Profitability, financial position and cash flow
The return on equity at the end of the period was 31 percent (31) and return on capital employed was 23 percent (21). Return on working capital P/WC (EBITA in relation to working capital) amounted to 67 percent (66).

At the end of the period the equity ratio amounted to 36 percent (32). Equity per share, excluding non-controlling interest, totalled SEK 20.35 (15.95). The Group's net debt at the end of the period amounted to SEK 4,714 million (5,011), excluding pension liabilities of SEK 199 million (224). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.8 (1.1).

Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 1,569 million (1,277) at 30 September 2023.

Cash flow from operating activities amounted to SEK 1,150 million (524) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 717 million (982). Investments in non-current assets totalled SEK 74 million (65) and disposal of non-current assets amounted to SEK 5 million (3). Repurchase of treasury shares amounted to SEK 0 million (31) and repurchase of call options amounted to SEK 32 million (58). Exercised and issued call options totalled SEK 1 million (11). During the second quarter, dividend of SEK 2.50 (1.80) per share was paid, totalling SEK 674 million (485). 

Employees
At the end of the period, the number of employees was 4,155 compared to 3,911 at the beginning of the financial year. During the period, completed acquisitions resulted in an increase of the number of employees by 149. The average number of employees in the latest twelve month period was 3,966.

Ownership structure
At the end of the period the share capital amounted to SEK 51.1 million.

In accordance with a resolution of the August 2023 AGM, about 100 members of management were offered the opportunity to acquire 1,000,000 call options on repurchased Class B shares. In total, 674,500 options were subscribed for. Addtech has four outstanding call option programmes for a total of 2,676,060 shares. Call options issued on repurchased shares entail a dilution effect of about 0.1 percent during the latest twelve month period. Addtech's own shareholdings fully meet the needs of the outstanding call option programmes.

Acquisitions and disposals

During the period, 1 April to 30 June 2023 the following acquisitions were completed; Electrum Automation AB, Sweden, was acquired to become part of the Electrification business area. S. Tygesen Energi A/S, Denmark, was acquired to become part of the Energy business area. Feritech Global Ltd., Great Britain, and Darby Manufacturing Ltd., Canada, were acquired to become part of the Industrial Solutions business area. INDAG Maschinenbau GmbH, Germany, and Clyde Holding Ltd., Great Britain, were acquired to become part of the Process Technology business area. 

During the second quarter, no company acquisitions took place.

The purchase price allocation calculations for the acquisitions completed during the period 1 April - 30 September 2022 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2022/2023 financial year are distributed among the Group’s business areas as follows:

If all acquisitions which have taken effect during the period had been completed on 1 April 2023, their impact would have been an estimated SEK 255 million on Group net sales, about SEK 35 million on operating profit and about SEK 25 million on profit after tax for the period.

Addtech normally employs an acquisition structure comprising basic purchase consideration and contingent consideration. The outcome of contingent purchase considerations is determined by the future earnings reached by the companies and is subject to a fixed maximum level. Of considerations not yet paid for acquisitions during the financial year, the discounted value amounts to SEK 160 million. The contingent purchase considerations fall due for payment within four years and the outcome is subject to a maximum of SEK 202 million. 

Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 17 million (6) and are reported under Selling expenses.

Revaluation of contingent consideration had a marginally negative net effect of SEK 0 million (+4) during the period. The impact on profits is reported under Other operating income and Other operating expenses, respectively.

According to the preliminary acquisitions analyses, the assets and liabilities included in the acquisitions were as follows, during the period:

Parent Company
Parent Company net sales during the period amounted to SEK 47 million (41) and profit after financial items was SEK -1 million (-50). Net investments in non-current assets were SEK 0 million (0). The Parent Company's financial net debt was SEK 155 million (591) at the end of the period.