|[May 27, 2014]
Sectra's Year-End Report 2013/2014: Strong End to the Fiscal Year - Sectra Achieves Operating Margin Target
LINKÖPING, Sweden --(Business Wire)--
2013/2014 fiscal year
· The IT and medical technology company Sectra (http://www.sectra.com/)
(STO: SECT B) increased operating profit 49.1% to SEK 128.1 million
(85.9), corresponding to an operating margin of 15.0% (10.5).
· Non-recurring items had an impact of SEK 16.2 million on other income
and SEK 19.0 million on depreciation and amortization. Excluding
non-recurring items, the operating margin was 15.3%.
· Net sales rose 4.5% to SEK 853.8 million (817.0).
· Cash flow after changes in working capital amounted to SEK 123.7
· The Sectra Group's order bookings increased 1.1% to SEK 925.7 million
· The Group's development remains stable, with a solid financial
position and strong cash flow. Accordingly, the Board has decided to
propose to the 2014 Annual General Meeting that SEK 4.50 per share, the
same amount as in the preceding year, be transferred to the shareholders
through a share redemption program.
· Operating profit rose 43.9% to SEK 54.1 million (37.6), corresponding
to an operating margin of 20.0% (15.2).
· Excluding non-recurring items, the operating margin was 21.0%.
· Net sales increased 9.1% to SEK 270.6 million (248.1).
· Order bookings amounted to SEK 264.6 million (350.0), down 24.4%
compared with the year-earlier period.
Torbjörn Kronander, CEO and President Sectra AB, comments:
"We experienced a strong trend in earnings and I am pleased to announce
that Sectra's recent product and organizational development has enabled
us to achieve our target operating margin of 15%. Through continued
business development in our niche areas, we will now prioritize growth
while at the same time maintaining our operating margin."
"Sectra's order bookings and cash flow for the fourth quarter declined
compared with the year-earlier period. Accordingly, I feel it is
important to emphasize that it is not unusual for our result to vary
significantly between quarters since we sometimes receive particularly
large orders and the proportion of internally financed service
agreements in the Group has increased."
"Sales growth was generated by our largest business area, Imaging IT
Solutions, as well as our business lines and projects in Business
Innovation. Our operations in the UK and the Netherlands reported
particularly strong growth. These markets now account for more than 10%
of total Group sales. Partner sales also increased in a number of areas,
including the Middle East."
"The Secure Communications business area experienced a difficult year,
but recovered to a certain extent during the fourth quarter having
turned an earlier loss into a break-even result. However, the situation
remains uncertain, mainly due to slow approval processes, which could
lead to further delays in product deliveries."
"Sectra has a high proportion of long-term customer contracts, which
provides us with stability and enables long-term investments in products
and services, which in turn creates added value for customers. Together
with our customers and employees, we have what it takes to drive the
development of efficient solutions that can improve people's quality of
life, reduce society's healthcare costs and contribute to a safer
Please find the full version of the year-end report enclosed (PDF): http://mb.cision.com/Main/1263/9591851/249500.pdf
Presentation of the year-end report May 27
with Dr. Torbjörn Kronander, President and CEO of Sectra AB and Simo
Pykälistö, CFO and Executive VP of Sectra AB
Time: 09:00 CET May 27, 2014
Place: Operaterrassen in Stockholm, Sweden
To attend the presentation, register via www.financialhearings.com
The presentation can be followed live via http://media.fronto.com/cloud/sectra/140527/
and a recording will be available via http://www.sectra.se/irwebcast
About the Sectra Group
Sectra was founded in 1978 and has its roots in Linköping University in
Sweden. The company's business operation includes cutting-edge products
and services within the niche segments of medical IT and secure
communication. Sectra has offices in 12 countries and operates through
partners worldwide. Sales in the 2012/2013 fiscal year totaled SEK 853
million. The Sectra share is quoted on the NASDAQ OMX Stockholm
exchange. For more information, visit www.sectra.com.
This information was brought to you by Cision http://news.cision.com
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