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Rejlers

Quarterly Report Oct 23, 2015

3103_10-q_2015-10-23_255bf00e-1ca4-4f42-b61c-cbbde6228a47.pdf

Quarterly Report

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Rejlers is one of the largest engineering consultancy firms in the Nordic region. Our 2,000 experts work with projects in the areas of Building and property, Energy, Industry and Infrastructure. At Rejlers, you will meet specialist engineers with the knowledge, cutting edge expertise and energy to achieve results. We are still experiencing rapid growth and can now be found in 80 locations in Sweden, Finland and Norway. Reilers recorded revenue of SEK 1.7 billion in 2014 and its class B share is listed on NASDAQ Stockholm.

23 October 2015

Interim Report Rejlers AB January-September 2015

Strate egic a acquis ition i in Nor rway

Third quart ter

  • » Reven nue increased by 4 per cent to SEK 380.1 million (366.5)
  • » The op perating profit t was SEK 18.9 9 million (2.5)
  • » The op perating marg in amounted t to 5.0 per cen t (0.7)
  • » Releas se of project r eserves boost ted profits by SEK 8.0 millio )on
  • » Profit after tax total lled SEK 13.9 m million (0.2)
  • » Earnin ngs per share before and aft ter dilution am mounted to SE EK 1.12 (SEK 0. 02)

January–S September

  • » Reven nue increased by 3 per cent to SEK 1,288.8 8 million (1,247 7.4)
  • » The op perating profit t was SEK 61.9 9 million (16.1)
  • » The op perating marg in amounted t to 4.8 per cent t (1.3)
  • » Profit after tax total lled SEK 46.0 million (9.2)
  • » Earnin 3.73 (0 ngs per share 0.75) before dilution n amounted to o SEK 3.73 (SE EK 0.76) and d iluted earning gs per share w were SEK

Statement from Presid dent and CE EO Peter Rej jler

Rejlers saw its compared with as a result of a due to the rele successively i over a busines s operating prof h the same per a slight increas ease of project mprove the ope ss cycle. fit improve in th iod in the previ e in order volum reserves. The a erating margin he third quarter ous year, partly me and partly aim is to to 8 per cent ry-

Organic gr which half was ing period our annual revenu acquisition of supplies full sc infrastructure area. The acqu growth target digital enginee development a increase reven target of 2020 rowth accounte s organic growt workforce grew ue increased by Embriq from th cale IT services and energy to uisition brings u and our strateg ering services. and turnkey so nue per employ 0-3030-4040. ed for 4 per cen th. After the en w by 120 emplo y NOK 240 millio he Hafslund gro s within the rati customers acro us a big step clo gic aim of achie By focusing on olutions, we are yee and achieve nt of growth, of d of the reportoyees and our on through the up. Embriq onalisation of oss the Nordic oser to our eving growth in business planning to e our growth

The marke infrastructure energy efficien creasing in all the electricity smart network et outlook for o is good. Deman ncy and sustain our markets. W distribution se ks is fuelling inv ur growth mark nd for our servi nable energy so We are seeing g ctor, where the vestments. We kets energy and ces involving olutions is inood growth in e development o see good op ndof por due Nor rtunities for gro e to increased c rdic region. wth in the telec customer dema communication and for turnkey ns market solutions in

are rem ula New investme boosting dema mains weak, wh rly in the engin nts in residenti and for our exp ich has led to lo eering industry ial and office co pertise. The Finn ower order volu y. onstruction nish market umes, partic-

thir nica ass one Ene in S com me HVA tric Cen We were awar rd quarter. Thes ations assignm sistance and pr e of the world's ergitjänster has Sweden with th mpanies access asurement sys AC building serv city, lighting, tele ntral Hospital in ded several imp se include a larg ent which invo oject managem largest data ce s concluded an e aim of provid s to an economi tem. We are pro vices and all tec ecommunicatio n Finland. portant contrac ge energy and lves us providin ment for the con enters in Norwa agreement wit ing VÄRMEK's ical and efficien oviding project chnical system ons and security cts in the telecommung technical nstruction of ay. Rejlers h VÄRMEK member nt energy planning for ms for elecy for Mikkeli

fer solu and hea Thanks to its 2 an ever broade utions. I am con d continue to be althiest compan 2,000 engineer er range of spec nvinced that we e an attractive w ny in our indust rs, Rejlers is now cialist services e will achieve o workplace and try in the Nordic w able to ofand turnkey ur targets the c countries.

For further inf formation, plea ase contact:

Peter Rejler, P Mats Åström, C resident and CE CFO, tel. +46 (0 EO, tel. +46 (0)7 )72 050 22 40, 70 602 34 24, e e-mail: mats.as -mail: peter.rej [email protected] [email protected] se

Revenue and profit

Revenue, SEK million Operating profit, SEK million Operating margin, %
Jul - Jul - Jan - Jan - Full Jul - Jul - Jan - Jan - Full Jul - Jul - Jan - Jan - Full
Sep Sep Sep Sep year Sep Sep Sep Sep year Sep Sep Sep Sep year
2015 2014 2015 2014 2014 2015 2014 2015 2014 2014 2015 2014 2015 2014 2014
Rejlers Sweden 244.2 231.2 814.8 812.3 1,111.7 14.8 11.9 50.9 49.7 74.9 6.1 5.1 6.2 6.1 6.7
Rejlers Finland 75.0 68.7 254.2 227.5 311.7 2.4 4.2 11.7 7.8 13.8 3.2 6.1 4.5 3.4 4.4
Rejlers Norway 64.2 69.7 225.3 218.1 305.5 4.5 -12.6 5.0 -28.3 -25.6 7.0 neg 2.2 neg neg
Group-wide 4.2 4.4 18.9 16.0 25.8 -2.8 -1.0 -5.7 -13.1 -14.3 - - - - -
Eliminations -7.5 -7.5 -22.4 -26.5 -43.2 - - - - - - - - - -
Total Group 380.1 366.5 1,288.8 1,247.4 1,711.5 18.9 2.5 61.9 16.1 48.6 5.0 0.7 4.8 1.3 2.8

July–September 2015

Revenue amounted to SEK 380.1 million (366.5), corresponding to an increase of 4 per cent compared with the same period in 2014. Growth is half organic. The operating profit amounted to SEK 18.9 million (2.5), corresponding to an operating margin of 5.0 per cent (0.7). The improvement in results was partly due to a slight increase in order volume and partly due to project reserves being released by SEK 8.0 million.

The number of working days in the quarter was 66 (66). The billing ratio was 74.8 per cent (74.7).

January–September 2015

Revenue totalled SEK 1,288.8 million (1,247.4), which corresponds to an increase of 3 per cent compared with the same period in the previous year. Growth is two-thirds organic. The operating profit amounted to SEK 61.9 million (16.1), which is equivalent to an operating margin of 4.8 per cent (1.3).

The improvement in profit compared with the previous year is partly due to project reserves being released and partly due to the results in the same period in the previous year having been adversely affected by severance expenses for the former President/CEO, reassessment of associated companies and project losses, as well as restructuring expenses.

The number of working days during the period was 186 (186). The billing ratio was 75.0 per cent (75.4).

Cash flow and financial position

Cash flow from operating activities in the nine months to end-September amounted to SEK 21,4 million (20.3). At the end of the reporting period, the Group's cash and cash equivalents stood at SEK 29.5 million, compared with SEK 89.8 million as at 31 December 2014.

Interest-bearing liabilities decreased by SEK 30.2 million in the nine months to end-September 2015 and totalled SEK 76.7 million at the end of the period. Net liabilities amounted to SEK 87.2 million, compared with SEK 62.1 million as at 31 December 2014. The equity/assets ratio at the end of the reporting period was 50.6 per cent, compared with 46.8 per cent as at 31 December 2014. Shareholders' equity per share was SEK 36.85 at the end of the period, compared with SEK 35.83 as at 31 December 2014. The Group utilised SEK 17.2 million (-) of its overdraft facility of SEK 50.0 million (60.0).

Operating margin per quarter and rolling 12 months

Capital expenditure

Investments in property, plant and equipment amounted to SEK 5.5 million (5.9) in the nine months to end-September, while investments in intangible non-current assets amounted to SEK 0.6 million (0.8). Investments in subsidiaries and businesses amounted to SEK 13.8 million (31.9). The investments in subsidiaries and businesses comprised Energy Business Sweden AB, Automationscenter & Bråvalla Elteknik and Caruna's project management activities. Depreciation, amortisation and impairment amounted to SEK 20.2 million (22.2).

Employees

The number of employees at the end of the reporting period was 1,800 (1,733). The number of full-time employees was 1,730 (1,671).

At the end of the period, 9 (24) employees in Finland and 1 (-) in Norway were laid off.

Number of employees at the end of the quarter

Parent Company

Parent Company net revenue for the period amounted to SEK 18.9 million (17.0), while the company reported a pretax profit of SEK -6.7 million (-13,9).

Significant events during the third quarter and after the end of the period

Rejlers has signed an agreement on 21 October 2015 to acquire 88.52 percent of shares in the Norwegian IT company Embriq AS from the Hafslund group. The set purchase price came to 78 MNOK and the acquisition was paid in cash. Rejlers grew by 120 employees and our annual revenue increased by NOK 240 million through the acquisition.

In accordance with the decision taken at Rejlers' Annual General Meeting 2015, three representatives of the company's largest shareholders have been appointed to a Nomination Committee. The task of the Nomination Committee is to develop proposals for the Board, for submission to the Annual General Meeting 2016 for adoption. The following have accepted to be part of the Nomination Committee: Kent Hägglund, representing Peter Rejler; Martina Rejler, representing Jan Rejler; and Johan Lannebo, representing Lannebo Fonder AB.

Segment Rejlers Sweden

Reilers offers technical consultancy services to customers within the areas of Building and property. Energy, Industry and Infrastructure, Reilers Sweden has offices in approx. 40 locations. The range of services includes automation, electric power, installation, railways, mechanical engineering, processing and plant as well as telecommunications. Segment Sweden accounts for approximately 62 per cent of Rejlers' total revenue.

Rejlers Sweden reported a 5.6 per cent increase in revenue in the third quarter of 2015, of which 67 percent was organic. The operating profit for the quarter was SEK 14.8 million (11.9), corresponding to an operating margin of 6.1 per cent (5.1). The release of project reserves boosted the results by 4.0 MSEK.

The market outlook is good in our growth markets energy and infrastructure. Climate and environmental challenges will lead to the development of new services in the energy sector, combining power technology and digitisation. Demand from the mechanical engineering and nuclear power industries remains weak and this is having an adverse effect on both revenue and profits. Demand from the mining industry and the paper and pulp industry has improved, however.

Rejlers' infrastructure segment is developing well and we have won several large railway contracts this quarter. The market for our environmental technology and permits services is growing and we envisage new business opportunities in this sector.

Demand for Rejlers' telecommunications services is good because of continued investment in the expansion of both fibre and mobile networks by telecommunications operators. We see great potential in the telecommunications market where customers are increasingly requesting turnkey solutions.

Demand for our services involving energy efficiency and sustainable energy solutions remains strong. We are achieving good organic growth in the electricity distribution sector. The development of smart electricity networks and e-transport is fuelling investments in electricity distribution

networks. Smart electricity distribution networks are an intelligent electricity distribution system that balances supply and demand in a sustainable, reliable and costefficient manner

Rejlers is expanding in the building and property segment and has concluded several new framework agreements in the third quarter. New investment in the construction of residential and office premises is boosting demand for our expertise. Rejlers has been given the go-ahead for the Slussen design project according to a decision taken by Stockholm city council in September.

Assignments (third quarter and after the end of the period)

  • » Rejlers Energitjänster has signed an agreement with VÄRMEK for comprehensive measurement data management. The order is worth SEK 15 million and the aim is to give Värmek's member companies access to an affordable and efficient system.
  • $\mathbf{v}$ Rejlers has been awarded two large contracts by the Swedish Transport Administration covering track expansion, remote control and new signalling equipment. The aim is to be able to control entire railway routes from one central location.
  • » Rejlers has been commissioned to act as general consultant with responsibility for planning services for Region Skåne's project to expand the media supply for the new hospital area in Helsingborg.
  • Rejlers has been commissioned to plan and prepare the tender request documentation for Ellevio AB's upgrade of its electricity distribution lines.

Key ratios - Reilers Sweden

Jul - Sep Jul – Sep Jan – Sep Jan – Sep Full vear
2015 2014 2015 2014 2014
Revenue, SEK million 244.2 231.2 814.8 812.3 1,111.7
Operating profit, SEK million 14.8 11.9 50.9 49.7 74.9
Operating margin, % 6.1 5.1 6.3 6.1 6.7
Number of employees 1,058 1,031 1.058 1.031 1.034

Rejlers has operations in 18 locations in Finland. Rejlers Finland provides consultancy services in the fields of architecture, automation, energy, mechanical engineering, environmental technology and heating, ventilation and sanitation as well as turnkey deliveries to customers within Building and property, Energy, Industry and Infrastructure. The Finland segment accounts for about 20 per cent of Rejlers' total revenue.

Rejlers Finland increased its revenue in the third quarter by 9.2 per cent measured in Swedish kronor, and by 6.8 per cent measured in Euro. Growth was half organic. The operating profit for the quarter was SEK 2.4 million (4.2), equivalent to an operating margin of 3.2 per cent (6.1). The decline in results was due to lower order intake from industry

The industrial market in Finland remains challenging. Falling demand from the mechanical engineering industry has resulted in a number of layoffs, with a total of 9 employees laid off at the end of the quarter. We are responding to the weaker industrial market by developing new services to meet our customers' requirements. Rejlers is showing good growth in the energy and infrastructure sector. The project management activities acquired from the electricity distribution company Caruna have now been integrated and are generating new assignments for us.

The market situation in the transport sector improved during the third quarter. We are seeing higher demand for our expertise in infrastructure. The telecommunications business is growing and cross-border projects are becoming more common. Reilers is working on network planning and network design of fixed and mobile networks covering the entire Nordic region.

Investments in electric distribution companies will remain at a good level for many years to come. There is a considerable need for turnkey solutions and outsourcing of processes among energy companies, boosting demand for our services. This development is positive for our energy

metering services, which are aimed at lowering energy consumption. We expect the market for Rejlers' environmental services to be growing throughout the business.

Order volumes for Rejlers' building and property sector services have increased, particularly in the public sector and the residential property market.

Some areas of the industrial market are weak. Investments are beginning to pick up in the paper and pulp industry, but competition is still intense.

Assignments (third quarter and after the end of the period)

  • Rejlers has been commissioned to supply HVAC building services and electrical engineering technology for the ESPER hospital project in Mikkeli. Rejlers will provide project planning for HVAC building services and all technical systems for electricity, lighting, telecommunications and security for Mikkeli Central Hospital in Finland. The project is on schedule to finish in 2020.

  • Rejlers has concluded an agreement with the Finnish Transport Authority concerning modernisation of Tampere railway control centre.

  • Rejlers has been commissioned by the power company Nurmijärven Energia Oy to supply services relating to electricity and district heating consumption, data management and energy measuring services.

  • » Rejlers has been awarded an assignment by Bellmer Vaahto Paper Machinery Finland Oy to provide mechanical engineering planning.

Key ratios - Reilers Finland

Jul - Sep $Jul - Sep$ $Jan - Sep$ Jan - Sep Full year
2015 2014 2015 2014 2014
Revenue, SEK million 75.0 68.7 254.2 227.5 311.7
Operating profit, SEK million 2.4 4.2 11.7 7.8 13.6
Operating margin, % 3.2 6.1 4.6 3.4 4.4
Number of employees 502 450 502 450 453

In Norway, Rejlers in 10 locations ac s offers expertise i cross the country. R in electric power, e Rejlers Norway acc electrical safety, en counts for about 18 nergy declaration, i 8 per cent of Rejle installation, railway rs' total revenue. ys and telecommun nications. Operatio ons are based

Rejlers Norwa crease by 7.9 by 7.4 per cen reported a pro (-12.6). The re results by 4.0 ay saw revenue per cent meas nt measured in ofit of SEK 4.5 elease of proje 0 MSEK. e for the third q sured in Swedis Norwegian kro million in the t ct reserves bo quarter insh kronor and oner. Norway third quarter osted the

The marke is good. The N market has im ment. Rejlers h and the acquis grow in the fie focus on impro positive result skilled staff in et outlook for te Norwegian infras mproved thanks has won severa sition of Embriq eld of digital ene oving profitabil ts. Additionally, n order to meet echnical consu structure and c s to increased p al large contrac q will enable the ergy services. W ity, which has b Rejlers needs t customer dema ltancy services construction public investts this quarter e company to We continue to begun to yield to recruit more and. s

In this qua in the infrastru tion is increas will boost dem technology an Matena, one o advice on bus arter, we were c ucture sector. T ing investment mand for Rejlers nd capacity ana of the railway m iness developm commissioned f The Norwegian t in the railway s s' services in th alyses. Rejlers is aintenance sup ment. or large project Rail Administra system, which e field of railwa s assisting ppliers, with ts aay

Telecomm their networks order to cut co ning more out tions function AS on operatio restrial networ third quarter. O unications ope s and are reorg osts. This opens sourcing contra s. As a result of on and mainten rk, we recruited Our experience rators are plan anising their op s up the possib acts involving t f our agreemen nance of their n d 20 new emplo e and competen ning to upgrade perations in bility of us wintelecommunicat with Norkring ationwide teroyees during th nce involving e g he ope ope eration and mai ens up opportu ntenance of co nities for large ommunications assignments. networks

erg inte cre erty ene We have estab gy and power tra eresting assign ased demand f y sector, aimed ergy use. blished new cus ansmission sec ments this qua for assignments at more efficie stomer contact ctor and have w arter. We are se s in the building ent and more su ts in the enwon several eing ing and propustainable

Ass per signments (th riod) hird quarter an nd after the e end of the

  • » Rejlers has assistance struction o largest and Måløy. Wit electrotech will contrib ter. s been selected e and project ma of Lefdal Mine D d most forwardh a strong focu hnology and tel bute to the crea d to contribute anagement for Datacenter, one -thinking data us on renewable lecommunicatio ation of a leadin technical the cone of Europe's centers in e energy, ons, Rejlers ng data cen-
  • » Rejlers har Selvaagby 400 new a r been awarded gg for the elect partments bein d a contract by trical project pl ng built in Oslo. Betonmast anning for
  • » Rejlers has the expans power stat s been awarded sion of the tran ions on the we d a contract by nsformer capac st coast. Statnett for ity of five
  • » Rejlers has pland Coun for the Dov s concluded a ra nty Council con vrebanen and R ailway agreeme ncerning a feasi Raumabanen ra ent with Opibility study ailway lines.
Jul
- Sep
Jul - S
Sep
Jan - Sep
p
Jan - Sep Full year
2015 20
014
2015
5
2014 2014
Revenue, SEK
K million
64.2 69.7
6
225.3
3
218.1 305.5
Operating prof
fit, SEK million
4.5 -1
12.6
5.0
0
-28.3 -25.6
Operating mar
rgin, %
7.0 neg 2.2
2
neg neg
Number of em
mployees
231 241 23
1
241 247

Group

Income statement in summary

SEK million Jul - Sep Jul - Sep Jan - Sep Jan - Sep Full year
2015 2014 2015 2014 2014
Revenue 380.1 366.5 1,288.8 1,247.4 1,711.5
Personnel costs -260.1 -250.7 -898.8 -886.3 -1,192.0
Other external expenses 95.5 -106.3 -308.4 -321.7 -440.6
Depreciation, amortisation and impairment losses -5.7 -7.1 -20.2 -22.2 -29.3
Participations in associates 0.1 0.1 0.5 -1.1 -1.0
Operating profit/loss 18.9 2.5 61.9 16.1 48.6
Net financial items 0.6 -0.6 -0.3 -3.2 -3.7
Profit after net financial items 19.5 1.9 61.6 12.9 44.9
Tax -5.6 -1.7 -15.6 -3.7 -11.0
Profit for the period 13.9 0.2 46.0 9.2 33.9
Attributable to:
The Parent Company's shareholders 13.9 0.2 46.0 9.2 33.9
Shareholders with no controlling interests 0.0 0.0 0.0 0.0 0.0
Earnings per share before dilution, SEK 1.12 0.02 3.73 0.76 2.78
Average number of shares 12,321,721 12,321,721 12,321,721 12,160,183 12,200,899
Fully diluted earnings per share, SEK 1.12 0.02 3.73 0.75 2.75
Number of shares at end of period 12,321,721 12,321,721 12,321,721 12,321,721 12,321,721

Statement of comprehensive income in summary

SEK million Jul - Sep Jul - Sep Jan - Sep Jan - Sep Full year
2015 2014 2015 2014 2014
Profit for the period 13.9 0.2 46.0 9.2 33.9
Items that may be reclassified to the income state
ment:
Translation differences from international activities,
net after tax -3.9 3.5 -8.8 12.3 7.0
Items that will not be reclassified to the income
statement:
Revaluations of net pension liabilities -13.7
Total other comprehensive income -3.9 3.5 -8.8 12.3 -6.7
Comprehensive income for period 10.0 3.7 37.2 21.5 27.2

Balance sheet in summary

SEK million 30 Sep 30 Sep 31 Dec
2015 2014 2014
Assets
Non-current assets
Goodwill 271.1 256.1 262.6
Other intangible assets 55.4 67.6 65.1
Property, plant and equipment 33.0 35.5 31.5
Other non-current assets 21.8 11.7 22.9
Total non-current assets 381.3 370.9 382.1
Current assets
Current receivables 487.2 474.1 471.5
Cash and cash equivalents 29.5 71.5 89.8
Total current assets 516.7 545.6 561.3
Total assets 898.0 916.5 943.4
Equity and liabilities
Equity attributable to shareholders in the Parent
Company 454.1 435.7 441.4
Non-controlling interests 0.1 0.1 0.2
Total equity 454.2 435.8 441.6
Non-current liabilities
Pension provisions 40.0 30.6 45.0
Other non-current liabilities 85.8 126.9 110.1
Total non-current liabilities 125.8 157.5 155.1
Current liabilities 318.0 323.2 346.7
Total liabilities and equity 898.0 916.5 943.4
Of which, interest-bearing liabilities 76.7 124.0 106.9
Pledged assets and contingent liabilities 214.0 186.7 214.8

Change in equity in summary

SEK million 30 Sep 30 Sep 31 Dec
2015 2014 2014
Equity at the beginning of the reporting period 441.6 355.6 355.6
Comprehensive income for period 37.2 21.5 27.2
Changes attributable to transactions with the own
ers
New share issue - 83.3 83.3
Dividend -24.6 -24.6 -24.6
Total changes attributable to transactions with the
owners -24.6 58.7 58.7
Non-controlling interests 0.0 0.0 0.1
Equity at end of period 454.2 435.8 441.6

Cash flow statement in summary

SEK million Jul - Sep Jul - Sep Jan - Sep Jan - Sep Full year
2015 2014 2015 2014 2014
Cash flow from operating activities before changes in
working capital and paid tax 18.5. 10.1 68.4 47.6 85.9
Paid tax -8.0 -10.6 -17.9 -27.3 -21.3
Change in working capital 33.8 -16.6 -29.1 0.0 3.6
Cash flow from operating activities -23.3 -17.1 21.4 20.3 68.2
Cash flow from investing activities -14,7 -1.2 -21.8 24.3 7.1
Cash flow from financing activities -13.0 -8.6 -57.0 -24.3 -36.6
Cash flow for the period -51.0 -26.9 -57.4 20.3 38.7
Cash and cash equivalents at start of period 83.5 97.7 89.8 49.0 49.0
Exchange rate differences in cash and cash equiva
lents -3.0 0.7 -2.9 2.2 2.1
Cash and cash equivalents at end of period 29.5 71.5 29.5 71.5 89.8

Acquisition of subsidiaries and operations

On 11 March 2015, Rejlers acquired 100 per cent of the shares in Energy Business Sweden AB, the Swedish activity within Eneas Energy AB. Energy Business Sweden offers energy-efficient services that ensure lower energy consumption for properties and municipalities. This acquisition will enhance our expertise within the areas of energy and the environment. On 22 June 2015, the company acquired the consultancy business of Automationscenter & Bråvalla Elteknik AB. The acquisition comprises 7 electrical construction and DCS/PLC programming consultants. Rejlers has acquired the electricity distribution company Caruna's project monitoring business employing 26 staff in Finland and this is part of Rejlers' Finnish activities from 1 September. The acquisition will strengthen our position as a market-leading technical consultancy company in the electricity distribution sector.

So far this year, acquisitions have contributed revenue of SEK 9.4 million and operating profit of SEK 0.3 million. If the company and operations had been owned as of 1 January, they would have contributed revenue of SEK 29.2 million and an operating loss of SEK 0.5 million. The transaction costs of the acquisitions amounted to SEK 0.1 million.

After the end of the period Rejlers has signed an agreement to acquire 88.52 % of shares in Embriq AS with 120 employees and an annual turnover of 240 million NOK. It places Rejlers as the premier engineering consultancy company in the Nordic area, with full scale IT services within the rationalisation of infrastructure and energy. Embriq is consolidated from 1 October 2015.

Net assets of companies acquired at the time of acquisition
------------------------------------------------------------- -- --
SEK million Jan - Sep
2015 Embriq
Non-current assets 2.4 53.0
Current assets 8.6 62.8
Cash and cash equivalents 1.7 6.7
Long-term liabilities - -11.9
Other current liabilities -8.5 -51.9
Net identifiable assets and liabilities 4.2 58.7
Goodwill 11.7 17.2
Customer value 0.5 5.1
Deferred tax on intangible assets 0.0 -1.4
Purchase price, cash and cash equivalents
Deductions:
16.4 79.6
Cash and cash equivalents in acquired companies -1.7 -6.7
Non-regulated purchase price -1.0 -
Net cash outflow during the period 13.7 72.9

The goodwill value, which is not tax-deductible. Includes the technical competence of staff, as well as acquired customer relationships that are not separable, along with 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 have been booked as other external costs when they were incurred.

Key ratios

SEK million Jul - Sep Jul - Sep Jan - Sep Jan - Sep Full year
2015 2014 2015 2014 2014
Operating margin, % 5.0 0.7 4.8 1.3 2.8
Equity/assets ratio, % 50.6 47.5 50.6 47.5 46.8
Billing ratio, % 74.8 74.7 75.0 75.4 75.3
Number of working days 66 66 186 186 248
Number of full-time employees 1,733 1,659 1,730 1,671 1,674
Number of employees at end of period 1,800 1,733 1,800 1,733 1,742
Revenue per full-time employee, SEK thousand 219 219 745 747 1,022
Operating profit per full-time employee, SEK thou
sand 11 1 36 10 29
Net liabilities, SEK million 87 83 87 83 62.1
Net debt/EBITDA rolling 12 month basis, multiple 0.7 1.5 0.7 1.5 0.8
Earnings per share after tax, SEK 1.12 0.02 3.73 0.76 2.78
Average number of shares 12,321,721 12,321,721 12,321,721 12,160,183 12,200,899
Equity per share at end of period 36.85 35.35 36.85 35.35 35.83
Number of shares at end of period 12,321,721 12,321,721 12,321,721 12,321,721 12,321,721

Quarterly summary

SEK million Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015
Revenue
Sweden 286.7 266.1 266.0 220.8 279.7 291.0 290.1 231.2 299.4 282.4 288.2 244.2
Finland 76.0 71.1 71.5 58.1 82.5 74.3 84.5 68.7 84.2 88.2 91.0 75.0
Norway 33.4 29.9 33.3 42.1 46.6 75.4 73.0 69.7 87.4 81.0 80.1 64.2
Group-wide, etc. -7.5 -2.4 -2.2 -4.5 6.1 -1.8 -5.6 -3.1 -6.9 0.6 -2.8 -3.3
Total 388.6 364.7 368.6 316.5 414.9 438.9 442.0 366.5 464.1 452.2 456.5 380.1
Operating profit/loss
Sweden 31.0 29.9 15.0 14.9 8.7 27.7 10.1 11.9 25.2 18.8 17.3 14.8
Finland 3.3 0.8 3.6 -0.3 7.0 0.7 2.9 4.2 5.8 4.2 5.1 2.4
Norway 1.4 2.5 8.5 4.1 1.8 -3.8 -11.9 -12.6 2.7 0.3 0.2 4.5
Group-wide, etc. -11.6 -6.3 -9.3 -7.5 -7.1 -11.2 -0.9 -1.0 -1.2 -0.4 -2.5 -2.8
Total 24.1 26.6 17.8 11.2 10.4 13.4 0.2 2.5 32.5 22.9 20.1 18.9
Operating margin
Sweden 10.8 11.2 5.6 6.7 3.1 9.5 3.5 5.1 8.4 6.7 6.0 6.1
Finland 4.3 1.1 5.0 neg 8.5 0.9 3.4 6.1 6.9 4.8 5.6 3.2
Norway 4.2 8.4 25.5 9.7 3.9 neg neg neg 3.1 0.4 0.2 7.0
Group-wide, etc. - - - - - - - - - - - -
Total 6.2 7.3 4.8 3.5 2.5 3.1 0.0 0.7 7.0 5.1 4.4 5.0
Full-time employees
Sweden 963 955 955 963 977 998 995 982 1,006 1,012 1,015 1,012
Finland 435 430 429 411 417 434 457 418 432 449 459 486
Norway 79 82 114 108 131 236 233 249 242 234 227 226
Group-wide, etc. 12 12 12 12 12 12 11 10 10 10 10 9
Total 1,490 1,479 1,510 1,494 1,537 1,680 1,696 1,659 1,690 1,705 1,710 1,733

Parent Company

Income statement in summary

SEK million Jul - Sep Jul - Sep Jan - Sep Jan - Sep Full year
2015 2014 2015 2014 2014
Revenue 6.2 5.4 18.9 17.0 23.8
Personnel costs -3.9 -2.7 -11.9 -16.5 -19.7
Other external expenses -4.9 -2.8 -14.0 -10.4 -14.3
Depreciation -0.3 -0.2 -0.8 -0.7 -1.0
Operating profit/loss -2.9 -0.3 -7.8 -10.6 -11.2
Net financial items 1.9 -0.6 1.1 -3.3 66.5
Profit after net financial items -1.0 -0.9 -6.7 -13.9 55.3
Balance sheet appropriations - - -11.2
Tax - - -9.3
Profit/loss after tax -1.0 -0.9 -6.7 -13.9 34.8

The Parent Company does not have any items to report in other comprehensive income, which is why this financial statement has been omitted.

Balance sheet in summary

SEK million 30 Sep 30 Sep 31 Dec
2015 2014 2014
Assets
Non-current assets
Intangible assets 0.6 1.4 1.2
Property, plant and equipment 0.7 0.7 0.6
Financial non-current assets 303.7 303.6 303.7
Total non-current assets 305.0 305.7 305.5
Current assets
Current receivables 8.6 8.6 73.6
Cash and cash equivalents - 12.0 13.9
Total current assets 313.6 20.6 87.5
Total assets 326.3 393.0
Equity and liabilities
Equity 160.5 143.1 191.8
Untaxed reserves 30.9 19.7 30.9
Non-current liabilities 17.4 49.6 42.8
Current liabilities 104.8 113.9 127.5
Total liabilities and equity 313.6 326.3 393.0

Rejlers' shares

The last buy price at the end of the reporting period for the Rejlers Class B share was SEK 93.00, an increase of 3 per cent compared with 31 December 2014. The last buy price for the Rejlers Class B share on 22 October 2015 was SEK 98.75 per share. Rejlers' shares are listed on Nasdaq Stockholm.

Annual General Meeting 2016

The Annual General meeting will be held at Rejlers' office in Stockholm, Lindhagensgatan 126, on 9 May 2016.

Information on the Nomination Committee and the AGM is available on the company's website, www.rejlers.com.

Accounting policies

This Interim Report for the Group is presented in accordance with IAS 34, Interim Financial Reporting, and RFR 1, Supplementary accounting rules for groups. The same accounting principles were applied in the latest annual reports for both the Group and the Parent Company. A number of adjustments to the standards came into force in 2015. None of these has had a significant impact on the Group's accounts and reporting.

The Parent Company's reporting has been prepared in accordance with the Swedish Annual Accounts Act (ÅRL) and RFR 2, Accounting for legal entities.

For detailed information in respect of the company's significant risks, uncertainty factors and accounting policies, please refer to the Annual Report for 2014.

Dates for financial reports

Year-end Report 2015 9 February 2016
Interim Report January–March 2016 9 May 2016
Annual General Meeting 9 May 2016
Interim Report January–June 2016 19 July 2016
Interim Report, January–September 2016 25 October 2016

Other details

The reported value for financial instruments recognised at accrued acquisition value corresponds to the fair value.

Transactions with associated parties took place on market terms and have not significantly affected the Group's results.

Stockholm, 23 October 2015 Rejlers AB (publ)

Peter Rejler Board Member, President and CEO

Market Act and/or the Swedish Financial Instruments Trading Act. This information was released for publication on 23 October 2015 at 08.00. This interim report is also available in Swedish. The English version is a translation of the Swedish original. In the case of any discrepancy between the two, the Swedish version takes precedence.

The information in this interim report is that which Rejlers AB is required to publish in compliance with the Swedish Securities

Auditor's review report

Introduction

We have conducted a review of the interim report for Rejlers AB (publ) for the period 1 January 2015 to 30 September 2015. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to provide an opinion on the interim report based on our review.

Aim and scope of review report

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different aim and is substantially less extensive in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the qualified opinion expressed based on a review does not give the same level of assurance as a qualified opinion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim report is not, in all essentials, prepared for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act and for the Parent Company in accordance the Swedish Annual Accounts Act.

Stockholm, 23 October 2015

Deloitte AB

Birgitta Lööf Authorised Public Accountant

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