Interim report April - June 2021

Comments from CEO Per Sjöstrand:

Instalco has continued delivering high profitability and robust growth for the first half of the year. This, despite the fact that Instalco and the construction & installation sector as a whole is now more intensely experiencing the effects of the pandemic, at a later stage than many other industries.

Despite relatively difficult external circumstances during the quarter, Instalco once again delivered very strong quarterly results, which I am extremely proud of. All of it demonstrates the strength of our business model. We have a positive outlook for the full year, with a steady return to a more normal society after the pandemic.

Broader geographic and operational scope
The second quarter has been busy with acquisitions, in a range of categories. For example, we are now established in Blekinge, where we have not previously been represented, in conjunction with the acquisition of El-installationer i Karlshamn and Lampans Elinstallationer in Karlskrona. One example of an add-on acquisition is by the Instalco subsidiary Henningsons El in Falun, which has expanded into the power and industrial area via the acquisition of Industriprodukter i Söderhamn.

We continue searching for, and identifying, new, exciting disciplines that complement our ordinary operations. One example is the acquisition of Nihlén Elmontage in Gothenburg, which is specialized in the installation and operation of street lighting, which is an area with great potential.

Among the major new projects worth mentioning is the expansion of the T-bana system in Stockholm. Rörgruppen, Ohmegi and Intec have been engaged by NCC and Region Stockholm in a partnering project to expand the Högdalen depot, which will serve the higher volume of subway trains.

Challenges and opportunities
The installation sector is facing a variety of challenges, but there are also many exciting opportunities. Prices have risen for raw materials, primarily copper and steel. We have our focus on that and measures in place to compensate for it. There is also a risk of a cement shortage in Sweden, which could impact us, as well as higher absenteeism due to the pandemic, all of which is having an impact on our sector. Despite that, there are enormous opportunities in a variety of areas, such as society’s transition to a “green” economy, energy-efficiency projects, investments, renovation and modernization efforts, automation of the industrial and housing sector and much more, which, going forward, will continue to impact our sector favourably.

We started Instalco in 2014 with the vision of becoming the leading company in the Nordic region of electrical, heating & plumbing, ventilation and cooling installations. We are soon there. Seven years have gone by quickly and we have had an amazing journey so far. We now have more than one hundred subsidiaries working daily throughout the Nordic region. Throughout it all, we have delivered strong results and well-executed projects. We have also been influential in developing the industry by launching innovative ideas and actively contributing to a more environmental way of thinking and working. And, we have a modern leadership with incredibly many talented employees. Nevertheless, it still feels like it’s just the start of what we can accomplish.

I will now be moving into a new role, as Chairman of the Board for Instalco and am proud to be handing over a strong report to the market, along with a warm welcome to our new CEO, Robin Boheman. I wish him much success in developing the company further as we continue our journey. For me, as the company’s founder and departing CEO, it has been an honour to have held this role and, together will all our fantastic employees, help build this wonderful company.

The full interim report:

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