financial development

Net sales and profit

The Addtech Group's net sales rose by 11 percent during the financial year to SEK 6,776 million (6,089). Comparable units showed an increase of 9 percent and acquisition-based growth was marginal. Changes in exchange rates had a positive effect of 2 percent on net sales, corresponding to SEK 125 million, and a positive effect of 2 percent, corresponding to SEK 11 million, on operating profit.

During the financial year, operating profit rose by 7 percent to SEK 536 million (501) and the operating margin reached 7.9 percent (8.2). The operating margin before amortisation of intangible non-current assets equalled 9.3 percent (9.5). Net financial items were SEK -23 million (-26) and profit after financial items increased by 8 percent to SEK 513 million (475).

Profit after tax for the financial year increased by 8 percent to SEK 400 million (369) and EPS rose to SEK 5.90 (5.50). The effective tax rate was 22 percent (22).

Profitability, financial position and cash flow

At the end of the financial year, the return on equity was 28 percent (30) and the return on capital employed was 23 percent (24).

Return on working capital, P/WC (operating profit in relation to working capital), amounted to 44 percent (47). 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 1,211 million (1,075) at the end of the financial year.

At the end of the financial year the equity ratio stood at 40 percent (39). Equity per share, excluding non-controlling interest, totalled SEK 22.60 (22.10). Consolidated financial net debt at the end of the year stood at SEK 510 million (524), excluding pension liabilities of SEK 318 million (252). The increase in the pension liability is the result of changed financial obligations and is mainly due to a drop in the discount rate. The net debt/equity ratio, based on net debt excluding pension provisions, was 0.3 (0.4).

Cash and cash equivalents, consisting of cash and bank balances together with approved but non-utilised credit facilities, totalled SEK 676 million (559) at 31 March 2015. The Group's available credit facilities totalled SEK 1,114 million (1,028) at 31 March 2015.

Cash flow from operating activities reached SEK 557 million (479) in the financial year. Company acquisitions, including settlement of additional purchase consideration for acquisitions implemented in previous years, totalled SEK 268 million (205). Investments in non-current assets amounted to SEK 61 million (58) and disposals of non-current assets amounted to SEK 6 million (4). The dividend for the year amounted to SEK 200 million (176), the repurchase of treasury shares amounted to SEK 35 million (15) and the exercise and issued call options totalled SEK 41 million (30).