Year-end report 2020

The full year
»    Net revenue totalled SEK 2,239 million (2,128)
»    Operating profit amounted to SEK 274 million (229)
»    Profit before tax amounted to SEK 251 million (211) 
»    Profit after tax amounted to SEK 195 million (163)
»    Earnings per share were SEK 6.86 (5.85)
»    Proposed dividend SEK 2.50 (–) per share

The fourth quarter
»    Net revenue totalled SEK 630 million (520)
»    Operating profit amounted to SEK 83 million (45)
»    Profit before tax amounted to SEK 76 million (39)
»    Profit after tax amounted to SEK 60 million (30)
»    Earnings per share were SEK 2.09 (1.10)

Important events during the period
»    Conversion of personnel convertibles 2016/2020
»    Subscription for personnel convertibles 2020/2023
»    Modellteknik was acquired
»    Lasertech was acquired

CEO's comments on the Group's development during the period

The Group
After four good quarters, with particularly strong growth during the second half of the year, we can summarise 2020 as the Group’s best year ever. All our business units surpassed the previous year’s profit levels and reported improved margins. Many of the Group’s companies advanced their market positions, and we completed two supplementary acquisitions within Precision Technology that are further strengthening us as a group.
    Committed corporate management teams and employees are the foundation for our organisation, which encompasses three business units in a decentralised, entrepreneur-governed structure. The business is characterised by a clear focus on profitable growth through long-term work with strategic customers and assignments. Our successful business model is the primary reason why the effects of the prolonged Coronavirus pandemic only had a marginal impact on the consolidated results for the year. For a few of the Group’s companies, however, the pandemic resulted in major challenges, principally in the form of significantly reduced volumes going to the automotive sector. Activities linked to aftersales and service were also impeded by restrictions to freedom of movement, which also dampened the rate of growth. In this respect, we have worked actively to identify alternatives to traditional working methods. At the same time, additional resources have been set aside for marketing, and the level of activity within strategic sales has been raised. Our work on product and technical development has continued to be a high priority, and has also included our efforts to achieve more resource-efficient manufacturing and a higher degree of recycling and circularity.
    For the whole year, sales growth amounted to 5 per cent, of which just over 4 per cent was organic. Compared to the previous year, operating profit increased by 19 per cent while the operating margin rose from 10.8 to 12.2 per cent. The profit margin stood at 11.2 per cent (9.9), which means that we clearly exceeded our stated goal of 8 per cent. A high cash flow further confirmed the Group’s healthy financial position.
    The results during the fourth quarter were strong and exceeded the comparative figures from the corresponding period in the previous year. In terms of the market, too, the year finished in a stable manner, with an improved order situation overall compared to the end of the previous year.

The Industrial Products business unit
Within the Industrial Products business unit, sales decreased by almost 10 per cent, while operating profit marginally exceeded last year’s figure. The operating margin stood at 13.8 per cent (12.4). A favourable mix including an increased share of proprietary products in the infrastructure and marine segments had a positive impact on margins. The reduction in volume compared to the previous year can mainly be explained by the production stoppages implemented at automotive manufacturers during the spring. By the end of the year, demand in this sector had more or less returned to the previously forecast levels. Organisational adaptations, combined with efficiency improvements and government support measures, minimised the impact on profits caused by the loss of sales. 

The Industrial Solutions business unit
The increase in sales within the Industrial Solutions business unit amounted to 11 per cent. Operating profit improved by 31 per cent compared to last year. The operating margin stood at 12.6 per cent (10.6). Project deliveries for the packaging and food industries increased significantly, resulting in strengthened margins. The customer-specific assignments enjoyed a balanced mix and, along with efficiency improvements, also contributed to a great extent to the business unit’s positive performance. Sales and aftersales activities have been limited by restrictions linked to the pandemic, although so far it has been possible to perform installations largely as planned.

The Precision Technology business unit
The operations within the Precision Technology business unit reported 11 per cent higher sales, of which just over 5 per cent was organic growth, and an operating profit that exceeded that of the comparison period by 12 per cent. The operating margin stood at 16.3 per cent (16.2). Developments during the year shifted significantly between the business unit’s companies in line with their respective customer profile. Deliveries linked to the medical technology sector increased dramatically, while volumes related to e.g. the automotive sector decreased. The strengthening of resources continued through investments in machinery and extended production areas. Two business acquisitions towards the end of the year are adding new technology and introducing additional customer segments.

Future development
It is difficult to assess how the ongoing pandemic will affect the Group’s operations in the longer term. We have generally experienced strong sales in recent months, and our combined order stock is higher now than at the corresponding time last year. Thanks to our stated focus on marketing, we have been able to advance our positions. We now consider that we are growing more than the market in all three business units. Our financial position is good. This suggests continued stable growth in both the short and the medium term. There are challenges, however. At present, the prevailing travel restrictions are the primary reason that can limit our potential to carry out installations and important meetings with customers. Aftersales activities are also being affected to a large extent. At the same time, there is room for improvement in some of the Group’s companies that have experienced particular strains over the past year, but that are now receiving more positive signals from their customers. We also consider that the conditions are good for further strategic acquisitions that can provide access to new market segments and deliver complementary technical expertise.

Thank you
Finally, I would once again like to express my appreciation and gratitude for the excellent work that the Group’s employees together have carried out.

Lennart Persson
President and CEO