ÅF AB Interim Report January - June 2013
|For further information, please contact:|
|Jonas Wiström, President and CEO||+46 70 608 12 20|
|Stefan Johansson, CFO||+46 70 224 24 01|
|Viktor Svensson, Director Corporate Information||+46 70 657 20 26|
Second quarter 2013
- Net sales totalled SEK 2,152 million (1,359)
- Operating profit totalled SEK 153 million (122)
- Operating profit, excluding integration cost, totalled SEK 191 million (122)
- Operating margin, excluding integration cost, was 8.9 percent (9.0)
- Profit after tax totalled SEK 107 million (90)
- Earnings per share, before dilution: SEK 2.70 (2.66)
First half year 2013
- Net sales totalled SEK 4,277 million (2,766)
- Operating profit totalled SEK 319 million (249)
- Operating profit, excluding integration cost, totalled SEK 374 million (249)
- Operating margin, excluding integration cost, was 8.7 percent (9.0)
- Profit after tax totalled SEK 227 million (182)
- Earnings per share, before dilution: SEK 5.75 (5.38)
A few words from the President, Jonas Wiström:
ÅF's second-quarter operating profit, excluding integration costs, rose by just over 50 percent to SEK 191 million (122). Costs for the integration of Epsilon, which was acquired towards the end of 2012, have totalled SEK 55 million, of which the remaining SEK 38 million were charged to the second-quarter accounts. Profits have also been affected by a capital loss of SEK 6 million relating to the sale of shares in an associated company in Spain.
Cost synergies arising from the acquisition of Epsilon are now expected to be in excess of SEK 80 million a year with the full effect being apparent from 2014. Epsilon has been trading under the ÅF brand since 1 January, and work on integrating consulting operations has progressed well. The merger has significantly strengthened ÅF's market position and its potential to conduct major assignments for clients in industry and in research-intensive fields.
ÅF's operating margin, including integration costs, was 7.1 percent (9.0) during the second quarter. If integration costs are excluded, the margin was 8.9 percent (9.0). The main explanation for this slight dip in operating margin is a somewhat lower capacity utilisation rate for the Industry and Technology Divisions than in the second quarter last year.
There have, however, been signs of some improvement in the market compared with the situation in the first three months of the year. There was a slight increase in investments in industry and energy projects, and the market for infrastructure has remained strong. This means that the capacity utilisation rate for ÅF as a whole in the second quarter rose compared with the start of the year. It is our opinion that this gradual improvement in the market will be sustained in the months to come.
Growth for the ÅF Group topped 50 percent in the second quarter, most of the rise being attributable to the acquisitions of Epsilon in Sweden and Advansia in Norway. Organic growth was 9 percent.
The highest level of profitability was reported by the Infrastructure Division with an operating margin of 13.0 percent (10.8); operating profit for the division rose by more than 60 percent against a background of good growth. It is also gratifying to note that the Industry Division in a period of strong organic growth has improved its earnings even more quickly than anticipated compared with the first three months of the year, to report a second-quarter operating margin of 10.9 percent (12.1). The International Division continued to work in what remains a relatively weak market in Europe but were still able to maintain the positive trend in profitability. The division's operating margin was 7.5 percent (5.1). For Technology demand has been somewhat more mixed and the division reported an operating margin of 7.0 percent (8.0).
ÅF's most important objective is to continue to generate levels of profitability that place us among the very best performers in our industry - regardless of the state of the economy. The company now has 7,000 highly qualified employees, backed up by a network of 17,000 independent consultants. Our ambition is to continue to create value through growth, both organically and through acquisitions.
Group Head Office:
ÅF AB (publ), SE-169 99 Stockholm, Sweden
Visitors' address: Frösundaleden 2, 169 70 Solna, Sweden
Tel. +46 10 505 00 00 Fax +46 10 505 00 10
www.afconsult.com / email@example.com
Corporate ID number 556120-6474
The information in this interim report fulfils ÅF AB's disclosure requirements under the provisions of the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was released for publication at 08.30 CET on 12 July 2013.
All assumptions about the future that are made in this report are based on the best information available to the company at the time the report was written. As is the case with all assessments of the future, such assumptions are subject to risks and uncertainties, which may mean that the actual outcome differs from the anticipated result.
This is a translation of the Swedish original. The Swedish text is the binding version and shall prevail in the event of any discrepancies.
The full report including tables (pdf) is available for download