The financial year 1 April 2018 – 31 March 2019 (12 months)
· Net revenue
increased by 15 percent to MSEK 3,932 (3,410). Organically, net
revenue
increased by 7 percent.
· Operating profit (EBITA) increased by 19 percent to
MSEK 519 (436),
equivalent to an operating margin of 13.2 percent (12.8).
·
Profit after financial items increased by 20 percent to MSEK 431 (358).
·
Profit after taxes amounted to MSEK 342 (286). Earnings per share, before
and
after dilution, amounted to SEK 5.05 (4.21).
· Cash flow from operating
activities increased by more than 60 percent to
amounted to MSEK 462 (282).
·
Return on equity was 24 percent (23). The equity ratio at the end of the
period
was 39 percent (36 percent).
· During the financial year 2018/19, the
acquisition of Schmitztechnik GmbH in
Germany was carried out. The acquisition
is expected to add annual sales of
about MSEK 6.7 with good profitability.
·
The Board of Directors proposes a dividend of SEK 2.50 (2.00) per share.
1
January– 31 March 2019 (fourth quarter)
· Net revenue during the fourth
quarter increased by 13 percent and amounted
to MSEK 1,078 (954). Organically,
net revenue increased by 9 percent.
· Operating profit (EBITA) increased by
20 percent to MSEK 153 (128),
equivalent to an operating margin of 14.2 percent
(13.4).
· Profit after financial items increased by 21 percent to MSEK 130
(107) and
profit after taxes increased by 17 percent to MSEK 104 (89).
· Cash
flow from operating activities during the quarter amounted to MSEK 155
(109).
· After the end of the period, a further acquisition was completed of
Dorotea
Mekaniska AB (Truxor), which generates annual revenue of approximately
MSEK 70
with good profitability.
STATEMENT OF THE CHIEF EXECUTIVE
The
financial year 2018/19
“Success on a broad front”, sums up the 2018/19
financial year. The strength in
our business concept was confirmed as we
achieved a new record profit for the
9thyear in a row. For the full-year,
profit after net financial items was MSEK
431, an increase of about 20 percent
compared to the previous year. Earnings per
share also reached a new record
level of SEK 5.05 per share, an increase of 20
percent and the Board proposed
an increased dividend to the shareholders of SEK
2.50 per share.
The fact that
the organic sales growth was higher than before was extra positive
in this
context and that the increases in profits were seen on a broad front
among many
of our more than 50 companies.
The better organic growth than before was due
to a favourable market situation
but also to the fact that the Group is selling
a higher proportion of
proprietary products. We have had this ambition ever
since 2006 and the
proportion today has increased to 55 percent of sales. The
gross margins are
generally higher with proprietary products and companies can
develop a market
position where they exercise better control, with products
based on their own
merits and which are less exposed for this reason. If the
products are unique
and leading in the domestic market, there are often growth
opportunities, not
least in terms of exports.
Apart from an increased
proportion of product companies, we have also clarified
the prioritisation of
growth internally in the Group. We have made international
investments to a
greater extent and prioritised sales and product development as
well as
digitalisation in our companies. We have also increased the level
of
expectation and made changes in subsidiaries where administration rather
than
entrepreneurship has dominated the discussion. This has delivered
results.
Organic growth, i.e. sales growth in comparable units, measured in
local
currency, has been 7-9 percent during the past four quarters.
In light
of these strategic ambitions, it is pleasing to see that the
profit
improvements are being reported on a broad front. This shows that the
governance
model and how we are developing the companies is working.
Benchmarking is a
tool in the business development where we rank all the
Group’s companies from
best to worst using different metrics. One metric is the
net margin where
comparisons stimulate improvements when it comes to sales
activities, active
pricing strategies and cost control. Everyone wants to
improve and no one wants
to be in the relegation zone in the comparison, which
generates results. Of our
total of 51 companies, 30 currently achieve a profit
after net financial items
in excess of 10 percent of sales. These units account
for about 70 percent of
the Group’s business volume. This means that many
companies in the Group are
performing very well and with regard to risk, we are
diversified in many sub
-markets, geographies, customer segments and product
technologies.
I really want to take this opportunity to thank all our
employees for the many
fantastic efforts during the year. Our business
philosophy with
decentralisation and management by objectives provides a great
basis for every
management team to reach their goals and realise their visions.
Taken together,
this leads to a successful listed company.
Looking ahead, we
will continue on our chosen path. Today we have a strong
business concept, a
strong company portfolio and a strong balance sheet, which
will enable more
investments and acquisitions. The ambition is to further
increase the
proportion of proprietary products and reach 75 percent of sales in
3-5 years’
time.
In recent years, sustainability issues have come into stronger focus. We
have
always worked on a long-term basis with high ethical standards and we want
to be
the good company. We have strengthened our Code of Conduct and we
are
prioritising environmental and gender equality issues. Taken together, all
of
this gives me a very strong confidence in Lagercrantz’s future.
May 9
2019
Jörgen Wigh
President and CEO
Lagercrantz Group AB
For further
information please contact:
Jörgen Wigh, President and CEO, Lagercrantz Group
AB, telephone +46 8 700 66 70
Kristina Elfström Mackintosh, Chief Financial
Officer, Lagercrantz Group AB,
telephone +46 8 700 66 70
or visit our website
www.lagercrantz.com
This information is information that LAGERCRANTZ GROUP AB
(publ) is obliged to
make public pursuant to the EU Market Abuse Regulation.
The information was
submitted for publication on 9 May 2019 at 12:45
CET.
LAGERCRANTZ GROUP IN BRIEF
Lagercrantz Group is a technology group that
offers world-leading, value
-creating technology, using either proprietary
products or products from leading
suppliers. The Group is comprised of some 50
companies, each with a focus on a
specific sub-market – a niche. High
value-creation is common to all the
companies, including a high degree of
customisation, support, service and other
services. Lagercrantz Group is active
in nine countries in Northern Europe, in
China, India and in the USA. The Group
has approximately 1,500 employees and
annual revenue of approximately MSEK
3,900. The Company is listed on Nasdaq
Stockholm since 2001.