Bravida Interim Report January–June 2014
· Net sales were SEK 5,840 million (5,535) · Operating profit was SEK 296 million (253) · Cash flow from operating activities was SEK 323 million (107) Bravida’s operations continued to see positive growth during the second quarter. Operating profit increased by 42 per cent during the second quarter, while sales increased by over 6 per cent. First-half operating profit was SEK 296 million (253), representing an operating margin of 5.1 (4.6) per cent, while cash flow from operating activities increased from SEK 107 million to SEK 323 million.
Bravida’s first-half sales for 2014 increased by over 5 per cent to SEK 5,840 million (5,535). Operating profit for the period increased by 17 per cent and amounted to SEK 296 million, compared with SEK 253 million for the same period last year. The first-half operating margin was 5.1 per cent (4.6).
Sales increased during the second quarter by over 6 per cent to SEK 2,992 million (2,806), while operating profit increased by over 42 per cent to SEK 151 million (106).
We are seeing significant improvement in Division Norway, where profitability has gradually improved and has stabilised over the last five quarters. The positive trend in Division Denmark is continuing, thanks to first-half growth of 21 per cent, while at the same time the order backlog remains strong. In Sweden, Division North continues to enjoy positive sales growth, although first-half profit did not reach the same high level as last year. Sales and profit in Division Stockholm were lower compared with the same period last year, while Division South has remained stable in terms of both sales and profitability.
It is pleasing to see that operating cash flow has remained good during the first half of 2014.
The order intake during the first half of 2014 was more than 3 per cent lower compared with the same period last year. This fall can be attributed to all divisions except Norway. The order backlog, which is at a record high level, amounted to SEK 6,466 million (5,547) at the end of the period, thanks largely to Division Denmark and Division Norway, where we have seen greater interest in infrastructure investments and increased demand from the public sector. The Group received major orders during the first half, primarily in infrastructure, education, healthcare and housing, as well as shopping centres, swimming baths and offices. Public-sector investments still account for a large share of growth in the market while activity in industry, residential construction and new commercial builds is generally stable, but is falling in some geographical areas.
On 2 June 2014, Norwegian company Otera Elektro joined the Bravida Group, further strengthening our position as one of the leading suppliers of installation and service on the Norwegian market. Otera has sales of approximately SEK 400 million and employs around 300 people with operations in Kristiansand, Bergen and Asker. The acquisition was financed entirely from the Group’s own funds.
Our assessment is that the economy as a whole has stabilised and that the market will improve gradually in 2014, but with significant regional variation. Bravida expects to see positive growth during the second half of 2014 and our aim is to continue to deliver profitability in the top tier of our industry, while at the same time achieving growth, both organically and through further acquisitions.
CEO and Group President
The report is available at the corporate website: www.bravida.com/en/Financial-information/
Bravida Holding AB publishes this interim report in compliance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was submitted for publication at 10.00 a.m. on 2 September 2014.