Interim Report – 6 months 1 April – 30 September 2018

Second quarter (1 July-30 September 2018)

• Revenue increased by 6 percent to MSEK 1,369 (1,293).
• Operating profit amounted to MSEK 68 (62). Adjusted operating profit (excluding items affecting comparability) increased by 8 percent to MSEK 68 (63), corresponding to an adjusted operating margin of 5.0 percent (4.9).
• The return on working capital (P/WC) for the most recent 12-month period was 24 percent (21) and the return on equity was 18 percent (4).
• Profit after financial items totalled MSEK 66 (61).
• Net profit amounted to MSEK 52 (47).
• Earnings per share for the most recent 12-month period totalled SEK 7.45, compared with SEK 6.45 for the 2017/18 financial year.
• The operational net loan liability amounted to MSEK 419 (348) and the equity/assets ratio at the end of the reporting period was 42 percent (40).
• Momentum Group’s 2018 Annual General Meeting was held on 22 August 2018. The dividend was set at SEK 2.60 per share.

Reporting period (1 April-30 September 2018)

• Revenue increased by 8 percent to MSEK 2,912 (2,693).
• Operating profit amounted to MSEK 138 (104). Adjusted operating profit (excluding items affecting comparability) increased by 20 percent to MSEK 138 (115), corresponding to an adjusted operating margin of 4.7 percent (4.3).
• Profit after financial items rose by 34 percent to MSEK 135 (101).
• Net profit increased by 36 percent to MSEK 106 (78).

PRESIDENT’S STATEMENT

Continued positive performance
We continued along our established path, with a focus on earnings growth along with profitability-enhancing measures during the second quarter of the 2018/19 financial year. For Momentum Group as a whole, operating profit has increased by 20 percent to date during the year (compared with adjusted operating profit for the corresponding period in the preceding year) and the operating margin was 4.7 percent. We are also gradually strengthening our cash flow through our activities to optimise the Group’s funds tied up in working capital. As in prior periods, our earnings growth and improved operating margin were a result of the efficiency-enhancement efforts we have implemented, and continue to implement, in several Group companies.

As a whole, our main markets continued to display an overall stable trend during the period, with activity in Norway, for example, continuing to increase, particularly in the oil and gas sector. Demand increased gradually during the second quarter, following a somewhat weaker start during the summer months in essentially all Group companies. Momentum Industrial’s acquisition of Brammer’s Swedish MRO business* prior to the summer strengthened our market position in Sweden and contributed to increased revenue and earnings. TOOLS Norway continues to deliver a positive sales and earnings trend, with work being carried out to establish a third regional logistics hub in order to optimise logistics. This hub is located in the Oslo area and will serve half of our local units in Norway. Moreover, the companies we acquired, particularly in the area of workwear and profile clothing, have contributed healthy profitability levels.

Intensive autumn
We are now in one of our most intensive sales periods of the year. Going forward, it will be important to continue working closely with our customers in order to provide them with competitive offerings while at the same time continuously adapting our operations to the prevailing market conditions. The improvement activities carried out in the TOOLS businesses in Sweden, Norway and Finland in order to increase profitability are thus continuing unabated, as is the ongoing restructuring work in Gigant. We are also continuously assessing interesting acquisition candidates with the potential to strengthen our position in our main markets in Sweden, Norway and Finland.

Stockholm, October 2018

Ulf Lilius
President & CEO

* MRO refers to products and services for maintenance, repair and operations.

Presentation of the Interim Report – 6 months 2018/19
Investors, analysts and media are welcome to participate in a webcast conference call in which CEO & President Ulf Lilius and CFO Niklas Enmark will present the Financial Report and answer any subsequent questions. The presentation will be held in English.

Time: Wednesday, 24 October 2018 at 11:00 a.m. CET.
Web link: http://www.financialhearings.com/event/10941.
Telephone no: SE +46 8 505 564 53/ UK +44 20 3008 9806 / US +1 85 5753 2235

Contact information
Ulf Lilius, President & CEO, Tel: +46 10 454 54 70
Mats Karlqvist, Head of Investor Relations, Tel: +46 70 660 31 32

The information in this report is such that Momentum Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CET on 24 October 2018.
   This document is in all respects a translation of the Swedish original Interim Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.

Momentum Group is one of the leading resellers of industrial consumables and components, service and maintenance to professional end users in the industrial and construction sectors in the Nordic region. The Group has annual revenue of approximately SEK 5.8 billion and approximately 1,700 employees. Momentum Group AB (publ) has been listed on Nasdaq Stockholm since June 2017. Read more at www.momentum.group.