Announcement 182019 · 31. October, 2019
Q3 revenue exceeded our expectations and Q3 EBITA was on par with our expectations. We reconfirm our EBITA guidance for 2019.
CEO Jens Andersen says:
"In Q3, core business exceeded our expectations and delivered adjusted organic growth of 6.8%. We saw positive adjusted organic growth in all entities. EBITA from core business was up by more than 12% driven by improvements in Solar Norge and Solar Nederland. Consequently, we increase our EBITA guidance for core business by DKK 10m to DKK 380m.
We keep focusing on energy-efficient solutions to drive the green transition. Our green and digital approach combined with our TCO mindset underpin a responsible use of resources in all aspects.
In our related business, MAG45 results were unsatisfactory and we have initiated a strategic review of MAG45.”
Financial highlights (DKK million)* | Q3 2019 | Q3 2018 | Q1-Q3 2019 | Q1-Q3 2018 | |
Revenue | 2,777 | 2,539 | 8,602 | 8,089 | |
EBITA | 105 | 93 | 245 | 218 | |
Earnings before tax | -2 | 70 | 47 | 183 | |
Cash flow from operating activities | 144 | -23 | -5 | -103 | |
Financial ratios (%) | |||||
Organic growth adj. for number of working days | 6.3 | -0.3 | 5.8 | 2.0 | |
EBITA margin | 3.8 | 3.7 | 2.8 | 2.7 | |
Net working capital, period-end/revenue (LTM) | 12.6 | 11.8 | 12.6 | 11.8 | |
Gearing (NIBD/EBITDA), no. of times | 2.2 | 2.0 | 2.2 | 2.0 | |
* Due to the divestments of our Austrian and Belgian business activities, GFI GmbH and Claessen ELGB NV, in 2018, and the divestment of our Norwegian training business, STI, in Q1 2019, 2018 and 2019 figures in this announcement relate to our continuing operations. | |||||
Q3 2019 Revenue
Q3 2019 EBITA
BIMobject AB valuation
2019 outlook
Guidance 2019 DKK million | Core business | Related business | Solar Group |
Revenue | |||
Former revenue guidance | 10,950 | 650 | 11,600 |
Adjustment | 250 | -100 | 150 |
Current revenue guidance | 11,200 | 550 | 11,750 |
EBITA | |||
Former EBITA guidance | 370 | -5 | 365 |
Adjustment | 10 | -10 | 0 |
Current EBITA guidance | 380 | -15 | 365 |
Audio webcast and teleconference today
The presentation of Quarterly Report Q3 2019 will be made in English on 31 October 2019 at 11:00 CET. The presentation will be transmitted as an audio webcast and will be available at www.solar.eu. Participation will be possible via a teleconference.
Teleconference call-in numbers:
DK: tel. +45 354 455 83
UK: tel. +44 203 194 0544
US: tel. +1 855 269 2604
Yours faithfully,
Solar A/S
Jens Andersen
Contacts
CEO Jens Andersen - tel. +45 79 30 02 01
CFO Michael H. Jeppesen - tel. +45 79 30 02 62
Director, Stakeholder Relations Charlotte Risskov Kræfting - tel. +45 40 34 29 08
Enclosure: Quarterly Report Q3 2019, pages 1-33.
Facts about Solar
Solar is a leading European sourcing and services company mainly within electrical, heating and plumbing, ventilation and climate and energy solutions. Our core business centres on product sourcing, value-adding services and optimisation of our customers’ businesses.
We facilitate efficiency improvement and provide digital tools that turn our customers into winners. We drive the green transition and provide best in class solutions to ensure sustainable use of resources.
Solar Group is headquartered in Denmark, generated revenue of more than DKK 11bn in 2018 and has approx. 3,000 employees. Solar is listed on Nasdaq Copenhagen and operates under the short designation SOLAR B. For more information, please visit www.solar.eu
Disclaimer
This announcement was published in Danish and English today via Nasdaq Copenhagen. In the event of any inconsistency between the two versions, the Danish version shall prevail.
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