Sectra’s year-end report 2013/2014: Strong end to the fiscal year – Sectra achieves operating margin target
ET | Source:SECTRA AB
2013/2014 fiscal year
The IT and medical technology company Sectra (http://www.sectra.com/) (STO: SECT
B) increased operating profit 49.1% to SEK 128.1 million (85.9), corresponding
to an operating margin of 15.0% (10.5).
Non-recurring items had an impact of SEK 16.2 million on other income and SEK
19.0 million on depreciation and amortization. Excluding non-recurring items,
the operating margin was 15.3%.
Net sales rose 4.5% to SEK 853.8 million (817.0).
Cash flow after changes in working capital amounted to SEK 123.7 million
The Sectra Group’s order bookings increased 1.1% to SEK 925.7 million (916.0).
The Group’s development remains stable, with a solid financial position and
strong cash flow. Accordingly, the Board has decided to propose to the 2014
Annual General Meeting that SEK 4.50 per share, the same amount as in the
preceding year, be transferred to the shareholders through a share redemption
Operating profit rose 43.9% to SEK 54.1 million (37.6), corresponding to an
operating margin of 20.0% (15.2).
Excluding non-recurring items, the operating margin was 21.0%.
Net sales increased 9.1% to SEK 270.6 million (248.1).
Order bookings amounted to SEK 264.6 million (350.0), down 24.4% compared with
the year-earlier period.
Torbjörn Kronander, CEO and President Sectra AB, comments:
“We experienced a strong trend in earnings and I am pleased to announce that
Sectra’s recent product and organizational development has enabled us to achieve
our target operating margin of 15%. Through continued business development in
our niche areas, we will now prioritize growth while at the same time
maintaining our operating margin.”
“Sectra’s order bookings and cash flow for the fourth quarter declined compared
with the year-earlier period. Accordingly, I feel it is important to emphasize
that it is not unusual for our results to vary significantly between quarters
since we sometimes receive particularly large orders and the proportion of
internally financed service agreements in the Group has increased.”
“Sales growth was generated by our largest business area, Imaging IT Solutions,
as well as our business lines and projects in Business Innovation. Our
operations in the UK and the Netherlands reported particularly strong growth.
These markets now account for more than 10% of total Group sales. Partner sales
also increased in a number of areas, including the Middle East.”
“The Secure Communications business area experienced a difficult year, but
recovered to a certain extent during the fourth quarter having turned an earlier
loss into a break-even result. However, the situation remains uncertain, mainly
due to slow approval processes, which could lead to further delays in product
“Sectra has a high proportion of long-term customer contracts, which provides us
with stability and enables long-term investments in products and services, which
in turn creates added value for customers. Together with our customers and
employees, we have what it takes to drive the development of efficient solutions
that can improve people’s quality of life, reduce society’s healthcare costs and
contribute to a safer society.”
Please find the full version of the year-end report enclosed (PDF).
Presentation of the year-end report May 27
with Dr. Torbjörn Kronander, President and CEO of Sectra AB and Simo Pykälistö,
CFO and Executive VP of Sectra AB
Time: 09:00 CET May 27, 2014
Place: Operaterrassen in Stockholm, Sweden
To attend the presentation, register via www.financialhearings.com
The presentation can be followed live via
http://media.fronto.com/cloud/sectra/140527/ and a recording will be available
For further information, please contact:
Dr. Torbjörn Kronander, CEO and President Sectra AB, +46 (0) 705 23 52 27
About the Sectra Group
Sectra was founded in 1978 and has its roots in Linköping University in Sweden.
The company’s business operation includes cutting-edge products and services
within the niche segments of medical IT and secure communication. Sectra has
offices in 12 countries and operates through partners worldwide. Sales in
the 2012/2013 fiscal year totaled SEK 853 million. The Sectra share is quoted on
the NASDAQ OMX Stockholm exchange. For more information, visit www.sectra.com.
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