Interim report January – September 2022

Comments from CEO Robin Boheman:
Net sales increased by 40.2 percent during the quarter to SEK 2,788 million, with organic growth of 7.8 percent. Our growth is driven by the dedicated entrepreneurship that goes on in our subsidiaries and our high rate of acquisition. Profitability increased in absolute numbers and EBITA for the quarter amounted to SEK 201 million, with an EBITA margin of 7.2 percent. We can see that the demand for our installation services remains high, our order backlog remains strong, and we are continually taking new orders. Outstanding orders increased by 25.6 percent to SEK 8,158 million.

We are coping with a market situation of rising inflation, high material prices and higher interest rates. We are affected by the high price of materials, particularly in fixed price projects where prices were set before price levels started to rise.

Over a business cycle, we are confident that we are delivering in line with our financial targets and the Instalco model offers us the flexibility we need to cope with changing market conditions. We are adaptable when it comes to different types of end customers and can adjust our staffing resources by using hired personnel when needed.

Multidisciplinary through acquisitions
During the quarter, continued to grow our base of high-quality companies through new acquisitions. In Sweden, we filled in a few more of the white spots on the map and are now represented in Örnsköldsvik, via the acquisition of Inlands Luft, Keyvent and Melins Plåt, and in Western Värmland via the acquisition of Grums Rör.

In Norway, we have now finally become multidisciplinary through the acquisition of Grevstad & Tvedt, which gives us new business opportunities. The new URD companies strengthens our presence in central Norway. They are ideally situated in Oppdal, which will facilitate collaboration with our companies in Lillehammer and Trondheim. In total, the acquisitions during the quarter contribute around SEK 283 million in sales.
Instalco never acquires companies solely for the sake of acquisition. Rather, we see ourselves as a safe harbour for quality companies and we select them with great care. We want all of the new companies that join the Group to thrive and develop together with our existing companies. The companies we acquire are led by entrepreneurs who have a genuine desire to be a part of Instalco. In other words, they’re not just interested in selling their company.

New projects in industry
As we continue growing the industrial installation part of the business, it is opening up all sorts of new synergies. For example, MRM Mining and EPS Sweden won a new major assignment from LKAB during the quarter to participate in the construction of two new buildings in Gällivare.

Another industrial project is ventilation work at the new Kalmarsundsverket treatment plant, which Avent in Kalmar has been contracted for. It is a partnering project with Serneke and Kalmar Vatten.

Energy efficiency to reduce consumption
Soaring electricity prices has been a hot topic during the quarter. It thus feels very meaningful to be working at a company that is able to do something about it and what we offer can make a difference already today. Each day, Instalco suggests and installs energy-saving solutions at all sorts of properties in the Nordic region. Installing modern systems that are energy-efficient is how we contribute to a better society. Energy efficiency is the key to lower electricity bills.

In summary, it is clear to us that the demand for energy-efficient and resource-saving installations remains strong. But the market outlook over the short term is difficult to assess given the prevailing macroeconomic situation. Long term however, we are very optimistic about the market, where Instalco is positioned right at the centre of society’s transition to a green economy. Companies offering energy installations make that transition possible.


The full interim report

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