Prevas Year-End Report 2021

October - December 2021

• Net turnover 319.9 MSEK (202.7)
• Operating profit/loss EBIT 42.4 MSEK (15.5)
• Operating margin EBIT 13.2 % (7.6)
• Profit after tax 37.8 MSEK (13.4)
• Profit per share 3.05 SEK (1.32)

January - December 2021

• Net turnover 1 186.9 MSEK (771.7)
• Operating profit/loss EBIT 133.2 MSEK (65.6)
• Operating margin EBIT 11.1 % (8.5)
• Profit after tax 102.8 MSEK (45.2)
• Profit per share 8.08 SEK (4.55)
  

A word from the CEO

Strong development.

Record upon record

Several records were broken in the final quarter of 2021. Total sales for the fourth quarter were SEK 320 M (203), which is an increase of 58 percent. At SEK 42.4 M (15.5), operating profit was at a record high, an increase of 174 percent. The operating margin was among the highest in Prevas history, amounting to 13.2 percent (7.6). Lastly, earnings per share were also at a record high of SEK 3.05 (1.32).

2021 and the records are historic. It’s time to look ahead. Our conclusion is that we are well positioned for continued development of the company and have a stable foundation for growth.

Based on the company's dividend policy, earnings and financial position, the board proposes a dividend of SEK 3.50 per share (2.0), which is an increase of 75 percent.

Harvest time and sowing for the future

During the quarter, the relatively extensive integration project that was underway throughout 2021 was completed, which gave us greater opportunities for putting additional focus on our business opportunities at the end of the year. This, combined with the fourth quarter usually being strong for consulting companies, gave room for reaping the fruits of our hard work in terms of profit.

The quarter was characterized by a strong market, and demand from our customers for Prevas services and solutions was very high. A really good proof of the strength of what we offer is that potential customers continue to contact us, both from near and far. Many of Prevas' assignments and relationships are very long-term, and caring for our customers and welcoming new ones builds for the future.

Work with employer branding was intensified during the quarter and a strengthened brand platform was launched before Christmas. This is something that has involved many employees and that presents Prevas in a positive manner, both for present and potential employees. Recruitment has been a priority and during the quarter, several managers and new consultants signed on with Prevas. Strengthened employee focus and recruitment is a good way of investing in the future.

We have also experienced another covid wave, which is unfortunate from several perspectives. At the same time, we have learned to live with the virus and deal with it in our day-to-day operations. The impact on business has not been extensive during the quarter and it remains to be seen how things will be in the future. We strive to build a company that is dynamic, alert and prepared for different scenarios and that takes advantage of the opportunities. During the period, we have both been able to reap the fruits of previous efforts and have been able to sow new seeds for the future.

Setting our sights on the future

We strive to add value to our assignments, in addition to our cutting-edge expertise. One of the areas where we have packaged added value is in technical calculations. Our strong expertise is being applied in calculation and analysis of, for example, pressure increases and pressure relief in switchgear and transformers. An important aspect in the distribution of electricity is that everything is properly engineered, which is essential in the massive electrification programs currently underway. In addition to its cutting-edge expertise, Prevas has developed programs and calculation methods and has also invested in instruments. This enables active business development at the same time as it provides exciting assignments for employees and good value for customers.

Another area at the forefront of our expertise includes the packaging of number of services related to management, operation, maintenance and the use of the systems and products we deliver to our customers. The goal is to be able to offer our customers support agreements with considerable flexibility and that meet each customer's unique needs. During the year, for example, our support team helped GKN ePowertrain minimize downtime in its production by handling incidents and service requests, all hours of the day. Securing production availability is a service and it is highly valued by Prevas customers, and which at the same time enables Prevas to invest in and develop even stronger services in the future.

Looking ahead

With our sights set on the future, we’re seeing major opportunities. Opportunities to do good with the help of technology, to use our ingenuity to develop solutions to complex problems, and to grow with the assignments and produce continued good financial results. We hope to be able to use the impressive platform we have at Prevas to help our customers, offer employees exciting assignments in a modern company and attract new colleagues. We’re also striving to attract new enterprises to becoming a part of Prevas. This is a long-term effort that we hope to benefit from in the years to come.

Finally, thank you to all for an eventful and exciting year. Looking forward to an equally eventful 2022!

Johan Strid, CEO Prevas AB

This information is such that Prevas AB (publ) is required to make public in accordance with EU regulations to prevent market abuse and the Securities Market Act. The information was submitted by the below contact person for publication on February 11th, 2022, at 08.30.

This is a translation of an original document in Swedish. In case of dispute, the original document should be taken as authoritative (Bokslutskommuniké 2021 at www.prevas.se). Or contact the company direct.

The interim report will later on also be available in English.