Interim Report Rejlers AB January – June 2016

Platform for increased profitability
Second quarter
» Sales increased by 33 percent to SEK 608.2 million (456.5)
» Operating profit/loss was SEK 22.6 million (20.1), which corresponds to an
operating margin of 3.7 percent (4.4)
» Operating profit/loss adjusted for restructuring costs was SEK 26.2 million,
which corresponds to an operating margin of 4.3 percent
» The profit/loss after tax was SEK 18.4 million (14.9)
» Cash flow from operating activities totalled SEK 10.7 million (33.8)
» Earnings per share amounted to SEK 1.39 (1.21)
First half
» Sales increased by 28 percent to SEK 1,167.4 million (908.7)
» Operating profit/loss was SEK 16.6 million (43.0), which corresponds to an
operating margin of 1.4 percent (4.7)
» Operating profit/loss adjusted for restructuring costs was SEK 26.3 million,
which corresponds to an operating margin of 2.3 percent
» The profit/loss after tax was SEK 12.9 million (32.1)
» Cash flow from operating activities totalled SEK -2.6 million (44.7)
» Earnings per share amounted to SEK 0.93 (2.61)
Comments from President and CEO, Peter Rejler
During the quarter, we have created a platform for continuing positive
development, where we also see an improvement in the billable hours ratio for
Sweden, Finland and Norway compared with the previous quarter. The
reorganisation of the business, in which we are disposing of unprofitable areas
and primarily growing in digitalisation of processes and IT solutions, is
beginning to have an effect.
Growth has continued well with an increase in sales in the group of 33 percent,
5 percent of which is organic.
The operating profit for the second quarter of SEK 22.6 million is somewhat
better than last year and has been affected positively by the improved billable
hours ratio compared with the first quarter, as well as a positive calendar
effect.
Rejlers Sweden’s action programme is proceeding according to plan and the
restructuring costs amounted to SEK 3.6 million during the quarter and SEK 9.7
million during the first half.
Rejlers Finland has adapted its activities in order to meet market expectations
and now also offers services in production efficiency, process design, security
and digitising processes.
Rejlers Norway continues to streamline the organisation and is implementing a
number of cost savings to improve profitability. The business showed organic
growth of 30 percent in the quarter.
For IT Solutions, the second quarter has been marked by strong growth for our IT
solutions in the energy sector. We are gathering all competence in IT Solutions
under the Rejlers Embriq brand, which will create economies of scale for our
digital offering and Smart Metering Operations.
We have noted a positive trend in demand for our services in all segments during
the quarter. About 1,100 of Sweden's largest companies are now required by law
to map their energy consumption and propose measures to reduce energy use.
Rejlers is one of the first in Sweden to have certified energy mappers and
during the quarter we have signed major agreements with Statnett, Hafslund,
Scania and the Swedish Transport Administration, among others.
We are strengthening our position in the market and continuing our
reorganisation into a more effective organisation and business. The goal is to
improve the operating margin to 8 percent over time and to reach our growth
objectives of 2020-3030-4040.
For further information, please contact:
Peter Rejler, President and CEO, tel: +46 (0)70 -602 34 24, email:
peter.rejler@rejlers.se
Mats Åström, CFO, Tel: +46 (0)70 -050 22 40, email: mats.astrom@rejlers.se
Rejlers is one of the Nordic region's largest technical consultants. 2,000
experts work on projects in construction and property, energy, industry and
infrastructure. We have specialist engineers with both broad and specific
expertise, coupled with energy that creates results. We are continuing to expand
rapidly, and currently have offices in 80 locations throughout Sweden, Finland
and Norway. In 2015, Rejlers' turnover was
SEK 1.9 billion and its Class B shares are listed on the Stockholm NASDAQ.
This information is information that Rejlers AB (publ) is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The
information was submitted for publication, through the agency of the contact
person set out above, on 19 July 2016 at 08.00 CET. This report is also
available in Swedish. This English report is a translation from Swedish. If
there are any differences, the Swedish language report shall prevail.