Interim report January - March 2021

Comments from CEO Per Sjöstrand:
Sales in the first quarter were SEK 1,942 (1,676) million, which corresponds to a growth rate of 15.9 percent. Adjusted EBITA for the first quarter was SEK 154 (131) million, which corresponds to an adjusted EBITA margin of 8.0 (7.8) percent. Order backlog has remained strong and at the end of the quarter, it amounted to SEK 6,708 (5,215) million, which corresponds to an increase of 28.6 percent.

Thus far, Instalco has faired well throughout the pandemic and has only been impacted marginally. However, it became clear during the first quarter that the pandemic is far from over and we felt the impact of the pandemic more than in previous quarters, with a higher rate of sick leave and periodic shutdowns at construction sites. Segment Sweden delivered a strong performance but, as expected, the impact was greater on our companies in Norway and Finland. We continue pursuing our strategy of prioritising profitability above volume in the Norwegian subsidiaries.

Despite the rather sluggish start to the year, our outlook for the full year is very positive.

Changes in the Group management team
I previously announced my intention of exiting from my role as CEO for Instalco and taking over as Chairman of the Board instead. By doing so, I will be able to focus even more on strategic matters and Instalco’s future investments and pursuits. I’m looking very much looking forward to working with Instalco’s highly competent Board of Directors.

I am very pleased that Robin Boheman, CFO at Instalco, has accepted the offer to take over as CEO for the Group as of September 1st. Robin and I have worked closely together since Instalco was established in 2014 and his experience of the Group’s acquisition pursuits and the accounting/finance function makes him highly suitable and an excellent successor for this role. With Robin as our new CEO, we ensure continuity and that we have a person with the right Instalco spirit.

Stronger organisation and wider scope through acquisitions
During the quarter, we strengthened our organisation in Sweden by acquiring the following companies: Lincom AB (Norrköping), Kempes El AB (Kramfors) and Stockholm Luftkompetens AB (Stockholm). In Norway, we established the business in the very most northern part of the region with the acquisition of JB Elektro AS in Tromsö.

The establishment of our new business area, Technical Consulting, where our subsidiary Intec plays a key role, is also starting to bear fruit. Intec has made several of its own company acquisitions and it now has 150 technical consultants with offices at around a dozen locations in Sweden. Intec collaborates will all types of customers and categories in the construction and installation sector on system design and installation coordination.

Cross-selling between our companies and collaboration in projects is key to Instalco. Two great examples of that during the quarter involve collaboration between four Instalco companies. The first is a contract with NCC involving construction of a nursing home in Stockholm and the second is a contract with Peab concerning construction of Oatly’s new head office at the property called Gjuteriet in Malmö. For both projects, we’ve been able to offer the customer an attractive, multi-disciplinary offer of high quality.

Collaboration for cleaner water
During the quarter, we took the next step in the roll-out of our new Sustainability Programme. Instalco and the Swedish Society for Nature Conservation have joined forces to collaborate on a project to lower the presence of pharmaceuticals in water. It enables the Swedish Society for Nature Conservation to intensify its efforts of lowering the level of water pollution and preventing pharmaceuticals from getting into the water supply, thereby helping make the Nordic region’s water cleaner, particularly the Baltic Sea. Making the water and air cleaner is a pursuit that many people care about and support. Each day, we install water and air purification systems and Instalco wants to do its part in improving the environment by contributing where we can. Being able to offer sustainable, energy efficient solutions to our customers is a big part of what we do every day.


The full interim report:

150+ local businesses  in Sweden, Norway and Finland