Quarterly Report • May 7, 2018
Quarterly Report
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Cash flow from operating activities totalled SEK 70.7 million for the quarter.
| KEY FIGURES | Q1 18 | Q1 17 | 12 M R | 2017 |
|---|---|---|---|---|
| Net sales, SEK million | 603.2 | 629.6 | 2 438,3 | 2 464,6 |
| Organic growth excluding exchange rate effects, % | -1.7 | 8.0 | 0.9 | 4.1 |
| EBITA, SEK million | 7.3 | 33.0 | 11.9 | 37.5 |
| EBITA* (adjusted), SEK million | 20.7 | 33.0 | 43.0 | 55.2 |
| EBITA margin* (adjusted), % | 3.4 | 5.2 | 1.8 | 2.2 |
| Operating profit/loss, SEK million | 5.1 | 29.7 | 0.5 | 25.1 |
| Profit/loss after tax, SEK million | 1.5 | 21.2 | -8.0 | 11.7 |
| Earnings per share before dilution, SEK | 0.07 | 1.59 | -0.42 | 0.71 |
| Earnings per share after dilution, SEK | 0.07 | 1.59 | -0.42 | 0.71 |
| Cash flow from operating activities, SEK million | 70.7 | -10.2 | 39.6 | -41.3 |
| Net debt/EBITDA rolling 12 mo., times | 2.3 | 2.4 | 2.3 | 2.3 |
* As of the first quarter of 2017, Rejlers recognizes EBITA (adjusted) as operating profit/loss. For the definition, refer to page 18.
With a strong belief in the future, I am pleased to present the interim report for the first quarter of 2018 as the new President and CEO. Rejlers has an established position in the Nordic market with a broad range of services and clear potential to strengthen both its market position and earnings in the future. And we have begun the work of creating a more efficient, profitable and sustainable Rejlers through changes mainly in the Swedish and Norwegian operations. In total, sales decreased slightly in the first quarter while profitability is weighed down by non-recurring costs related to structural changes. The restructuring will also substantially encumber the second quarter earnings. Cash flow was strong during the first quarter.
Change is needed to achieve our full potential. We need to become more efficient internally and at the same time more specialized to better be able to challenge and support our customers. We need to revise our strategy and strengthen our brand. It is exciting work we have ahead of us that will be done in stages. The first stage will be to increase operational efficiency.
We have already begun the change work by introducing a new organizational model for the Swedish operations. An organization that focuses on industry specialization rather than geography. Our new organization will enter into effect on 1 May and consists of five divisions with a clear mandate: Energy, Buildings, Industry, Infrastructure and Telecom. The reorganization means that the previous matrix organization is disappearing and that the Swedish operations will have a smaller management group. We are now also initiating corresponding changes in the Norwegian operations, where Rejlers Embriq and Rejlers Norway are being combined into one operation.
In the first quarter of the financial year, net sales decreased by 4.1 per cent to SEK 603.2 million (629.6) partly as a result of calendar effects. Adjusted EBITA decreased to SEK 20.7 million (33.0) and was negatively impacted by calendar effects, fewer consultants and a continued low billing ratio. The on-going change work entails restructuring costs, which are charged to the quarter's profit in an amount of SEK 13.4 million (-). The change work will continue in the second quarter and are estimated to be charged to profit on a magnitude of SEK 40 million. The costs mainly consist of provisions for property contracts where co-location has occurred, closure of lossgenerating operations and the discontinuation of several management positions. The rationalization affects all three Rejlers countries and is estimated to provide annual savings of SEK 30 million with full effect as of 2019. The objective is to create an operationally efficient Rejlers with greater focus on the market, profitability and growth.
It is inspiring to be on-site – since 22 February – to take Rejlers into the future together with the company's managers and employees. Rejlers has a 75-year history, nearly 2,000 qualified engineers, a growing partner network and high customer satisfaction. With such a strong platform, my assessment is that we can and will play an even more active role in the digital development of business and society. We will take a position as the "digital innovator". It is in the border zone between customers, technology and our operations that the future's digital winners will be created. The aim is to establish the industry's most exciting workplace with a clear focus on both customer benefit and shareholder value.
Stockholm, May 2018 Viktor Svensson
"Change is needed to achieve our full potential. We need to become more efficient internally and at the same time more specialized to better be able to challenge and support our customers."
Profit/loss items and cash flow are compared with the corresponding time period in the previous year. Balance sheet items pertain to the position at the end of the period and are compared with the immediately preceding accounts.
Net sales totalled SEK 603.2 million (629.6), a decrease of 4.1 per cent compared to the corresponding quarter last year, partly as a result of calendar effects. Organic growth excluding exchange rate fluctuations was -1.7 per cent. In Finland, organic growth is positive while the other operations have a negative organic growth.
The quarter's adjusted EBITA amounted to SEK 20.7 million (33.0). Adjusted EBITA margin amounted to 3.4 per cent (5.2). The decline is partly attributable to the calendar effect of one working day less during the quarter compared with last year in Sweden and Finland and three working days less in Norway, and partly attributable to restructuring costs of SEK 13.4 million and a lower number of consultants.
Operating profit (EBIT) amounted to SEK 5.1 million (29.7) and the operating margin was 0.6 per cent (4.7)
The quarter's financial income amounted to SEK 2.2 million (1.1) and pertains mainly to currency translations. Financial expenses amounted to SEK 1.6 million (2.4) and are mainly attributable to interest expenses and currency translations.
The quarter's tax expense amounted to SEK 4.2 million (7.2). The lower tax expense is mainly attributable to deferred taxes in Norway belonging to earlier years.
Profit after tax for the period amounted to SEK 1.5 million (21.2). Earnings per share amounted to SEK 0.07 (1.59) both before and after dilution.
During the quarter, the Group generated a cash flow from operating activities of SEK 70.7 million (-10.2). Lower trade receivables positively impacted the cash flow.
Consolidated cash and cash equivalents at the end of the period amounted to SEK 75.6 million compared to SEK 20.3 million on 31 December 2017. The change in cash and cash equivalents has among other things been affected by amortization in an amount of SEK 7.1 million.
Interest-bearing liabilities decreased by SEK 5.9 million since 31 December 2017 to amount to SEK 152.7 million at the end of period. Net debt amounted to SEK 108.1 million, compared with SEK 167.2 million as at 31 December 2017. The refinancing negotiations were concluded. The company's loans will, after revision, be paid off in five years.
The ratio of net debt to EBITDA amounted to 2.3 at the end of the period compared with 2.3 at 31 December 2017. The equity/assets ratio amounted to 52.1 per cent compared with 52.7 on 31 December 2017.
Quarterly oper. profit (left scale) Roll. 12 month oper. profit (right scale)
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ROLLING 12 MONTHS, % 0,0% 2,0% 4,0% 6,0% Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1
Equity per share was SEK 41.89 at the end of the period compared to SEK 40.77 as of 31 December 2017. The Group's overdraft facilities of SEK 150.0 million (50.0) are entirely unutilized.
Investments in tangible assets amounted to SEK 1.9 million (1.7) and mainly pertain to servers and other IT equipment while investments in intangible assets, mainly attributable to the development of IT platforms at Rejlers Embriq, amounted to SEK 7.3 million (7.9). Investments in subsidiaries and businesses amounted to SEK 0.0 million (1.0). Depreciation/amortization amounted to SEK 11.5 million (11.8).
The billing ratio increased to 75.2 per cent (73.9), mainly as a result of higher order volumes in Norway and Sweden. The billing ratio increased compared with the same period last year, but is on a level that is too low.
At the end of the period, there were 1,953 employees (2,048). There were 1,876 fullyear employees (1 967).
Net sales for the parent company during the interim period amounted to SEK 9.1 million (7.2) and the profit/loss before tax amounted to a loss of SEK 12.2 million (loss: 5.3). The profit/loss in the Parent Company was impacted by non-recurring costs in connection with the change in CEOs.
Rejlers is affected by seasonal variations and calendar effects. The respective quarters are relatively comparable over the years, but are affected by minor calendar effects, such as when in time Easter occurs. Sales are normally higher in the first, second and fourth quarters and lower in the third quarter. Similar seasonal variations occur in all geographic markets.
On 22 February, Viktor Svensson took office as the President and CEO of Rejlers AB. At the Annual General Meeting on 7 May 2018, Peter Rejler will be proposed as the new Chairman of the Board of Rejlers. Viktor most recently comes from ÅF where he has worked in several different roles over the past 15 years, in recent years as the President of the ÅF Technology Division.
Through the agreement with Scania-owned DynaMate, Rejlers Sweden is adding to its expertise within HVAC and other key areas and further strengthening the services it offers within safety. In total, 31 employees will transfer to Rejlers' offices in Luleå, Stockholm, Borlänge and Oskarshamn effective 1 April.
On 23 March, Rejlers' President and CEO Viktor Svensson and Rejlers Sweden's President Jonas Thimberg have agreed that Jonas will step down from his position as President of the Swedish operation. At the same time, Viktor took the position of acting President for the Swedish operations.
Rejlers long-term policy is for around 50 per cent of the company's earnings to be paid out as dividends. Rejlers Board proposes that the 2018 AGM approve a dividend of SEK 0.50 per share (0.00) for the 2017 financial year, which corresponds to 70.4 per cent of earnings per share after dilution. The dividend amount is SEK 9.0 million (0.0).
Rejlers Sweden is streamlining its organization and establishing five national divisions with an office network which stretches from Kiruna in the north to Malmö in the south. The new organization will enter into effect on 1 May.
The operations in Rejlers Norge AS and Rejlers Embriq AS are now being gathered and forming a new, powerful organization with unique expertise in digitalization, technical consulting and IT. As of the first quarterly report this year, Rejlers Norway will also be financially reported as one operation.
Rejlers' refinancing negotiations are concluded were improved terms and conditions and repayment times, as well as a higher bank overdraft facility.
The new framework agreement comprises a total of nine areas and Rejlers Sweden has been chosen as the partner in all of them. The agreement comprises construction technology and electrical power both in local and regional grids, cables and overhead lines in regional grids, inspections and expertise in nature, environment, culture and forest and property law.
The Swedish National Property Board will renovate the Rosenbad block (which houses the Government Offices) in Stockholm, where there is a major need to modernize the climate system and technical installations. Rejlers will be responsible for design work regarding electrical and telecommunications systems in connection with the modernization in order to future-proof the block for efficient operation and management, and to ensure that the premises remain functional, safe, efficient, flexible and attractive for the tenant.
Rejlers has pilot tested an entirely new way of using tools for augmented reality (AR) to locate Internet of Things (IoT) sensors in operations and maintenance of Fortum's hydroelectric power plant Oulunjoki in Finland.
The last price paid for Rejlers Class B on 29 March 2018 was SEK 51.80 per share, a decrease of 9.5 per cent compared with 29 December 2017. The last price paid for the Rejlers Class B share on 4 May 2018 was SEK 61.00 per share. The Rejlers share is listed on Nasdaq Stockholm.
The change work in Rejlers Sweden began with the introduction of a new organizational model on 1 May with a focus on industry specialization. The reorganization means that the matrix organization is disappearing and the organization will now consist of five divisions: Energy, Buildings, Industry, Infrastructure and Telecom. In addition, the size of the management group is being cut in half for greater efficiency and clarity both internally and externally. In connection with this, Johan Thimberg left as the President of Rejlers Sweden at the same time that Viktor Svensson became the acting President for the Swedish operations.
Net sales totalled SEK 294.1 million (308.2) in the first quarter, a decrease of 4.6 per cent compared with the year-before period. Organic growth amounted to -4,6 per cent.
Adjusted EBITA decreased to SEK 15.0 million (24.8), corresponding to an adjusted EBITA margin of 5.1 per cent (8.0) where the decrease is mainly attributable to fewer consultants and the calendar effect. Costs for the on-going restructuring of the operations and management changes were charged to profit/loss in an amount of SEK 4.0 million in the first quarter.
Operating profit for the quarter was SEK 9.7 million (23.5), equivalent to an operating margin of 3.3 per cent (7.6). The calendar effect was negative by one day compared with the corresponding period the previous year.
| Key figures | Q1 18 | Q1 17 | 12M R | 2017 |
|---|---|---|---|---|
| Net sales, SEK million | 294.1 | 308.2 | 1 184,8 | 1 198,9 |
| Adjusted EBITA, SEK million | 15.0 | 24.8 | 45.4 | 55.2 |
| Adjusted EBITA margin, % | 5.1 | 8.0 | 3.8 | 4.6 |
| Operating profit, SEK million | 9.7 | 23.5 | 26.3 | 40.1 |
Rejlers Finland continues to have good market conditions with higher public and private construction and a positive development for the operations in Energy, Industry and Infrastructure.
Net sales totalled SEK 130.7 million (118.5) in the first quarter, an increase of 10.5 per cent compared with the year-before period. Organic growth excluding exchange rate fluctuations was 2.9 per cent. Growth is mainly attributable to the generally more favourable market conditions, as well as the calendar effect.
Adjusted EBITA decreased to SEK 8.4 million (11.4), corresponding to an adjusted EBITA margin of 6.4 per cent (9.6) where the decrease is mainly attributable to the calendar effect and a slightly lower billing ratio.
Operating profit for the quarter was SEK 7.8 million (10.5), equivalent to an operating margin of 5.9 per cent (8.8).
The calendar effect was negative by one day compared with the corresponding period the previous year.
| Key figures | Q1 18 | Q1 17 | 12M R | 2017 |
|---|---|---|---|---|
| Net sales, SEK million | 130.7 | 118.5 | 477.1 | 464,9 |
| Adjusted EBITA, SEK million | 8.4 | 11.4 | 29.1 | 32.0 |
| Adjusted EBITA margin, % | 6.4 | 9.6 | 6.1 | 6.8 |
| Operating profit, SEK million | 7.8 | 10.5 | 26.6 | 29.3 |
8 Interim report, January-March 2018 Rejlers AB
Rejlers Norway and Rejlers Embriq are being combined into one operation and forming a new organization with expertise in digitalization, technical consulting and IT. This will increase Rejlers competitiveness in the Norwegian market through business synergies and shared operating functions. At the same time, it provides cost savings.
Rejlers Norway has for some time been marked by profitability problems as a result of low efficiency in some large telecom projects and a generally low billing ratio. Efficiency has improved, but the first quarter was marked by the merger of the two operations with cut-backs in administrative personnel and co-location of the operations to improve profitability.
During the quarter, the roll-out of smart electricity meters in Netalliansen continued with higher
revenues from associated operating contracts. The Connected Stores concept was well received by the customers and involves a digitalization of retailing, which will lead to minimal stock, optimal logistics and reduced emissions.
Net sales totalled SEK 191.8 million (206.7) in the first quarter, a decrease of 14.5 per cent compared with the year-before period. The decrease is mainly attributable to the calendar effect, a generally low billing ratio and personnel cut-backs. Organic growth excluding exchange rate fluctuations was -5.5 per cent.
Adjusted EBITA amounted to SEK 4.1 million (1.1), corresponding to an adjusted EBITA margin of 2.1 per cent (0.5). Positive effects from the action programme in 2017 were not able to fully compensate for a negative calendar effect and continued low efficiency in some assignments. Start-up costs related to the delivery of smart electrical meters and the initiative in Connected Stores entail an initial margin pressure, which is expected to decline in the coming years. Profit was negatively impacted by restructuring costs of SEK 3.3 million.
Operating profit for the quarter was SEK 0.8 million (0.3), equivalent to an operating margin of 0.4 per cent (0.1).
The calendar effect was negative by three days compared with the corresponding period the previous year.
| Key figures | Q1 18 | Q1 17 | 12M R | 2017 |
|---|---|---|---|---|
| Net sales, SEK million | 191.8 | 206.7 | 822.8 | 837.7 |
| Adjusted EBITA, SEK million | 4.1 | 1.1 | -2.5 | -5.5 |
| Adjusted EBITA margin, % | 2.1 | 0.5 | -0.3 | 3.1 |
| Operating profit, SEK million | 0.8 | 0.3 | -15.9 | -16.4 |
The undersigned provides assurance that this interim report provides an accurate overview of the operations, position and earnings of the Group and the Parent Company, and that it also describes the principal risks and sources of uncertainty faced by the Parent Company and the companies within the Group.
Stockholm, 7 May 2018 Rejlers AB (publ)
President and CEO
The information in this interim report is such that Rejlers AB (publ) is obliged to publish under the EU Market Abuse Directive and the Swedish Securities Market Act. The information was submitted through the care of the contact person above for publication on 7 May 2018 at 4:00 p.m. CET. This report is also available in Swedish. The English version is a translation of the Swedish original. If there are any differences, the Swedish version takes precedence.
The interim report has not been reviewed by the company's auditor.
| SEK million | Jan - Mar 2018 |
Jan - Mar 2017 |
JAN-DEC 2017 |
|---|---|---|---|
| Net sales | 603.2 | 629.6 | 2 464,6 |
| Other income | 1.2 | 0.4 | 5.5 |
| Personnel expenses | -384.7 | -375.2 | -1,448.9 |
| Other external expenses | -203.3 | -213.4 | -950.3 |
| Participations in associates | 0.2 | 0.1 | 0.3 |
| EBITDA | 16.6 | 41.5 | 71.2 |
| Depreciation/amortization and impairment of non-current assets 1) | -4.9 | -4.6 | -18.8 |
| EBITA | 11.7 | 36.9 | 52.4 |
| Acquisition-related items2) | -6.6 | -7.2 | -27.3 |
| Operating profit/loss (EBIT) | 5.1 | 29.7 | 25.1 |
| Net financial income/expense | 0.6 | -1.3 | -3.6 |
| Profit/loss after net financial income/expense | 5.7 | 28.4 | 21.5 |
| Tax | -4.2 | -7.2 | -9.8 |
| Profit/loss for the period | 1.5 | 21.2 | 11.7 |
| Attributable to: | |||
| Parent Company's shareholders | 1.3 | 20.6 | 11.7 |
| Shareholders without a controlling influence | 0.2 | 0.6 | 0.0 |
| Average number of shares | 18,087,909 | 12,921,721 | 16,417,744 |
| Earnings per share before and after dilution, SEK | 0.07 | 1.59 | 0.71 |
Impairment and depreciation of property plant and equipment and amortization of intangible assets excluding good will and those related to acquisitions.
Impairment and amortization of goodwill and intangible assets related to acquisitions, revaluation of supplemental purchase amounts and gains/losses in the divestment of subsidiaries and operations.
| SEK MILLION | JAN - MAR 2018 |
JAN - MAR 2017 |
JAN-DEC 2017 |
|---|---|---|---|
| Profit/loss for the period | 1.5 | 21.2 | 11.7 |
| Items that may be reclassified to the income statement: | |||
| Translation differences of foreign operations, net after-tax | 19.0 | -3.0 | -5.7 |
| Items that will not be reclassified to the income statement: | |||
| Revaluation of net pension liability | - | - | -3.5 |
| Total other comprehensive income | 19.0 | -3.0 | -9.2 |
| Comprehensive income for the period | 20.5 | 18.2 | 2.5 |
| SEK million | 31 Mar 2018 |
31 Mar 2017 |
31 Dec 2017 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Goodwill | 454.9 | 432.5 | 443.8 |
| Other intangible assets | 126.8 | 121.3 | 121.7 |
| Tangible assets | 33.2 | 38.3 | 32.1 |
| Other non-current assets | 53.2 | 51.7 | 51.7 |
| Total non-current assets | 668.1 | 643.8 | 649.3 |
| Current assets | |||
| Current receivables | 727.3 | 673.5 | 747.6 |
| Cash and cash equivalents | 75.6 | 15.3 | 20.3 |
| Total current assets | 802.9 | 688.8 | 767.9 |
| Total assets | 1 471,0 | 1 332,6 | 1,417.2 |
| Equity and liabilities | |||
| Equity attributable to shareholders in the Parent Company | 757.7 | 553.0 | 737.4 |
| Non-controlling interests | 9.1 | 17.4 | 8.9 |
| Total equity | 766.8 | 570.4 | 746.3 |
| Non-current liabilities | |||
| Provision for pensions | 31.0 | 21.0 | 28.8 |
| Interest-bearing non-current liabilities 1) | 7.2 | 149.2 | 5.4 |
| Other non-current liabilities | 45.0 | 48.4 | 48.7 |
| Total non-current liabilities | 83.2 | 218.4 | 82.9 |
| Current liabilities | |||
| Interest-bearing current liabilities 1) | 145.5 | 115.0 | 153.3 |
| Other current liabilities | 475.50 | 428.8 | 434.7 |
| Total current liabilities | 621.0 | 543.8 | 588.0 |
| Total liabilities and equity | 1 471,0 | 1 332,6 | 1,417.2 |
1) At 31 December 2017, the company's non-current liabilities were classified as current because refinancing must take place. Refinancing is complete. In April, the company's loans were renewed with a five-year repayment plan.
| SEK million | 31 Mar | 31 Mar | 31 Dec |
|---|---|---|---|
| 2018 | 2017 | 2017 | |
| Equity at start of period | 746.3 | 552.2 | 552.2 |
| Comprehensive income for the period | 20.5 | 18.2 | 2.5 |
| Changes attributable to transactions with the owners | |||
| Dividends | - | - | -0.5 |
| New share issue | - | - | 192.1 |
| Total changes attributable to transactions with the owners | - | - | 191.6 |
| Equity at end of period | 766.8 | 570.4 | 746.3 |
| Attributable to: | |||
| Parent Company's shareholders | 757.7 | 553.0 | 737.4 |
| Non-controlling interests | 9.1 | 17.4 | 8.9 |
| Total | 766.8 | 570.4 | 746.3 |
| SEK million | Jan - Mar | Jan - Mar | JAN-DEC |
|---|---|---|---|
| 2018 | 2017 | 2017 | |
| Cash flow from operating activities before changes in operating capital and tax paid |
14.9 | 40.9 | 70.9 |
| Tax paid | -14.4 | 2.1 | -8.3 |
| Change in working capital | 70.2 | -53.2 | -103.9 |
| Cash flow from operating activities | 70.7 | -10.2 | -41.3 |
| Cash flow from investing activities | -9.1 | -13.4 | -66.7 |
| Cash flow from financing activities | -7.1 | -25.9 | 63.2 |
| Cash flow for the period | 54.5 | -49.5 | -44.8 |
| Cash and cash equivalents at start of period | 20.3 | 64.9 | 64.9 |
| Exchange rate differences in cash and cash equivalents | 0.8 | -0.1 | 0.2 |
| Cash and cash equivalents at end of period | 75.6 | 15.3 | 20.3 |
| SEK million | 31 Mar 2018 |
31 Mar 2017 |
31 Dec 2017 |
|---|---|---|---|
| Interest-bearing non-current liabilities | 7.2 | 149.2 | 5.4 |
| Interest-bearing current liabilities | 145.5 | 115.0 | 153.3 |
| Pension provisions | 31.0 | 21.0 | 28.8 |
| Cash and cash equivalents | -75.6 | -15.3 | -20.3 |
| Total | 108.1 | 269.9 | 167.2 |
| SEK million | Jan - Mar 2018 |
Jan - Mar 2017 |
JAN-DEC 2017 |
|---|---|---|---|
| Sales | 9.1 | 7.2 | 37.1 |
| Personnel expenses | -11.5 | -4.9 | -19.3 |
| Other external expenses | -10.4 | -6.4 | -44.0 |
| Depreciation | -0.1 | -0.1 | -0.3 |
| Operating profit/loss | -12.9 | -4.2 | -26.5 |
| Net financial income/expense | 0.7 | -1.1 | 27.5 |
| Profit/loss after net financial income/expense | -12.2 | -5.3 | 1.0 |
| Appropriations Tax |
- - |
- - |
13.7 -0.2 |
| Profit/loss after tax | -12.2 | -5.3 | 14.5 |
The Parent Company has no items to report in other comprehensive income, which is why this financial statement has been omitted.
| SEK million | 31 Mar 2018 |
31 Mar 2017 |
31 Dec 2016 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Tangible assets | 0.5 | 0.3 | 0.6 |
| Financial assets | 391.9 | 391.9 | 391.9 |
| Total non-current assets | 392.4 | 392.2 | 392.5 |
| Current assets | |||
| Current receivables | 196.1 | 149.2 | 261.8 |
| Cash and cash equivalents | 46.4 | 0.0 | 0.9 |
| Total current assets | 242.5 | 149.2 | 262.7 |
| Total assets | 634.9 | 541.4 | 655.2 |
| Equity and liabilities | |||
| Equity | 420.7 | 221.1 | 432.8 |
| Untaxed reserves | 8.3 | 22.0 | 8.3 |
| Non-current liabilities 1) | 1.6 | 142.9 | 1.6 |
| Current liabilities 1) | 204.3 | 155.4 | 212.5 |
| Total liabilities and equity | 634.9 | 541.4 | 655.2 |
1) At 31 December 2017, the company's non-current liabilities were classified as current because refinancing must take place. Refinancing is complete. In April, the company's loans were renewed with a five-year repayment plan.
Rejlers AB (publ) (556349-8426) (the Parent Company) and its subsidiaries (jointly called the Group) are a Nordic business group that offers services to customers in the areas of Buildings, Energy, Industry, Infrastructure and Telecom.
The Parent Company is a Swedish public limited company with its registered office in Stockholm. The address of the head office is Box 30233, Lindhagensgatan 126, SE 104 25 Stockholm, SWEDEN. The company's B shares are 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 (except for the below) were applied as in the most recent annual report for both the Group and the Parent Company. A number of changes in the standards entered into effect in 2017. None of these has materially affected the Group's accounts and reporting. Information according to IAS 34 is provided in both notes and elsewhere in the interim report. The new standards IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers that entered into effect on 1 January 2018 have not had any material effects on the balance sheet or income statement. In Rejlers' business model, revenues are categorized according to IFRS 15 at the same level as the segments, and are presented in more detail under the segment information. Revenues consist mainly of sales of consulting services that meet the criteria for reporting over time. The work is carried out on an ongoing basis or at a fixed price and is recognized over time as the work is carried out, mostly monthly but also after socalled milestones. In most cases, billing occurs the period after the revenue has been posted.
Rejlers is currently evaluating the effects of IFRS 16 - Leases that enters effect on 1 January 2019. Here, material effects are expected in the financial statements.
The Parent Company's reports are prepared in accordance with the Annual Accounts Act and RFR 2, Accounting for Legal Entities.
The segment division is changed as of 1 January 2018. The former segments Rejlers Norway and Rejlers Embriq are now reported together as Rejlers Norway. The reason for the change is that both of the Norwegian units have been integrated and now form one unit. Historical figures have been restated.
For clearer reporting, sales have been divided into net sales and other income. Historical figures have been restated.
Through its operations, the Group is subject to various financial risks, such as market risk (comprehensive foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management involves striving for minimal unfavourable effects on financial position and performance. The Group's business risks and risk management as well as financial risks are described in detail in the annual report for 2017. No events of material significance occurred during the interim period that affects or changes these descriptions of the Group's risks and the management of them.
| SEK million | Q1 18 | Q1 17 | 12M R | 2017 |
|---|---|---|---|---|
| Restructuring costs | 13.4 | 0.0 | 31.1 | 17.7 |
No acquisitions were made during the quarter.
| NET SALES, SEK MILLION |
OPERATING PROFIT, SEK MILLION |
OPERATING MARGIN % | |||||||
|---|---|---|---|---|---|---|---|---|---|
| JAN | JAN | JAN - | JAN | JAN | JAN - | JAN | JAN | JAN - | |
| MAR | MAR | DEC | MAR | MAR | DEC | MAR | MAR | DEC | |
| 2018 | 2017 | 2017 | 2018 | 2017 | 2017 | 2018 | 2017 | 2017 | |
| Rejlers Sweden | 294.1 | 308.2 | 1 198,9 | 9.7 | 23.5 | 40.1 | 3.3 | 7.6 | 3.3 |
| Rejlers Finland | 130.7 | 118.5 | 464.8 | 7.8 | 10.5 | 29.3 | 5.9 | 8.8 | 6.3 |
| Rejlers Norway | 191.8 | 206.7 | 837.7 | 0.8 | 0.3 | -16.4 | 0.4 | 0.1 | -2.2 |
| Group wide | 9.1 | 7.2 | 37.1 | -13.2 | -4.8 | -27.9 | - | - | - |
| Eliminations | -22.5 | -11.0 | -73.8 | - | - | - | - | - | - |
| Consolidated total |
603.2 | 629.6 | 2 464,7 | 5.1 | 29.7 | 25.1 | 0.8 | 4.7 | 1.0 |
| Net financial income/expense |
- | - | - | 0.6 | -1.3 | -3.6 | - | - | - |
| Profit before tax | - | - | - | 5.7 | 28.4 | 21.5 | - | - | - |
The carrying amount of financial instruments recognized in amortized cost matches the fair value as the duration for financial assets and liabilities is short.
Related party transactions take place on market-based terms.
Pledged assets and contingent liabilities are essentially unchanged compared with the previous year.
The Annual General Meeting will be held at the Lindhagen Conference Centre, Lindhagensgatan 126 in Stockholm, Sweden on 7 May 2018 at 5:00 p.m. Information on the Nomination Committee and the AGM is available on the company's website, www.rejlers.com/se.
Rejlers long-term policy is for around 50 per cent of the company's earnings to be paid out as dividends. Rejlers Board proposes that the 2018 AGM approve a dividend of SEK 0.50 per share (0.00) for the 2017 financial year, which corresponds to 70.4 per cent of earnings per share after dilution. The dividend amount is SEK 9.0 million (0.0).
| SEK MILLION | Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
2016 | Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
2017 | Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
2018 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales1) | |||||||||||||||
| Sweden | 308.5 | 329.7 | 252.3 | 333.8 | 1 224,3 | 308.2 | 303.8 | 255.6 | 331.3 | 1 198.9 | 294.1 | ||||
| Finland | 91.1 | 97.0 | 85.2 | 114.2 | 387.5 | 118.5 | 113.0 | 105.2 | 128.2 | 464.9 | 130.7 | ||||
| Norway2) | 161.3 | 185.1 | 173.9 | 232.4 | 752.7 | 206.7 | 209.0 | 190.9 | 231.1 | 837.7 | 191.8 | ||||
| Group-wide, etc. | -2.7 | -4.1 | -11.3 | -7.5 | -25.6 | -3.8 | -4.3 | -8.8 | -20.0 | -36.9 | -13.4 | ||||
| Total | 558.2 | 607.7 | 500.1 | 672.9 | 2,338.9 | 629.6 | 621.5 | 542.9 | 670.6 | 2,464.6 | 603.2 | ||||
| Operating profit/loss |
|||||||||||||||
| Sweden | -1.4 | 17.8 | 2.1 | 9.5 | 28.0 | 23.5 | 6.4 | 1.1 | 9.1 | 40.1 | 9.7 | ||||
| Finland | 0.3 | 3.1 | 5.4 | 6.2 | 15.0 | 10.5 | 3.7 | 8.1 | 7.0 | 29.3 | 7.8 | ||||
| Norway2) | -2.0 | 7.1 | 0.6 | -3.4 | 2.3 | 0.3 | -15.3 | -7.8 | 6.4 | -16.4 | 0.8 | ||||
| Group-wide, etc. | -2.9 | -5.4 | -3.2 | -6.3 | -17.8 | -4.6 | -9.2 | -0.9 | -13.2 | -27.9 | -13.2 | ||||
| Total | -6.0 | 22.6 | 4.9 | 6.0 | 27.5 | 29.7 | -14.4 | 0.5 | 9.3 | 25.1 | 5.1 | ||||
| Operating margin | |||||||||||||||
| Sweden | -0.5 | 5.4 | 0.8 | 2.8 | 2.3 | 7.6 | 2.1 | 0.4 | 2.7 | 3.3 | 3.3 | ||||
| Finland | 0.3 | 3.2 | 6.3 | 5.4 | 3.9 | 8.8 | 3.3 | 7.6 | 5.4 | 6.3 | 5.9 | ||||
| Norway2) | -1.2 | 3.8 | 0.3 | -1.5 | 0.3 | 0.1 | -7.3 | -4.1 | 2.8 | -2.2 | 0.4 | ||||
| Group-wide, etc. | - | - | - | - | - | - | - | - | - | - | - | ||||
| Total | -1.1 | 3.7 | 1.0 | 0.9 | 1.2 | 4.7 | -2.3 | 0.1 | 1.4 | 1.0 | 0.8 | ||||
| Number of employees |
|||||||||||||||
| Sweden | 1,163 | 1,082 | 1,089 | 1,090 | 1,090 | 1,070 | 1,066 | 1,056 | 1,048 | 1,048 | 998 | ||||
| Finland | 500 | 501 | 497 | 526 | 526 | 535 | 545 | 562 | 573 | 573 | 586 | ||||
| Norway2) | 404 | 387 | 404 | 400 | 400 | 394 | 393 | 393 | 361 | 361 | 359 | ||||
| Group-wide, etc. | 10 | 10 | 11 | 11 | 11 | 12 | 12 | 12 | 12 | 12 | 10 | ||||
Total 2,077 1,980 2,001 2,027 2,027 2,011 2,016 2,023 1,994 1,994 1,953
1) From Q1 2018, net sales are reported here. Previously reported sales were the sum of net sales and other income. Historical figures are recalculated.
2) From Q1 2018, the former segments Rejlers Norway and Rejlers Embriq are reported together as Rejlers Norway.
Earnings per share before and after dilution, SEK 0.07 1.59 0.71 Average number of shares 18,087,909 12,921,721 16,417,744 Number of shares at end of period 18,087,909 12,921,721 18,087,909 Operational key performance indicators Billing ratio, % 75.2 73.9 75.2 Sales per full-time employee, SEK thousand 322 320 1,286 Number of employees at end of period 1,953 2,048 1,994 Rejlers is one of the Nordic region's largest technical consultants. 2,000 experts who work on projects in Energy, Buildings, Industry, Infrastructure and Telecom. At Rejlers, you will meet specialist engineers with the knowledge, cutting edge expertise and energy to achieve results. We are still experiencing growth and can now be found in 80 locations in Sweden, Finland and Norway. Rejlers had sales of SEK 2.5 billion in 2017 and its class B share is listed on Nasdaq Stockholm.
| Currency effect, % Annual General Meeting 2018 |
-3.0 3 -0.9 7 May 2018 |
|---|---|
| Organic growth, % Interim report, January-June 2018 |
-1.7 8 26 July 2018 |
| Adjusted EBITA, SEK million Interim report, January-September 2018 |
20.7 33.0 55.2 25 October 2018 |
Operating profit/loss (EBIT), SEK million 5.1 29.7 25.1 Adjusted EBITA margin, % 3.4 5.2 2.2 Net liabilities, SEK million 108.1 269.9 167.2 FOR MORE INFORMATION, PLEASE CONTACT: Viktor Svensson, President and CEO tel. +46 (0)70-657 20 26, e-mail: [email protected]
Equity/assets ratio, % 52.1 42.8 52.7 Operating profit/loss per full-time employee, SEK thousand 3 15 13 Mikael Lingefelt, acting CFO tel. +46 (0)70-929 09 55, e-mail: [email protected]
Definitions REJLERS AB (publ) Co. Reg. No. 556349-8426, Box 30233, SE-104 25 Stockholm Tel +46 (0)771-780 000, Fax +46 (0)8-654 33 39 E-mail [email protected], www.rejlers.com/se
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