OTHER FINANCIAL INFORMATION
Profitability, financial position and cash flow
The return on equity at the end of the period was 29 percent (31) and return on capital employed was 22 percent (21). Return on working capital P/WC (EBITA in relation to working capital) amounted to 68 percent (65).
At the end of the period the equity ratio amounted to 38 percent (35). Equity per share, excluding non-controlling interest, totalled SEK 20.75 (17.70). The Group's net debt at the end of the period amounted to SEK 4,543 million (4,586), excluding pension liabilities of SEK 249 million (264). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.7 (0.9).
Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 1,762 million (1,622) at 31 December 2023.
Cash flow from operating activities amounted to SEK 1,894 million (1,100) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 1,121 million (1,135). Investments in non-current assets totalled SEK 138 million (100) and disposal of non-current assets amounted to SEK 15 million (5). Repurchase of treasury shares amounted to SEK 0 million (31) and repurchase of call options amounted to SEK 32 million (58). Exercised and issued call options totalled SEK 45 million (41). Dividend paid to the shareholders of the Parent Company totalled SEK 674 million (485), corresponding to SEK 2.50 (1.80) per share. The dividend was paid out in the second quarter.
Employees
At the end of the period, the number of employees was 4,146 compared to 3,911 at the beginning of the financial year. During the period, completed acquisitions resulted in an increase of the number of employees by 191. The average number of employees in the latest twelve month period was 4,041.
Ownership structure
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 | -3,057,192 | 1.1% | 0.8% | |
| Total number of shares after repurchases | 269,736,792 |
Addtech has four outstanding call option programmes for a total of 2,505,480 shares. Call options issued on repurchased shares entail a dilution effect of about 0.1 percent during the latest twelve 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 |
| 2023/2027 | 674,500 | 674,500 | 0.2% | 221.00 | 221.00 | 7 Sep 2026 - 9 Jun 2027 |
| 2022/2026 | 825,910 | 825,910 | 0.3% | 180.10 | 180.10 | 8 Sep 2025 - 10 Jun 2026 |
| 2021/2025 | 768,070 | 768,070 | 0.3% | 214.40 | 214.40 | 9 Sep 2024 - 11 Jun 2025 |
| 2020/2024 | 59,250 | 237,000 | 0.1% | 538.10 | 134.53 | 4 Sep 2023 - 5 Jun 2024 |
| Total | 2,327,730 | 2,505,480 |
Acquisitions and disposals
During the period 1 April to 30 September 2023 the following acquisitions were completed; Electrum Automation AB, Sweden, was acquired to become part of the Electrification business area. S. Tygesen Energi A/S, Denmark, was acquired to become part of the Energy business area. Feritech Global Ltd., Great Britain, and Darby Manufacturing Ltd., Canada, were acquired to become part of the Industrial Solutions business area. INDAG Maschinenbau GmbH, Germany, and Clyde Holding Ltd., Great Britain, were acquired to become part of the Process Technology business area.
On 31 October, 89 percent of the shares in Control Cutter AS, Norway, was acquired to become part of the Industrial Solutions business areas. Control Cutter provides leading technical solutions to the global offshore market for the decommissioning of oil and gas wells. Through its patented solutions the company offers efficient, safe and reliable conductor recovery and subsea cutting. The company has 18 employees and sales of around NOK 160 million.
On 13 November, BV Teknik A/S, Denmark, was acquired to become part of the Automation business area. BV Teknik designs and builds customized production solutions and other high-tech equipment for the automation industry with focus on medical technology. The company has 24 employees and sales of around DKK 55 million.
On 19 December, an agreement to acquire 80 percent of the shares in Kemic Vandrens A/S, Denmark, was signed to become part of the Process Technology business area. Kemic is a leading supplier of water purification plants and solutions. The company offers design and construction of new-builds, mobile waterworks as well as renovation and service agreements, primarily towards Danish industrial customers and water utilities. The company has 20 employees and sales of around DKK 60 million. The closing took place on 3 January.
The purchase price allocation calculations for the acquisitions completed during the period 1 April - 31 December 2022 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2022/2023 financial year are distributed among the Group’s business areas as follows:
| Acquisitions 2022/2023 | Closing | Acquired share, % | Net sales, SEKm* | Number of employees* | Business Area | |
| Intertrafo Oy, Finland | April, 2022 | 100 | 30 | 15 | Energy | |
| Electric Control Systems Automation AS, Norway | April, 2022 | 100 | 75 | 31 | Process Technology | |
| Impulseradar Sweden AB, Sweden | April, 2022 | 88 | 80 | 27 | Industrial Solutions | |
| C.K. Environment A/S, Denmark | May, 2022 | 100 | 40 | 14 | Process Technology | |
| Arruti Group, Spain | June, 2022 | 100 | 280 | 90 | Energy | |
| Gotapack International AB, Sweden | July, 2022 | 100 | 25 | 5 | Process Technology | |
| Allied Insulators Ltd., Great Britain | August, 2022 | 100 | 75 | 15 | Energy | |
| Advanced Valve Solutions B.V., Netherlands | December, 2022 | 100 | 140 | 27 | Process Technology | |
| MCS Europe Group B.V., Netherlands | January, 2023 | 100 | 75 | 19 | Automation | |
| Drivhuset AB, Sweden | January, 2023 | 100 | 35 | 7 | Industrial Solutions | |
| Acquisitions 2023/2024 | Closing | Acquired share, % | Net sales, SEKm* | Number of employees* | Business Area | |
| INDAG Maschinenbau GmbH, Germany | April, 2023 | 90 | 55 | 40 | Process Technology | |
| Clyde Holding Ltd., Great Britain | April, 2023 | 100 | 150 | 49 | Process Technology | |
| Feritech Global Ltd., Great Britain | May, 2023 | 90 | 55 | 21 | Industrial Solutions | |
| Electrum Automation AB, Sweden | June, 2023 | 100 | 80 | 22 | Electrification | |
| Darby Manufacturing Ltd., Canada | June, 2023 | 100 | 50 | 14 | Industrial Solutions | |
| S. Tygesen Energi A/S, Denmark | June, 2023 | 100 | 75 | 3 | Energy | |
| Control Cutter AS, Norway | October, 2023 | 89 | 160 | 18 | Industrial Solutions | |
| BV Teknik A/S, Denmark | November, 2023 | 100 | 85 | 24 | Automation | |
| Kemic Vandrens A/S, Denmark | January, 2024 | 80 | 95 | 20 | Process Technology | |
| * 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 2023, their impact would have been an estimated SEK 555 million on Group net sales, about SEK 110 million on operating profit and about SEK 80 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 financial year, the discounted value amounts to SEK 244 million. The contingent purchase considerations fall due for payment within four years and the outcome is subject to a maximum of SEK 304 million.
Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 25 million (8) and are reported under Selling expenses.
Revaluation of contingent consideration had a negative net effect of SEK -5 million (+23) during the period. The impact on profits is 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:
|
Fair value SEKm | 31 Dec 2023 | 31 Dec 2022 |
| Intangible non-current assets | 644 | 491 |
| Other non-current assets | 125 | 36 |
| Inventories | 131 | 143 |
| Other current assets | 371 | 342 |
| Deferred tax liability/tax asset | -163 | -111 |
| Other liabilities | -256 | -148 |
| Acquired net assets | 852 | 753 |
| Goodwill 1) | 638 | 485 |
| Non-controlling interests 2) | -84 | -28 |
| Consideration 3) | 1,406 | 1,210 |
| Less: cash and cash equivalents in acquired businesses | -186 | -128 |
| Less: consideration not yet paid | -250 | -140 |
| Effect on the Group’s cash and cash equivalents | 970 | 942 |
| 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 transaction costs for the acquisitions. | ||
Parent Company
Parent Company's net sales during the period amounted to SEK 71 million (62) and profit after financial items was SEK -4 million (-64). Net investments in non-current assets were SEK 0 million (0). The Parent Company's financial net debt was SEK 142 million (595) at the end of the period.