1 January-31 December 2015
Fourth quarter
Continued strong growth
· Order intake rose 20% to SEK 3,086 million (2,579). The increase for
comparable units was 8%.
· Net sales rose 21% to SEK 3,219 million (2,654). The increase for comparable
units was 9%.
· Operating profit before amortisation of intangible non-current assets
attributable to acquisitions (EBITA) rose 19% to SEK 398 million (334),
corresponding to an EBITA margin of 12.4% (12.6%).
· Profit after tax rose 17% to SEK 258 million (220).
· Earnings per share grew 17% to SEK 6.43 (5.50).
· Cash flow from operating activities was SEK 493 million (378).
1 January – 31 December
· Order intake rose 19% to SEK 11,939 million (10,000). The increase for
comparable units was 4%.
· Net sales rose 22% to SEK 11,881 million (9,746). The increase for
comparable units was 7%.
· Operating profit before amortisation of intangible non-current assets
attributable to acquisitions (EBITA) rose 26% to SEK 1,427 million (1,134),
corresponding to an EBITA margin of 12.0% (11.6%)
· Profit after tax rose 27% to SEK 894 million (703).
· Earnings per share grew 27% to SEK 22.33 (17.60).
· Cash flow from operating activities was SEK 1,076 million (904).
· The Board of Directors proposes a dividend of SEK 9.00 (7.75) per share for
2015.
· The Board of Directors proposes a 2-for-1 bonus issue.
CEO´s message
With a strong final quarter, Indutrade can sum up a successful year in 2015. In
a time of challenging market conditions, we continue to generate profitable
growth through the acquisition and development of stable and profitable
companies in selected niches – what we call the Indutrade model.
In a turbulent market in which demand has varied sharply between markets,
customers, segments and countries, we have now reached a new level of order
intake and invoicing, approaching SEK 12 billion for the full year. The Group’s
mix of companies with an international base, together with the long-term work on
increasing the share of proprietary products, has strengthened our ability to
adapt to changed market conditions.
Demand in the most important countries for Indutrade was again mixed – growth in
Sweden and Benelux countered continued weak performance in Finland. In the UK,
growth has remained favourable, even though a slight slowing was noted during
the final months of the year. For other countries, performance on an annual
basis has been relatively stable.
For most industrial segments, demand improved somewhat compared with the
preceding year, although exceptions could be found in certain sub-segments, such
as the oil and gas industry, and the marine sector. In the energy segment, order
intake and invoicing related to valves for power generation were very strong
during the year.
All of our business areas posted higher earnings than a year ago, and the EBITA
margin for the Group as a whole improved to 12.0% (11.6%).
Fourth quarter
Overall the fourth quarter was Indutrade’s best quarter historically, with both
sales and earnings reaching new, record highs. Sales increased by 21%, the EBITA
margin was 12.4% (12.6%), pre-tax earnings rose 19%, and earnings per share grew
by 17%.
Both order intake and invoicing related to valves for power generation in the
energy segment were strong during the quarter, and the order book is at a
continued high level. All in all, the companies in our business areas showed
stable, positive development in order intake, invoicing and earnings, even
though Engineering & Equipment, whose operations are all in Finland,continues to
struggle with a challenging market situation.
All of the business areas reported higher earnings, and for three of the six
business areas, the EBITA margin also improved.
Acquisitions
A total of 13 acquisitions, with possession taking place in 2015, were carried
out during the year. After the end of the quarter an additional acquisition was
carried out, in January 2016. Annual sales of these 14 companies in total amount
to nearly SEK 1.2 billion.
We find that the Indutrade model continues to attract owners who are considering
selling their companies, and thus the conditions for continued acquisitions in
and outside the Nordic region are very favourable.
Outlook
My view is that the market volatility will continue, which puts high demands on
our companies’ ability to adapt to the prevailing opportunities and challenges.
Our decentralised business model, in which the managements of our 200 companies
can make quick decisions in close proximity to their operations, inspires
commitment and responsibility. This Indutrade model creates good conditions for
continued profitable growth.
Johnny Alvarsson, President and CEO
This report will be commented upon as follows:
· Through a conference call/webcast today at 3 p.m. (CET) under the following
link:
http://event.onlineseminarsolutions.com/r.htm?e=1121938&s=1&k=244E9591AD8DAE305F
F
94E7362408696
To participate, call
SE: +46 8 566 426 66, UK: +44 203 008 98 13 or
US: +1 855 831 59 46
· Through a videotaped version available under the following link:
http://www.indutrade.se
For further information, please contact: Johnny Alvarsson, President and CEO: 46
70 589 17 95
About Indutrade
Indutrade markets and sells components, systems and services with a high-tech
content within selected niches. Indutrade’s business is distinguished by high
-tech products for recurring needs, growth through a structured and tried-and
tested acquisition strategy and a decentralised organisation characterised by an
entrepreneurial spirit.
The Group is organised into six business areas: Engineering & Equipment, Flow
Technology, Fluids & Mechanical Solutions, Industrial Components, Measurement &
Sensor Technology and Special Products. Indutrade’s sales totalled SEK 11,881
million in 2015, generating operating income of SEK 1,427 million before
depreciation of intangible assets. Indutrade is listed on the Nasdaq Stockholm.
