Sdiptech AB (publ) publishes interim report for the first quarter (January-March) 2024 - Seite 2

We continue to work hard to ensure good cash generation. During the first three months of the year, we had a solid cash flow from operating activities of SEK 167 million (98), corresponding to a cash conversion of 72 percent (45). Cash flow was to some extent affected by a continued increase in sales, which generates some inventory build-up and an increased share of accounts receivables.

Our financial net debt, including lease liabilities, in relation to adjusted EBITDA was 2.17 (2.47). This means that we are reducing our debt leverage ratio, even though it increased in the short term compared with year-end due to an acquisition that generates approximately SEK 60 million in EBITA on an annual basis. The total net debt leverage ratio, including provisions for future earn-outs, amounted to 3.32 (3.89).

We increased our profit after tax to SEK 107m (96). At the same time, our earnings per share increased by 12 percent to SEK 2.71 compared with SEK 2.43 last year. It is gratifying to see that we can show a solid increase in earnings all the way down to the bottom line, despite continued high interest rates and an increased tax rate in the UK.

Resource Efficiency's sales growth of 16 percent in the quarter was mainly driven by good sales from several comparable units. At the same time, the business area's adjusted EBITA increased by 25 percent, driven by scalable business models and particularly good growth in units with higher-than-average margins. This generated an adjusted EBITA margin of 24.5 percent (22.7).

Special Infrastructure Solutions' sales increase of 29 percent was primarily due to a majority of the larger comparable units having strong sales growth, with a particularly good growth in the business area's units with lower-than-average margins. In addition, the Group continued to incur some costs for restructuring its two units with exposure to new construction, which had an effect on the business area's profit margin. Overall, this resulted in an increase in adjusted EBITA of 19 percent, and an adjusted EBITA margin of 17.9 percent (19.4).

ACQUISITIONS
In January, British JR Industries, a leading niche manufacturer in the UK of roller shutter doors for commercial vehicles, was acquired. The company operates in a market with stable underlying growth, driven by electrification of delivery vehicles, e-commerce and fleet adaptation aimed at improved operational efficiency. JR Industries have good opportunities for cooperation with the Group's unit GAH Refrigeration, which manufactures refrigeration systems for transport vehicles. JR Industries is part of the Special Infrastructure Solutions business area.