Profitability, financial position and cash flow
The return on equity at the end of the period was 28 percent (30) and return on capital employed was 22 percent (22). Return on working capital P/WC (EBITA in relation to working capital) amounted to 71 percent (66).

At the end of the period the equity ratio amounted to 39 percent (38). Equity per share, excluding non-controlling interest, totalled SEK 24.30 (21.95). The Group's net debt at the end of the period amounted to SEK 4,535 million (4,310), excluding pension liabilities of SEK 246 million (219). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.7 (0.7).

Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 1,762 million (2,030) at 30 June 2024.

Cash flow from operating activities amounted to SEK 602 million (547) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 445 million (534). Investments in non-current assets totalled SEK 76 million (33) and disposal of non-current assets amounted to SEK 13 million (2). Repurchase of call options amounted to SEK 10 million (1) and exercised call options totalled SEK 10 million (0).

Employees
At the end of the period, the number of employees was 4,239 compared to 4,175 at the beginning of the financial year. During the period, completed acquisitions resulted in an increase of the number of employees by 76. The average number of employees in the latest twelve month period was 4,165.

Ownership structure
At the end of the period the share capital amounted to SEK 51.1 million.

Addtech has three outstanding call option programmes for a total of 2,268,480 shares. Call options issued on repurchased shares entail a dilution effect of about 0.1 percent during the latest twelve month period. Addtech's own shareholdings fully meet the needs of the outstanding call option programmes.

Acquisitions and disposal
On 10 April, Novomotec GmbH, Germany, was acquired to become part of the Electrification business area. Novomotec is a leading supplier of compact electric motors to OEM customers in light electric vehicles, medical technology and automation applications. The company has 9 employees and sales of around EUR 7 million.

On 15 April, 90 percent of the shares in Cell Pack Solutions Ltd., Great Britain, was acquired to become part of the Electrification business area. Cell Pack develops, manufactures and markets internationally battery solutions under its own brand to customers primarily in water treatment, safety and medical technology. The company has 30 employees and sales of around GBP 5.6 million.

On 29 April, GoDrive AS, Norway, was acquired to become part of the Industrial Solutions business area. GoDrive is a leading supplier of frequency converters and accessories in the Norwegian market. GoDrive joins our operations in the BEVI group, a supplier of electric drive systems, and complements those operations well. The company has 5 employees and sales of around NOK 75 million.

On 3 June, Nuova Elettromeccanica Sud S.p.A., Italy, was acquired to become part of the Energy business area. NES develops, manufactures and sells equipment and components for electrical transmission lines and substations. The company is continuing to develop our position as a global player in equipment for high-voltage networks, complementing well the operations conducted in the Energy Supply business unit. The company has 32 employees and sales of around EUR 14 million. Correction: In the press release published on June 3, 2024 at 1:00 p.m., it was incorrectly stated that the number of employees in the company is 60. The correct number of employees is 32.

The purchase price allocation calculations for the acquisitions completed during the period 1 April - 30 June 2023 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2023/2024 financial year are distributed among the Group’s business areas as follows:

If all acquisitions which have taken effect during the period had been completed on 1 April 2024, their impact would have been an estimated SEK 110 million on Group net sales, about SEK 30 million on operating profit and about SEK 20 million on profit after tax for the period.

Addtech normally employs an acquisition structure comprising basic purchase consideration and contingent consideration. The outcome of contingent purchase considerations is determined by the future earnings reached by the companies and is subject to a fixed maximum level. Of considerations not yet paid for acquisitions during the period, the discounted value amounts to SEK 64 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 80 million. 

Transaction costs for acquisitions that resulted in an ownership transfer during the period amounted to SEK 10 million (16) and are reported under Selling expenses.

Revaluation of contingent consideration had a negative net effect of SEK -6 million (0) during the period. The impact on profits is reported under Other operating income and Other operating expenses, respectively.

According to the preliminary acquisitions analyses, the assets and liabilities included in the acquisitions were as follows, during the period:

Parent Company
Parent Company's net sales during the period amounted to SEK 28 million (24) and profit after financial items was SEK 2 million (-38). Net investments in non-current assets were SEK 0 million (0). The Parent Company's financial net assets was SEK 571 million at the end of the period (460).