Q2 revenue was slightly above our expectations and EBITA was on par with expectations. We reconfirm our outlook for 2019 EBITA of DKK 365m.
CEO Jens Andersen says:
"We continue to see growth in all our markets and improve earnings. In H1, we delivered organic growth of almost 6% and increased EBITA by 12% compared to H1 2018. At the same time, we have strengthened our position within heating and plumbing, and climate and energy in the Swedish market by a successful and swift integration of our newly acquired business activities. We have a continued keen focus on optimising our organisation to match changing business requirements.”
| Financial highlights (DKK million)* | Q2 2019 | Q2 2018 | H1 2019 | H1 2018 |
| Revenue | 2,868 | 2,733 | 5,825 | 5,550 |
| EBITA | 60 | 56 | 140 | 125 |
| Earnings before tax | 56 | 10 | 49 | 113 |
| Cash flow from operating activities | -17 | -41 | -149 | -80 |
| Financial ratios (%) | ||||
| Organic growth adj. for number of working days | 5.6 | 1.6 | 5.6 | 3.2 |
| EBITA margin | 2.1 | 2.0 | 2.4 | 2.3 |
| Net working capital, period-end/revenue (LTM) | 12.9 | 10.7 | 12.9 | 10.7 |
| Gearing (NIBD/EBITDA), no. of times | 2.6 | 1.8 | 2.6 | 1.8 |
| * Due to the divestments of our Austrian and Belgian business activities, GFI GmbH and Claessen ELGB NV, in 2018, and the divestment of our Norwegian training business, STI, in Q1 2019, 2018 and 2019 figures in this announcement relate to our continuing operations. | ||||
Q2 2019 Revenue
Q2 2019 EBITA
BIMobject valuation
• Based on the share price on 30 June, the BIMobject value amounted to DKK 203m. Therefore, Solar reversed DKK 29m of the write-down recognised in Q1 2019. The initial purchase price amounted to DKK 171m.
2019 outlook
| Guidance 2019 DKK million | Core business | Related business | Solar Group |
| Revenue | At least 10,950 | 650 | At least 11,600 |
| EBITA | 370 | -5 | 365 |
Audio webcast and teleconference today
The presentation of Quarterly Report Q2 2019 will be made in English on 8 August 2019 at 11:00 CET. The presentation will be transmitted as an audio webcast and will be available at www.solar.eu. Participation will be possible via a teleconference.
Teleconference call-in numbers:
DK: tel. +45 354 455 83
UK: tel. +44 203 194 0544
US: tel. +1 855 269 2604
Yours faithfully,
Solar A/S
Jens Andersen
Contacts
CEO Jens Andersen - tel. +45 79 30 02 01
CFO Michael H. Jeppesen - tel. +45 79 30 02 62
Director, Stakeholder Relations Charlotte Risskov Kræfting - tel. +45 40 34 29 08
Enclosure: Quarterly Report Q2 2019, pages 1-32.
Facts about Solar
Solar Group is a leading sourcing and services company. Our core business centres on product sourcing, value-adding services and optimisation of our customers’ businesses.
Being a sourcing and services company, we focus on each individual customer. We always strive to understand our customers’ unique and genuine needs in order to provide relevant, personal and value-adding services, turning our customers into winners.
Solar Group is headquartered in Denmark, generated revenue of more than DKK 11bn in 2018 and has approx. 3,000 employees. Solar is listed on Nasdaq Copenhagen and operates under the short designation SOLAR B. For more information, please visit www.solar.eu.
Disclaimer
This announcement was published in Danish and English today via Nasdaq Copenhagen. In the event of any inconsistency between the two versions, the Danish version shall prevail.
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