First six months
- Net turnover amounted to SEK 7,900 M (6,609).
- Operating profit was SEK 212 M (23) and the operating margin was 2.7 per cent (0.4).
- Profit for the period was SEK 153 M (3) and earnings per share was SEK 6.25 (0.10).
Second quarter
- Net turnover amounted to SEK 4,158 M (3,569).
- Operating profit was SEK 129 M (39) and the operating margin was 3.1 per cent (1.1).
- Profit for the period was SEK 94 M (24) and earnings per share was SEK 3.85 (1.15).
- Cash flow after net investments amounted to SEK -26 M (215).
In a comment on the second quarter, Bilia’s Managing Director Jan Pettersson says:
“We once again delivered strong results. Sales of both cars and service increased and the cost level was lower. The market situation improved in Denmark as well now, and the operation finally reported a profit. The acquisition of the BMW dealer in Stockholm will further strengthen Bilia’s position from next year. External surveys show that customers are still satisfied with the service they get from Bilia. The trade associations’ forecasts point towards a good market situation during the second half of the year as well.”
(For table, see attached file)
Notable events during 2010
• During the first half of the year up to and including the 30th of June, 484,633 warrants were exercised to subscribe for new shares, resulting in a new share issue of SEK 10 M. The number of outstanding warrants at 30 June was 681,048.
• Since 17 October 2008, HQ Bank AB has acted as the market maker for the company’s share. Liquidity in the share has been strengthened, so there is no longer a need for a market maker. The agreement with HQ Bank AB expired on 1 July 2010.
• An agreement was concluded on 9 June for Bilia’s acquisition of all the shares in the BMW dealer Bilcentralen i Stockholm AB, plus an option to acquire shares in M6 Fastighets AB, which owns the two properties in which the business is conducted. The date of possession is 3 January 2011 and the agreement is contingent upon the approval of the Swedish Competition Authority. The company’s annual turnover is about SEK 600 M, and their average operating margin during the past three years was 4.1 per cent. The acquisition of Bilcentralen will increase the capital employed in the Bilia Group by about SEK 125 M.
Further information on the above events and other press information is available at www.bilia.com.
Second quarter 2010
Demand for new cars was at a higher level compared with the same period last year. Demand for service was somewhat higher compared with last year.
Net turnover amounted to SEK 4,158 M (3,569). For comparable operations and adjusted for exchange rate changes, net turnover increased by SEK 520 M or 15 per cent. The increase is mainly attributable to sales of new cars.
Operating profit amounted to SEK 129 M (39). Last year’s profit included items affecting comparability of SEK -7 M. The improvement in earnings is mainly attributable to increased turnover and a higher gross profit margin in sales of new and used cars. Turnover and earnings increased in the Service Business as well. The underlying costs increased by about SEK 33 M or 5 per cent, but were 1.7 percentage points lower in relation to net turnover than last year. The profit was charged with employee bonuses of SEK 8 M (0).
Items affecting comparability (see table on page 3) amounted to a net of SEK -7 M last year and related to restructuring costs.
Net financial items amounted to SEK -3 M (-8). The improvement is mainly attributable to lower net debt. The figure includes a profit share of SEK 5 M (3) from the indirect shareholding in Volvofinans Bank AB.
Tax for the period amounted to SEK -32 M (-7).
Profit for the period was SEK 94 M (24) and earnings per share was SEK 3.85 (1.15). Exchange rate changes affected the profit marginally.
Total assets increased during the quarter by SEK 119 M to SEK 4,824 M. The increase is mainly attributable to higher trade receivables.
Equity increased by SEK 17 M, amounted to SEK 1,498 M. Dividends paid to shareholders during the quarter amounted to SEK 74 M. The equity/assets ratio was 31 per cent (27).
Investments and disposals amounted to a net of SEK 21 M (2). Replacement investments represented SEK 4 M (1), expansion investments SEK 6 M (1), environmental investments SEK 0 M (0) and investments in new construction and additions to properties SEK 6 M (0), while finance leases amounted to SEK 5 M (0).
Cash flow after net investments amounted to SEK -26 M (215). The increase in turnover during the quarter has resulted in an increase in tied-up working capital, which affected the cash flow by SEK -122 M (188). Net debt increased during the quarter by SEK 100 M to SEK 259 M.
Liquidity continued to be strong during the quarter. A debt of SEK 56 M to Nordea was reported at the end of June. The credit limit with Nordea amounts to SEK 500 M.
The number of employees increased during the quarter by 26, amounted to 3,261.
(For full report, including tables, see attached file)
