Year-end report 2021
Comments from CEO Robin Boheman:
Sales for the fourth quarter were SEK 2,648 (2,078) million, which corresponds to a growth rate of 27.5 percent. EBITA for the quarter was SEK 227 (190) million, which corresponds to an adjusted EBITA margin of 8.6 (9.2) percent. Cash flow from operating activities was strong and amounted to SEK 383 (277) million.
We can sum up 2021 as a strong year, with total net sales of SEK 8,890 million and an EBITA margin of 8.4 percent, which is confirmation of our strength and resilience given the challenging circumstances we faced last year.
Absenteeism was once again higher than normal during the fourth quarter and we have been negatively impacted by rising prices for raw materials. One prioritised focus area during the quarter has been cash management. Efforts to strengthen our cash flow, have yielded desirable positive effects.
Even though, at the time of writing this, we are still being impacted quite substantially by the pandemic, I look ahead to 2022 with optimism. Demand for the services we offer is high, and we have a good acquisition pipeline.
Expansion into new geographic areas and activities
During the fourth quarter, our number of subsidiaries grew to more than 100. We will continue our journey of acquisitions, with an eye on the best companies in our industry. Instalco was, after all, created to be the best harbour for installation companies.
In Sweden, we grew with the acquisition of the Blomquist Group in Bollnäs. It works with heating, cooling and ventilation systems. We also acquired prestigious Lindingö Elektriska in Stockholm, which is specialised in service. We expanded geographically with the acquisition of our first companies in Norrbotten, MRM and EPS, which have niched themselves in industry and infrastructure in the ever-growing market of northern Sweden.
Another achievement was getting established in the industrial area in Finland via the acquisition of Nordpipe Composite Engineering (NCE), which is specialised in the production and installation of composite solutions to industry. NCE has collaborated with several Instalco companies in the past.
Five Instalco companies collaborate on assignment
One of the key elements of the Instalco model is creating collaboration and synergies between our subsidiaries. We also coordinate tendering efforts and resource allocation. It leads to cross-selling and, in many cases, we have more than one Instalco company working on the same assignment.
A clear example of that during the fourth quarter was when five Instalco companies collaborated on a joint assignment for Peab. It involved the design and installation of the electrical, heating & plumbing, ventilation and sprinkler systems for the property called Entré in Malmö. It will be run as a partnering project, with the work being done by El-pågarna (electrical), Bi-Vent (ventilation), Rörläggaren (heating & plumbing), Sprinklerbolaget (sprinkler) and Intec (design).
Positive full-year results, despite the pandemic
I am very proud to be able to sum up 2021 in a positive way, despite the prevailing circumstances of the ongoing pandemic and rising prices for raw materials. I’m impressed at how skilled our subsidiaries have been at coping with the situation and continuing to deliver such impressive results. It is confirmation that the Instalco model works.
We are all optimistic about the year ahead, as we continue pursuing our strategy of strengthening our technical consulting and industrial business areas, while prioritising the expansion of our base of companies in both Norway and Finland. Instalco’s journey, which started in 2014, has been fascinating in many ways. And one of its many successes is to now, as of 2022, be on the Large Cap list on Nasdaq Stockholm.
The full interim report: