October – December 2015
January – December 2015
Bravida is continuing to deliver strong growth both in terms of sales and profit. 2015 stands out as a notable year in the history of Bravida. As well as posting strong earnings, we established a presence in Finland and our IPO was another important milestone in Bravida’s development.
Bravida’s market remains stable and the construction market benefits from the healthy demand from public-sector, infrastructure projects, housing and the low interest rate.
The order backlog is at a good level, SEK 7 billion. During 2015, Bravida has received large orders regarding new-builds and renovation of hospitals. However, our many small and mid-sized orders are more important to the business as they provide stability and better allocation of risk.
Adjusted operating profit for the full year increased by 16 percent, which was in line with sales growth. As well as the acquisitions we made, organic growth contributed 7 percent, exceeding our target of 5 percent. This means that we also grew faster than the market, something which is further underpinned by our general focus on profitability ahead of volume. Performance in the fourth quarter was roughly in line with the year as a whole. Sales growth was 16 percent, 4 percent of which was organic, and adjusted operating profit grew by 10 percent.
The 16 acquisitions we made in 2015 add almost SEK 1.5 billion in annual sales. In geographical terms, we purchased companies in all markets and we are also focussing strongly on ensuring efficient and rapid integration of each acquisition in order to maximise synergies.
The underlying profit margin for existing operations increased in the year. This was mainly due to our concerted efforts to further increase profitability, and our strategic initiatives are key in this respect. Our long-term target for purchasing is to cut costs by 10 percent. We are seeing clear impacts on earnings performance from these measures and are now taking the next step by increasing the percentage of international purchasing. Our target is to increase servicing in Group sales. At the end of 2015, we began our long-term initiative to increase growth in our servicing divisions. This largely involves getting even closer to our customers so we can take a more proactive approach to our servicing offering.
Our newly established Finnish business is progressing well, and our two acquisitions in Finland have now been integrated into the Group. We have also made considerable progress in the servicing market, winning three large contracts in the second half of the year, all with well-known Finnish companies.
As a benefit from the IPO Bravida achieved a higher brand recognition, making us more attractive to both potential customers and potential employees.
Order intake and order backlog both remain strong. The order backlog provide a good start to 2016. And this positive position is confirmed by a continued favourable climate on all markets.
Overall, Bravida is well positioned and has a strong platform on which to build for the year ahead.
Mattias Johansson, Stockholm, February 2016
For further information, please contact:
Mattias Johansson, CEO and Group President of Bravida. Tel: +46 8 695 20 00
Nils-Johan Andersson, CFO of Bravida. Tel: +46 70 668 50 75
The information above has been published pursuant to the Swedish Securities Markets Act (Sw: Lag om värdepappersmarknaden) and the Swedish Financial Instruments Trading Act (Sw: Lagen om handel med finansiella instrument).
This information was released for publication at 07:30am CET on 19 February 2016.
A webcasted telephone conference will be held at 10:00am CET on 19 February 2016.