Interim report Rejlers AB January – September 2016

Focus on efficiency
Third quarter
» Sales increased by 32 percent to SEK 500.3 million (380.1)
» Operating profit/loss was SEK 4.9 million (18.9), which corresponds to an
operating margin of 1.0 percent (5.0)
» The profit/loss after tax was SEK 1.1 million (13.9)
» Cash flow from operating activities totalled SEK -24.4 million (-23.3)
» Earnings per share before and after dilution amounted to SEK 0.12 (1.12)
January-September
» Sales  increased by 29 percent to SEK 1,667.7 million (1,288.8)
» Operating profit/loss was SEK 21.5 million (61.9), which corresponds to an
operating margin of 1.3 percent (4.8)
» Operating profit/loss adjusted for restructuring costs was SEK 31.2 million,
which corresponds to an operating margin of 1.9 percent
» The profit/loss after tax was SEK 14.0 million (46.0)
» Cash flow from operating activities totalled SEK -27.0 million (21.4)
» Earnings per share before and after dilution amounted to SEK 1.06 (3.73)
Comments from the CEO and Group President, Peter Rejler
Development during the third quarter was poorer than anticipated in Rejlers
Sweden and Rejlers Norway. The operating profit of SEK 4.9 million has been
adversely affected by a billable hours ratio that is clearly lower than in the
previous year. The holiday period, July and August, was significantly worse than
expected. We did note some recovery in September.
The reorganisation of the business through streamlining, phasing out
unprofitable areas and increasing the focus on the digitalisation of processes
and IT solutions has not yet produced the desired effect. We have therefore
initiated a further package of measures encompassing more sales activities, cost
savings and improved monitoring of the business. We have also increased our
focus on ensuring good employee utilisation and a good cash flow throughout the
business.
Growth has remained good, with an increase in sales in the Group of 32 percent,
of which 2 percentage points of the growth is organic. The acquisitions of
Embriq in Norway and Orbion Consulting in Sweden have been well integrated into
the business and have added new skills in the areas of IT solutions and ICT.
Both of these acquisitions are contributing positively to the operating margin.
The market and demand for our services are generally good in Sweden and Norway,
except within parts of the industrial segment in Sweden, where demand for
nuclear power expertise has declined significantly. In Finland, we are
delivering good results despite a difficult market. During the quarter, we have
entered into major agreements with e.g. Serneke, Svenska Kraftnät, JM Norge, the
Swedish Transport Administration and Lindbäcks Bygg.
In parallel with the package of measures, we are working with the digitalisation
of the business and of our assignments. We are anticipating considerable growth
in markets such as energy, the retail sector and transport. We are therefore now
investing strategically in the digitalisation of infrastructure and smart
handling of large volumes of data. At the same time as gathering all our
expertise in the fields of IT and energy metering services under Rejlers Embriq,
with a joint Nordic management, we are also launching Connected Stores, a new
concept comprising IT solutions for the retail trade.
Our objective remains the same. We aim to improve the operating margin to 8
percent over time and to achieve our growth objective of 2020-3030-4040. Our
focus is on becoming more efficient and more profitable.
For further information, please contact:
Peter Rejler, CEO and Group President, 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 1.9
billion in 2015 and its class B share is listed on Nasdaq Stockholm.
Rejlers AB (publ) is obliged by the EU market abuse directive and the law on the
securities market to publish the information contained in this interim report.
The information was provided by the above contact person for publication on 25
October 2016, at 08.00 CET. This report is also available in Swedish. This
English report is a translation from Swedish. If there are any differences, the
Swedish language report shall prevail.