Earnings Release • Jul 19, 2016
Earnings Release
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Rejlers is one of the Nordic region's largest technical consultants. 2,000 experts work on projects in construction and property, energy, industry and infrastructure. We have specialist engineers with both broad and specific expertise, coupled with energy that creates results. We are continuing to expand rapidly, and currently have offices in 80 locations throughout Sweden, Finland and Norway. In 2015, Rejlers' turnover was SEK 1.9 billion and its Class B shares are listed on the Stockholm NASDAQ.
19 July 2016
During the quarter, we have created a platform for continuing positive development, where we also see an improvement in the billable hours ratio for Sweden, Finland and Norway compared with the previous quarter. The reorganisation of the business, in which we are disposing of unprofitable areas and primarily growing in digitalisation of processes and IT solutions, is beginning to have an effect.
Growth has continued well with an increase in sales in the group of 33 percent, 5 percent of which is organic.
The operating profit for the second quarter of SEK 22.6 million is somewhat better than last year and has been affected positively by the improved billable hours ratio compared with the first quarter, as wellas a positive calendar effect.
Rejlers Sweden's action programme is proceeding according to plan and the restructuring costs amounted to SEK 3.6 million during the quarter and SEK 9.7 million during the first half.
Rejlers Finland has adapted its activities in order to meet market expectations and now also offers services in production efficiency, process design, security and digitising processes.
Rejlers Norway continues to streamline the organisation and is implementing a number of cost savings to improve profitability. The business showed organic growth of 30 per cent in the quarter.
For IT Solutions, the second quarter has been marked by strong growth for our IT solutions in the energy sector. We are gathering all competence in IT Solutions under the Rejlers Embriq brand, which will create economies of scale for our digital offering and Smart Metering Operations.
We have noted a positive trend in demand for our services in all segments during the quarter. About 1,100 of Sweden's largest companies are now required by law to map their energy consumption and propose measures to reduce energy use. Rejlers is one of the first in Sweden to have certified energy mappers and during the quarter we have signed major agreements with Statnett, Hafslund, Scania and the Swedish Transport Administration, among others.
We are strengthening our position in the market and continuing our reorganisation into a more effective organisation and business. The goal is to improve the operating margin to 8 percent over time and to reach our growth objectives of 2020-3030-4040.
Peter Rejler, President and CEO, tel: +46 (0)70 -602 34 24, email: [email protected] Mats Åström, CFO, Tel: +46 (0)70 -050 22 40, email: [email protected]
| Sales, SEK million | Operating profit, SEK million | Operating margin, SEK million | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Apr | Apr | Jan | Jan | Full | Apr | Apr | Jan | Jan | Full | Apr | Apr | Jan | Jan | Full | ||
| Jun | Jun | Jun | Jun | year | Jun | Jun | Jun | Jun | year | Jun | Jun | Jun | Jun | year | ||
| 2016 | 2015 | 2016 | 2015 | 2015 | 2016 | 2015 | 2016 | 2015 | 2015 | 2016 | 2015 | 2016 | 2015 | 2015 | ||
| Rejlers Sweden | 329.9 | 276.7 | 639.1 | 543.9 | 1,099.0 | 17.8 | 15.6 | 16.4 | 30.1 | 51.4 | 5.4 | 5.6 | 2.6 | 5.5 | 4.7 | |
| Rejlers Finland | 97.5 | 86.1 | 189.1 | 169.6 | 336.4 | 3.1 | 4.7 | 3.4 | 9.3 | 18.9 | 3.2 | 5.5 | 1.8 | 5.5 | 5.6 | |
| Rejlers Norway | 99.1 | 80.1 | 172.7 | 161.1 | 298.5 | 2.1 | 0.2 | -5.7 | 0.5 | 3.5 | 2.1 | 0.2 | -3.3 | 0.3 | 1.2 | |
| IT Solutions | 85.9 | 16.4 | 173.7 | 36.3 | 151.3 | 5.0 | 2.2 | 10.8 | 6.4 | 9.3 | 5.8 | 13.4 | 6.2 | 17.6 | 6.1 | |
| Group-wide | 5.5 | 6.5 | 11.2 | 14.7 | 27.1 | -5.4 | -2.6 | -8.3 | -3.3 | -12.1 | - | - | - | - | ||
| Eliminations | -9.7 | -9.3 | -18.4 | -16.9 | -36.8 | - | - | - | - | - | - | - | - | - | ||
| Consolidated total | 608.2 | 456.5 | 1,167.4 | 908.7 | 1,875.5 | 22.6 | 20.1 | 16.6 | 43.0 | 71.0 | 3.7 | 4.4 | 1.4 | 4.7 | 3.8 |
Sales amounted to SEK 608.2 million (456.5), which represents an increase of 33 per cent compared to the same period in the previous year. 5 percentage points of the growth is organic and 28 percentage points is through acquisition.
Operating profit for the second quarter amounted to SEK 22.6 million (20.1). The restructuring costs in Sweden were SEK 3.6 million. In Sweden, the quarter had two more working days than the same quarter the previous year. In Finland and Norway, the quarter had three more working days than the same quarter the previous year.
The billable hours ratio was 73.1 per cent (76.3).
Sales amounted to SEK 1,167.4 million (908.7), which represents an increase of 28 per cent compared to the same period in the previous year. Growth was entirely through acquisition.
Operating profit for the half amounted to SEK 16.6 million (43.0). The restructuring costs in Sweden were SEK 9.7 million. Significant start-up costs of projects in Norway and poor employee utilisation the first halfyearcompared with the first half of 2015 had a negative effect on operating profit. The calendar effect, by contrast, had a positive effect on operating profit.The half had one more working day in Sweden and Norway and two more working days in Finland, compared with the previous year.
The billable hours ratio was 72.7 per cent (75.0).
Cash flow from operating activities totalled SEK -2.6 million (44.7) for the half and SEK 10.7 million (33.8) for the quarter. Consolidated cash and cash equivalents at the end of the quarter amounted to SEK 35.5 million compared to SEK 108.8 million on 31 December 2015. The change in cash and cash equivalents was affected by a dividend of SEK 25.8 million (24.6), investments in fixed assets of SEK 22.2 million (4.9) and amortisation of SEK 38.4 million (19.4).
Full year
Interest bearing liabilities decreased from SEK 20.1 million from 31 December 2015 to SEK 260.6 million at the end of the period. Net indebtedness amounted to SEK 251.4 million compared to SEK 196.9 million as of 31 December 2015. The equity/assets ratio at the end of the period amounted to 40.1 per cent compared to 41.7 per cent as of 31 December 2015. Equity per share was SEK 40.12 at the end of the period compared to SEK 39.97 as of 31 December 2015. SEK 12.4 million (0) of the Group's overdraft facilities of SEK 50 million (50) have been used.
Sales per quarter and rolling 12 months
Operating margin per quarter and rolling 12 months
Investments in property, plant and equipment during the half amounted to SEK 5.1 million (4.6) and investments in intangible assets totalled SEK 17.1 million (0.3). Investments in subsidiaries and operations amounted to SEK 1.2 million (2.5). Further information about investments in subsidiaries and operations is available on page 12. Depreciations and impairment charges amounted to SEK 20.4 million (14.5).
The number of employees at the end of the period was 1,980 (1,778). The number of full-year employees totalled 1,963 (1,710).
A total of 19 employees (7) in Finland and 4 (4) in Norway were laid off at the end of the period.
Net sales in the parent company during the period amounted to SEK 11.2 million (12.7) and earnings before tax totalled SEK -4.3 million (-5.7).
Number of employees at the end of the quarter
On 1 July, Thomas Rebermark took up the position of marketing manager of Rejlers AB. Thomas Rebermark is a member of Rejlers group management, with responsibility for market and communications matters. The coordination and development of Rejlers' position and profiling in new and existing markets will be a priority area.
Rejlers Embriq, together with others in the industry, has received research funding from the Research Council of Norway for research into smart energy systems of the future. The applications are handled by the research centres for environmentally-friendly energy and have a total ceiling of NOK 400 million over a total period of 8 years. This provides a particularly good basis for developing effective new solutions for the energy sector in direct collaboration with energy companies, research institutions and other participants.
Rejlers Sweden has offices in around 40 locations. Our range of services includes such things as automation, electrical power, installation, railways, mechanical engineering, processes and installations plus telecommunications. Segment Sweden accounts for around 54 per cent of Rejlers total sales.
Rejlers Sweden increased sales by 19 per cent during the second quarter to 329.9 MSEK. 2 percentage points of the growth is organic and 17 percentage points is through acquisition. The operating profit for the quarter amounted to SEK 17.8 million (15.6) including the restructuring reserve of SEK 3.6 million, which represents an operating margin of 5.4 percent (5.6). Profits have been affected by restructuring costs and a lower level of employee utilisation compared with the previous year. The quarter had two more working days than the same quarter the previous year.
The action programme, which resulted in cuts in the Technology business area in the first quarter, is being developed according to plan.
Reduced demand in some parts of the industry has led to a restructuring of Rejlers' industry activities. We are closing down unprofitable parts of the business and growing in areas such as industrial IT and also automation and digitalisation of manufacturing processes (Industry 4.0).
Our growth markets of energy and infrastructure are developing positively. There is great demand for digitalservices in all business areas. The new energy agreement that was presented by the government in June means that by 2040 all energy production must be renewable, but this does not involve a finishing date for nuclear energy or a closure of nuclear power plants by political decision. For Rejlers, this means a clear focus on services in sustainable electricity production, modernisation of regional and distribution grids and continued assignments in the nuclear power industry for the purpose of finding smart and safe
new technical solutions. Customers in the electrical distribution sector also demand smart grid solutions, which is leading to more assignments.
Telecommunications operations are growing and there is a great need for telecommunications engineers, especially in information and IT security. Demand is also increasing for assignments aimed at improving capacity and quality in the mobile phone network.
The road and rail markets are expected to grow strongly in the period up to 2024. Rejlers is currentlyinvolved in a number of major assignments for the Swedish Transport Administration, such as the evaluation of high speed railways in Sweden and expanding the main line in Skåne.
New construction investments for homes and premises are increasing demand for Rejlers' skills and the number of building and property assignments continues to increase.
Rejlers operates at 18 locations in Finland. Rejlers in Finland offers consultancy services within architecture, automation, energy, mechanical engineering, environmental technology, water and sewerage, and turnkey deliveries to customers in the construction and buildings, energy, industry and infrastructure sectors. Segment Finland accounts for around 16 per cent of Rejlers' total sales.
Rejlers Finland increased sales in the second quarter by 13 percent to 97.5 MSEK. Adjusted for currency effects, growth was 7 percent. 4 percentage points of the growth is organic and 9 percentage pointsis through acquisition. The operating profit for the quarter amounted to SEK 3.1 million (4.7), which represents an operating margin of 3.2 percent (5.5). The reduced profit is due to continuing poor employee utilisation in the industrial sector. The quarter had three more working days than the same quarter the previous year.
The efficiency programme, which was initiated in the first quarter, has had an effect on profitability compared with the previous quarter. Rejlers Finland has adapted its services in order to meet market expectations and now also offers services in production efficiency, process design, security and digitising processes.
The acquisition of JS-Verkot Oy and Caruna in the telecommunications and power grid sectors has brought new expertise and contributed to a great deal of business during the quarter.
The government's climate-adapted energy plan means increased demand for Rejlers services in renewable energy production, energy management and energy-efficient solutions.
Rejlers is in an advantageous market position in the power grid sector, particularly for project management services and new IT solutions for the power grid in Finland. Demand for Rejlers energy metering services continues to be good.
There are plans for significant infrastructure investments in Finland, and several major railway projects will be undertaken in the next few years. Rejlers assignments in network planning and network design for both fixed and mobile networks cover the entire Nordic region. Telia's outsourcing strategy means that contracts are being offered for new services, which is good for Rejlers.
The building market continues to develop strongly and major building projects aimed at urban extension have begun. Rejlers has been awarded a number of new assignments in these projects.
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | |
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | 2015 | |
| Sales, SEK million | 97.5 | 86.1 | 189.1 | 169.6 | 336.4 |
| Operating profit | 3.1 | 4.7 | 3.4 | 9.3 | 18.9 |
| Operating margin, % | 3.2 | 5.5 | 1.8 | 5.5 | 5.6 |
| Number of employees | 501 | 483 | 501 | 483 | 482 |
In Norway, Rejlers offers expertise in the areas of electrical power, electrical safety, energy certification, installation, railways and telecommunications. There are operations at 10 locations in the country. Rejlers Norway accounts for around 15 percent of Rejlers' total sales.
Sales in Rejlers Norway for the quarter increased by 24 percent to 99.1 MSEK. Adjusted for currency effects, growth was 30 percent. The entire growth is organic. Norway reports a profit in the second quarter of SEK 2.1 million (0.2). The increase in profits is mainly due to major new assignments. The quarter had three more working days than the same quarter the previous year.
Rejlers Norway is streamlining the organisation and making a number of cost savings, so as to improve profitability. The Norwegian business showed organic growth of 30 per cent in the quarter. Profit was also considerably improved in the quarter, due to the improved billable hours ratio and having three more working days in the quarter.
Rejlers Norway is in a development phase for services relating to digitalisation of processes for the infrastructure, energy and construction markets. Rejlers isactively participating in the development of the present communications network and we have digitalised processes for electrical safety inspections. Major contracts with Norkring, Telia and Agder Energi are expected to give good employee utilisation.
ROC (Rejlers Operation Center for telecommunications) enables us, as the only company in Norway, to monitor operations and maintenance of communications networksfor several customers at the same time from one operations centre in Trondheim. This investment included programming new processors and systems.
The most important markets for Rejlers are energy, transport, railways and telecommunications, which are growing and undergoing comprehensive modernisation of technology and infrastructure. The Norwegian railway sector is planning to invest several billion NOK to upgrade and digitise large volumes of systems and technical documentation.
Demand for Rejlers services is increasing in all of the company's markets, especially in the construction and property segment and for assignments that aim to achieve more efficient, sustainable energy use.
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | |
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | 2015 | |
| Sales, SEK million | 99.1 | 80.1 | 172.7 | 161.1 | 298.5 |
| Operating profit | 2.1 | 0.2 | -5.7 | 0.5 | 3.5 |
| Operating margin, % | 2.1 | 0.2 | -3.3 | 0.3 | 1.2 |
| Number of employees | 240 | 230 | 240 | 230 | 239 |
Rejlers IT Solutions segment offers IT services and products in the energy and infrastructure sectors. IT Solutions is also home to conventional IT services, cloud services and an advanced, modern centre for running customer IT environments. There are operations at 10 locations in Norway, Sweden and Finland. IT Solutions accounts for around 15 percent of Rejlers total sales.
The IT Solutions base is made up of operations in Rejlers Embriq, which designs, develops and manages IT solutions. We are gathering everything into one segment under the Rejlers Embriq brand, which is expected to provide great benefits for our digital offering and Smart Metering Operations. The second quarter was marked by strong growth for IT solutions in the energy sector, including smart metering projects.
The EU climate directive and increasing efficiency requirements are leading to increased demand for advanced IT systems and ongoing services. The market for the digitalisation of physical infrastructure is growing rapidly as sensors and connected equipment (the Internet of Things) become steadily more widespread and available.
With strong growth on top of a large existing market share in Norway, Rejlers Embriq has a good basis for further development in the Nordic countries. Existing service platforms that support future needs for digitalisation, in combination with knowledge of the area, form the basis for such an expansion.
Rejlers Embriq, together with others in the industry, has received research funding from the Research Council of Norway for research into smart energy systems of the future.
More and more energy companies are choosing Embriq's smart-grid platform Quant, delivered in the form of an ongoing service (software as a service). New IT Operations assignments have begun during the quarter and many of our existing customers have renewed their agreements.
Rejlers' energy services cooperate with Rejlers Embriq on the Swedish market to further strengthen the range of services offered as a system provider. As a central Swedish Elhub is developed over the next few years, the development for Rejlers' initiatives in this sector looks very positive.
The market for energy metering services is expected to grow over the coming years, as many of the remote reading meters in the Nordic countries are replaced.
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year | ||
|---|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | 2015 | ||
| Sales, SEK million | 85.9 | 16.4 | 173.7 | 36.3 | 151.3 | |
| Operating profit | 5.0 | 2.2 | 10.8 | 6.4 | 9.3 | |
| Operating margin, % | 5.8 | 13.4 | 6.2 | 17.6 | 6.1 | |
| Number of employees | 147 | 38 | 147 | 38 | 179 |
| SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year |
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | 2015 | |
| Net sales | 608.2 | 456.5 | 1,167.4 | 908.7 | 1,875.5 |
| Personnel expenses | -379.1 | -321.8 | -754.0 | -638.7 | -1,280.1 |
| Other external expenses | -196.2 | -107.4 | -376.5 | -212.9 | -493.1 |
| Depreciations and impairments | -10.3 | -7.3 | -20.4 | -14.5 | -32.2 |
| Shares in associated companies | 0.0 | 0.1 | 0.1 | 0.4 | 0.8 |
| Operating profit | 22.6 | 20.1 | 16.6 | 43.0 | 71.0 |
| Net financial income/expense | 2.8 | -0.5 | 2.2 | -0.9 | 0.8 |
| Profit after net financial income expense | 25.4 | 19.6 | 18.8 | 42.1 | 71.8 |
| Tax | -7.0 | -4.7 | -5.9 | -10.0 | -20.6 |
| Profit for the period | 18.4 | 14.9 | 12.9 | 32.1 | 51.2 |
| Attributed to: | |||||
| Parent Company's shareholders | 18.0 | 14.9 | 12.1 | 32.1 | 51.2 |
| Shareholders without a controlling influence | 0.4 | 0.0 | 0.8 | 0.0 | -0.1 |
| Average number of shares | 12,921,721 | 12,321,721 | 12,921,321 | 12,321,721 | 12,346,379 |
| Earnings per share, SEK | 1.39 | 1.21 | 0.93 | 2.61 | 3.96 |
| SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year |
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | 2015 | |
| Profit for the period | 18.4 | 14.9 | 12.9 | 32.1 | 51.2 |
| Items that may be reclassified to the income statement | |||||
| Translation differences of foreign operations, net after-tax | 8.9 | -3.9 | 15.8 | -4.9 | -22.4 |
| Items that will not be reclassified to the income statement | |||||
| Revaluation of net pension liability | - | - | - | - | 12.1 |
| Total other comprehensive income | 8.9 | -3.9 | 15.8 | -4.9 | -10.3 |
| Comprehensive income for the period | 27.3 | 11.0 | 28.7 | 27.2 | 40.9 |
| SEK million | 30 June | 30 June | 31 Dec |
|---|---|---|---|
| 2016 | 2015 | 2015 | |
| Assets | |||
| Non-current assets | |||
| Goodwill | 400.6 | 261.3 | 395.4 |
| Other intangible assets | 108.3 | 58.9 | 99.8 |
| Tangible assets | 38.7 | 37.1 | 36.2 |
| Other fixed assets | 51.3 | 22.1 | 48.7 |
| Total assets | 598.9 | 379.4 | 580.1 |
| Current assets | |||
| Current receivables | 680.7 | 494.3 | 569.0 |
| Cash and cash equivalents | 35.5 | 83.5 | 108.8 |
| Total current assets | 716.2 | 577.8 | 677.8 |
| Total Assets | 1,315.1 | 957.2 | 1,257.9 |
| Equity and liabilities | |||
| Equity attributable to shareholders in the parent company | 518.4 | 444.0 | 516.5 |
| Holdings without a controlling influence | 8.9 | 0.1 | 8.3 |
| Total equity | 527.3 | 444.1 | 524.8 |
| Non-current liabilities | |||
| Provision for pensions | 26.3 | 43.2 | 25.0 |
| Other non-current liabilities | 217.1 | 101.9 | 325.6 |
| Total non-current liabilities | 243.4 | 145.1 | 350.6 |
| Current liabilities | 544.4 | 368.0 | 382.5 |
| Total liabilities and equity | 1,315.1 | 957.2 | 1,257.9 |
| Of which interest-bearing liabilities | 260.6 | 91.8 | 280.7 |
| Pledged assets and contingent liabilities | 156.7 | 214.5 | 211.3 |
| SEK million | 30 June | 30 June | 31 Dec |
|---|---|---|---|
| 2016 | 2015 | 2015 | |
| Equity at start of period | 524.8 | 441.6 | 441.6 |
| Comprehensive income for the period | 28.7 | 27.2 | 40.9 |
| Acquisition of holdings without a controlling influence | - | - | -0.4 |
| The minority's share of the acquired company | - | - | 8.3 |
| Changes attributable to transactions with the owners | |||
| New share issue | - | - | 59.0 |
| Dividends | -26.2 | -24.6 | -24.6 |
| Total changes attributable to transactions with the owners | -26.2 | -24.6 | 34.5 |
| Equity at end of period | 527.3 | 444.1 | 524.8 |
| Attributed to: | |||
| Parent Company's shareholders | 518.4 | 440.0 | 516.5 |
| Holdings without a controlling influence | 8.9 | 0.1 | 8.3 |
| Total | 527.3 | 440.1 | 524.8 |
| SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year |
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | 2015 | |
| Cash flow from operating activities before change in operating | |||||
| capital and tax paid | 33.6 | 18.4 | 37.3 | 49.9 | 83.0 |
| Tax paid | -12.6 | -4.7 | -25.2 | -9.9 | -9.6 |
| Change in working capital | -10.3 | 20.1 | -14.7 | 4.7 | -30.9 |
| Cash flow from operating activities | 10.7 | 33.8 | -2.6 | 44.7 | 42.5 |
| Cash flow from investment activities | -14.7 | -3.6 | -22.0 | -7.1 | -240.2 |
| Cash flow from financing activities | -25.7 | -34.9 | -52.2 | -44.0 | 221.9 |
| Cash flow for the period | -29.7 | -4.7 | -76.8 | -6.4 | 24.2 |
| Cash and cash equivalent at beginning of the period | 63.3 | 88.2 | 108.8 | 89.8 | 89.8 |
| Exchange rate differences in cash and cash equivalents | 1.9 | 0.0 | 3.5 | 0.1 | -5.2 |
| Cash and cash equivalent at end of the period | 35.5 | 83.5 | 35.5 | 83.5 | 108.8 |
| SEK million | 30 june | 30 june | 31 dec |
|---|---|---|---|
| 2016 | 2015 | 2015 | |
| Loans and credit facilities | 260.6 | 91.8 | 280.7 |
| Pension provisions | 26.3 | 43.2 | 25.0 |
| Cash and cash equivalents | -35.5 | -83.5 | -108.8 |
| Total | 251.4 | 51.5 | 196.9 |
On 1 January, Rejlers acquired assets in Insplacon Oy. On 1 May, all sharesin JS-Verkot Oy were acquired.
So far this year, the acquisitions have contributed SEK 2.7 million to sales and SEK 0.2 million to operating profit. If the companies and operations had been owned since 1 January they would have contributed sales of SEK 6.8 million and operating profit of SEK 0.4 million.
| SEK million | Jan-Jun |
|---|---|
| Total | |
| Non-current assets | 0.4 |
| Current assets | 1.2 |
| Cash and cash equivalents | 3.0 |
| Non-current liabilities | - |
| Other current liabilities | -1.9 |
| Net identifiable assets and liabilities | 2.7 |
| Goodwill | 0.4 |
| Customer values | 0.2 |
| Deferred tax on intangible assets | -0.0 |
| Purchase price, cash | 3.2 |
| Less: | |
| Cash and cash equivalents in acquired businesses | -3.0 |
| Unadjusted purchase price previously paid | 1.0 |
| Net cash outflow during the period | 1.2 |
Acquisition analyses for the acquired operations are preliminary because the assets have not been fully analysed. The goodwill value, which is not tax-deductible, includes the technical skills of staff, acquired customer relationships that are not separable and synergies. Otherwise, the fair value of the assets and liabilities at the time of acquisition corresponds to the carrying amount in the acquired companies. There are no uncertain receivables among the acquired assets. Acquisition related costs were expensed as other external expenses when they were incurred.
| SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year |
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | 2015 | |
| IFRS key figures | |||||
| Earnings per share, SEK | 1.39 | 1.21 | 0.93 | 2.61 | 4.15 |
| Average number of shares | 12,921 ,721 | 12,321,721 | 12,921 ,721 | 12,321,721 | 12,346,379 |
| Alternative key figures | |||||
| Operating margin, % | 3.7 | 4.4 | 1.4 | 4.7 | 3.8 |
| Billable hours ratio, % | 73.2 | 76.3 | 72.7 | 75.0 | 75.0 |
| Sales per full-time employee, SEK thousand | 311 | 267 | 595 | 531 | 1,046 |
| Operating income per full-time employee, SEK thousand | 12 | 12 | 8 | 25 | 40 |
| Equity/assets ratio, % | 40.1 | 46.4 | 40.1 | 46.4 | 41.7 |
| Equity per share at the end of the period | 40.1 | 36.0 | 40.1 | 36.0 | 40.0 |
| Net indebtedness,SEK million | 251.4 | 51.5 | 251.4 | 51.5 | 196.9 |
| Net liabilities/adjusted EBITDA rolling 12 times | 2.8 | 0.5 | 2.8 | 0.5 | 1.9 |
| Operational key figures | |||||
| Number of shares at the end of the period | 12,921 ,721 | 12,321,721 | 12,921 ,721 | 12,321 ,721 | 12,921,721 |
| Number of working days | 61 | 59 | 121 | 120 | 249 |
| Number of full-time employees | 1,958 | 1,710 | 1,963 | 1,710 | 1,793 |
| Number of employees at the end of the period | 1,980 | 1,778 | 1,980 | 1,778 | 2,082 |
Definitions for key figures may be found in the company's latest annual report and on page 14.
| SEK million | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2014 | 2014 | 2014 | 2014 | 2014 | 2015 | 2015 | 2015 | 2015 | 2015 | 2016 | 2016 | |
| Sales | ||||||||||||
| Sweden | 278.5 | 277.3 | 217.8 | 285.8 | 1,059.4 | 267.2 | 276.7 | 233.9 | 321.2 | 1,099.0 | 309.2 | 329.9 |
| Finland | 68.8 | 80.3 | 64.7 | 79.4 | 293.2 | 83.5 | 86.1 | 70.5 | 96.3 | 336.4 | 91.6 | 97.5 |
| Norway | 75.4 | 73.0 | 69.7 | 87.4 | 305.5 | 81.0 | 80.1 | 64.2 | 73.2 | 298.5 | 73.6 | 99.1 |
| IT Solutions | 18.0 | 17.0 | 17.4 | 18.4 | 70.8 | 19.9 | 16.4 | 14.8 | 100.2 | 151.3 | 87.8 | 85.9 |
| Group-wide etc. | -1.8 | -5.6 | -3.1 | -6.9 | -17.4 | 0.6 | -2.8 | -3.3 | -4.2 | -9.7 | -3.0 | -4.2 |
| Total | 438.9 | 442.0 | 366.5 | 464.1 | 1,711.5 | 452.2 | 456.5 | 380.1 | 586.7 | 1,875.5 | 559.2 | 608.2 |
| Operating profit | ||||||||||||
| Sweden | 24.8 | 7.6 | 5.8 | 21.7 | 59.9 | 14.5 | 15.6 | 14.1 | 7.2 | 51.4 | -1.4 | 17.8 |
| Finland | 0.3 | 3.1 | 4.6 | 6.2 | 14.2 | 4.6 | 4.7 | 2.0 | 7.6 | 18.9 | 0.3 | 3.1 |
| Norway | -3.8 | -11.9 | -12.6 | 2.7 | -25.6 | 0.3 | 0.2 | 4.5 | -1.5 | 3.5 | -7.8 | 2.1 |
| IT Solutions | 3.6 | 2.6 | 5.8 | 3.3 | 15.3 | 4.2 | 2.2 | 1.2 | 1.7 | 9.3 | 5.8 | 5.0 |
| Group-wide etc. | -11.5 | -1.2 | -1.1 | -0.6 | -15.2 | -0.7 | -2.5 | -2.7 | -3.7 | -12.1 | -2.9 | -5.4 |
| Total | 13.4 | 0.2 | 2.5 | 32.5 | 48.6 | 22.9 | 20.1 | 18.9 | 9.1 | 71.0 | -6.0 | 22.6 |
| Operating margin | ||||||||||||
| Sweden | 8.9 | 2.7 | 2.7 | 7.6 | 5.7 | 5.4 | 5.6 | 6.0 | 2.2 | 4.7 | -0.5 | 5.4 |
| Finland | 0.4 | 3.9 | 7.1 | 7.8 | 4.8 | 5.5 | 5.5 | 2.8 | 7.9 | 5.6 | 0.3 | 3.2 |
| Norway | -5.0 | -16.3 | -18.1 | 3.1 | -8.4 | 0.4 | 0.2 | 7.0 | -2.0 | 1.2 | -10.6 | 2.1 |
| IT Solutions | 20.0 | 15.3 | 33.3 | 17.9 | 21.6 | 21.1 | 13.4 | 8.1 | 1.7 | 6.1 | 6.6 | 5.8 |
| Group-wide etc. | - | - | - | - | - | - | - | - | - | - | - | - |
| Total | 3.1 | 0.0 | 0.7 | 7.0 | 2.8 | 5.1 | 4.4 | 5.0 | 1.6 | 3.8 | -1.1 | 3.7 |
| Number of employees | ||||||||||||
| Sweden | 1,020 | 1,011 | 997 | 998 | 998 | 1,016 | 1,018 | 1,022 | 1,173 | 1,173 | 1,163 | 1,082 |
| Finland | 452 | 447 | 431 | 434 | 434 | 447 | 464 | 482 | 482 | 482 | 500 | 501 |
| Norway | 239 | 236 | 241 | 247 | 247 | 236 | 230 | 231 | 239 | 239 | 249 | 240 |
| IT Solutions | 55 | 55 | 53 | 55 | 55 | 57 | 57 | 56 | 179 | 179 | 155 | 147 |
| Group-wide etc. | 12 | 11 | 11 | 8 | 8 | 8 | 9 | 9 | 9 | 9 | 10 | 10 |
| Total | 1,778 | 1,760 | 1,733 | 1,742 | 1,742 | 1,764 | 1,778 | 1,800 | 2,082 | 2,082 | 2,077 | 1,980 |
| SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full year |
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | 2015 | |
| Sales | 5.5 | 6.5 | 11.2 | 12.7 | 25.1 |
| Personnel expenses | -3.9 | -3.3 | -7.5 | -8.0 | -15.5 |
| Other external expenses | -6.4 | -5.3 | -10.8 | -9.1 | -19.9 |
| Depreciations | -0.2 | -0.3 | -0.5 | -0.5 | -1.1 |
| Operating profit | -5.0 | -2.4 | -7.6 | -4.9 | -11.4 |
| Net financial income/expense | -0.2 | -0.3 | 3.3 | -0.8 | 39.7 |
| Profit after net financial income expense | -5.2 | -2.7 | -4.3 | -5.7 | 28.3 |
| Appropriations | - | - | - | -6.1 | |
| Tax | -0.1 | - | -0.1 | - | -4.2 |
| Profit after tax | -5.3 | -2.7 | -4.4 | -5.7 | 18.0 |
The parent company has no items to report in other total income so this report is not included.
| SEK million | 30 June | 30 June | 31 Dec |
|---|---|---|---|
| 2016 | 2015 | 2015 | |
| Assets | |||
| Non-current assets | |||
| Intangible assets | 0.0 | 0.8 | 0.4 |
| Tangible assets | 0.5 | 0.7 | 0.6 |
| Financial assets | 400.3 | 303.7 | 396.0 |
| Total assets | 400.8 | 305.2 | 397.0 |
| Current assets | |||
| Current receivables | 171.3 | 22.5 | 197.3 |
| Cash and cash equivalents | - | 35.3 | 36.5 |
| Total current assets | 171.3 | 57.8 | 233.8 |
| Total Assets | 572.1 | 363.0 | 630.8 |
| Equity and liabilities | |||
| Equity | 214.1 | 161.5 | 244.3 |
| Untaxed reserves | 37.0 | 30.9 | 37.0 |
| Non-current liabilities | 158.6 | 30.9 | 265.5 |
| Current liabilities | 162.4 | 139.7 | 84.0 |
| Total liabilities and equity | 572.1 | 363.0 | 630.8 |
The most recent share price for Rejlers Class B on 30 June 2016 was SEK 87.75 per share, a reduction of 25 percent compared to 30 December 2015. On 18 July 2016, the most recent share price for Rejlers share in Class B was SEK 99.00 per share. The Rejlers share is listed on Nasdaq Stockholm.
This interim report has been prepared for the Group in accordance with IAS 34 Interim Reporting and RFR 1, Supplementary Accounting Rules for Groups. The same accounting policies have been applied as in the most recent annual report for both the Group and the parent company. A number of changes in the standards have come into effect in 2016. None of these has a significant influence on the Group's accounts and reporting.
The parent company'sreports are prepared in accordance with the Annual Accounts Act (ÅRL) and RFR 2, Accounting for Legal Entities.
Please refer to the Annual Accounts for 2015 for detailed information regarding the significant risks, uncertainties and accounting policies of the company.
ESMA's guidelines for Alternative Performance Measurements are applied with effect from this interim report.
Interim report January-September 2016 25 October 2016
The company presents certain financial measurements in the interim reports that are not defined according to IFRS. The company considers that these measurements provide valuable supplementary information for investors and company management, since they permit an assessment of the company's performance. Since not all companies calculate financial measurements in the same way, these are not always comparable with measurements that are used by other companies. These financial measurements must not therefore be seen as a replacement for measurements that are defined according to IFRS.
The definition of the key figure Net liabilities/adjusted EBITDA rolling 12 is net liabilities in relation to operating profit before depreciation and impairment including acquired operations for the last 12-month period.
The carrying value for financial instruments reported at the accrued acquisition value corresponds to the fair value. Transactions with related parties took place on market terms and have not significantly affected the Group's results.
Stockholm 19 July 2016 Rejlers AB (publ)
Ivar Verner Chairman
Annika Steiber Helena Nordman-Knutson Jan Samuelsson Board Member Board Member Board Member
Thord Wilkne Björn Lauber Sten Pettersson Board Member Employee Representative Employee Representative
Peter Rejler Board Member, President and CEO
This information is information that Rejlers AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 19 July 2016 at 08.00 CET. This report is also available in Swedish. This English report is a translation from Swedish. If there are any differences, the Swedish language report shall prevail.
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