The interim report has been prepared in accordance with IFRS as adopted by the EU, with IAS 34 Interim Financial Reporting being applied. Apart from in the financial statements and their accompanying notes, disclosures in accordance with IAS 34.16A also appear in other parts of the interim report. The interim report for the Parent Company has been prepared in accordance with the Annual Accounts Act and the Securities Market Act, which is in accordance with the provisions of RFR 2 Accounting for Legal Entities.
In the interim report, the same accounting principles and bases of calculation have been applied as in the most recent annual report. The new and revised IFRS standards and IFRIC statements that come into force as of the 2021/2022 financial year have had no material effect on the Group's financial reports.
Governmental support measures
Those governmental support measures that have been received or will be received as an effect of the COVID-19 pandemic will be recognized in the income statement when it is reasonably certain that the conditions for receiving the support have been met or will be met. These grants are recognised under other operating income or as a reduction in personnel expenses.
Alternative performance measures
The Company presents certain financial measures in the interim report that are not defined according to IFRS. The Company believes that these measures provide valuable supplemental information to investors and the Company's management as they allow for evaluation of trends and the Company's performance. Since all companies do not calculate financial measures in the same way, they are not always comparable to measures used by other companies. These financial measures should therefore not be considered to be a replacement for measurements as defined under IFRS. For definitions and reconciliation tables of the performance measures that Addtech uses, please see page 17-20.
Risks and factors of uncertainty
Addtech's profit and financial position, as well as its strategic position, are affected by a number of internal factors under Addtech's control and by a number of external factors over which Addtech has limited influence. The most important risk factors for Addtech are the state of the economy, combined with structural change and the competitive situation.
Please see section Risks and uncertainties (page 58-60) in the annual report for 2020/2021 for further details.
The Parent Company is indirectly affected by the above risks and uncertainty factors due to its role in the organisation.
Transactions with related parties
No transactions between Addtech and related parties that have significantly affected the Group's position and earnings have taken place during the period.
Addtech's sales of high-tech products and solutions in the manufacturing industry and infrastructure are not subject to major seasonal variations. The number of production days and customers' demand and willingness to invest can vary over the quarters.
Events after the end of the period
On 1 July, EK Power Solutions AB, Sweden, was acquired to become part of the Components business area. EK Power has a leading position in the development of power electronics and electric motor control. The customers are mainly high-tech OEM customers, primarily in the Nordic region, such as machine builders, special vehicles and defense. The company has 25 employees and sales of approximately SEK 40 million.
On 1 July, KZ moder AB (“KZ Group“), Sweden, was acquired to become part of the Industrial Process business area. KZ Group is a leading supplier of components, equipment and solutions for the water grid as well as treatment of water and wastewater, which reduce water leakage and unbilled water supply and control the quality of drinking water. KZ Group has 29 employees and sales of around SEK 100 million.
On 5 July, Finnchain Oy, Finland, was acquired to become part of the Industrial Process business area. Finnchain is a market leader in the design, manufacture and delivery of chain-driven sludge conveyor systems that optimize the cleaning of wastewater and desalination of seawater. Finnchain has 20 employees and sales of approximately EUR 7 million.
On 7 July, an agreement to acquire Tritech Solutions AB, Sweden, to become part of the Automation business area, was signed. Tritech Solutions delivers customized embedded computer systems, primarily to OEM-customers within industrial automation, medical technology, telecommunication and transportation. The company has 8 employees and sales of around SEK 60 million. The closing is estimated to take effect in August 2021.
Preliminary purchase price allocations have not yet been completed.
Stockholm July 16, 2021
CEO and President
This report has not been subject to review by the company's auditor.
This information is information that Addtech AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at 8.15 a.m CET on 16 July 2021.
2021-08-26 Annual General Meeting 2021 will be held at IVA, Grev Turegatan 16, Stockholm at 2.00 p.m
2021-10-28 Interim report 1 April - 30 September 2021
2022-02-08 Interim report 1 April - 31 December 2021
2022-05-17 Year-end report 1 April 2021 - 31 March 2022
For further information, please contact:
Niklas Stenberg, President and CEO, +46 8 470 49 00
Malin Enarson, CFO, +46 705 979 473