Interim Report, January–March 2018

Strong growth and further acquisitions

First quarter of 2018                 

  • Consolidated net sales increased by 25 percent to SEK 474 m (380), of which organic growth amounted to 1 percent. Acquisitions contributed by 21 percent and currency by 3 percent
  • Net sales in Product & Solutions amounted to SEK 368 m (299) and in Installation Services to SEK 119 m (96)
  • EBITDA before items affecting comparability increased by 39 percent to SEK 21 m (15)
  • Operating profit (EBIT) before items affecting comparability decreased to SEK 6 m (9)
  • Operating profit (EBIT) amounted to SEK 2 m (5)
  • Operating cash flow amounted to SEK -61 m (-17)
  • Earnings per share before and after dilution were SEK -0.13 (-0.06)

Message from the CEO

Strong growth and further acquisitions

Consolidated net sales for the first quarter rose by 25 percent compared with last year, from SEK 380 m to SEK 474 m. Acquisitions contributed 21 percent. Organic growth was 1 percent, in spite of somewhat unfavorable weather in all of the Nordic countries.

At SEK 6 m, EBIT before items affecting comparability was slightly below last year’s profit of SEK 9 m. At the same time, EBITDA increased to SEK 21 m compared with SEK 15 m in the corresponding period in the preceeding year.

I am happy to report that we signed our third acquisition this year, after the reporting period, further delivering on our commitment to develop our business through both internal and external growth. The Swedish company Veg Tech, a leading specialist in green roofs and multifunctional vegetation systems, has annual sales of SEK 125 m within a segment benefiting from growing demand.

Both of our operating segments contributed to our consolidated sales growth of 25 percent. While our Products & Solutions operating segment reported a sales increase of 23 percent, our Installation Services operating segment achieved an increase of 24 percent, based on strong activity and demand in Finland.

Within our Products & Solutions segment, Denmark continued to see a favorable demand trend and SealEco showed stable growth from project business especially within lining and ponds. Our Swedish and Norwegian operations were negatively affected by the long and cold winter, which primarily affected sales to Builders Merchants and the DYI segment.

Installation Services in Finland achieved an increase of 12 percent in sales in the first quarter of 2018 compared with the corresponding quarter in 2017 and comparable operations. Our flat roof installation services business in Finland is showing growth and maintaining its market share. The profit improvement program is developing according to plan within the larger unit in Finland. Positive financial effects are expected to be visible as of mid-2018. Our Danish franchise companies continued to perform well during the first quarter, with an improved EBIT contribution compared with the preceding year.

Earnings per share for the quarter were SEK -0.13 (-0.06).

In January, Taasinge’s acquisition of Ugilt in Denmark was finalized, and in March, 75 percent of the shares in Ringsaker Vegg- og Tagelementer, RVT, in Norway were acquired. Both these acquisitions form part of the strategy to make Taasinge a major player in the Nordic market for prefabricated roofing and façade elements, and I am pleased to welcome our new colleagues in Denmark and Norway to our Group.

In April, after the reporting period, an agreement was signed to acquire Veg Tech in Sweden, one of the leading players within vegetation technology in the Nordics. Veg Tech grows, develops and supplies buildings and cities with multifunctional vegetation systems that help to naturally delay the infiltration of rain water, improving water quality and favoring and improving biodiversity. The company offers green solutions that create vibrant and sustainable roofs, courtyards and roof gardens, water and soil environments, green facades, etc. for cities, and is today a leading supplier to construction companies, property owners and the public sector. Customers throughout the Nordics are provided with a wide range of high-quality plant products, such as green roofs and façades, green courtyards and water purification. Veg Tech’s solid position in vegetation technology and green roofs is a perfect complement to our existing offering of high-quality waterproofing solutions. Through the acquisition of Veg Tech, we demonstrate and enhance our commitment towards sustainable and environmentally efficient solutions for the building industry. We are currently performing due diligence, and the transaction is expected to be finalized in the second quarter of 2018.

Vejen, 3 May 2018

Martin Ellis,
President and CEO

Conference call

A conference call for investors, analysts and media will be held today, 3 May 2018, at 09:00 a.m. CET and can be joined online at www.nordicwaterproofing.com. Presentation materials for the call will be available on the website one hour before the call.

To participate, please dial:
From the United Kingdom: +44 20 3008 9810
From Denmark:  +45 35 44 55 76
From Sweden: +46 8 503 365 63
Further information can be obtained from
Martin Ellis, President and CEO tel: +45 31 21 36 69
Jonas Olin, CFO & Investor Relations tel: +46 708 29 14 54

This information is information that Nordic Waterproofing Holding A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 3 May 2018, 08:00 a.m. CET.

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