Stable development for continued longevity

Comments from CEO Robin Boheman on the Interim report January – March 2024: In light of the current market situation, I am proud of our stability and the results we report for sales, profitability and an EBITA margin that is on par with the first quarter last year. It is gratifying to see how successfully our subsidiaries have adapted and they continue reporting a high percentage of service assignments in their revenue streams. As previously communicated, our focus remains on choosing the right customers and assignments. Right now, we prioritise having a somewhat smaller order backlog that consists of high-quality contracting projects. Short term, this is also reflected in our growth figures.

The demand from our clients continues to increase however and investments are piling up. The EU's newly adopted Energy Performance of Buildings Directive (EPBD) offers another indication of what we can expect with demand over the longer term. Although we still do not know exactly how the Directive will be implemented at the national level, it is nevertheless a clear indication that the need for qualified installers will keep growing.

Several avenues for growth
During the quarter, we continued to grow via niched acquisitions. Lund Elektro in Norway is a full-range supplier of electrical installations, and it has an exciting customer offering with particular focus on digital solutions, charging stations and solar cells. Now that they have joined the Group, we have a fully multidisciplinary offering in Kristiansand.

Besides acquisitions, we are also growing via our proven start-up model. We recently announced the launch of our new Norwegian company, ISTech AS, which is focussed on building automation, energy efficiency and smart building technology. Building automation is the hub for optimisation of the various disciplines in a construction process and it plays an important role in ensuring that there is a coordinated selection of solutions and products that are compatible with each other.

The technical consulting part of our business, Intec, expanded into Finland during the quarter. Just like in Sweden and Norway, the plan there is to grow organically via start-ups and through acquisitions. Our efforts to expand this part of the business over the last few years have gone well and Intec now has more than 400 consultants and is represented in three countries. Intec’s performance in the first quarter was very good, exceeding the Group’s margin.

Profitability and employee engagement a priority
Our employees are unquestionably our most important asset and the key to continued, sustainable and profitable growth. Instalco strives to be an attractive employer that offers interesting assignments, competent leaders, short decision paths and plenty of opportunities to make an impact and develop one’s talent. The workplace atmosphere should stimulate creativity and new ways of thinking that are aligned with Instalco’s values and Code of Conduct.

The results from our employee satisfaction surveys within the Group have always been high. In 2023, we transitioned to the Employee Net Promoter Score (eNPS) measurement for this and the resulting score we achieved was 30, which is reported in the newly published Annual Report. We are incredibly proud of that and how it reflects the unique Instalco spirit that prevails throughout the Group.

Ever since Instalco was established ten years ago, the focus has been on high profitability. Right now, we are facing a weaker market and have implemented selective cost-saving programs in the subsidiaries where that is necessary. Within our decentralised model, IFOKUS is our internal program for continuously helping our companies improve their profitability. It is aimed at streamlining processes in production, procurement, sales, cross-selling and cash management. Another important component of the programme is sharing and spreading best practice within the Group. We also implemented GoGr8 in 2023, which is a tailored programme to offer additional support to companies performing below the Group’s profitability targets. It offers targeted support from the Group's central resources so that companies can develop and improve their local operations.

GoGr8 also helps develop the tools used in IFOKUS, with emphasis on profitability and efficiency throughout the entire organisation.

Sharing knowledge and deriving maximum benefits from the Instalco spirit and our decentralized model are the keys to our success. We are well-positioned over the near future to protect our margins and act on opportunities as soon as the market situation turns more positive.

The full quarterly report

150+ local businesses  in Sweden, Norway and Finland