Interim report January – March 2022

Comments from CEO Robin Boheman:

As is the case for most industries, the construction and installation sector is affected by the global uncertainty. Prices for transports and materials continue to rise, there are persistent disruptions in logistic and supply chains and there has also been a rise in inflation. We are working every single day to manage the situation in the best possible way. We are thus putting a great deal of effort into how we manage purchasing, contracts and invoicing and are becoming increasing restrictive about which projects to take on in order to safeguard both profitability and quality.

At the end of the quarter, sick leave had fallen back to the normal level. During the beginning of the quarter however, there was higher sick leave than normal due to the Covid-19 omnicron variant.

The overall impact is that we are somewhat below our normal margin level. There was a good recovery during the last month of the quarter, however. We have good organic growth and continue to have a strong cash flow.

We also continue to see a strong underlying demand for energy-efficiency and energy-saving installation services in the market, which Instalco benefits from.

Expansion of the industrial segment
One of Instalco’s priority areas is to grow the industrial area of the business. We see opportunities here for finding new interesting acquisition candidates and openings for creating synergies with our existing companies. One example, is our work with the acquisition of Highcon, which offers leasing and installation of scaffolding structures. Here, we see excellent potential for collaboration with our other subsidiaries that are focussed on customers in the industrial sector. Highcon has a strong position in northern Sweden, which is advantageous in light of our both the existing and planned industry in this region. We were able to complete the acquisition of Highcon soon after the beginning of the second quarter, once it had been approved by the Swedish Competition Authority.

Contributing each day to a more sustainable environment
The EU Taxonomy recently entered into force. It is a classification system aimed at helping investors identify sustainable investments and it serves as a tool for achieving the EU’s climate targets. For Instalco, the Taxonomy serves as yet another way of clarifying the environmental benefits that our organisation generates, since our sales are generated from activities that are already very much aligned with the Taxonomy.

Each and every day, Instalco contributes to a better environment, since every single one of our installations results in energy savings, efficiencies and water purification. Our climate-smart solutions and installations reduce energy and resource consumption to help future-proof society.

We help our clients apply a holistic approach to sustainability, throughout the value chain, providing them with more knowledge of what is possible, from an environmental perspective, when undertaking new construction, renovation or service.

As we close out the second year of our sustainability programme, Sustainable Installations, the results on all of our seven sustainability goals are very good. I’m also proud to report that we had an impressive 47 Sustainable Instalco Projects during the second year. All of them are now certified, with high sustainability goals. Classification as a Sustainable Instalco Project serves as a stamp of quality for the project, customer and the work we perform. We have thus started the first quarter of 2022 with a variety of interesting Sustainable Instalco Projects.

The full interim report:
https://mb.cision.com/Main/15570/3561040/1575172.pdf