Year-end report 2021
Lower net revenue and results but higher order intake than Q4 2020 Net revenue was somewhat lower than in the corresponding quarter of last year. Longer delivery times from suppliers, due to raw material and component shortages, as well as some impact of Covid-19 are the main causes. A payment of SEK 7.5 million in severance pay to the outgoing CEO has also negatively affected results.
Fourth quarter in brief (October–December 2021)
• Order intake amounted to SEK 201.1 (164.2) million, an increase of 22.5 percent. In comparative terms, this was an increase of 14.9 percent.
• Net revenue for the fourth quarter amounted to SEK 192.6 (195.2) million, a decrease of 1.3 percent. In comparative terms, this was a decrease of 7.6 percent.
• EBITA was SEK -4.5 (9.5) million. The EBITA margin was -2.3 (4.9) percent.
• Earnings per share, before and after dilution, amounted to SEK -0.27 (0.37).
• Cash flow from operating activities was SEK -3.7 (13.2) million. Total cash flow for the period was SEK 6.2 (-39.1) million.
• The Board of Directors proposes a dividend of SEK 0,75 (0,75) per share.
Twelve months in brief (January–December 2021)
• Order intake amounted to SEK 739.1 (625.7) million, an increase of 18.1 percent. In comparative terms, this was an increase of 1.6 percent.
• Net revenue for the whole year amounted to SEK 743.2 (695.2) million, an increase of 6.9 percent. In comparative terms, this was a decrease of 6.6 percent.
• EBITA was SEK 30.9 (42.2) million and the EBITA margin was 4.2 (6.1) percent.
• Earnings per share, before and after dilution, amounted to SEK 1.21 (1.66).
• Cash flow from operating activities was SEK 22.4 (63.0) million. Total cash flow for the period was SEK 29.0 (23.7) million.
Important events during the reporting period
• The decision that CEO Bo Söderqvist will leave the company during the first half of 2022.
• The Board has appointed Caroline Reuterskiöld as the new CEO of Christian Berner Tech Trade AB. Most recently, Caroline was the business area manager within Lagercrantz Groups division Niche Products.
Important events after the reporting period
• The company issued a profit warning on January 17, 2022 for the fourth quarter of 2021.
• Current CEO Bo Söderqvist will leave the company on April 28, 2022, after the Annual General Meeting, and Caroline Reuterskiöld will become the new CEO on that date.
MESSAGE FROM THE CEO
Strong order intake
2021 has been a challenging year in many respects. Order intake increased during the second quarter and was also strong in the fourth quarter. However, the pandemic has led to a shortage of components in certain areas, as well as longer lead and delivery times, which affected invoicing and results in the fourth quarter.
As we communicated in the report for the third quarter, we are clearly seeing longer lead and delivery times in primarily three areas. In Process facilities, these have increased from 12–16 weeks to 20–24 weeks. In Technical plastics and Vibration technology, lead and delivery times have increased from 4–6 weeks to 12–16 weeks. This has meant that delivery and invoicing for some orders were postponed until the new year and, in the same way, new orders will also take longer to deliver. These factors had a negative impact on revenue and results in the fourth quarter.
We have also experienced a mixed effect, as a larger project with a lower gross margin has been delivered to China. This, together with provisions for the CEO and extended lead times, meant that we made a loss for the quarter and the Group’s EBITA margin amounted to minus 2.3 (4.9) percent. Adjusted for non-recurring items, related to the upcoming change of CEO, of SEK 7.5 million, the EBITA margin was 1.6 percent. Revenue decreased by 1.3 percent to SEK 192.6 (195.2) million. For the whole year, the EBITA margin amounted to 4.2 (6.1) percent, while revenue increased by 6.9 percent to SEK 743.2 (695.2) million.
In Sweden, the EBITA margin was 8.5 (9.5) percent for the year as a whole. Order intake, during both the fourth quarter and the whole year, was good and we are seeing stable demand in the market.
Zander & Ingeström experienced another good year and GF Swedenborg, which we acquired on May 1, had a very strong year with record results. Christian Berner AB increased its profitability, in comparison with the year before, but there is still room for further improvements in profitability.
Norway’s performance deteriorated at the end of the year. Despite this, its EBITA margin was 6.4 (6.7) percent for the year as a whole. Order intake, during the year, was weaker in Process & Environment, although it improved somewhat during the last quarter. We are continuing to see good development with our vibration-damping materials for the construction industry and infrastructure projects.
In Denmark, we experienced both a weak fourth quarter and a weak year, with an EBITA margin of 4.3 (5.7) percent. This is due to reduced order intake over an extended period, as the process industry, in particular, is reluctant to invest.
Finland had a weak year with an EBITA margin of 1.7 (6.3) percent. Sales of vibration-damping material to the construction industry, in the Helsinki area, continued well, although we lacked major machine investments from the process industry.
Longer lead and delivery times continue to affect the business, but we consider underlying demand to be stable and the strong order intake during the fourth quarter confirms this.
CEO, Christian Berner Tech Trade AB
For the full details, please see attached pdf-file.