INTERIM REPORT Q2 2024/2025

OTHER FINANCIAL INFORMATION

Profitability, financial position and cash flow
The return on equity at the end of the period was 28 percent (31) and return on capital employed was 22 percent (23). Return on working capital P/WC (EBITA in relation to working capital) amounted to 72 percent (67).

At the end of the period the equity ratio amounted to 36 percent (36). Equity per share, excluding non-controlling interest, totalled SEK 22.55 (20.35). The Group's net debt at the end of the period amounted to SEK 5,391 million (4,714), excluding pension liabilities of SEK 271 million (199). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.8 (0.8).

Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 1,948 million (1,569) at 30 September 2024. During the period, additional credits totalling SEK 1,000 million were granted. As a result, Addtech had a total credit framework of SEK 5,800 million (4,800) as of 30 September 2024.

Cash flow from operating activities amounted to SEK 1,195 million (1,150) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 865 million (717). Investments in non-current assets totalled SEK 122 million (74) and disposal of non-current assets amounted to SEK 16 million (5). Repurchase of call options amounted to SEK 73 million (32). Exercised and issued call options totalled SEK 11 million (1). During the second quarter, dividend of SEK 2.80 (2.50) per share was paid, totalling SEK 755 million (674).

Employees
At the end of the period, the number of employees was 4,342 compared to 4,175 at the beginning of the financial year. During the period, completed acquisitions resulted in an increase of the number of employees by 164. The average number of employees in the latest twelve month period was 4,215.

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 12,864,384 128,643,840 4.7% 33.1%
Class B shares, 1 vote per share 259,929,600 259,929,600 95.3% 66.9%
Total number of shares before repurchases 272,793,984 388,573,440 100.0% 100.0%
Repurchased class B shares -2,985,092 1.1% 0.8%
Total number of shares after repurchases 269,808,892

In accordance with a resolution of the August 2024 AGM, about 150 members of management were offered the opportunity to acquire 1,000,000 call options on repurchased Class B shares. In total, 639,925 options were subscribed for. Addtech has four outstanding call option programmes for a total of 2,338,055 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 Expiration period
2024/2028 639,925 639,925 0.2% 388.80 6 Sep 2027 - 9 Jun 2028
2023/2027 674,500 674,500 0.2% 221.00 7 Sep 2026 - 9 Jun 2027
2022/2026 825,910 825,910 0.3% 180.10 8 Sep 2025 - 10 Jun 2026
2021/2025 197,720 197,720 0.1% 214.40 9 Sep 2024 - 11 Jun 2025
Total 2,338,055 2,338,055

Acquisitions and disposal
During the period, 1 April to 30 June 2024 the following acquisitions were completed; Nuova Elettromeccanica Sud S.p.A., Italy, was acquired to become part of the Energy business area. Novomotec GmbH, Germany, and Cell Pack Solutions Ltd., Great Britain, were acquired to become part of the Electrification business area. GoDrive AS, Norway, was acquired to become part of the Industrial Solutions business area. 

On 1 July, 89 percent of the shares in C. Gunnarssons Verkstads AB, Sweden, was acquired to become part of the Industrial Solutions business area. CGV is a leading supplier on the Nordic market of machines and production lines for lumber handling. The company has 45 employees and sales of around SEK 200 million. 

On 1 July, Analytical Solutions and Products B.V., Netherlands, was acquired to become part of the Process Technology business area. ASaP manufactures and supplies analytical solutions to primarily the process- and energy industries. The offering includes instrumentation, engineered systems with supporting software and service. The company has 20 employees and sales of around EUR 12 million. 

On 9 July, 80 percent of the shares in Romani Components Srl, Italy, was acquired to become part of the Automation business area. Romani provides linear- and transmission products to machine builders for the automation industry. The offering includes guideways as well as ball screws and precision gears. The company has 23 employees and sales of around EUR 11 million. 

The purchase price allocation calculations for the acquisitions completed during the period 1 April - 30 September 2023 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2023/2024 financial year are distributed among the Group’s business areas as follows:

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
Crescocito AB, Sweden February, 2024 100 60 10 Industrial Solutions
Acquisitions 2024/2025 Closing Acquired share, % Net sales, SEKm* Number of employees* Business Area
Novomotec GmbH, Germany April, 2024 100 80 9 Electrification
Cell Pack Solutions Ltd., Great Britain April, 2024 90 75 30 Electrification
GoDrive AS, Norway April, 2024 100 75 5 Industrial Solutions
Nuova Elettromeccanica Sud S.p.A., Italy June, 2024 100 160 32 Energy
C. Gunnarssons Verkstads AB, Sweden July, 2024 89 200 45 Industrial Solutions
Analytical Solutions and Products B.V., Netherlands July, 2024 100 140 20 Process Technology
Romani Components Srl, Italy July, 2024 80 125 23 Automation
PGS Tec GmbH, Germany October, 2024 85 80 15 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 2024, their impact would have been an estimated SEK 500 million on Group net sales, about SEK 70 million on operating profit and about SEK 50 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 137 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 161 million. 

Transaction costs for acquisitions that resulted in an ownership transfer during the period amounted to SEK 14 million (17) and are reported under Selling expenses.

Revaluation of contingent consideration had a negative net effect of SEK 11 million (0) 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
30 Sep 2024 30 Sep 2023
Intangible non-current assets 494 344
Other non-current assets 81 87
Inventories 183 88
Other current assets 436 266
Deferred tax liability/tax asset -133 -93
Other liabilities -316 -147
Acquired net assets 745 545
Goodwill 1) 497 347
Non-controlling interests 2) -83 -37
Consideration 3) 1,159 855
Less: cash and cash equivalents in acquired businesses -257 -113
Less: consideration not yet paid -148 -152
Effect on the Group’s cash and cash equivalents 754 590
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 55 million (47) and profit after financial items was SEK 21 million (-1). Net investments in non-current assets were SEK 0 million (0). The Parent Company's financial net debt was SEK 119 million (155) at the end of the period.