OTHER FINANCIAL INFORMATION
Profitability, financial position and cash flow
The return on equity at the end of the financial year was 23 percent (32), and return on capital employed was 15 percent (21). Return on working capital P/WC (EBITA in relation to working capital) amounted to 52 percent (56).
At the end of the financial year the equity ratio amounted to 35 percent (36). Equity per share, excluding non-controlling interest, totalled SEK 11.95 (11.25). The Group's net debt at the end of the financial year amounted to SEK 2,798 million (2,253), excluding pension liabilities of SEK 336 million (332). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.8 (0.7).
Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 2,119 million (2,407) at 31 March 2021.
Cash flow from operating activities amounted to SEK 1,503 million (1,117) during the financial year. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 1,219 million (430). Investments in noncurrent assets totalled SEK 90 million (109) and disposal of non-current assets amounted to SEK 11 million (6). Repurchase of treasury shares amounted to SEK 0 million (42) and repurchase of call options amounted to SEK 23 million (23). Exercised and issued call options totalled SEK 48 million (39). Dividends paid to the shareholders of the Parent Company totalled SEK 269 million (336), corresponding to SEK 1.00 (1.25) per share. The dividend was paid out in the second quarter.
At the end of the financial year, the number of employees was 3,133, compared to 2,981 at the beginning of the financial year. During the financial year, completed acquisitions resulted in an increase of the number of employees by 321. The average number of employees in the latest 12-month period was 3,068.
At the end of the financial year 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||-3,519,272||1.3%||0.9%|
|Total number of shares after repurchases||269,274,712|
Addtech has four outstanding call option programmes for a total of 3,590,000 shares. Call options issued on repurchased shares entail a dilution effect of about 0.3 percent during the latest 12-month period. Addtech's own shareholding is estimated to 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|
|2017/2021||47,500||190,000||0.1%||178.50||44.62||14 Sep 2020 - 4 Jun 2021|
Acquisitions and disposals
During the period, 1 April to 31 December 2020 the following acquisitions were completed: Elkome Group Oy, Kaptas Oy and Elsystem i Perstorp AB was acquired to become part of the Automation business area. Fluidcontrol Oy and Satco Komponent AB was acquired to become part of the Components business area. Peter Andersson AB and Skyltar & Märken Gruppen AB was acquired to become part of the Energy business area. Valutec Group AB and Martin Bruusgaard AS was acquired to become part of the Industrial Process business area. OF-Beteiligungs AG was acquired to become part of the Power Solutions business area.
On 4 January, Synective Labs AB, Sweden, was acquired to become part of the Automation business area. Synective Labs are specialized in high performance systems, creating optimized hardware and software designs within FPGA and ASIC designs. The company has 27 employees and sales of around SEK 30 million.
On 5 January, Powernor AS, Norway, was acquired to become part of the Power Solutions business area. Powernor is based in Norway, where they specify, design and deliver complete UPS systems with battery backup in demanding applications for hospitals, infrastructure and industry. Powernor has a turnover of approximately NOK 35 million and have 6 employees.
On 21 January, Impact Air Systems Ltd. and Impact Technical Services Ltd., Great Britain, was acquired to become part of the Industrial Process business area. Impact provides waste and trim extraction and separation systems to various industries and recycling facilities around the world. The company´s bespoke solutions contribute to a more sustainable management of waste and the circular economy. The company has 33 employees and sales of around GBP 8 million.
On 2 March, Fairfield Trading Company Ltd., Great Britain, was acquired to become part of the Power Solutions business area. Fairfield Trading Company Ltd. is a distributor specialising in the supply of batteries for a wide range of markets. The company has sales of about GBP 3 million and 8 employees.
The purchase price allocation calculations for the acquisitions completed during the period 1 April 2019 - 31 March 2020 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2019/2020 financial year are distributed among the Group’s business areas as follows:
Net sales, |
|Number of employees*||Business Area|
|Omni Ray AG, Switzerland||April, 2019||330||65||Automation|
|Thurne Teknik AB, Sweden||April, 2019||100||19||Industrial Process|
|AB N.O. Rönne, Sweden||April, 2019||8||4||Industrial Process|
|Best Seating Systems Walter Tausch GmbH, Austria||May, 2019||23||5||Power Solutions|
|Thiim A/S, Denmark||June, 2019||70||15||Automation|
|Profelec Oy, Finland||July, 2019||6||2||Energy|
|BKC Products Ltd., Great Britain||August, 2019||12||5||Industrial Process|
|Promector Oy, Finland||August, 2019||24||20||Automation|
|Wireco-NB Oy, Finland||February, 2020||23||6||Energy|
|Caligo Industria Oy, Finland||February, 2020||70||9||Industrial Process|
|DMC Digital Motor Control GmbH, Germany||March, 2020||30||10||Power Solutions|
|Q-tronic B.V., Netherlands||March, 2020||45||10||Power Solutions|
|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. och Impact Technical Services Ltd., Great Britain||January, 2021||95||33||Industrial Process|
|Fairfield Trading Company Ltd., Great Britain||March, 2021||37||8||Power Solutions|
|Hydro-Matieral Oy, Finland||April, 2021||52||5||Components|
|ESi Controls Ltd., Great Britain||April, 2021||93||15||Power Solutions|
|IETV Elektroteknik AB, Sweden||May, 2021||80||38||Energy|
|AVT Industriteknik AB, Sweden||May, 2021||70||42||Automation|
|* Refers to assessed condition at the time of acquisition and disposal, respectively, on a full-year basis.|
If all acquisitions which have taken effect during the financial year had been completed on 1 April 2020, their impact would have been an estimated SEK 1,080 million on Group net sales, about SEK 100 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 205 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 263 million.
Transaction costs for acquisitions that resulted in an ownership transfer during the financial year, amounted to SEK 12 million (7) and are reported under Selling expenses.
Revaluation of contingent consideration had a negative net effect of SEK -9 million (52) during the financial year. The impact on profits are reported under Other operating income and Other operating expenses, respectively.
According to the finalised acquisitions analyses, the assets and liabilities included in the acquisitions were as follows, during the year:
|SEKm||Carrying amount at acquisition date||Adjustment to fair value||Fair value|
|Intangible non-current assets||26||778||804|
|Other non-current assets||35||-||35|
|Other current assets||444||-||444|
|Deferred tax liability/tax asset||-5||-156||-161|
|Acquired net assets||402||591||993|
|Non-controlling interests 2)||-163|
|Less: cash and cash equivalents in acquired businesses||-285|
|Less: consideration not yet paid||-199|
|Effect on the Group’s cash and cash equivalents||1,119|
|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 has been measured at fair value, which entails that goodwill is also reported for non-controlling interests.|
|3) The consideration is stated excluding acquisition expenses.|
With the acquisition of Valutec Group AB comes a commitment to acquire the remaining 14 percent of the company and this commitment is valued to SEK 111 million. With the acquisition of Martin Bruusgaard AS comes a commitment to acquire the remaining 20 percent of the company and this commitment is valued to SEK 27 million. These commitments are reported as a non-current interest-bearing liability.