B&B TOOLS sells logistics properties – and concludes its ongoing restructuring programme
03.12.2012
B&B TOOLS
Corporate Action
B&B TOOLS sells logistics properties – and concludes its ongoing restructuring
programme
B&B TOOLS has today sold the Group’s major logistics properties in Ulricehamn
and Alingsås. Earnings generated by the property sales, decisions concerning
new restructuring initiatives and the effects of the previously communicated
programme for increased efficiency at TOOLS Sweden entail that the B&B TOOLS
Group will reduce its total operating costs by approximately MSEK 140 (net) on
an annual basis, with full effect in spring 2013. The property sales will
improve net financial items by approximately MSEK 20 on an annual basis.
Property sales
The properties were sold by conveyance of all shares in the companies that own
each respective property. The purchaser is the listed property company
FastPartner. Both the share transfers and possession will take effect as of
today, 3 December.
The sales are estimated to generate a capital gain of approximately MSEK 245
and a positive cash flow of approximately MSEK 375 for the Group. Leases have
been signed in conjunction with the property sales, entailing that B&B TOOLS
will lease the properties for a period of 15 years on market terms.
The Group owns additional properties in Sweden and Finland, with an estimated
value of approximately MSEK 200.
Restructuring measures
The ongoing introduction of new IT and logistics solutions, joint accounting
administration and other similar measures (new business infrastructure) in
TOOLS Sweden is drawing to an end and are scheduled for completion as an
implementation project during spring 2013.
As previously communicated, the implications of a programme for increased
efficiency for TOOLS Sweden entail that the operations, based on the cost base
that applied in summer 2012 as a reference, will reduce its operating costs by
approximately MSEK 100 on an annual basis. The programme affects some 200
positions in the operations and is defined so that non-recurring costs will
typically not arise within its framework.
Other potential also exists for enhancing the efficiency of the operations due
to the approaching conclusion of the restructuring measures.
-- A joint product range has been defined for TOOLS Sweden. A joint range
enhances business efficiency and strengthens the customer offering.
However, the move to a joint range will entail a phase-out of many items,
and is also the reason why the value of these items will be impaired.
-- Floor space and fittings
that have previously been used for local storage and logistics and so
forth, will become redundant. Such resources will be divested or otherwise
reduced.
-- The need for Group-wide functions will decline. As a result, decisions have
been made to reduce the scope of the Group’s joint functions.
To realise the full potential of these measures, the Board has resolved to
implement additional restructuring initiatives. These initiatives will further
reduce annual operating costs by approximately MSEK 40, with consideration of
increased leasing expenses (pertaining to the property sales), and comprise a
significant step toward the goal for an inventoried product range for the TOOLS
operations.
Non-recurring costs
These additional restructuring and readjustment initiatives entail total
non-recurring costs of approximately MSEK 190, and will comprise a
restructuring reserve of approximately MSEK 115, impairments of approximately
MSEK 65 and approximately MSEK 10 in non-recurring costs that will be charged
in the third quarter of 2012/2013 pertaining to readjustment costs to new
business infrastructure. Of these non-recurring costs, approximately MSEK 115
will have an adverse impact on the future cash flow.
Interim Report for the third quarter 2012/2013 (October-December)
In the Interim Report for the third quarter 2012/2013, which will be published
on 14 February 2013, B&B TOOLS will consequently report non-recurring income of
approximately MSEK 245 (pertaining to capital gain on sales of properties), and
non-recurring costs of approximately MSEK 190 (as a result of decisions
concerning further restructuring initiatives and readjustment costs as set out
above). Non-recurring items will thus amount to an income of MSEK +55, net. The
equity/assets ratio will improve approximately 3 percentage points (net), as a
result of property sales and restructuring measures.
“By reducing the Group’s total annual operating costs by approximately MSEK
140, net, we have laid the basis for focusing fully on a gradual improvement of
the operations’ profitability, based fully on the needs of our customers,” says
Ulf Lilius, President & CEO. “The wide range of activities we have implemented
is aimed at creating an efficient operational engine and we will continue to
develop B&B TOOLS as the obvious choice for all of the Group’s existing and
prospective customers.”
Stockholm, 3 December 2012
B&B TOOLS AB (publ)
For further information, please contact:
Ulf Lilius, President & CEO, B&B TOOLS AB, telephone +46 10 454 77 00
Mats Karlqvist, Head of Investor Relations, B&B TOOLS AB, telephone +46 70 660
31 32
B&B TOOLS is required to disclose the above information in accordance with the
Swedish Securities Markets Act, the Swedish Financial Instruments Trading Act
or the regulations for issuers on NASDAQ OMX Stockholm. This information was
submitted for publication on 3 December 2012 at 13:45 p.m.