Prevas Publishes Interim Report January-March for 2024

Prevas reports a strong first quarter despite a continued challenging market. Turnover for the first quarter increased by 3.2% to SEK 407.1 million (394.3). Organic growth during the quarter amounted to approximately 40 percent of total growth. We delivered an EBITA of SEK 53.5 million (59.7) and an EBITA margin of 13.2 percent (15.1). The EBITA margin is well above our financial target, which is a sign of strength in the current market. Turnover and profits were negatively impacted by the fact that the quarter was one working day shorter compared to the corresponding quarter last year (63 compared to 64). Our efforts to adapt recruitment to demand, maintain good cost control and continuously increase customer value contributed to a strong margin during the quarter. Cash flow from operating activities amounted to SEK 27.1 million (22.8).

Magnus Welén, CEO

To read the word from the CEO in full, see interim report page 4-5. Pdf, 2.7 MB.

The quarter in brief

• Net turnover amounted to SEK 407.1 million (394.3), an increase of SEK 12.8 million and 3.2 percent. Approximately 40 percent of the growth was organic and the remainder came from acquisitions made in 2023.
• Operating profit EBITA* amounted to SEK 53.5 million (59.7), yielding an operating margin of 13.2 percent (15.1). The quarter was one working day shorter than last year, which had a negative impact on EBITA* of approximately SEK 5 million.
• Operating profit EBIT amounted to SEK 44.2 million (57.8), yielding an operating margin of 10.9 percent (14.7). EBIT has been affected by acquisition-related items with SEK 9,2 million (1,8).
• Profit after tax amounted to SEK 33.3 million (41.8).
• Profit per share before dilution was 2.56 SEK (3.20) and after dilution was 2.54 SEK (3.18).
• The cash flow from operating activities amounted to SEK 27.1 million (22.8).

* The definitions of EBITDA and EBITA have been adjusted to improve the analysis of the operational performance between periods. Acquisition-related items and depreciation of intangible assets are no longer included in EBITDA and EBITA. Depreciation of acquisition-related intangible assets, as well as revaluation and present value calculation of contingent purchase consideration, have no impact on EBITDA and EBITA as before.

Significant events

• In April, Prevas signed an agreement to acquire approximately 92 percent of the shares in the Finnish company NMAC Group Oy, the parent company of the Enmac Group ("Enmac"). Enmac has a strong position in the Finnish market in growth areas such as energy, industrial automation and process industry, with approximately 200 employees and a turnover of EUR 23 million in 2023. The acquisition, which is Prevas' first in Finland, establishes a Nordic group with operations in Sweden, Norway, Denmark and Finland. The acquisition enables future market synergies and is in line with Prevas's growth strategy. The acquisition is subject to regulatory approval, which may take up to 4 months. The acquisition is expected to be completed in the third quarter of 2024. For more information about the acquisition, see the press release on www.prevas.se.
  
  
• Uddeholm, the world's leading manufacturer of tool steel for industrial tools, has commissioned Prevas to implement new Manufacturing Execution Systems (MES) for three production sections at the factory in Hagfors. The new systems will optimize Uddeholm's operations and future-proof the company's operational processes, which is crucial to maintaining competitiveness in a rapidly evolving industry.
  
  
• Prevas AB’s Annual and Sustainability report and compensation report for the 2023 financial year is available on the company’s website prevas.se.

Prevas' interim report January-March 2024 will be available at https://www.prevas.com/Financial-Reporting and is attached to this press release.

Presentation of Prevas’ interim report January-March 2024

Tuesday, May 7 at 09.30 a press and analyst presentation will be held which can be followed via webcast https://www.finwire.tv/webcast/prevas/q1-2024.

The presentation is given in English by Magnus Welén (CEO) and Helena Burström (CFO) from Prevas AB.
No pre-registration is required.

This interim report has been prepared in Swedish and translated into English. In the event of any discrepancies between the Swedish original and the translation, the Swedish shall have precedence.