OTHER FINANCIAL INFORMATION
Profitability, financial position and cash flow
The return on equity at the end of the period was 24 percent (29), and return on capital employed was 16 percent (19). Return on working capital P/WC (EBITA in relation to working capital) amounted to 56 percent (54).
At the end of the period the equity ratio amounted to 35 percent (34). Equity per share, excluding non-controlling interest, totalled SEK 12.60 (11.00). The Group's net debt at the end of the period amounted to SEK 2,877 million (2,855), excluding pension liabilities of SEK 336 million (328). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.8 (0.9).
Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 1,999 million (1,949) at 30 June 2021.
Cash flow from operating activities amounted to SEK 208 million (324) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 261 million (730). Investments in non-current assets totalled SEK 14 million (16) and disposal of non-current assets amounted to SEK 3 million (1). Repurchase of call options amounted to SEK 3 million (0) and exercised call options totalled SEK 7 million (17).
At the end of the period, the number of employees was 3,230 compared to 3,133 at the beginning of the financial year. During the period, completed acquisitions resulted in an increase of the number of employees by 100. The average number of employees in the latest 12-month period was 3,109.
At the end of the period the share capital amounted to SEK 51.1 million.
|Class of shares||Number of shares||Number of votes||Percentage of capital||Percentage of votes|
|Class A shares, 10 votes per share||12,885,744||128,857,440||4.7%||33.1%|
|Class B shares, 1 vote per share||259,908,240||259,908,240||95.3%||66.9%|
|Total number of shares before repurchases||272,793,984||388,765,680||100.0%||100.0%|
|Repurchased class B shares||-3,451,272||1.3%||0.9%|
|Total number of shares after repurchases||269,342,712|
Addtech has three outstanding call option programmes for a total of 3,400,000 shares. Call options issued on repurchased shares entail a dilution effect of about 0.4 percent during the latest 12-month period. Addtech's own shareholdings fully meet the needs of the outstanding call option programmes.
|Outstanding programme||Number of options||Corresponding number of shares||Proportion of total shares||Exercise price per option||Exercise price per share||Expiration period|
|2020/2024||250,000||1,000,000||0.4%||538.10||134.53||4 Sep 2023 - 5 Jun 2024|
|2019/2023||300,000||1,200,000||0.4%||321.80||80.45||5 Sep 2022 - 2 Jun 2023|
|2018/2022||300,000||1,200,000||0.4%||232.90||58.23||6 Sep 2021 - 3 Jun 2022|
Acquisitions and disposals
On 1 April, ESi Controls Ltd., Great Britain, was acquired to become part of the Power Solutions business area. ESi (Energy Saving Innovative) Controls is a UK based company designing and delivering energy efficient electronic controls for heating and smart building applications. ESi Controls Ltd. has sales of approximately GBP 8 million and has 15 employees.
On 1 April, Hydro-Material Oy, Finland, was acquired to become part of the Components business area. Hydro-Material delivers hydraulic solutions and cooling systems to primarily the market segments special vehicles and the manufacturing industry. Hydro-Material Oy has sales of approximately EUR 5 million and 5 employees.
On 3 May IETV Elektroteknik AB, Sweden, was acquired to become part of the Energy business area. IETV Elektroteknik AB is a knowledge company that offers qualified services in power supply to railways, hydropower and industry. IETV Elektroteknik AB has 38 employees and has annual sales of approximately SEK 80 million.
On 11 May, AVT Industriteknik AB, Sweden, was acquired to become part of the Automation business area. AVT designs and manufactures industrial automation equipment primarily for the manufacturing, pharma and automotive industry. The offering includes electrical and mechanical design, programming of PLC and industrial robots, vision technology, installation and service. The company has 42 employees and sales of around SEK 70 million.
Acquisitions completed as of the 2020/2021 financial year are distributed among the Group’s business areas as follows:
|Acquisitions 2020/2021||Closing|| Net sales, |
|Number of employees*||Business Area|
|Elkome Group Oy, Finland||April, 2020||85||38||Automation|
|Peter Andersson AB, Sweden||April, 2020||30||9||Energy|
|Valutec Group AB, Sweden||April, 2020||350||45||Industrial Process|
|Fluidcontrol Oy, Finland||September, 2020||41||20||Components|
|Kaptas Oy, Finland||September, 2020||41||27||Automation|
|Elsystem i Perstorp AB, Sweden||September, 2020||40||18||Automation|
|Martin Bruusgaard AS, Norway||September, 2020||108||30||Industrial Process|
|Satco Komponent AB, Sweden||October, 2020||18||2||Components|
|Skyltar & Märken Gruppen AB, Sweden||October, 2020||60||23||Energy|
|OF-Beteiligungs AG, Switzerland||December, 2020||170||35||Power Solutions|
|Powernor AS, Norway||January, 2021||35||6||Power Solutions|
|Synective Labs AB, Sweden||January, 2021||30||27||Automation|
|Impact Air Systems Ltd. and Impact Technical Services Ltd., Great Britain||January, 2021||95||33||Industrial Process|
|Fairfield Trading Company Ltd., Great Britain||March, 2021||37||8||Power Solutions|
|Acquisitions 2021/2022||Closing|| Net sales, |
|Number of employees*||Business Area|
|ESi Controls Ltd., Great Britain||April, 2021||95||15||Power Solutions|
|Hydro-Material Oy, Finland||April, 2021||50||5||Components|
|IETV Elektroteknik AB, Sweden||May, 2021||80||38||Energy|
|AVT Industriteknik AB, Sweden||May, 2021||70||42||Automation|
|EK Power Solutions AB, Sweden||July, 2021||40||25||Components|
|KZ moder AB, Sweden||July, 2021||100||29||Industrial Process|
|Finnchain Oy, Finland||July, 2021||70||20||Industrial Process|
|Tritech Solutions AB, Sweden||August, 2021||60||8||Automation|
* Refers to assessed condition at the time of acquisition on a full-year basis.
If all acquisitions which have taken effect during the period had been completed on 1 April 2021, their impact would have been an estimated SEK 75 million on Group net sales, about SEK 9 million on operating profit and about SEK 7 million on profit after tax for the period.
Addtech normally employs an acquisition structure comprising basic purchase consideration and contingent consideration. The outcome of contingent purchase considerations is determined by the future earnings reached by the companies and is subject to a fixed maximum level. Of considerations not yet paid for acquisitions during the period, the discounted value amounts to SEK 53 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 64 million.
Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 3 million (3) and are reported under Selling expenses.
Revaluation of contingent consideration had a negative net effect of SEK 4 million (0) during the period. The impact on profits are reported under Other operating income and Other operating expenses, respectively.
According to the preliminary acquisitions analyses, the assets and liabilities included in the acquisitions were as follows, during the period:
|SEKm||Carrying amount at acquisition date||Adjustment to fair value||Fair value|
|Intangible non-current assets||-||140||140|
|Other non-current assets||3||-||3|
|Other current assets||151||-||151|
|Deferred tax liability/tax asset||-2||-28||-30|
|Acquired net assets||121||112||233|
|Non-controlling interests 2)||-|
|Less: cash and cash equivalents in acquired businesses||-71|
|Less: consideration not yet paid||-102|
|Effect on the Group’s cash and cash equivalents||200|
|1) Goodwill is justified by expected future sales trend and profitability as well as the personnel included in the acquired companies.|
|2) Non-controlling interests have been measured at fair value, which entails that goodwill is also reported for non-controlling interests.|
|3) The consideration is stated excluding acquisition expenses.|