Interim Report Rejlers AB January-September 2015

Strategic acquisition in Norway
Third quarter
» Revenue increased by 4 per cent to SEK 380.1 million (366.5)
» The operating profit was SEK 18.9 million (2.5)
» The operating margin amounted to 5.0 per cent (0.7)
» Release of project reserves boosted profits by SEK 8.0 million
» Profit after tax totalled SEK 13.9 million (0.2)
» Earnings per share before and after dilution amounted to SEK 1.12 (SEK 0.02)
January–September
» Revenue increased by 3 per cent to SEK 1,288.8 million (1,247.4)
» The operating profit was SEK 61.9 million (16.1)
» The operating margin amounted to 4.8 per cent (1.3)
» Profit after tax totalled SEK 46.0 million (9.2)
» Earnings per share before dilution amounted to SEK 3.73 (SEK 0.76) and diluted
earnings per share were SEK 3.73 (0.75)
Statement from President and CEO Peter Rejler
Rejlers saw its operating profit improve in the third quarter compared with the
same period in the previous year, partly as a result of a slight increase in
order volume and partly due to the release of project reserves. The aim is to
successively improve the operating margin to 8 per cent over a business cycle.
Organic growth accounted for 4 per cent of growth, of which half was organic.
After the end of the reporting period our workforce grew by 120 employees and
our annual revenue increased by NOK 240 million through the acquisition of
Embriq from the Hafslund group. Embriq supplies full scale IT services within
the rationalisation of infrastructure and energy to customers across the Nordic
area. The acquisition brings us a big step closer to our growth target and our
strategic aim of achieving growth in digital engineering services. By focusing
on business development and turnkey solutions, we are planning to increase
revenue per employee and achieve our growth target of 2020-3030-4040.
The market outlook for our growth markets energy and infrastructure is good.
Demand for our services involving energy efficiency and sustainable energy
solutions is increasing in all our markets. We are seeing good growth in the
electricity distribution sector, where the development of smart networks is
fuelling investments. We see good opportunities for growth in the
telecommunications market due to increased customer demand for turnkey solutions
in Nordic region.
New investments in residential and office construction are boosting demand for
our expertise. The Finnish market remains weak, which has led to lower order
volumes, particularly in the engineering industry.
We were awarded several important contracts in the third quarter. These include
a large energy and telecommunications assignment which involves us providing
technical assistance and project management for the construction of one of the
world’s largest data centers in Norway. Rejlers Energitjänster has concluded an
agreement with VÄRMEK in Sweden with the aim of providing VÄRMEK’s member
companies access to an economical and efficient energy measurement system. We
are providing project planning for HVAC building services and all technical
systems for electricity, lighting, telecommunications and security for Mikkeli
Central Hospital in Finland.
Thanks to its 2,000 engineers, Rejlers is now able to offer an ever broader
range of specialist services and turnkey solutions. I am convinced that we will
achieve our targets and continue to be an attractive workplace and the
healthiest company in our industry in the Nordic countries.
For further information, please contact:
Peter Rejler, President and CEO, tel. +46 (0)70 602 34 24, e-mail:
peter.rejler@rejlers.se
Mats Åström, CFO, tel. +46 (0)72 050 22 40, e-mail: mats.astrom@rejlers.se
Rejlers is one of the largest engineering consultancy firms in the Nordic
region. Our 2,000 experts work with projects in the areas of Building and
property, Energy, Industry and Infrastructure. At Rejlers, you will meet
specialist engineers with the knowledge, cutting edge expertise and energy to
achieve results. We are still experiencing rapid growth and can now be found in
80 locations in Sweden, Finland and Norway. Rejlers recorded revenue of SEK 1.7
billion in 2014 and its class B share is listed on NASDAQ Stockholm.
The information in this interim report is that which Rejlers AB is required to
publish in compliance with the Swedish Securi-ties Market Act and/or the Swedish
Financial Instruments Trading Act. This information was released for publication
on 23 October 2015 at 08.00. This interim report is also available in Swedish.
The English version is a translation of the Swedish original. In the case of any
discrepancy between the two, the Swedish version takes precedence.