- Revenue increased by 10 percent to MSEK 1,543 (1,400).
- Operating profit amounted to MSEK 70 (42). Adjusted operating profit (excluding items affecting comparability) increased by 35 percent to MSEK 70 (52), corresponding to an adjusted operating margin of 4.5 percent (3.7).
- The return on working capital (P/WC) for the most recent 12-month period was 25 percent (20) and the return on equity was 18 percent (3).
- Profit after financial items totalled MSEK 69 (40).
- Net profit amounted to MSEK 54 (31).
- Earnings per share for the most recent 12-month period totalled SEK 7.25, compared with SEK 6.45 for the 2017/18 financial year.
- The operational net loan liability amounted to MSEK 324 (281) and the equity/assets ratio at the end of the reporting period was 43 percent (41).
- In April 2018, subsidiary TriffiQ Företagsprofilering acquired Profilmakarna in Södertälje. The acquisition enables the formation of a leading player in workwear, profile clothing and promotional products in Stockholm and Södertälje.
- In May 2018, subsidiary Momentum Industrial acquired Brammer’s Swedish MRO business, comprising eight local sales and service units across Sweden. The acquisition strengthened Momentum Industrial’s position as a leading supplier of industrial components and related services to Swedish industry.
- Momentum Group’s 2018 Annual General Meeting will be held on 22 August 2018. The notice of the Annual General Meeting was published today, 18 July 2018, including a proposed agenda and the motions presented by the Election Committee and the Board of Directors for resolution.
PRESIDENT’S STATEMENT
Strong start of the 2018/19 financial year
The first quarter of the new 2018/19 financial year was marked by continued favourable sales and earnings trends for most of our businesses. For Momentum Group as a whole, operating profit increased by 35 percent (compared with adjusted operating profit for the first quarter of the preceding year) and the operating margin was 4.5 percent. The Group’s earnings growth and improved operating margin were a result of the efficiency-enhancement efforts we have implemented, and continue to implement, in several Group companies.
As a whole, Momentum Group’s main markets continued to display a stable trend, with general demand continuing to strengthen during the quarter, particularly in Norway. Most of our businesses improved their earnings compared with the preceding year, and we were particularly pleased to note TOOLS Norway’s earnings growth, combined with increased sales volumes, and Momentum Industrial’s continued healthy earnings. TOOLS Finland also continued to display a positive performance, with an operating margin of more than 5 percent for the quarter. Revenue for TOOLS Sweden decreased during the quarter compared with the preceding year, mainly due to the increased focus on selected customer groups and product areas, and to the winding down of 15 less profitable sales units in 2017. The improvement activities carried out to increase profitability in the TOOLS businesses continues unabated in all three countries, as does the ongoing restructuring work in Gigant.
Exciting acquisitions create opportunities for the future
In May, Momentum Industrial acquired Brammer’s Swedish MRO business*, comprising eight local sales and service units across Sweden with total annual revenue of approximately MSEK 140. This acquisition further strengthened Momentum Industrial’s position in the market. The integration of the local units has proceeded well to date, which is also reflected in the continued favourable trend for Momentum Industrial during the quarter. Moreover, the companies we acquired, particularly in the area of workwear and profile clothing, have contributed healthy profitability levels.
The road ahead for Momentum Group
We are continuing along the established path, with a focus on earnings growth along with reduced funds tied up in working capital in order to achieve increased profitability. Our future success will partly depend on the close cooperation of our local units with their customers as well as our ability to adapt our operations as and when the market conditions require us to do so. Accordingly, we will continue to adapt the measures taken in the various companies to their unique situations and opportunities, with a focus on always improving and being “better than yesterday”.
Stockholm, July 2018
Ulf Lilius
President & CEO
* MRO refers to products and services for maintenance, repair and operations.
The information in this report is such that Momentum Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CET on 18 July 2018.
This document is in all respects a translation of the Swedish original Interim Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.
Momentum Group is a leading reseller of industrial consumables and industrial components, services and maintenance to professional end users in the industrial and construction sectors in the Nordic region. The Group has annual revenue of approximately SEK 5.6 billion and approximately 1,600 employees. Momentum Group AB (publ) has been listed on Nasdaq Stockholm since June 2017. Read more at www.momentum.group.
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