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Thursday, 20 July 2017

Momentum Group AB (publ): Interim Report - 3 months 1 April-30 June 2017

Momentum Group AB (publ)    

Published: 08:00 CEST 20-07-2017 /GlobeNewswire /Source: Momentum Group AB (publ) / : MMGR B /ISIN: SE0009922305

Momentum Group AB (publ): Interim Report - 3 months 1 April-30 June 2017

 

  • Revenue increased by 1 percent to MSEK 1,400 (1,382).
  • Operating profit amounted to MSEK 42 (53). Adjusted operating profit (excluding items affecting comparability) totalled MSEK 52 (53), corresponding to an adjusted operating margin of 3.7 percent (3.8).
  • The return on working capital (P/WC) for the most recent 12-month period was 20 percent (22).
  • Net profit amounted to MSEK 31 (40).
  • Earnings per share totalled SEK 1.10 (1.40).
  • The operational net loan liability amounted to MSEK 281 (236) and the equity/assets ratio at the end of the reporting period was 41 percent (37).
  • An Extraordinary General Meeting of Shareholders in B&B TOOLS AB on 14 June 2017 approved the spin-off and separate listing of the Momentum Group subsidiary on Nasdaq Stockholm.
  • Momentum Group's Class B share was introduced on Nasdaq Stockholm (Mid Cap) on 21 June 2017. The share is traded under the ticker MMGR-B.

After the end of the reporting period

  • In early July 2017, Momentum Group signed an agreement to acquire 70 percent of the shares in TriffiQ F√∂retagsprofilering AB, a leading reseller of workwear and protective footwear in Stockholm. TriffiQ generates annual revenue of approximately MSEK 70 with favourable profitability and has some 20 employees. Closing is scheduled to take place in late August 2017.

 

 

 

PRESIDENT'S STATEMENT

 

A new start as an independent company
When the Extraordinary General Meeting of Shareholders in our former Parent Company, B&B TOOLS AB, resolved on 14 June to spin-off and list Momentum Group as a separate company, we were presented with new opportunities to increase our earnings growth by establishing a clearer focus on the development of leading market channels in profitable niches - opportunities we are now working to fully realise. Our Class B share was introduced on Nasdaq Stockholm's Mid Cap List on 21 June.

 

Stable business situation despite fewer trading days
The business situation during the quarter was stable overall, despite the fact that the Easter holiday, which resulted in fewer trading days in April than in the preceding year, had a negative impact on revenue (corresponding to just over -5 percent in sales). However, sales in May and June were stronger than in the preceding year, which largely enabled us to offset the weaker sales in April. Overall, the manufacturing industry in Sweden and Finland continued to perform well, which is reflected in our financial statements, while the investment level in the oil and gas segment in Norway remained relatively low, although the bottom point has likely passed.

 

Several of our units improved their earnings during the quarter compared with the preceding year, and we are particularly pleased to note that TOOLS Sweden reported earnings growth of 30 percent and TOOLS Finland more than doubled its earnings. Momentum Industrial continued to deliver earnings with double-digit margins. However, TOOLS Norway's earnings were unsatisfactory, having been negatively impacted by the Easter holiday and the implementation of a new business system. The implementation is expected to be completed in the late autumn and will enable TOOLS Norway to take the next step in the development of its operations.

 

TOOLS Sweden's action programme proceeding according to plan - with positive results
TOOLS Sweden strengthened its earnings performance during the quarter, with sales remaining largely unchanged despite the closure of several sales units over the past six months. Eight additional sales units will be closed during the July-October period and TOOLS Sweden is now gradually increasing its share of direct purchases from selected suppliers. Towards the end of the operating year, we expect to experience the full effect of the previously announced measures we are now implementing in TOOLS Sweden.

 

2017/18 - an exciting operating year
Our transition toward decentralised responsibility for our own offering, purchasing and logistics is intended to contribute to the earnings trend - combined with acquisitions of attractive and successful niche companies. After the end of the reporting period, we signed an agreement to acquire 70 percent of the shares in TriffiQ Företagsprofilering, one of Stockholm's largest resellers of workwear, protective footwear and custom workwear, with a high level of expertise in customising company products. The acquisition of TriffiQ is in line with our strategy for future growth and development - and we are delighted to welcome the company to Momentum Group.

 

We are now truly standing on our own two feet. We will continue to prioritise customer proximity and the adaptation of our offerings, logistics and sales channels, both local and digital, which will contribute to improved operating margins in our operations. I look forward to continuing this exciting operating year for Momentum Group as an independent listed Company.

 

Stockholm, July 2017

 

Ulf Lilius
President & CEO

 

 

The information in this report is such that Momentum Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CET on 20 July 2017.

 


Please download the complete document here:

 

 

 



Momentum Group Q1 2017-18 Eng



This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of NASDAQ OMX Corporate Solutions clients. Source: Momentum Group AB (publ), Box 5900, Stockholm 102 40, Sweden
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