Bravida Financial Statement 2011
Scandinavia’s leading installation and service company Bravida reports a further increase in profits. The operating profit for the full year 2011 grew by 7 per cent to SEK 663 million (621), which represents an operating margin of 6.2 per cent (6.0). Sales increased by 4 per cent to SEK 10,768 million (10,345) and cash flow expanded by 41 per cent.
A very strong cash flow shows the high level of activity that we saw in large parts of our business in the final quarter of 2011. The result was boosted by a higher number of installation projects, headed by Facebook’s new server facility in Luleå, as well as a string of other major contracts, including arenas and infrastructure projects. The key to our success, however, lies in our continued focus on profitability in the Group, a greater share of higher-margin service revenues, reduced administrative expenses and a selective approach in which we avoid installation contracts with a high risk and weak profitability. Our Swedish business was particularly strong, with an operating margin of 7 per cent. Profitability improved in Denmark but declined somewhat in Norway.
Sales expanded in all our geographic markets in 2011. Towards the end of the year our installation business once again increased its sales while the service business continued to grow at a healthy pace. Bravida has launched a number of selective ventures focusing on key markets that are aimed at strengthening our presence to ensure that we are represented and have the necessary strength in all relevant fields of technology. This will be achieved through a combination of organic growth and acquisitions.
I am pleased that our hard work yielded fruit in 2011. We have taken bold steps, won contracts for major projects and expanded at many of our local offices. In other parts of our organisation we have taken action to offset the effect of faltering demand. I would like to mention Denmark in particular, where, by taking action at an early stage, we have succeeded in restoring profitability and growth, albeit from low levels.
We go into 2012 with a strong business and a continued high order backlog that bodes well for the first half of the year.
Mats O Paulsson
CEO and Group President