Financial year 2015/16 (1 April 2015-31 March 2016)
- Revenue amounted to MSEK 7,821 (7,903).
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Operating profit rose by 8 percent to MSEK 486 (450) and
the operating margin was 6.2 percent (5.7). - Profit after financial items increased by 15 percent to MSEK 468 (408).
- Net profit rose by 18 percent to MSEK 362 (306).
- Earnings per share increased to SEK 12.90 (10.90).
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Cash flow from operating activities amounted to MSEK 493 (330), corresponding to
cash flow per share of SEK 17.55 (11.75). - The return on equity for the year was 15 percent (14).
- The equity/assets ratio at year-end was 51 percent (45).
- A dividend of SEK 5.00 (4.00) per share is proposed.
Fourth quarter (1 January-31 March 2016)
- Revenue amounted to MSEK 1,935 (1,994).
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Operating profit totalled MSEK 111 (111), corresponding to an
operating margin of 5.7 percent (5.6). - Net profit rose by 16 percent to MSEK 87 (75).
- Earnings per share increased to SEK 3.10 (2.70).
New organisation and preparations for a potential split of the Group
- The Board of Directors of B&B TOOLS decided today to assign Group management the task of investigating the possibility of splitting the Group into two separate listed companies in the future.
- In light of this assignment, certain operational changes took place between the Group’s two new operating segments as of 1 April 2016 in order to increase competitiveness and streamline the operations.
- The names of the new segments are resolved to Bergman & Beving and Momentum Group.
PRESIDENT’S STATEMENT
As we summarise the 2015/16 financial year, we can look back at another year of earnings improvements in the Group. It is particularly gratifying to highlight TOOLS Sweden, which increased its profit by more than MSEK 30, as well as the fact that Momentum and ESSVE reported operating margins of more than 10 percent. Our focus on profitability, measured as P/WC*, contributed to a strong cash flow for the year. Despite a turbulent operating environment with currency fluctuations and a weak economic climate, particularly in Norway (which accounts for 30 percent of our revenue), our operating margin increased to 6.2 percent. While this is the Group’s highest margin since 2007/08, we are naturally not satisfied with this result and aim to do even better in the future. We have good potential to continue improving our profitability.
As part of the Group’s focus on its future development, the Board of Directors has today also assigned the Group management the task of investigating the possibility of splitting the Group into two separate listed companies in the future. The starting point of this work is the two new operating segments introduced in the Group on 1 April. The purpose of the split is to increase the Group’s earnings growth through a clearer focus on development of leading brands and attractive market channels in profitable niches. The names of the two new segments – Bergman & Beving and Momentum Group – reflect the Board’s ambitions for our future development.
As I have discussed in earlier reports, we have radically improved our basic prerequisites for growth and development in recent years. With our strong balance sheet and low debt, I also believe we have the right conditions for attractive corporate acquisitions. The review of the Group’s future structure will further strengthen these conditions and could create new business opportunities.
In conclusion, I would like to take this opportunity to extend my sincere thanks to all of our dedicated employees for your many outstanding efforts during the year. I would also like to thank our customers and business partners for continuing to believe in us. I look forward to an exciting new financial year in 2016/17.
Stockholm, May 2016
Ulf Lilius
President & CEO
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