Profitability, financial position and cash flow
The return on equity at the end of the financial year was 28 percent (32) and return on capital employed was 22 percent (22). Return on working capital P/WC (EBITA in relation to working capital) amounted to 68 percent (66).

At the end of the financial year the equity ratio amounted to 39 percent (36). Equity per share, excluding non-controlling interest, totalled SEK 22.15 (19.25). The Group's net debt at the end of the financial year amounted to SEK 4,427 million (4,107), excluding pension liabilities of SEK 241 million (218). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.7 (0.7).

Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 2,167 million (2,113) at 31 March 2024.

Cash flow from operating activities amounted to SEK 2,575 million (1,911) during the financial year. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 1,303 million (1,204). Investments in non-current assets totalled SEK 188 million (192) and disposal of non-current assets amounted to SEK 9 million (9). Repurchase of treasury shares amounted to SEK 0 million (31) and repurchase of call options amounted to SEK 41 million (58). Exercised and issued call options totalled SEK 50 million (41). Dividend paid to the shareholders of the Parent Company totalled SEK 674 million (485), corresponding to SEK 2.50 (1.80) per share. The dividend was paid out in the second quarter.

Employees
At the end of the financial year, the number of employees was 4,175 compared to 3,911 at the beginning of the financial year. During the financial year, completed acquisitions resulted in an increase of the number of employees by 221. The average number of employees in the latest twelve month period was 4,109.

Ownership structure
At the end of the period the share capital amounted to SEK 51.1 million.

Addtech has four outstanding call option programmes for a total of 2,353,880 shares. Call options issued on repurchased shares entail a dilution effect of about 0.1 percent during the latest twelve month period. Addtech's own shareholdings fully meet the needs of the outstanding call option programmes.

Acquisitions and disposals

During the period, 1 April to 31 December 2023 the following acquisitions were completed; BV Teknik A/S, Denmark, to become part of the Automation business area. Electrum Automation AB, Sweden, to become part of the Electrification business area. S. Tygesen Energi A/S, Denmark, to become part of the Energy business area. Feritech Global Ltd., Great Britain, Darby Manufacturing Ltd., Canada, and Control Cutter AS, Norway, to become part of the Industrial Solutions business area. INDAG Maschinenbau GmbH, Germany, and Clyde Holding Ltd., Great Britain, to become part of the Process Technology business area.

On 3 January, 80 percent of the shares in Kemic Vandrens A/S, Denmark, was acquired to become part of the Process Technology business area. Kemic is a leading supplier of water purification plants and solutions. The company offers design and construction of new-builds, mobile waterworks as well as renovation and service agreements, primarily towards Danish industrial customers and water utilities. The company has 20 employees and sales of around DKK 60 million.

On 29 February, Crescocito AB, Sweden was acquired to become part of the Industrial Solutions business area. Crescocito develops and manufactures components and complete turnkey solutions within industrial painting technology. Crescocito has 10 employees and sales of around SEK 60 million. 

The purchase price allocation calculations for the acquisitions completed during the period 1 April 2022 - 31 March 2023 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2022/2023 financial year are distributed among the Group’s business areas as follows:

If all acquisitions which have taken effect during the financial year had been completed on 1 April 2023, their impact would have been an estimated SEK 910 million on Group net sales, about SEK 160 million on operating profit and about SEK 125 million on profit after tax for the period.

Addtech normally employs an acquisition structure comprising basic purchase consideration and contingent consideration. The outcome of contingent purchase considerations is determined by the future earnings reached by the companies and is subject to a fixed maximum level. Of considerations not yet paid for acquisitions during the financial year, the discounted value amounts to SEK 263 million. The contingent purchase considerations fall due for payment within four years and the outcome is subject to a maximum of SEK 316 million. 

Transaction costs for acquisitions that resulted in an ownership transfer during the financial year amounted to SEK 26 million (10) and are reported under Selling expenses.

Revaluation of contingent consideration had a positive net effect of SEK 15 million (40) during the financial year. The impact on profits is reported under Other operating income and Other operating expenses, respectively.

According to the preliminary acquisitions analyses, the assets and liabilities included in the acquisitions were as follows, during the financial year:

Parent Company
Parent Company's net sales during the financial year amounted to SEK 95 million (83) and profit after financial items was SEK 687 million (676). Net investments in non-current assets were SEK 0 million (0). The Parent Company's financial net debt was SEK 189 million at the end of the financial year (previous year's financial asset of 124).