Recovery for Accessibility in the third quarter with organic revenue growth of 6.2%, while the two smaller business units remained negatively affected by Covid-19. A more competitive cost base, mainly driven by the Lift Up Program, led to improved profit year-on-year despite the continuing pandemic.
Third quarter 2020
· Revenue amounted to MEUR 53.2 (59.7).
· Organic growth was -1.2%.
· The gross margin was 42.2% (40.3).
· Adjusted EBITA amounted to MEUR 6.1 (3.9), corresponding to a margin of 11.5% (6.5).
· EBIT was MEUR 4.4 (2.3).
· Net profit (including discontinued operations) amounted to MEUR 2.2 (3.9).
· Earnings per share (including discontinued operations) before and after dilution amounted to EUR 0.04 (0.07).
· Adjusted operating cash flow of MEUR 13.0 (7.3) and leverage improved to 1.3x.
Significant events after the end of the period
· Henrik Teiwik was appointed new CEO and President of
· The Board proposed that dividends for 2019 be reinstated at
Covid-19 effects and financial impact
· Covid-19 continues to impact the world negatively. After a weak second quarter, Accessibility recovered when previously locked-down markets opened up again. The two smaller business units, Patient Handling and Vehicle Accessibility, remained negatively affected in the third quarter by measures aimed at mitigating the spread of Covid-19.
· In the quarter,
·
CEO's Comments
Dear Shareholders,
Notwithstanding that the world economy remains impacted by Covid-19, I am glad to see that the global Accessibility market remains robust, and that
Accessibility outperforms previous year's results despite Covid-19
During the third quarter, we could see a gradual market recovery and return to more normalized demand in several markets, and our stairlift segment managed to outperform last year's results despite the ongoing pandemic. In line with the trading update published on 13 October, revenues in
Review of Patient Handling shows clear results
Revenues for the Patient Handling segment declined during the quarter as the business continues to be affected by local restrictions due to Covid-19, leading to limited access to health care facilities and postponed installations of ceiling lifts. The three-step review initiated as part of the Lift Up Program has, however, showed significant results, and thanks to an effective implementation of streamlining measures in
Outlook
The ongoing pandemic continues to bring uncertainty to the global market, and thus short-term demand is difficult to predict. However, revenues during the month of October were in line with the third quarter. We remain confident in now having established a solid platform which, supported by the strong underlying growth trends that characterizes the Accessibility market and our strong financial position, will ensure continued positive development. Subject to the evolvement of Covid-19, we expect further improvements across all segments in the upcoming quarters, and that
Finally, I am pleased to hand over to Henrik Teiwik as new President and CEO of
President and CEO
Auditors' review report
To the Board of Directors of
Introduction
We have reviewed the condensed interim report for
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in
The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Authorised Public Accountant
Telephone conference
A telephone conference, hosted by
A presentation will be available at www.handicaregroup.com/investors.
Dates for financial reports and Annual General Meeting:
Year-end report 2020
Interim report January -
The Annual General Meeting for 2020 will be held in
For more information, contact:
Pernilla Lindén, CFO & IR, Tel +46 708 775 832
This information is information that
Forward-looking statements
To the extent this report contains forward-looking statements, these statements are based on the current expectations of
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