Bergman & Beving AB: Interim report 3 months - 1 April-30 June 2017

20.07.2017

Press release

Interim Report 3 months - 1 April-30 June 2017

• Revenue amounted to MSEK 1,017 (1,012).
  
• EBITA totalled MSEK 56 (80).
  
• Operating profit amounted to MSEK 54 (80) and the operating margin was 5.3 percent (7.9), including items affecting comparability amounting to MSEK +2.
  
• Net profit totalled MSEK 37 (60).
  
• Earnings per share amounted to SEK 1.30 (2.15).
  
• Since the balance sheet historically includes Momentum Group, cash flow and return measures are not representative for assessing the remaining operation.
  
• Cash flow from operating activities totalled MSEK 42 (147), corresponding to cash flow per share of SEK 10.70 for the most recent 12-month period (SEK 14.45 at the beginning of the year).
  
• The return on equity for the most recent 12-month period was 7 percent (8).
  
• The operational net loan liability amounted to MSEK 201 (105) and the equity/assets ratio at the end of the reporting period was 47 percent (53).
  
• The Momentum Group operating segment was listed on Nasdaq Stockholm on 21 June 2017.
  
• The company changed its name from B&B TOOLS AB to Bergman & Beving AB.
  
• Pontus Boman was appointed as the new President & CEO.
  
• Two acquisitions have been carried out since the beginning of the operating year, one of which took place after the period. These acquisitions strengthened the Group's position and contributed combined annual revenue of approximately MSEK 225.
  
• Bergman & Beving's Annual General Meeting 2017 will be held on 24 August 2017.
  The notice of the Annual General Meeting will be published on 21 July 2017, including a proposed agenda and the motions presented by the Election Committee and the Board of Directors for resolution. The Board proposes a dividend of SEK 5.00 (5.00) per share.

CEO'S COMMENTS

The first quarter of the operating year was highly eventful, characterised by the all-important distribution of Momentum Group to the company's shareholders. The distribution of the operating segment has created a clearer focus on the Group's leading brands and better conditions for our future development.

Revenue for the quarter amounted to MSEK 1,017 (1,012). Our acquired units contributed according to plan. The result was nevertheless a decrease of 9 percentage points for comparable units. Demand was impacted by the high number of public holidays and revenue was affected by a decline in sales to the TOOLS chain, where we implemented a planned change to our supplier agreements for goods for resale, which were previously through-invoiced by Bergman & Beving.

EBITA for the quarter amounted to MSEK 56 (80). The Building Materials operating segment, including ESSVE and Fireseal, performed well during the quarter and delivered higher operating profit and an improved operating margin. The reversal of a previously reserved intra-Group gain on sales to Momentum Group had a positive impact on net profit. However, Bergman & Beving's total earnings were impacted negatively by the robust measures taken in connection with the ongoing transition of the Group and a large restructuring reserve was made for this purpose.

The structural measures include investments in resources for growth and adaptation to new market conditions through the discontinuation of unprofitable ranges, organisational changes and a provision for unutilised premises. Actions to improve profitability are mainly focused on the subsidiary Luna and include outsourcing of the company's logistics to automated logistic solutions to enable both improved efficiency and quality. In the future, these measures will contribute to an increased operating margin in both the current and upcoming operating years.

Arbesko, the Nordic region's leading brand of safety and work footwear, was acquired in April and UVECO, a specialist in sheet-metal working that markets a complete range of tools for the attractive niche of construction and ventilation sheet-metal working, was acquired in July. Combined, these two acquisitions contribute annual revenue of approximately MSEK 225.

Combined with a clear decentralised business responsibility and increased focus on our strong brands, the rationalisations carried out have created a solid foundation for profitable growth and successful development of our various operations.

Stockholm, July 2017

Pontus Boman
President & CEO

For further information, please contact:

Pontus Boman, President & CEO, Tel: +46 10 454 77 00

Peter Schön, CFO, Tel: +46 70 339 89 99

The information in this report is such that B&B TOOLS 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 07:45 a.m. CET on 20 juli 2017.

Bergman & Beving owns and refines companies that develop and market strong brands for professional users in industry and construction, mainly in the Nordic region, the Baltic States and Poland. Bergman & Beving aims to enable successful product companies to take the next step and become leading brands in their categories. The Group currently has some 15 brands, about 1,000 employees and revenue of approximately SEK 3.8 billion. Bergman & Beving is listed on Nasdaq Stockholm. Read more on the company's website: www.bergmanbeving.com.