Amortizations and write-downs of intangible assets | -13.7 | -13.9 | -55.1 | -55.7 |
| Items affecting comparability in EBITA | - | 0.0 | - | -16.7 |
| Operating profit/loss (EBIT) | 66.5 | 77.3 | 295.5 | 229.8 |
| Operating margin (EBIT), % | 5.2 | 5.7 | 6.1 | 4.7 |
1) EBITDA and EBITA before items affecting comparability
Cash flow
October - December
Cash flow for the quarter was SEK 152.1 million (135.4), of which SEK 207.1 million (240.5) from operating activities. Cash flow from changes in working capital amounted to SEK 74.0 million (93.2). Cash flow from current operations was affected by reduced operating profit, tax paid and increased working capital.
The cash flow from investment activities was SEK -6.0 million (-11.8) and cash flow from financing activities amounted to SEK -49.0 million (-93.4), where the previous year was affected by amortisation of bank loans and a larger proportion of buy backs of own shares, SEK 10.2 million (16.9).
January – December
Cash flow for the year was SEK 250.4 million (50.0) of which SEK 524.1 million (532.0) from operating activities. Cash flow from changes in working capital amounted to SEK 43.7 million (105.5).
Cash flow from investing activities amounted to SEK -26.5 million (-51.9) and cash flow from financing activities was SEK -247.2 million (-430.1) which consisted of, among other things, dividend payments of SEK -54.0 million (-50.8), buy backs of own shares of SEK -42.8 million (-19.6) and amortisations of leasing liabilities of SEK -135.5 million (- 118.0).
Investments
During the year 2024, SEK 31.2 million (45.3) has been invested in fixed assets, of which SEK 6.6 million (9.1) in Proact Finance for customer deliveries.
Financial position
Cash and cash equivalents amounted to SEK 813.5 million as of December 31, 2024, compared to SEK 547.9 million previous year. Of the total bank overdraft facility of SEK 159.1 million, none was utilised. Bank loans amounted to SEK 229.7 million and relate partly to a threeyear credit facility of EUR 20 million from Svensk Exportkredit (Swedish Export Credit Corporation), and to a three-year revolving credit facility that Proact signed during the third quarter of 2021. The facility amounts to a total of SEK 600 million, of which SEK 0.0 million was utilised as of December 31, 2024, and it has been extended by a maximum of two years, which means that it runs until the third quarter of 2026.
Investments in IT equipment for the cloud operations are financed through leasing agreements.
The Group's equity ratio at the end of the period was 26.2 per cent (24.9).
Net debt
| Dec 31 Sep 30 | Dec 31 Sep 30 | |||
|---|---|---|---|---|
| Amounts in SEK million | 2024 | 2024 | 2023 | 2023 |
| Cash and cash equivalents | 813.5 | 652.1 | 547.9 | 429.3 |
| Bank overdraft facilities | - | - | - | - |
| Liabilities to credit institutions, excl. liabilities related to financial leasing -229.7 |
-226.0 | -221.9 | -256.0 | |
| Net cash (+)/Net debt (-) excl. financial leasing |
583.8 | 426.2 | 326.0 | 173.3 |
| Financial leasing liabilities | -253.7 | -251.1 | -246.4 | -255.0 |
| Net cash (+)/Net debt (-) incl. financial leasing |
330.1 | 175.1 | 79.6 | -81.7 |
| Unutilized bank overdraft facility | 159.1 | 159.0 | 154.5 | 154.7 |
| Total bank overdraft facility | 159.1 | 159.0 | 154.5 | 154.7 |
Income tax
The Group's tax expense includes the sum of current tax and deferred tax calculated based on current tax rates in each country. The reported tax expense for the year amounted to SEK 58.1 million (45.2), corresponding to an efficient tax rate of 20.9 per cent (20.7).
Buy-back of own shares
The Annual General Meeting on May 7, 2024, authorized the Board to acquire up to 10 per cent of the company's shares until the next Annual General Meeting. As of December 31, 2024, 97,150 shares have been acquired within this authorization.
On September 25, 600,000 shares with a value of SEK 227,533 were canceled from shares in own custody. At the same time, a Fund Issue of the same value was made in accordance with the Annual General Meeting in May.
As of December 31, 2024, the company held 500,189 shares in own repository, which corresponds to 1.83 per cent of the total number of shares.
Employees
The company had 1,137 employees (1,171) as of December 31, 2024.
Parent Company in brief
The Parent Company's total revenues for the period amounted to SEK 152.5 million (152.0). Profit before tax amounted to SEK 272.6 million (142.3).
The Parent Company's liabilities in a joint group currency account amounted to SEK 419.6 million (409.0) as of 31 December 2024.
At the end of the period, the number of employees in the parent company totalled 21 (20).
The Parent Company's operations have remained unchanged during the period. There have been no significant transactions with related parties.
Business Units
Nordic & Baltics Denmark, Estonia, Finland, Latvia (divested August 28, 2023), Lithuania (divested August 28, 2023), Norway, Sweden, and the US
Revenues and result
October – December
In Nordic & Baltics, revenues decreased by 7.7 per cent and organically revenues decreased by 7.6 per cent, where the difference is due to exchange rate effects. System revenues decreased by 1.3.6 per cent and organically decreased by 13.5 per cent. Service revenues increased by 8.8 per cent and organically by 8.9 per cent, with good growth both in the support and cloud services business.
Adjusted EBITA amounted to SEK 72.3 million (51.8) and the EBITA margin was 10.1 per cent (6.7) for the quarter, driven by an improved gross margin.
January – December
In Nordic & Baltics, revenues decreased, during the year by 3.4 per cent and organically by 2.8 per cent. System revenues decreased by 8.1 per cent and organically by 7.7 per cent, compared to a strong comparison period. Service revenues increased by 7.8 per cent and organically by 8.9 per cent, with good demand primarily within the support and cloud service segments.
Adjusted EBITA amounted to SEK 259.5 million (206.9) and the EBITA margin was 10.3 per cent (7.9) for the year. In Nordic & Baltics, EBITA and EBITA margin developed positively due to higher gross margins.
| Oct-Dec | Oct-Dec | Change, | Jan-Dec | Jan-Dec | Change, | |
|---|---|---|---|---|---|---|
| Amounts in SEK million | 2024 | 2023 | % | 2024 | 2023 | % |
| System revenues | 493.0 | 570.6 | -13.6 | 1,690.8 | 1,840.5 | -8.1 |
| Service revenues | 223.7 | 205.5 | 8.8 | 835.6 | 775.4 | 7.8 |
| of which support revenue | 107.1 | 94.0 | 14.0 | 405.4 | 355.2 | 14.1 |
| of which revenue from cloud services | 69.7 | 62.5 | 11.5 | 256.3 | 237.9 | 7.7 |
| of which consulting revenue | 46.9 | 49.0 | -4.4 | 173.9 | 182.3 | -4.6 |
| Other | 0.4 | 0.7 | -44.9 | 2.9 | 3.3 | -12.5 |
| Total revenues | 717.0 | 776.8 | -7.7 | 2,529.4 | 2,619.3 | -3.4 |
| Adjusted EBITA | 72.3 | 51.8 | 39.6 | 259.5 | 206.9 | 25.5 |
| EBITA margin, % | 10.1 | 6.7 | 10.3 | 7.9 |
Revenues and result
October – December
In UK, revenues increased by 5.9 per cent during the quarter and organically by 1.5 per cent, where the difference is due to currency rate effects. System revenues increased by 12.8 per cent and organically by 8.0 per cent. Service revenues increased by 0.7 per cent, and organically decreased by 3.5 per cent driven by a decline in support revenue, offset by growth in cloud and consulting services, compared to a weaker comparative quarter.
Adjusted EBITA amounted to SEK 3.4 million (4.5) and the EBITA margin was 1.9 per cent (2.7) for the quarter. Both EBITA and EBITA margin decreased due to lower gross margins.
January – December
In UK, revenues increased by 7.0 per cent during the year, and organically by 4.5 per cent, where the difference is due to currency rate effects. System revenues increased by 17.2 per cent and organically by 14.6 per cent compared to previous year. Service revenues decreased by 0.7 per cent and decreased organically by 2.9 per cent, where cloud and consulting services showing good growth which, however, does not fully compensating for the decrease in support services.
Adjusted EBITA amounted to SEK 26.1 million (21.3) and the EBITA margin was 3.7 per cent (3.2) during the year. Both EBITA and the EBITA margin were positively affected due to somewhat higher gross margins compared to previous year.
| Oct-Dec | Oct-Dec | Change, | Jan-Dec | Jan-Dec | Change, | |
|---|---|---|---|---|---|---|
| Amounts in SEK million | 2024 | 2023 | % | 2024 | 2023 | % |
| System revenues | 80.6 | 71.5 | 12.8 | 330.9 | 282.3 | 17.2 |
| Service revenues | 94.6 | 94.0 | 0.7 | 376.8 | 379.4 | -0.7 |
| of which support revenue | 21.4 | 26.8 | -20.1 | 87.5 | 106.5 | -17.8 |
| of which revenue from cloud services | 64.9 | 60.6 | 7.1 | 254.0 | 239.2 | 6.2 |
| of which consulting revenue | 8.3 | 6.6 | 25.8 | 35.3 | 33.7 | 4.6 |
| Other | - | - | - | - | - | - |
| Total revenues | 175.2 | 165.4 | 5.9 | 707.7 | 661.7 | 7.0 |
| Adjusted EBITA | 3.4 | 4.5 | -25.3 | 26.1 | 21.3 | 22.8 |
| EBITA margin, % | 1.9 | 2.7 | 3.7 | 3.2 |
Revenues and result
October – December
In West, revenues decreased by 5.6 per cent during the quarter and organically by 5.8 per cent, where the difference is due to currency effects. System revenues decreased by 11.9 per cent and organically by 12.2 per cent. Service revenues decreased by 3.8 per cent and organically by 3.9 per cent.
Adjusted EBITA amounted to SEK 3.9 million (12.9) and the EBITA margin was 2.0 per cent (6.2) for the quarter driven by lower system revenue and lower gross margin on service revenue.
January – December
In West, revenues increased by 3.1 per cent during the year corresponding to an organically increase of 3.5 per cent where the difference explains by currency effects. System revenues increased by 12.2 per cent and organically by 12.7 per cent due to good demand. Service revenues were unchanged and organically increased by 0.4 per cent.
Adjusted EBITA amounted to SEK 36.4 million (23.2) and the EBITA margin was 4.3 per cent (2.8) for the year. The increase is attributable to increased higher revenues and gross margin.
| Oct-Dec | Oct-Dec | Change, | Jan-Dec | Jan-Dec | Change, | |
|---|---|---|---|---|---|---|
| Amounts in SEK million | 2024 | 2023 | % | 2024 | 2023 | % |
| System revenues | 44.1 | 50.1 | -11.9 | 225.0 | 200.5 | 12.2 |
| Service revenues | 154.0 | 160.0 | -3.8 | 622.4 | 622.4 | -0.0 |
| of which support revenue | 16.9 | 17.7 | -4.3 | 68.8 | 69.8 | -1.5 |
| of which revenue from cloud services | 105.2 | 109.8 | -4.2 | 422.3 | 420.1 | 0.5 |
| of which consulting revenue | 31.9 | 32.5 | -1.8 | 131.3 | 132.6 | -0.9 |
| Other | 0.4 | 0.2 | - | 0.8 | 0.2 | - |
| Total revenues | 198.5 | 210.3 | -5.6 | 848.3 | 823.2 | 3.1 |
| Adjusted EBITA | 3.9 | 12.9 | -69.5 | 36.4 | 23.2 | 56.9 |
| EBITA margin, % | 2.0 | 6.2 | 4.3 | 2.8 |
Revenues Adjusted EBITA
Revenues and result
October – December
In Central, revenues decreased by 8.4 per cent during the quarter and organically by 8.3 per cent, where the difference is due to currency effects. System revenues decreased by 14.1 per cent and organically by 13.8 per cent. Service revenues decreased by 3.9 per cent and organically by 4.0 per cent.
Adjusted EBITA amounted to SEK 5.8 million (16.6) and the EBITA margin was 2.8 per cent (7.2) for the quarter. In Central, EBITA and the EBITA margin were negatively affected by the reduced sales and integration costs for previously acquired operations.
January – December
In Central, revenues increased by 6.6 per cent during the year and organically by 7.4 per cent where the difference is due to currency effects. System revenues increased by 19.6 per cent and organically by 20.8 per cent. Service revenues decreased by 4.7 per cent and organically by 4.2 per cent, due to lower sales within the consulting business.
Adjusted EBITA amounted to SEK 31.2 million (34.0) and the EBITA margin was 3.5 per cent (4.1) for the year. In Central, EBITA and the EBITA margin were positively affected primarily by higher sales in the system business, partly offset by integration costs linked to previous acquisitions.
| Oct-Dec | Oct-Dec | Change, | Jan-Dec | Jan-Dec | Change, | |
|---|---|---|---|---|---|---|
| Amounts in SEK million | 2024 | 2023 | % | 2024 | 2023 | % |
| System revenues | 101.8 | 118.5 | -14.1 | 444.8 | 371.9 | 19.6 |
| Service revenues | 106.6 | 110.9 | -3.9 | 438.0 | 459.3 | -4.7 |
| of which support revenue | 15.8 | 16.3 | -3.3 | 63.6 | 63.4 | 0.3 |
| of which revenue from cloud services | 67.9 | 69.6 | -2.5 | 286.8 | 281.0 | 2.1 |
| of which consulting revenue | 22.9 | 25.0 | -8.2 | 87.6 | 114.9 | -23.8 |
| Other | 2.0 | 0.2 | 815.1 | 5.2 | 1.9 | 177.5 |
| Total revenues | 210.4 | 229.7 | -8.4 | 887.9 | 833.2 | 6.6 |
| Adjusted EBITA | 5.8 | 16.6 | -65.2 | 31.2 | 34.0 | -8.3 |
| EBITA margin, % | 2.8 | 7.2 | 3.5 | 4.1 |
Operating segments
Nordics & Baltics: Denmark, Estonia, Finland, Latvia, Lithuania (divested August 28, 2023), Norway, Sweden, and USA | UK: United Kingdom | West: Belgium and the Netherlands | Central: Czech Republic and Germany |
| Jan-Dec 2024 | Nordics & | ||||||
|---|---|---|---|---|---|---|---|
| Amounts in SEK million | Baltics | UK | West | Central | Groupwide | Eliminations | Group |
| Total revenue | 2,529.4 | 707.7 | 848.3 | 887.9 | 175.1 | -284.1 | 4,864.2 |
| EBITDA before items affecting | |||||||
| comparability | 298.2 | 73.3 | 75.5 | 64.4 | -0.8 | - | 509.6 |
| Depreciations and write-downs on tangible | |||||||
| fixed assets | -38.7 | -47.2 | -39.1 | -33.2 | -0.8 | - | -158.9 |
| EBITA before items affecting comparability | 259.5 | 26.1 | 36.4 | 31.2 | -1.6 | - | 350.6 |
| Items affecting comparability | - | - | - | - | - | - | - |
| EBITA | 259.5 | 26.1 | 36.4 | 31.2 | -1.6 | - | 350.6 |
| Amortizations and write-downs on | |||||||
| intangible fixed assets | -5.8 | -5.5 | -8.2 | -29.3 | -6.3 | - | -55.1 |
| EBIT | 253.8 | 20.6 | 28.2 | 1.9 | -9.0 | - | 295.5 |
| Net Financial Items | 17.0 | -2.5 | -9.7 | -24.7 | 2.4 | - | -17.6 |
| Earnings before tax | 270.8 | 18.1 | 18.4 | -22.9 | -6.5 | - | 278.0 |
| Tax | -58.1 | ||||||
| Comprehensive income for the period | 219.9 |
Jan-Dec 2023 Amounts in SEK million Nordics & Baltics UK West Central Groupwide Eliminations Koncernen Total revenue 2,619.3 661.7 823.2 833.2 184.0 -274.0 4,847.3 EBITDA before items affecting comparability 245.0 76.0 70.2 65.5 17.9 - 474.5 Depreciations and write-downs on tangible fixed assets -38.1 -54.7 -47.0 -31.6 -1.1 - -172.4 EBITA before items affecting comparability 206.9 21.3 23.2 34.0 16.8 - 302.1 Items affecting comparability -4.8 -1.0 -6.5 -2.0 -2.5 - -16.7 EBITA 202.1 20.3 16.7 31.9 14.4 - 285.5 Amortizations and write-downs on intangible fixed assets -5.7 -5.4 -8.3 -29.9 -6.5 - -55.7 EBIT 196.4 14.9 8.5 2.1 7.9 - 229.8 Net Financial Items 10.4 -2.7 -10.3 -7.2 -1.7 - -11.5 Earnings before tax 206.8 12.2 -1.8 -5.1 6.1 - 218.3 Tax -45.2 Comprehensive income for the period 173.1
Proact 10 Year-end Report 2024
Market review
Proact maintains an optimistic view on the development of the IT market, which is expected to show continued growth in the coming years. In 2025, IT investments continue to be a key driver of productivity and innovation. America's announced investments in Artificial Intelligence (AI) are expected to further boost demand for advanced IT infrastructure.
Global economic growth is forecast to remain stable, but unevenly distributed. The US is predicted to show significant growth, while Europe is expected to have a restrained economic development going forward. Within Europe, regional differences emerge, where countries such as Sweden and Spain are expected to show good growth, while Germany is still struggling with major industrial challenges.
The recently launched US investment program Stargate, with a budget of US\$500 billion over the next four years, is expected to drive investment in data center IT infrastructure and create jobs. Although the program is primarily focused on the US, we are cautiously optimistic about its potential spillover effects to Europe. For Europe, AI will continue to play a central role in driving efficiency and opening new revenue streams in sectors such as healthcare, finance and manufacturing.
Global IT spending is expected to grow significantly faster than GDP growth in the coming years with infrastructure as a key component. As companies move to hybrid cloud environments, the demand for scalable, secure and resilient IT infrastructure increases. Investments in data centers and cybersecurity solutions remain a high priority, driven by the growing need to process and protect data closer to its origin.
Key Trends
Hybrid cloud adoption: he use of cloud services continues to grow as companies take advantage of the flexibility, scalability and costeffectiveness of both public and private cloud platforms, especially hybrid cloud platforms.
Increased demand for Data Storage: The volumes of data that are created, stored and processed are growing rapidly. Technologies such as artificial intelligence and machine learning, which are used to automate processes, optimize data-driven insights and improve decision-making, greatly contribute to the storage and processing of large volumes of data.
Digital transformation, artificial intelligence and machine learning: Digital transformation continues to be an important driver of innovation and efficiency. Disruptive technologies such as artificial intelligence and machine learning create a growing need for agile infrastructure development that supports moving and complex requirements.
Information security: As cyber threats become more common and more sophisticated, cyber security remains a top priority. Businesses are investing in advanced security solutions to protect their data and IT infrastructure from increased risks.
Sustainability and Regulation: Businesses face environmentally friendly methods and techniques to reduce their carbon footprint. Sustainability plays an increasingly important role in IT-related decisions, which is further reinforced by EU directives that require sustainability reporting.
Other information
Events after the balance sheet date
No events of significance to the Group have occurred since the end of the report period.
Transactions with related parties
No transactions between Proact and related parties, which have significantly affected the Group's position and profits, have taken place during the quarter.
Risks and uncertainty factors within the business
Proact is not significantly affected by ongoing conflicts in the world. However, the development of the global economy, in the form of inflation, exchange rate fluctuations, lower economic growth and disturbances in supply chains, can entail increased risks for Proact. Delivery disruptions linked to the global semiconductor shortage at present has a limited effect on, but new disturbances could negatively affect the ability for Proact to deliver customer orders received. Otherwise, no risks or uncertainties have changed in comparison to those described in the most recently published annual report. For a more detailed description of significant risks and uncertainty factors, please see Proact's annual report for 2023.
Alternative Performance Measures
The company presents financial key figures in the interim report that are not defined according to IFRS. The company believes that these key figures provide valuable supplementary information to investors and the company's management. For definitions of the financial ratios, see the Annual Report 2023.
Proposed appropriations of profits
The Board proposes a dividend of SEK 2.40 (2.00) per share to the Annual General Meeting for the 2024 business year, corresponding to SEK 65 million (54). This corresponds to 29 per cent (32) of the year's net profit, in line with Proact's dividend policy to distribute 25 – 35 per cent of profits after tax.
Annual General Meeting
The Annual General Meeting will be held at 4 pm on May 6, 2025 in Solna. The annual report will be published and be made available on Proact's webpage, www.proact.eu during the second week of April. The Nomination Committee's proposal will be presented in the notice to the Annual general Meeting and on the company's website, www.proact.eu.
Financial calendar
| 6 May 2025 | Interim Report Q1 2025 |
|---|---|
| 6 May 2025 | Annual General Meeting 2025 |
| 14 July 2025 | Interim Report Q2 2025 |
| 24 October 2025 | Interim Report Q3 2025 |
| 10 February 2026 Interim Report Q4 2025 |
Solna 11 February 2025 Proact IT Group AB (publ)
Jonas Hasselberg CEO and President
This interim report has not been audited.
Note
The information in this interim report is such information as Proact IT Group (publ) is obliged to publish pursuant to the EU Market Abuse Regulation, the Securities Market Act, and/or the Act on Trading in Financial Instruments. This information was submitted for publication at 08:00 (CET) on 11 February, 2025.
Jonas Hasselberg, CEO +46 722 13 55 56 [email protected] Frösundaviks Allé 1, Solna
CONTACT Proact IT Group AB
Noora Jayasekara, CFO +46 70 318 92 97 [email protected] Tel. +46 8 410 666 00 www.proact.eu
Org.nr: 556494-3446 | Reg Office: Solna
Financial reports
Consolidated statement of comprehensive income
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|
| Amounts in SEK million | 2024 | 2023 | 2024 | 2023 |
| System revenue | 714.5 | 812.0 | 2,685.7 | 2,698.0 |
| Service revenue | 551.6 | 547.3 | 2,170.8 | 2,144.6 |
| of which support revenue | 161.4 | 154.7 | 625.4 | 595.2 |
| of which revenue from cloud services | 283.9 | 282.2 | 1,130.0 | 1,097.4 |
| of which consulting revenue | 106.3 | 110.4 | 415.4 | 452.1 |
| Other operating revenue | 2.4 | 0.8 | 7.7 | 4.7 |
| Total revenue | 1,268.5 | 1,360.0 | 4,864.2 | 4,847.3 |
| Cost of goods and services sold | -961.7 | -1,057.8 | -3,655.7 | -3,758.1 |
| Gross profit | 306.8 | 302.2 | 1,208.5 | 1,089.2 |
| Sales and marketing expenses | -141.3 | -137.6 | -525.3 | -504.5 |
| Administration expenses | -99.0 | -87.4 | -387.6 | -338.4 |
| Items affecting comparability | - | 0.0 | - | -16.7 |
| Operating profit/loss (EBIT) | 66.5 | 77.3 | 295.5 | 229.8 |
| Net financial items | -2.7 | 5.3 | -17.6 | -11.5 |
| Earnings before tax | 63.7 | 82.6 | 278.0 | 218.3 |
| Income tax | -13.4 | -17.0 | -58.1 | -45.2 |
| Comprehensive income for the period | 50.3 | 65.5 | 219.9 | 173.1 |
| Other comprehensive income | ||||
| Items which may be reveresed later in the income statement | ||||
| Change of hedging reserve | ||||
| (net investment in foreign operations) | 6.8 | -12.9 | 17.0 | 0.3 |
| Tax effect of change of reserve | ||||
| (net investment in foreign operations) | -1.4 | 2.7 | -3.5 | -0.1 |
| Translation differences from remaining operations | 9.9 | -16.1 | 22.4 | 54.5 |
| Total items which may be reversed later in the income statement | 15.3 | -26.4 | 35.9 | 54.7 |
| Total comprehensive income for the period, net after tax | 65.6 | 39.1 | 255.8 | 227.8 |
| Comprehensive income attributable to: | ||||
| Shareholders of the Parent company | 50.3 | 65.5 | 219.9 | 172.6 |
| Holdings without a controlling influence | - | -0.0 | - | 0.5 |
| Total comprehensive income for the period attributable to: | ||||
| Shareholders of the Parent company | 65.6 | 39.1 | 255.8 | 228.1 |
| Holdings without a controlling influence | - | -0.0 | - | -0.3 |
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
| Data per share¹ | 2024 | 2023 | 2024 | 2023 |
| Earnings per share for the period attributable to the shareholders of the parent | ||||
| company, SEK | 1.87 | 2.39 | 8.15 | 6.29 |
| Equity per share attributable to the shareholders of the parent | ||||
| company, SEK | 43.58 | 36.97 | 43.58 | 36.97 |
| Cash flow from operations per share, SEK | 7.70 | 8.82 | 19.48 | 19.50 |
| Number of outstanding shares at end of period | 26,901,469 | 27,281,448 | 26,901,469 | 27,281,448 |
| Weigthed average number of outstanding shares | 26,970,371 | 27,445,125 | 26,987,862 | 27,466,985 |
1) Proact has a long-term performance-based share program that could give rise to dilution of maximum 2.36 per cent.
Consolidated Balance Sheet in brief
| Dec 31 | Dec 31 | |
|---|---|---|
| Amounts in SEK million | 2024 | 2023 |
| ASSETS | ||
| Fixed assets | ||
| Goodwill | 1,021.7 | 983.6 |
| Other intangible fixed assets | 129.6 | 177.3 |
| Tangible fixed assets | 319.2 | 319.3 |
| Other long-term receivables | 614.8 | 544.6 |
| Deferred tax receivables | 22.2 | 22.5 |
| Current assets | ||
| Inventories | 20.8 | 15.4 |
| Trade and other receivables | 1,533.7 | 1,433.9 |
| Cash and cash equivalents | 813.5 | 547.9 |
| Total assets | 4,475.7 | 4,044.4 |
| EQUITY AND LIABILITIES | ||
| Equity attributable to the shareholers of the parent company | 1,172.4 | 1,008.6 |
| Total equity | 1,172.4 | 1,008.6 |
| Long-term liabilities | ||
| Long-term liabilities, interest-bearing | 395.9 | 386.4 |
| Long-term liabilities, non-interest-bearing | 943.6 | 756.9 |
| Deferred tax liabilities | 47.5 | 58.2 |
| Short-term liabilities | ||
| Short-term liabilities, interest-bearing | 112.3 | 109.8 |
| Short-term liabilities, non-interest-bearing | 1,804.0 | 1,724.5 |
| Total equity and liabilities | 4,475.7 | 4,044.4 |
Consolidated statement of changes in Equity
| Dec 31 | Dec 31 | |
|---|---|---|
| Amounts in SEK million | 2024 | 2023 |
| At beginning of period | 1,008.6 | 923.4 |
| Total comprehensive income for the period | 255.8 | 227.8 |
| Dividend | -54.0 | -50.8 |
| Share savings and share option programs | 3.9 | -28.0 |
| Buy-back of own shares | -42.8 | -19.6 |
| Utilized shares from holding of own shares | 1.0 | 2.7 |
| At end of period | 1,172.4 | 1,008.6 |
Consolidated Cash Flow Statement in brief
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|
| Amounts in SEK million | 2024 | 2023 | 2024 | 2023 |
| CASH FLOW FROM OPERATIONS FOR THE YEAR | ||||
| Operating profit for the period | 66.5 | 77.3 | 295.5 | 229.8 |
| Adjustment for items not affecting cash flow: | ||||
| Reversal of depreciation and impairment of fixed assets | 53.5 | 56.4 | 214.1 | 228.2 |
| Financial leasing sales | 4.9 | 10.1 | 26.2 | 33.0 |
| Reversal of non-cash items | 24.7 | 7.9 | 2.6 | -9.0 |
| Change in provisions | -3.7 | -3.3 | 0.8 | -0.2 |
| Income tax paid | -12.8 | -1.0 | -58.8 | -54.7 |
| Cash flow from operating activities before changes in working capital | 133.1 | 147.3 | 480.4 | 427.0 |
| Cash flow from changes in working capital | ||||
| Inventories | -1.3 | 4.6 | -5.0 | 49.5 |
| Operating receivables | -82.0 | -269.8 | -133.8 | 64.6 |
| Operating liabilities | 157.4 | 358.3 | 182.5 | -9.1 |
| Cash flow from operating activities | 207.1 | 240.5 | 524.1 | 532.0 |
| INVESTMENT ACTIVITIES | ||||
| Acquisition of businesses | - | 0.5 | - | -8.0 |
| Capital expenditure on tangible fixed assets | -6.6 | -13.0 | -30.0 | -44.3 |
| Disposals of tangible fixed assets | - | 0.9 | - | 1.1 |
| Investments in intangible fixed assets | -0.5 | -0.3 | -1.2 | -1.0 |
| Increase / decrease, non current receivables | 1.0 | 0.2 | 4.7 | 0.3 |
| Cash flow from investing activities | -6.0 | -11.8 | -26.5 | -51.9 |
| FINANCING ACTIVITIES | ||||
| Dividend | - | - | -54.0 | -50.8 |
| Borrowings and repaid loans | - | -25.0 | - | -224.2 |
| Interest earned | 3.7 | -1.0 | 13.2 | 10.4 |
| Interest paid | -5.9 | -8.5 | -26.5 | -25.1 |
| Amortisation of leasing debt | -34.3 | -37.5 | -135.5 | -118.0 |
| Other cash flow from financing activities | -12.5 | -21.4 | -44.5 | -22.4 |
| Cash flow from financing activities | -49.0 | -93.4 | -247.2 | -430.1 |
| Total cash flow for the period | 152.1 | 135.4 | 250.3 | 50.0 |
| Cash and cash equivalents at beginning of the period | 652.1 | 429.3 | 547.9 | 505.7 |
| Currency translation difference in cash and cash equivalents | 9.2 | -16.8 | 15.3 | -7.8 |
| Cash and cash equivalents at end of the period | 813.5 | 547.9 | 813.5 | 547.9 |
Key ratios
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|
| Amounts in SEK million | 2024 | 2023 | 2024 | 2023 |
| Total revenue | 1,268.5 | 1,360.0 | 4,864.2 | 4,847.3 |
| of which attributable to acquisition and divestments | - | -6.3 | -7.5 | 22.1 |
| of which currency effects | 6.6 | 25.5 | -3.2 | 179.3 |
| Total revenue, organic | 1,261.9 | 1,340.8 | 4,875.0 | 4,646.0 |
| Organic growth total revenue, % | -7.2 | -6.9 | 0.6 | -2.3 |
| System revenue | 714.5 | 812.0 | 2,685.7 | 2,698.0 |
| of which attributable to acquisition and divestments | - | -4.0 | -2.1 | -4.5 |
| of which currency effects | 2.6 | 7.7 | -4.3 | 69.8 |
| Total system revenue, organic | 711.9 | 808.3 | 2,692.1 | 2,632.8 |
| Organic growth system revenue, % | -12.3 | -11.4 | -0.2 | -8.0 |
| Services revenue | 551.6 | 547.3 | 2,170.8 | 2,144.6 |
| of which attributable to acquisition and divestments | - | -2.3 | -5.4 | 26.6 |
| of which currency effects | 4.0 | 17.8 | 1.1 | 109.3 |
| Total service revenue, organic | 547.6 | 531.8 | 2,175.2 | 2,008.7 |
| Organic growth service revenue, % | 0.1 | 1.9 | 1.4 | 6.3 |
| EBITDA | 120.0 | 133.6 | 509.6 | 457.9 |
| EBITDA margin, % | 9.5 | 9.8 | 10.5 | 9.4 |
| Depreciation and write-down on tangible assets | -39.8 | -42.5 | -158.9 | -172.4 |
| EBITA | 80.2 | 91.2 | 350.6 | 285.5 |
| EBITA margin, % | 6.3 | 6.7 | 7.2 | 5.9 |
| Amortization and write-down on intangible assets | -13.7 | -13.9 | -55.1 | -55.7 |
| EBIT | 66.5 | 77.3 | 295.5 | 229.8 |
| EBIT marginal, % | 5.2 | 5.7 | 6.1 | 4.7 |
| Earnings before tax | 63.7 | 82.6 | 278.0 | 218.3 |
| Net margin, % | 5.0 | 6.1 | 5.7 | 4.5 |
| Earnings after tax | 50.3 | 65.5 | 219.9 | 173.1 |
| Profit margin, % | 4.0 | 4.8 | 4.5 | 3.6 |
| Equity | 1,172.4 | 1,008.6 | 1,172.4 | 1,008.6 |
| Total assets | 4,475.7 | 4,044.4 | 4,475.7 | 4,044.4 |
| Equity ratio, % | 26.2 | 24.9 | 26.2 | 24.9 |
| Capital turnover rate, times¹ | - | - | 1.1 | 1.2 |
| Return on equity, %¹ | - | - | 20.2 | 18.2 |
| Financial costs included in net financial items | 7.5 | 6.3 | 35.2 | 40.0 |
| Capital employed | 1,680.6 | 1,504.8 | 1,680.6 | 1,504.8 |
| Return on capital employed, %¹ | - | - | 19.7 | 16.3 |
| Investments in fixed assets | 38.7 | 43.3 | 158.7 | 148.3 |
| Earnings before tax per employee, SEK thousands | 57.5 | 72.9 | 250.0 | 188.2 |
| Average number of employees | 1,108.3 | 1,132.0 | 1,112.0 | 1,160.0 |
1) Calculated only for full year and rolling 12 months.
For a five-year summary, see Note 2. For definitions of key ratios, see Annual Report 2023.
The key ratios that Proact reports and monitors the business by are common key ratios used by the industry and by companies listed on Nasdaq Stockholm.
Parent Company's Income Statement, in brief
| Jan-Dec | Jan-Dec 2023 |
||
|---|---|---|---|
| Amounts in SEK million | 2024 | ||
| Net sales | 152.5 | 152.0 | |
| Cost of goods and services sold | - | - | |
| Gross profit | 152.5 | 152.0 | |
| Administration expenses | -161.4 | -151.9 | |
| Operating profit | -8.9 | 0.1 | |
| Net financial items | 281.6 | 142.2 | |
| Earnings after financial items | 272.6 | 142.3 | |
| Provisions | - | - | |
| Earnings before tax | 272.6 | 142.3 | |
| Income tax | -2.8 | -0.7 | |
| Comprehensive income for the period | 269.8 | 141.5 |
Parent Company's Balance Sheet, in brief
| Dec 31 | Dec 31 | ||
|---|---|---|---|
| Amounts in SEK million | 2024 | 2023 | |
| ASSETS | |||
| Fixed assets | 1,130.3 | 1,143.8 | |
| Current assets | 305.7 | 97.7 | |
| Total assets | 1,436.0 | 1,241.6 | |
| EQUITY AND LIABILITIES | |||
| Restricted Equity | 41.9 | 47.1 | |
| Non-restricted Equity | 634.0 | 451.0 | |
| Equity | 676.0 | 498.1 | |
| Long-term liabilities | 243.6 | 234.7 | |
| Short-term liabilities | 516.5 | 508.9 | |
| Total equity and liabilities | 1,436.0 | 1,241.6 |
Explanatory information
Note 1. Accounting principles
The consolidated accounts for the interim report have been compiled in accordance with IAS 34 and the Swedish Annual Accounts Act. The Parent Company's accounts have been compiled in accordance with the Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 (Accounting for Legal Entities). The Group applies the same accounting principles as those described in the annual report for 2023.
Financial instruments
Proact's financial instruments consist of derivatives, accounts receivable, cash and cash equivalents, accounts payable, accrued trade creditors and interest-bearing liabilities. Derivative instruments are recognized in the balance sheet as per the contract date and are valued at fair value, both initially and in subsequent revaluations. All derivatives are reported continuously at fair value with the value changes reported in the statement of comprehensive income within cost of goods sold for those derivatives that are linked to accounts
payable and financial items for the derivatives that are linked to financial leasing contracts. Derivatives are valued at fair value within level 2, i.e., fair value determined on the basis of valuation techniques with observable market data, either directly (as price) or indirectly (hence to price). All other financial assets have been classified as loans and receivables, which includes accounts receivable and cash and cash equivalents. All other financial liabilities have been classified as other financial liabilities valued at amortised cost, which includes accounts payable, accrued supplier costs and liabilities to credit institutions. Liabilities to credit institutions run at variable interest rates and reported interest rates are on a par with current interest on liabilities to credit institutions and other financial assets and liabilities with short maturities. Based on this, the book values of all financial assets and liabilities are judged to be a reasonable estimate of fair value.
Note 2. Five-year summary
| Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|---|
| Amounts in SEK million | 2024 | 2023 | 2022 | 2021 | 2020 |
| Total revenue | 4,864.2 | 4,847.3 | 4,756.8 | 3,525.0 | 3,633.1 |
| EBITDA | 509.6 | 457.9 | 473.2 | 348.6 | 369.6 |
| EBITDA margin, % | 10.5 | 9.4 | 9.9 | 9.9 | 10.2 |
| EBITA | 350.6 | 285.5 | 313.1 | 197.5 | 216.7 |
| EBITA margin, % | 7.2 | 5.9 | 6.6 | 5.6 | 6.0 |
| EBIT | 295.5 | 229.8 | 260.6 | 166.2 | 182.1 |
| EBIT margin, % | 6.1 | 4.7 | 5.5 | 4.7 | 5.0 |
| Earnings before tax | 278.0 | 218.3 | 244.2 | 151.9 | 167.7 |
| Net margin, % | 5.7 | 4.5 | 5.1 | 4.3 | 4.6 |
| Earnings after tax | 219.9 | 173.1 | 191.5 | 117.2 | 132.3 |
| Profit margin, % | 4.5 | 3.6 | 4.0 | 3.3 | 3.6 |
| Equity ratio, % | 26.2 | 24.9 | 21.8 | 21.0 | 20.7 |
| Capital turnover rate, times | 1.1 | 1.2 | 1.2 | 1.1 | 1.3 |
| Return on equity, % | 20.2 | 18.2 | 23.4 | 17.8 | 23.4 |
| Return on capital employed, % | 19.7 | 16.3 | 17.2 | 13.4 | 17.1 |
| Dividend to shareholders of the Parent company¹ | 54.0 | 50.8 | 41.2 | 41.2 | 22.9 |
| Investments in fixed assets | 158.7 | 148.3 | 397.5 | 550.7 | 269.1 |
| Financial costs included in net financial items | 35.5 | 40.0 | 26.7 | 19.8 | 20.7 |
| Earnings before tax per employee, SEK thousands | 250.0 | 188.2 | 210.6 | 147.9 | 172.3 |
| Average number of employees | 1,112.0 | 1,160.0 | 1,159.5 | 1,027.3 | 973.4 |
| Earnings per share for the period, SEK² | 8.15 | 6.29 | 6.97 | 4.27 | 4.80 |
1) Relates to the year in which the dividend was executed. For the fiscal year 2023 a dividend of SEK 2,00, total SEK 54,0 million, was made.
2)Calculated on the basis of the weighted average number of outstanding shares. The comparative figures have been adjusted for the 1:3 share split that was implemented in May 2021. Proact has long-term performance-based share programs that could give rise to dilution of maximum 2.36 per cent.