* ACQUISITION OF SWEDOL CLOSED AS OF 1 APRIL 2020
Momentum Group's acquisition of Swedol was completed during spring 2020 and closed on 1 April 2020. Any instances where the comparative figures in this report include Swedol for the period prior to the closing date on 1 April 2020 are specifically noted. The bases for the financial history including Swedol are presented in a separate press release dated 24 June 2020 - Supplementary financial information relating to the 2019/20 financial year for the Momentum Group.
focus on increased growth and profitability
During the quarter, we noted increased demand from most of our customers. The overall recovery was substantial but varied between our operations depending on their geographic markets and customer segments. Thanks to our proactive efforts, we have managed to maintain our ability to deliver even though we have been affected, to varying degrees, by challenges resulting from materials shortages and increased prices for raw materials and transportation.
The positive performance of most of the Group's operations in the previous quarter continued through the third quarter. Growth for comparable units was 6 percent, and margins and earnings improved in both business areas. In total, EBITA increased by 56 percent compared with the third quarter in the previous year.
Operating profit was charged with costs of MSEK 108 for a restructuring reserve in the business area Alligo regarding the previously announced move of TOOLS' Swedish logistics operations from Alingsås to Alligo's modern central warehouse in Örebro. The move, which is expected to be complete by May 2022, will gather the logistics operations in a modern and highly efficient logistics centre, enabling cost savings through a more efficient flow of goods and increased customer value in the form of better service.
Investments for the future
During the current year, we have carried out seven acquisitions to strengthen our position in each business area. The most recent acquisition in Components & Services is the company Intertechna, one of the leading companies in Sweden in digitised maintenance for industry, which strengthens our technical service offering. After the end of the period, Alligo acquired the Norwegian workwear specialist RAF Romerike Arbeidstøy, which strengthens our presence in Oslo.
Separate listing of business area Components & Services
In September, the Board of Directors gave those of us in management the task of continuing to work on dividing the Group's operations into two independent companies, with the aim of carrying out a separate listing of the business area Components & Services on Nasdaq Stockholm during the first half of 2022. The purpose of the split is to strengthen each business area's conditions for achieving its ambitions in the best possible way, thereby creating increased shareholder value. Ahead of the split, the Board of Directors will propose a name change from the current Momentum Group to Alligo, since it is planned that the business area Components & Services will be listed under the name Momentum Group.
The work to enable this split, where joint functions will be divided into two separate and independent companies, is proceeding according to plan. We have already carried out several activities and these measures have thus far resulted in costs affecting comparability of approximately MSEK 7 being charged to the operating profit for the reporting period.
With a sense of great confidence, I look forward to the planned split of the Group into two independent, listed companies that can each continue their fast-paced journeys. The "new" Momentum Group will continue its work on acquisition-driven growth and Alligo will continue its efforts to realise synergies and economies of scale through the coordination of TOOLS and Swedol. The split will create favourable conditions for long-term profitable growth for both Alligo and the "new" Momentum Group.
Stockholm, October 2021
President & CEO
Presentation of the Interim Report - 9 months 2021
Momentum Group will publish its Interim Report for the third quarter 2021 on Friday, 29 October 2021 at 8:00 a.m. CEST. In conjunction with this, Momentum Group are pleased to issue this invitation to a webcast conference call in which CEO & President Ulf Lilius, CFO Niklas Enmark and Business Area Manager Clein Johansson Ullenvik will present the report and answer any subsequent questions.
Time: Friday, 29 October 2021 at 11:00 a.m. CEST.
Web link: https://financialhearings.com/event/13465.
Telephone no: SE +46 8 505 583 58 / UK +44 33 330 090 32 / US +1 64 672 249 04
Ulf Lilius, President & CEO, Tel: +46 10 454 54 70
Niklas Enmark, CFO, Tel: +46 70 393 66 73
The information in this report is such that Momentum Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CEST on 29 October 2021.
This document is in all respects a translation of the Swedish original Interim Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.
Momentum Group is a leading reseller of industrial consumables and components, service and maintenance to professional end users in the industrial and construction sectors in the Nordic region. The Group has annual revenue of approximately SEK 9,5 billion and approximately 2,700 employees. Momentum Group AB (publ) has been listed on Nasdaq Stockholm since June 2017. Read more at www.momentum.group.