Ten years of decentralised success
October –
• Net sales increased by 7.9 percent and amounted to
• EBITA increased by 6.2 percent and amounted to
• Depreciation/amortisation of property, plant and equipment and intangible assets increased by
• Operating profit (EBIT) increased by 3.8 percent and amounted to
• Cash flow from operating activities for the period was
• Earnings per share before dilution were
• Two acquisitions were made during the period, which, on an annual basis, contribute an estimated total sales of
January –
• Net sales increased by 18.4 percent and amounted to
• EBITA increased by 18.5 percent and amounted to
• Depreciation/amortisation of property, plant and equipment and intangible assets increased by
• Operating profit (EBIT) increased by 14.6 percent and amounted to
• Cash flow from operating activities for the period was
• Earnings per share before dilution were
• Eleven acquisitions were made during the period, which, on an annual basis, contribute an estimated total sales of
• The Board proposes dividends of
Comments from CEO
During the fourth quarter,
This is proof of how quickly our decentralized model of sharing “best practice” and maintaining the entrepreneurial spirit gives us the opportunity to adjust based on the market’s local conditions. A clear example is how the share of service in our revenues increased further during the quarter, to the highest to date of 37 percent, or 30 percent for the full year.
When we look back to 2023, we can sum up an overall good performance from
Long-term, resilient profitability
For several quarters, we have been describing how, in the current market, we are putting extra focus on choosing the right customers and projects, which has still been the case during the last months of the year. We have noticed large regional variations in both demand and pricing, actively choosing to not strive for higher volumes via low-profitability projects. Instead, we are prioritising our margin and accepting the projects where customers are willing to pay for the value we create.
During the fourth quarter, it has resulted in the backlog of orders being on a par with last year, despite the increased net sales. For right now, we would rather have a somewhat smaller, yet high quality backlog of orders and lower growth, since we are confident about the long-term potential in our industry. Furthermore, we do not want to get locked into weak projects once the trend in demand and pricing turns upward again. Several positive signals can be seen on the market, although the services we offer are relatively late-cyclical, whereby it takes time for change to be reflected in our numbers. We are well positioned for additional, profitable growth when the upturn happens.
More moderate pace of acquisition, stable financial position
Thanks to our high rate of acquisition at the beginning of the year, when several large companies joined the
Thanks to our strong earnings growth, very good cash conversion ratio and fewer number of acquisitions during the fourth quarter, we were able to get our net debt/EBITDA back within range of our target. As of
Safety first
There have recently been a number of tragic accidents in the Swedish construction industry. Everyone in the industry must take this very seriously and strive to minimise the risk of accidents in the workplace.
Ready for the next ten years
It was on this very day, 15 February, ten years ago that
Our employees and their entrepreneurial skills are our most important asset. I would thus like to take this opportunity to thank each and every one of them for their dedication and efforts. I am proud to be a part of this team. We are well equipped and ready for the next ten years.
Report presentation
Instalco’s CEO
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