Net sales, profit and financial position

Net sales and profit

The Addtech Group's net sales rose by 13 percent during the financial year to SEK 6,089 million (5,403). Comparable units showed an increase of 2 percent and acquisition-based growth was 11 percent. Changes in exchange rates had a marginally negative effect on net sales and operating profit, corresponding to SEK 20 million and SEK 1 million, respectively, for the year.

During the financial year, operating profit rose by 15 percent to SEK 501 million (437) and the operating margin reached 8.2 percent (8.1). The operating margin before amortisation of intangible non-current assets equalled 9.5 percent (9.2). Net financial items were SEK -26 million (-29) and profit after financial items increased by 17 percent to SEK 475 million (408).

Profit after tax for the financial year increased by 14 percent to SEK 369 million (323) and EPS rose to SEK 5.50 (4.85). The effective tax rate was 22 percent (21). Following a revised tax rate in Norway and Finland in 2014, deferred tax fell by a net amount of SEK 4 million. In the previous year deferred tax fell by an equivalent of SEK 25 million as a result of a reduced tax rate in Sweden in 2013. Excluding these changes, the effective tax rate for the financial year would have amounted to 23 percent (27). 


Profitability, financial position and cash flow

At the end of the financial year, the return on equity was 30 percent (31) and the return on capital employed was 24 percent (25).

Return on working capital, P/WC (operating profit in relation to working capital), amounted to 47 percent (45). The long-term target for P/WC in the Group and all units is 45 percent. The P/WC profitability ratio encourages high operating profit and low levels of tied-up capital. When combined with the growth target of 15 percent, this provides conditions for profitable growth in the companies and Group. Average working capital, which comprises inventories plus net accounts receivable and accounts payable for the calculation of P/WC, reached SEK 1,075 million (969) at the end of the financial year.

At the end of the financial year the equity ratio stood at 39 percent (36). Equity per share, excluding non-controlling interest, totalled SEK 20.10 (16.70). Consolidated financial net debt at the end of the year stood at SEK 524 million (523), excluding pension liabilities of SEK 252 million (239). The net debt/equity ratio, based on net debt excluding pension provisions, was 0.4 (0.5).

Cash and cash equivalents, consisting of cash and bank balances together with approved but non-utilised credit facilities, totalled SEK 559 million (668) at 31 March 2014. The Group's available credit facilities totalled SEK 1,028 million (1,132) at 31 March 2014.

Cash flow from operating activities reached SEK 479 million (339) in the financial year. Company acquisitions, including settlement of additional purchase consideration for acquisitions implemented in previous years, totalled SEK 205 million (311). Investments in non-current assets amounted to SEK 58 million (42) and disposals of non-current assets amounted to SEK 4 million (2). The dividend for the year amounted to SEK 176 million (174), the repurchase of treasury shares amounted to SEK 15 million (-) and the exercise and issued call options totalled SEK 30 million (24).