FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2023
===== SIDA 1 =====
INTERIM REPORT Q1 2023/24
FIRST QUARTER (1 APRIL – 30 JUNE 2023)
• Net revenue increased by 28% to MSEK 2,045 (1,597),
where the organic growth amounted to 6%.
• Operating profit (EBITA) increased by 35% to MSEK 357 (265),
equivalent to an EBITA margin of 17.5% (16.6).
• Profit after financial items (EBT) increased by 19% to MSEK 277 (232).
• Cash flow from operating activities amounted to MSEK 286 (2).
• Profit after taxes increased by 17% to MSEK 209 (179).
Earnings per share after dilution for the latest 12-month period
amounted to SEK 3.83 (3.70 for the financial year 2022/23).
• Return on equity for the latest 12-month period amounted to 28% (28)
and the equity ratio at the end of the period was 38% (34).
• During the first quarter, three acquisitions were carried out with total
annual revenue of approximately MSEK 280.
• The Annual General Meeting will be held on 29 August 2023 at 4.00 p.m.
at IVA’s Conference Centre in Stockholm. The Board of Directors proposes
a dividend of SEK 1.60 (1.30) per share.
GROUP OVERVIEW 3 months Moving 12 months
Amounts in MSEK 30 Jun
2023
30 Jun
2022 Δ 30 Jun
2023
31 Mar
2023
Net revenue 2,045 1,597 28% 7,694 7,246
EBITA 357 265 35% 1,297 1,205
EBITA margin, % 17.5 16.6 16.9 16.6
Profit after financial items 277 232 19% 1,012 968
Net profit for the period 209 179 17% 787 758
Earnings per share after dilution, SEK 1.01 0.88 15% 3.83 3.70
Return on equity, % - - 28 29
Equity ratio, % 38 34 38 37
35%
EBITA
growth
Q1
6%
Organic
growth
Q1
===== SIDA 2 =====
CEO COMMENT
“A strong start to the year and we reached our billion target”
Lagercrantz’s first quarter (April – June) 2023 represented a strong start to the 2023/24 financial year.
The market situation remained at a good level for most of the businesses. With good contributions from the
acquisitions and strengthened margins, we delivered the highest quarterly result ever with operating profit
(EBITA) increasing by 35% to MSEK 357 (265) and the EBITA margin increasing to a record high of 17.5%
(16.6).
The success means that we now reach our target of SEK 1 billion in profit after net financial items on a
rolling 12-month basis. The target was launched in April 2021, to double the result to one billion within
5 years, something that has now been fulfilled at the level of SEK 1,012 million, almost 3 years earlier than
planned.
The fact that we reach our billion target ahead of schedule really shows the strength of our business concept, our
vision, our corporate culture and our organisation. As a serial acquirer without an exit horizon, we are growing by
acquiring profitable and well-run technology companies in sustainable and expansive niches, which we nurture with
clear ambitions in terms of growth and improvements. We also see that Lagercrantz’s approach to developing owner-
led product companies in particular, is attracting more and more entrepreneurs as they have faith in our ownership
concept of clear decentralisation and management by objectives, among other things.
Acquisition activity has been high and in the first quarter we have welcomed three new niche-focused businesses to
the Group with total annual revenue of approximately MSEK 280. In the International division, we have acquired
Denmark-based Glova Rail, which manufactures vacuum toilets for railway vehicles and the UK company Supply
Plus, which manufactures ladders and hose reels for the fire and rescue services. In the TecSec division, UK-based
Fireco was acquired which manufactures components for fire doors, primarily fire door retainers.
Cash flow from operating activities was strong and amounted to MSEK 286 during the quarter. Thus, Lagercrantz
continues to have a strong financial position with the financial scope for further value-creating acquisitions. The
acquisition situation is considered interesting and we have several attractive transactions under evaluation.
I am optimistic about the future despite the current global and economic situation. Market conditions have remained
stable for most of the Group’s businesses and the feared downturn has still not materialised. The situation is hard to
judge, however, and there is considerable uncertainty surrounding inflation, currencies, interest rates, and the
economic development going forward, but we have strong confidence in the ability of our decentralised organisation
to rapidly adapt its offerings and costs. The Group’s broad exposure with niche B2B technology companies in
attractive sectors such as electrification, infrastructure and safety products provides stability and good growth
opportunities. Should an economic slowdown have a greater impact on us in the future, we are well-prepared to
implement action plans that are adapted to the situation in each company.
To sum up, we will therefore continue on our chosen path of building a strong technology group with leading
positions in sustainable and expansive niches.
19 July 2023
Jörgen Wigh
President and CEO
===== SIDA 3 =====
GROUP PERFORMANCE
NET REVENUE AND PROFIT
First quarter (April – June 2023)
The market situation remained stable at a good level for
most of the Group’s businesses during the first quarter
of the financial year. Demand was strongest in the
Electrify, Niche Products and International divisions. In
comparable units, incoming orders were in line with the
previous year and were also in line with the invoicing
during the quarter.
The Group's broad focus with many different end-
customer markets and geographies with an emphasis on
electrification and infrastructure, safety products and
specialised products in niches constitutes a strong base
and provides good growth opportunities.
Net revenue in the first quarter increased by 28% to
MSEK 2,045 (1,597). Organic growth amounted to 6%
and acquired growth contributed 19%. Exchange rate
fluctuations impacted net revenue positively by 4%.
Profitability improved and the operating profit
(EBITA) increased by 35% to MSEK 357 (265). The
increase in EBITA in comparable units amounted to
11% in local currency, where the Electrify, TecSec and
International divisions contributed most. Acquisitions
made a contribution of 19% and exchange rate
fluctuations had a positive impact of 5%.
The EBITA margin increased to 17.5% (16.6), which
is the highest level ever, and was primarily explained by
strong organic revenue growth and improved gross
margins as well as good profitability in recently acquired
companies.
Profit after financial items increased by 19% to
MSEK 277 (232). Net financial items amounted to
MSEK -39 (-2), of which net interest items amounted to
MSEK -28 (-12) and currency translation effects,
primarily on loans in foreign currency, amounted to
MSEK -9 (10).
Profit after taxes increased by 17% to MSEK 209
(179). Earnings per share after dilution for the latest
12-month period amounted to SEK 3.83, compared to
SEK 3.70 for the 2022/23 financial year.
0
100
200
300
400
500
600
700
800
900
1000
1100
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
11 000
Profit after financial items, MSEK
Net revenue, MSEK
Net revenue and profit after financial items, moving 12 months
Net revenue Profit after financial items
===== SIDA 4 =====
PERFORMANCE BY DIVISION
Net revenue Operating profit (EBITA) and operating margin
MSEK
3 months
Apr-Jun
2023/24
3 months
Apr-Jun
2022/23
12 months
Apr-Mar
2022/23
3 months
Apr-Jun
2023/24
3 months
Apr-Jun
2022/23
12 months
Apr-Mar
2022/23
Electrify 480 396 1,677 87 65 283
Operating margin 18.1% 16.4% 16.9%
Control 184 175 746 21 26 119
Operating margin 11.4% 14.9% 16.0%
TecSec 528 330 1,748 95 56 303
Operating margin 18.0% 17.0% 17.3%
Niche Products 485 432 1,871 104 89 375
Operating margin 21.4% 20.6% 20.0%
International 368 264 1,204 57 38 185
Operating margin 15.5% 14.4% 15.4%
Parent
Company/consolidation
items -
-
- -7 -9 -60
GROUP TOTAL 2,045 1,597 7,246 357 265 1,205
Operating margin 17.5% 16.6% 16.6%
Amortisation, intangible
assets
-41 -31 -143
Financial items -39 -2 -94
PROFIT BEFORE
TAXES 277 232 968
NET REVENUE AND PROFIT BY DIVISION
FIRST QUARTER
Electrify
The Electrify division’s net revenue increased by 21% to
MSEK 480 (396), of which 8% was organic growth.
Operating profit (EBITA) increased by 34% to MSEK 87
(65), equivalent to an operating margin of 18.1% (16.4).
Electrify delivered a strong first quarter. The
division’s largest unit Elpress and several Finnish units
delivered another good quarter, while Elfac in Denmark
continued to be impacted by lower volumes to the wind
power industry. In infrastructure, Cue Dee delivered a
strong profit with project deliveries to an international
network operator.
The new acquisition from last winter, Tykoflex,
reported strong demand and contributed with a good
profit.
Control
The Control division’s net revenue increased by 5% to
MSEK 184 (175), of which -5% was organic growth.
Operating profit (EBITA) amounted to MSEK 21 (26),
equivalent to an operating margin of 11.4% (14.9).
The market situation was challenging for different
reasons with lower sales, seasonal variations and
component shortages in several businesses within
Control. Meanwhile, several businesses reported a
positive development, e.g. Direktronik and Leteng as
well as Load Indicator and GasiQ. The new acquisition
Stegborgs also delivered according to plan.
TecSec
The TecSec division’s net revenue increased by 60% to
MSEK 528 (330), of which 6% was organic growth.
Operating profit (EBITA) increased by 70% to MSEK 95
(56), equivalent to an operating margin of 18.0% (17.0).
The business situation remained favourable in most
businesses. R-CON, ISG Nordic and Frictape all
performed particularly well. The recently acquired
businesses PcP in Denmark and Door & Joinery and
Fireco in the UK also delivered good profit contributions
according to plan.
===== SIDA 5 =====
Niche Products
The Niche Products division’s net revenue increased by
12% to MSEK 485 (432), of which 3% was organic
growth. Operating profit (EBITA) increased by 17% to
MSEK 104 (89), equivalent to an operating margin of
21.4% (20.6).
The business situation remained stable in most of
the division’s units with good improvements in earnings
in many businesses.
Asept, Tormek, the brush businesses SIB and Sajas
as well as Thermod all performed very well.
The new acquisition Waterproof has also got off to a
good start in Lagercrantz and delivered an excellent
result.
International
The International division’s net revenue increased by
39% to MSEK 368 (264), of which 12% was organic
growth. Operating profit (EBITA) increased by 50% to
MSEK 57 (38), equivalent to an operating margin of
15.5% (14.4).
International reported another quarter with strong
demand and is delivering margin improvements on a
broad basis. The business situation was particularly
favourable for the marine businesses Libra in Norway
and ISIC Group in Denmark. The ACTE companies in
Denmark, Norway, Sweden, G9 in Denmark and E-tech
in the UK all contributed good improvements in earnings.
The recent acquisitions Tebul in Finland and Supply
Plus in the UK contributed good profits according to
plan.
PROFITABILITY AND FINANCIAL POSITION
Return on equity for the latest 12-month period
amounted to 28% (28) and the return on capital
employed was 21% (19).
The Group’s metric for return on working capital
(P/WC) amounted to 72% (68).
The equity ratio at the end of the period was 38% (34).
Equity per share amounted to SEK 15.91 (11.80).
The Group’s operating net debt at the end of the
period amounted to MSEK 1,972 (2,170).
The operating net debt equity ratio was 0.6 (0.9) and
operating net debt / EBITDA was 1.3 (1.9).
The Group’s net indebtedness including pension
liability of MSEK 55 (63) and the IFRS 16 effect of MSEK
384 (338), amounted to MSEK 2,411 (2,571) at the end
of the period.
CASH FLOW AND CAPITAL EXPENDITURES
Cash flow from operating activities increased to MSEK
286 (2), where the change was mainly explained by an
increased profit and lower build-up of working capital.
Acquisitions and disposals, including settlement of
contingent consideration relating to acquisitions carried
out in previous years, amounted to MSEK 237 (446).
Net investments in non-current assets amounted to
MSEK 34 (25).
OTHER FINANCIAL INFORMATION
Parent Company and other consolidation items
The Parent Company’s net revenue during the quarter
amounted to MSEK 17 (14) and profit after financial
items amounted to MSEK 416 (243). The Parent
Company’s equity ratio was 49% (46).
Employees
At the end of the period, the number of employees in the
Group was 2,562 (2,411 at the end of the 2022/23
financial year), where 149 employees were added
through acquisitions during the first quarter.
===== SIDA 6 =====
Share capital
The share capital amounted to MSEK 49 at the end of the
period. The quota value per share amounted to SEK 0.23.
Classes of shares were distributed as follows on 30 June
2023:
Classes of shares Number
A shares 9,791,406
B shares 199,426,827
Repurchased B shares -3,287,969
Total number of shares after
repurchases
205,930,264
At 30 June 2023, Lagercrantz Group held 3,287,969
own Class B shares, equivalent to 1.6% of the total
number of shares and 1.1% of the votes in the
Lagercrantz Group. Lagercrantz’s own holdings of
repurchased B shares cover the company’s obligations
in outstanding call option programmes.
No shares were repurchased during the first quarter
of the financial year.
At the end of the period, Lagercrantz had three
outstanding call option programmes for a total of
2,714,000 shares:
Option
programme
Number of
outstanding options*
Redemption
price
2022/26 800,000 127.70
2021/25 714,000 145.80
2020/24 1,200,000 78.50
Total 2,714,000
* An option carries the right to purchase one share.
Issued call options on repurchased shares had a
dilutive effect of approximately 0.25% of the total number
of shares in the company.
ACQUISITIONS
From and including the 2022/23 financial year, the following acquisitions have been carried out (including subsidiaries);
Acquisition Takeover
Equity
interest,
%
Annual revenue
at acquisition
date, MSEK
Number
employees Division
PcP Corporation A/S, Denmark June 2022 95 595 284 TecSec
Stegborgs EL-evator AB, Sweden July 2022 100 60 14 Control
Door and Joinery Solutions Ltd., UK July 2022 100 56 26 TecSec
Water Proof Diving International AB, Sweden September 2022 93 90 22 Niche Products
Tebul Oy, Finland September 2022 80 54 21 International
Agentuuri Neumann (asset acquisition), Finland December 2022 100 11 - Electrify
Tykoflex AB, Sweden December 2022 100 140 63 Electrify
Sassenus Packaging (asset acq.), Netherlands March 2023 100 14 - Niche Products
Glova Rail A/S, Denmark April 2023 100 90 18 International
Fireco Ltd, UK April 2023 95 90 64 TecSec
Supply Plus Ltd, UK June 2023 80 100 67 International
In early April, Glova Rail A/S in Denmark was acquired
for the International division. Glova Rail is a leading
supplier of vacuum toilets for railway vehicles which
generates annual revenue of about MDKK 58.
In late April, an agreement was signed to acquire
80% of the shares of Supply Plus Limited in the UK for
the International Division. Supply Plus is a market
leading manufacturer of fire rescue equipment, mainly
ladders and hose reels to the fire and rescue services,
which generates annual revenue of about MGBP 7.
After approval by the UK public authorities, the
acquisition was completed in June 2023.
At the end of April/start of May, 95% of the shares of
Fireco Ltd in the UK were acquired for the TecSec
division. Fireco is a leading manufacturer of components
for fire doors, primarily fire door retainers which
generates annual revenue of about MGBP 7.
Lagercrantz normally uses an acquisition structure
with a fixed purchase price and contingent consideration
as well as call options on any minority shares. The
outcome of contingent considerations depends on the
future results achieved in the companies and has a set
maximum level. Not yet paid contingent considerations
for acquisitions amounted to MSEK 237. The contingent
considerations fall due for payment within three years
and the maximum outcome can be MSEK 339.
Remeasurement of contingent considerations had a
net effect in the period of MSEK 6 (3). The effect on
earnings is recognised in other operating income and
other operating expenses. During the first quarter,
MSEK 9 (0) was paid in contingent consideration and
MSEK 47 (0) in the exercise of call options for the
acquisition of outstanding minority shares in Frictape.
===== SIDA 7 =====
Preliminary purchase price allocation
The preliminary purchase price allocations for the latest 12-month period in the table below (including subsidiaries)
include Stegborgs El-evator AB, Door and Joinery Solutions Ltd, Water Proof Diving International AB, Tebul Oy,
Tykoflex AB, Glova Rail A/S, Fireco Ltd and Supply Plus Ltd.
Acquired net assets at time of acquisition (MSEK)
Book value in
companies
Fair value
adjustment
Fair value
consolidated
Intangible non-current assets 0 419 419
Other non-current assets 54 54
Inventories 101 101
Other current assets 238 238
Interest-bearing liabilities -11 -11
Other liabilities -117 -90 -207
Net of identified assets/liabilities 265 329 594
Goodwill 396
Estimated Purchase price 990
Less: cash and cash equivalents in acquired businesses -122
Less: consideration not yet paid -249
Less payment via newly issued B-shares -70
Effect on the Group’s cash and cash equivalents 548
OTHER INFORMATION
Accounting principles
The Interim Report for the Group has been prepared in
accordance with IFRS standards as adopted by the EU
with application of IAS 34, Interim Financial Reporting.
Apart from in the financial statements and
accompanying notes, disclosures according to IAS
34.16A are also presented in other parts of the report.
The Interim Report for the Parent Company has been
prepared in accordance with the Swedish Annual
Accounts Act and the Swedish Securities Markets Act,
which is in accordance with the provisions of RFR 2,
Accounting for Legal Entities.
The same accounting policies and calculation
methods as in the most recent annual report have been
applied in the interim report. There are no new IFRS
standards or IFRIC interpretations approved by the EU,
which are applicable for Lagercrantz, or that have a
significant effect on the Group’s results and financial
position for 2023/2024.
Alternative performance measures
Lagercrantz presents certain financial metrics in the
interim report that are not defined according to IFRS.
The company considers that these metrics provide
supplementary information to investors and
shareholders as they enable evaluation of trends and
the company’s performance. Therefore, they should not
be regarded as a substitute for metrics defined
according to IFRS. For definitions and reconciliation
tables for the key ratios that Lagercrantz uses, see page
15.
Transactions with related parties
Transactions between Lagercrantz and related parties
with a significant impact on the company’s financial
position and results have not occurred.
Risks and uncertainty factors
Lagercrantz’s results and financial position are affected
by a number of internal factors, which Lagercrantz
controls and a number of external factors where the
possibility to influence the course of events is limited.
The risk factors that have the greatest importance for
the Group are the state of the economy combined with
structural changes in the market, customer and supplier
dependence, the competitive situation, pandemics,
cyber security risks as well as geopolitical uncertainty
close to the main markets.
For more information, please see the Risks and
uncertainty factors section on pages 50-52 in the
2022/23 Annual Report.
The Parent Company is impacted by the above-
mentioned risks and uncertainty factors through its
capacity as owner of subsidiaries.
===== SIDA 8 =====
Post-balance sheet events
No significant events for the company have occurred
after the end of the period.
Annual General Meeting 2023 and dividend
The 2023 Annual General Meeting (AGM) will be held
on 29 August 2023, at 4.00 p.m. at IVA’s Conference
Centre, Grev Turegatan 16 in Stockholm. Notice for the
AGM will be published in July 2023 and will be available
on the company’s website www.lagercrantz.com.
The Board of Directors proposes a dividend of SEK
1.60 (1.30) per share, which is in line with Lagercrantz’s
dividend policy. Notice of participation must be given to
the company in accordance with the notice.
Stockholm, 19 July 2023
Jörgen Wigh,
President and CEO
This report has not been subject to review by the
company’s auditors.
===== SIDA 9 =====
Quarterly data by division
Net revenue 2023/24 2022/23 2021/22
MSEK Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Electrify 480 463 433 385 396 404 345 340 377
Control 184 203 204 163 175 189 187 132 152
TecSec 528 516 475 428 330 251 241 197 217
Niche Products 485 524 494 421 432 453 371 299 331
International 368 334 335 271 264 278 261 233 224
Parent
Company/consolidation items - - - - - - - - -
GROUP TOTAL 2,045 2,040 1,941 1,668 1,597 1,575 1,405 1,201 1,301
Operating profit (EBITA) 2023/24 2022/23 2021/22
MSEK Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Electrify 87 78 71 69 65 69 54 56 67
Control 21 39 36 17 26 41 38 17 22
TecSec 95 95 78 74 56 48 37 34 42
Niche Products 104 107 94 84 89 83 77 62 67
International 57 49 54 45 38 37 39 31 27
Parent
Company/consolidation items -7 -25 -10 -14 -9 -13 -19 -8 -13
GROUP TOTAL 357 343 323 275 265 265 226 192 212
Operating margin (EBITA) 2023/24 2022/23 2021/22
% Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Electrify 18.1 16.8 16.4 17.9 16.4 17.1 15.8 16.5 17.8
Control 11.4 19.2 17.6 10.4 14.9 21.7 20.3 12.9 14.5
TecSec 18.0 18.4 16.4 17.3 17.0 19.1 15.4 17.3 19.4
Niche Products 21.4 20.4 19.0 20.0 20.6 18.3 20.8 20.7 20.2
International 15.5 14.7 16.1 16.5 14.4 13.3 14.9 13.3 12.1
GROUP TOTAL 17.5 16.8 16.6 16.5 16.6 16.8 16.1 16.0 16.3
===== SIDA 10 =====
Consolidated Income Statement - condensed
MSEK
3 months
Apr-Jun
2023/24
3 months
Apr-Jun
2022/23
Mov. 12
months,
Jul-Jun
2023/24
Financial
year
2022/23
Net revenue 2,045 1,597 7,694 7,246
Cost of goods sold -1,244 -995 -4,756 -4,506
GROSS PROFIT 801 602 2,938 2,740
Selling expenses -318 -252 -1,161 -1,095
Administrative expenses -176 -125 -641 -590
Other operating income and operating expenses 9 9 7 7
PROFIT BEFORE NET FINANCIAL ITEMS* 316 234 1,143 1,062
Net financial items -39 -2 -131 -94
PROFIT AFTER FINANCIAL ITEMS 277 232 1,012 968
Taxes -68 -53 -225 -210
NET PROFIT FOR THE PERIOD 209 179 787 758
* Of which:
- amortisation of intangible non-current assets
arising in connection with acquisitions: -41 -31 -154 -143
- depreciation of other non-current assets: -66 -55 -256 -246
Operating profit (EBITA) 357 265 1,297 1,205
Earnings per share, SEK 1.01 0.88 3.84
3.71
Earnings per share after dilution, SEK 1.01 0.88 3.83 3.70
Weighted number of shares after repurchases,
(’000)
205,930
203,637
205,002 204,439
Weighted number of shares after repurchases
adjusted after dilution (’000)
206,443
203,963
205,354 204,718
Number of shares at end of period after
repurchases (’000) 205,930 203,637 205,930 205,930
In view of the redemption price on outstanding call options during the period (SEK 78.50, SEK 145.80 and SEK 127.70) and the average share
price (SEK 111.10) during the latest 12-month period when the option programmes were outstanding, there was a dilutive effect of 0.17%.
For the latest quarter, there was a dilutive effect of 0.25% (average share price SEK 132.03).
Consolidated Statement of Comprehensive Income - condensed
MSEK
3 months
Apr-Jun
2023/24
3 months
Apr-Jun
2022/23
Mov. 12
months,
Jul-Jun
2023/24
Financial
year
2022/23
Net profit for the period 209 179 787 758
Other comprehensive income
Items that have been reposted or that may be
reposted to net profit for the period
Change in translation reserve 95 12 152 69
Debt instruments measured at fair value 1 - 7 6
Items that cannot be reposted to net profit for the
period
Actuarial effects on pensions - 13 13
Taxes attributable to actuarial effects - -2 -2
COMPREHENSIVE INCOME FOR THE PERIOD 305 191 957 844
===== SIDA 11 =====
Consolidated Balance Sheet - condensed
MSEK 30 Jun 2023 30 Jun 2022 31 Mar 2023
ASSETS
Goodwill 2,632 2,241 2,446
Other intangible non-current assets 1,675 1,214 1,519
Property, plant and equipment 1,015 873 973
Financial assets 21 20 22
Inventories 1,249 1,143 1,166
Trade receivables and contract assets 1,330 1,133 1,237
Other current receivables 294 255 310
Cash and bank balances 397 260 360
TOTAL ASSETS 8,613 7,139 8,033
EQUITY AND LIABILITIES
Equity 3,276 2,403 3,009
Non-current liabilities* 2,899 2,970 2,980
Trade payables and contract liabilities 671 591 673
Other current liabilities* 1,767 1,175 1,371
TOTAL EQUITY AND LIABILITIES 8,613 7,139 8,033
Interest-bearing assets
397 260 360
Interest-bearing liabilities, excluding pension liabilities* 2,752 2,769 2,632
* Including IFRS 16 effect in the form of future lease and rental obligations.
Changes in Consolidated Equity - condensed
MSEK
3 months
Apr-Jun
2023/24
3 months
Apr-Jun
2022/23
Mov. 12
months,
Jul-Jun
2023/24
Financial
year
2022/23
Opening balance 3,009 2,228 2,403 2,228
Comprehensive income for the period 305 191 958 844
Dividend to minority shareholders in subsidiaries -38 -14 -47 -23
Transactions with owners
New issue - - 70 70
Dividend - - -265 -265
Redemption and acquisition of options on repurchased shares,
net - -2 157 155
Closing balance 3,276 2,403 3,276 3,009
===== SIDA 12 =====
Consolidated Statement of Cash Flows - condensed
MSEK
3 months
Apr-Jun
2023/24
3 months
Apr-Jun
2022/23
Mov. 12
months,
Jul-Jun
2023/24
Financial
year
2022/23
Operating activities
Profit after financial items 277 232 1,012 968
Adjustment for items not included in the cash flow 112 66 460 414
Income tax paid -7 -74 -188 -255
Cash flow from operating activities before changes in
working capital
382 224 1,285 1,127
Cash flow from changes in working capital
Increase (-)/Decrease (+) in inventories -13 -104 83 -8
Increase (-)/Decrease (+) in operating receivables -22 -69 -7 -54
Increase (+)/Decrease (-) in operating liabilities -61 -49 -7 5
Cash flow from operating activities 286 2 1,354 1,070
Investing activities
Investments in businesses -237 -446 -637 -846
Net investments in other non-current assets -34 -42 -163 -171
Cash flow from investing activities -271 -488 -800 -1,017
Financing activities
Dividend, sale/repurchase of own shares/options - -16 -117 -133
Other financing activities 7 550 -324 219
Cash flow from financing activities 7 534 -441 86
CASH FLOW FOR THE PERIOD 22 48 113 140
Cash and cash equivalents at the beginning of the period 360 210 260 210
Exchange difference in cash and cash equivalents 15 2 24 10
Cash and cash equivalents at the end of the period 397 260 397 360
Fair value of financial instruments
For all of the Group’s financial assets, fair value is estimated to equal the carrying amount.
Liabilities measured at fair value consist of contingent consideration payments and call options on minority interests, which are measured using
discounted estimated cash flows and are therefore included in level 3 under IFRS 13.
Carrying amount, MSEK 30 Jun 2023 31 Mar 2023
Assets measured at fair value - -
Assets measured at amortised cost 1,618 1,513
TOTAL ASSETS, FINANCIAL INSTRUMENTS 1,618 1,513
Liabilities measured at fair value 567 400
Liabilities measured at amortised cost 3,326 3,218
TOTAL LIABILITIES, FINANCIAL INSTRUMENTS 3,793 3,618
Change in contingent considerations and call options
3 months
Apr-Jun
2023/24
Financial
year
2022/23
Opening balance 400 269
Settled liabilities during the year -56 -37
Remeasurement of liabilities during the year -4 4
Year’s liabilities from acquisitions during the year 113 144
Exchange difference 14 20
Closing balance 467 400
===== SIDA 13 =====
Parent Company Income Statement - condensed
MSEK
3 months
Apr-Jun
2023/24
3 months
Apr-Jun
2022/23
Mov. 12
months,
Jul-Jun
2023/24
Financial
year
2022/23
Net revenue 17 14 65 63
Administrative expenses -27 -23 -121 -118
Other operating income and operating expenses - - - -
OPERATING PROFIT -10 -9 -56 -55
Financial income 485 261 998 774
Financial expenses -59 -9 -155 -105
PROFIT AFTER FINANCIAL ITEMS 416 243 787 614
Change in untaxed reserves 0 -4 -80 -84
Taxes -1 2 -55 -52
NET PROFIT FOR THE PERIOD 415 241 652 478
Parent Company Balance Sheet - condensed
MSEK 30 Jun 2023 30 Jun 2022 31 Mar 2023
ASSETS
Property, plant and equipment 2 - 2
Financial assets 4,744 4,045 4,598
Current receivables 1,328 1,278 1,365
Cash and bank balances - - -
TOTAL ASSETS 6,074 5,323 5,965
EQUITY AND LIABILITIES
Equity 2,976 2,362 2,561
Untaxed reserves 198 114 198
Non-current liabilities 2,119 2,328 2,244
Current liabilities 781 519 962
TOTAL EQUITY AND LIABILITIES 6,074 5,323 5,965
===== SIDA 14 =====
Key ratios
In the table below, key ratios are partly presented that are not
defined according to IFRS. For definition of these, see
Definitions,
Moving
12 months Financial year
Jul-Jun
2023/24 2022/23 2021/22 2020/21 2019/20
Revenue 7,694 7,246 5,482 4,091 4,180
Change in revenue, % 33.2 32.2 34.0 -2.1 6.3
EBITDA 1,553 1,451 1,094 774 717
Operating profit (EBITA) 1,297 1,205 895 616 565
Operating margin (EBITA), % 16.9 16.6 16.3 15.1 13.5
EBIT 1,143 1,062 781 529 483
EBIT margin, % 14.9 14.7 14.2 12.9 11.6
Profit after financial items 1,012 968 741 502 460
Profit margin, % 13.2 13.4 13.5 12.3 11.0
Profit after taxes 787 758 572 388 366
Equity ratio, % 38 37 36 40 39
Return on working capital (P/WC), % 72 78 79 67 64
Return on capital employed, % 21 22 20 17 17
Return on equity, % 28 29 28 22 23
Operating net debt (+)/receivables (-), MSEK 2,411 2,327 2,014 1,314 1,312
Net debt/equity ratio, times 0.7 0.8 0.9 0.7 0.8
Operating net debt (+)/receivables (-), MSEK 1,972 1,902 1,621 992 1,056
Operating net debt/equity ratio, times 0.6 0.6 0.7 0.5 0.6
Operating net debt / EBITDA, times 1.3 1.3 1.5 1.7 1.8
Interest coverage ratio, times 6 8 15 12 13
Number of employees at end of period 2,562 2,425 1,953 1,654 1,532
Revenue outside Sweden, MSEK 5,168 4,830 3,559 2,650 2,706
Key ratios per share
In the table below, key ratios are partly presented that are not
defined according to IFRS. For definition of these, see below.
Moving
12 months Financial year
Jul-Jun
2023/24 2022/23 2021/22 2020/21 2019/20
Number of shares at end of period after repurchases (’000) 205,930 205,930 203,637 203,421 203,178
Weighted number of shares after repurchases, (’000) 205,002 204,439 203,547 203,307 203,151
Weighted number of shares after repurchases & dilution (’000) 205,354 204,718 204,102 203,673 203,616
Earnings per share before dilution, SEK 3.84 3.71 2.81 1.91 1.80
Earnings per share after dilution, SEK 3.83 3.70 2.80 1.91 1.80
Cash flow from operating activities per share
after dilution, SEK
6.59
5.23
2.91
3.84
2.49
Equity per share, SEK 15.91 14.61 10.94 9.12 8.29
Latest price paid per share, SEK 139.0 129.7 106.80 79.10 38.60
===== SIDA 15 =====
Key ratio definitions
Return on equity1
Net profit for the year after tax as a percentage of average equity (opening
plus closing balance for the latest 12-month period), divided by two).
Return on working capital (P/WC) 1
Operating profit (EBITA) as a percentage of average working capital,
(opening balance plus closing balance for the latest 12-month period,
divided by two), where working capital consists of inventories, trade
receivables and contract assets less trade payables and contract
liabilities.
Return on capital employed1
Profit after financial items, plus financial expenses as a percentage of
average capital employed (opening balance plus closing balance for the
latest 12-month period, divided by two).
EBIT margin
Profit before net financial items as a percentage of net revenue.
EBITDA1
Operating profit before depreciation and impairment.
Equity per share1
Equity divided by the number of outstanding shares on the balance sheet
date.
Cash flow per share after dilution1
Cash flow in relation to the weighted number of shares outstanding
after repurchases and adjusted for dilution.
Cash flow from operating activities per share1
Cash flow from operating activities in relation to the weighted number of
shares outstanding after repurchases and adjusted for dilution.
Net debt/receivables1
Interest-bearing provisions and liabilities, including pension liabilities and
including liabilities related to financial leases according to IFRS 16, less
cash and cash equivalents and investments in securities.
Net debt/equity ratio1
Interest-bearing provisions and liabilities including pension liabilities and
including IFRS 16, less cash and cash equivalents and investments in
securities, divided by equity plus non-controlling interests.
Operating net debt/receivables1
Interest-bearing provisions and liabilities, excluding pensions and
excluding liabilities related to financial leases according to IFRS 16, less
cash and cash equivalents and investments in securities.
Operating net debt/equity ratio1
Interest-bearing provisions and liabilities, excluding pensions and
excluding effects of IFRS 16, less cash and cash equivalents and
investments in securities, divided by equity plus non-controlling interests.
Operating net debt/EBITDA1
The operating net debt divided by EBITDA for the latest 12-month period.
Change in revenue1
Change in net revenue as a percentage of the preceding year’s net
revenue.
Earnings per share
Net profit for the year attributable to the parent company’s shareholders in
relation to the weighted number of shares outstanding after repurchases.
Earnings per share after dilution
Net profit for the year attributable to the parent company’s shareholders in
relation to the weighted number of shares outstanding after repurchases
and dilution.
Interest coverage ratio1
Profit after financial items plus financial expenses divided by financial
expenses.
Operating profit (EBITA)1
Operating profit before amortisation of intangible non-current assets
arising in connection with acquisitions.
Operating margin1
Operating profit (EBITA) as a percentage of net revenue.
Debt equity ratio1
Interest-bearing liabilities divided by equity, plus non-controlling interests.
Equity ratio1
Equity, plus non-controlling interests as a percentage of total assets. The
equity portion of untaxed reserves is included in the parent company’s
calculation of the equity ratio.
Capital employed1
Total assets, less non-interest-bearing provisions and liabilities.
Profit margin1
Profit after financial items, less participations in associated companies as a
percentage of net revenue.
1 The key ratio is an alternative performance measure according to
ESMA’s guidelines.
===== SIDA 16 =====
Reconciliation tables for alternative performance measures
EBITA and EBITDA 12 months through
Group, MSEK
30 Jun
2023
31 Mar
2023
30 Jun
2022
31 Mar
2022
30 Mar
2021
Profit before net financial items according to the quarterly report 1,143 1,062 830 781 529
Amortisation, intangible non-current assets relating to acquisitions (+) 154 143 118 114 87
EBITA 1,297 1,205 948 895 616
Depreciation of property, plant and equipment 256 246 206 199 158
EBITDA 1,553 1,451 1,154 1,094 774
Working capital and return on working capital (P/WC)
Group, MSEK
30 Jun
2023
31 Mar
2023
30 Jun
2022
31 Mar
2022
31 Mar
2021
EBITA (moving 12 months) 1,297 1,205 948 895 616
Inventories, annual average (+) 1,198 1,058 951 802 608
Trade receivables and contract assets, annual average (+) 1,232 1,105 978 822 694
Trade payables and contract liabilities, annual average* (-) 631 621 527 486 384
Working capital (annual average) 1,798 1,542 1,402 1,138 918
Return on working capital (P/WC), (%) 72% 78% 68% 79% 67%
Acquired and organic net revenue growth
Group, MSEK, %
3 months
Apr-Jun
2023/24
3 months
Jan-Mar
2022/23
3 months
Oct-Dec
2022/23
3 months
Jul-Sep
2022/23
Acquired net revenue growth 296 19% 271 18% 331 12% 282 24%
Organic net revenue growth 88 6% 148 9% 135 9% 135 11%
Exchange rate effects 65 4% 46 3% 70 2% 50 4%
Total net revenue growth 449 28% 465 30% 537 23% 467 39%
Revenue distribution
Electrify Control TecSec Niche Products International Group total
Net revenue by product type
3 mths
Apr-
Jun
2023/24
Financial
year
2022/23
3 mths
Apr-
Jun
2023/24
Financial
year
2022/23
3 mths
Apr-
Jun
2023/24
Financial
year
2022/23
3 mths
Apr-
Jun
2023/24
Financial
year
2022/23
3 mths
Apr-
Jun
2023/24
Financial
year
2022/23
3 mths
Apr-
Jun
2023/24
Financial
year
2022/23
Total net revenue 480 1,677 184 746 528 1,748 485 1,871 368 1,203 2,045 7,246
Of which, share
Proprietary products 74% 71% 43% 46% 80% 78% 97% 98% 63% 57% 76% 75%
Trading 5% 6% 50% 49% 4% 4% 2% 2% 37% 42% 14% 15%
Niche production 20% 22% 5% 4% - - - - - - 5% 5%
System integration - - - - 10% 12% - - - 3% 3%
Other net revenue 1% 1% 1% 1% 6% 6% 1% - - 1% 2% 2%
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
This information is such information that Lagercrantz Group AB (publ) is obliged to make public pursuant to the EU Market
Abuse Regulation. The information was submitted for publication at 07.40 CET on 19 July 2023.
Reporting dates:
29 August 2023 Annual General Meeting for the 2022/23 financial year
25 October 2023 Interim Report 1 April – 30 September 2023
6 February 2024 Interim Report 1 April – 31 December 2023
17 May 2024 Year-end Report 1 April – 31 March 2024
For further information please contact:
Jörgen Wigh, President and CEO, phone +46 8 700 66 70
Peter Thysell, CFO, phone +46 70 661 05 59
Lagercrantz Group AB (publ)
Box 3508, 103 69 Stockholm
Phone +46 8 700 66 70
Corporate identity number 556282-4556
www.lagercrantz.com