Organic growth and strong cash flow in the last quarter of the year
The Group's operations delivered organic revenue growth of 1 per cent during the quarter. The Group's revenue increased by a total of 12% year on year, where acquired businesses contributed in particular to this growth. EBITA was unchanged during the quarter compared to last year. In 2024, 8 companies were acquired, of which 1 in the fourth quarter, adding combined annual revenue of approximately SEK 260 million.
Fourth quarter 2024
- Revenue increased by 12% to SEK 745 million (667), of which 1% for comparable units.
- Operating profit was charged with costs affecting comparability of SEK -5 million (-) and amounted to SEK 53 million (61), corresponding to an operating margin of 7.1% (9.1).
- EBITA amounted to SEK 70 million (70), corresponding to an EBITA margin of 9.4% (10.5).
- Profit for the quarter amounted to SEK 34 million (44), corresponding to earnings per share of SEK 0.65 (0.85).
- Acquisition of Indoma that specialises in products for installation and maintenance for industry.
Full-year 2024
- Revenue increased by 25% to SEK 2,873 million (2,298), of which 3% for comparable units.
- Operating profit rose by 15% to SEK 273 million (237), corresponding to an operating margin of 9.5% (10.3).
- EBITA increased by 22% to SEK 322 million (265), corresponding to an EBITA margin of 11.2% (11.5).
- Profit for the period amounted to SEK 186 million (173), corresponding to earnings per share of SEK 3.60 (3.45).
- The return on working capital (EBITA/WC) was 59% (59).
- The equity/assets ratio was 36% (33) at the end of the period.
- The Board proposes a dividend of SEK 1.30 per share (1.10).
- As of 31 December 2024, the number of repurchased shares of series B amounted to 1,053,766.
- As of 1 January 2024, the business is divided into the two business areas Industry and Infrastructure.
- During the first quarter, PW Kullagerteknik was acquired. During the second quarter, KmK Instrument, Hydjan, WH-Service, Sikama, ZRS Testing Systems and Minrox were acquired.
Events after the end of the period
- Acquisition of HVT, a specialist in valve service primarily to industrial customers in northern Sweden, with expected closing in Q1 2025.
- Acquisition of Heinolan Hydrauliikkapalvelu Oy, a specialist in hydraulic services and components for industry, with closing in Q1 2025.
CEO comment: A successful year and well-positioned for continued growth
Momentum Group concluded 2024 with continued organic growth, despite challenging market conditions. For the full-year, we exceeded all our financial targets, completed eight acquisitions, and generated strong cash flow, enabling continued expansion and value creation.
Business climate in Q4
The business climate in our main Nordic markets was generally stable during the fourth quarter. However, behind this general description lies a relatively fragmented picture. After a stable development earlier in the year, we saw lower demand in the automotive sector in the quarter, which particularly affected our Power Transmission operations and parts of Technical Solutions. At the same time, other customer segments experienced more favourable demand, especially for our Flow Technology operations.
A successful year - exceeding all our targets
Looking back at 2024, there is much to be pleased about. Despite a challenging macroeconomic environment, we delivered organic revenue growth in all four quarters. We completed eight acquisitions and once again exceeded all our financial targets. This, in my view, demonstrates the strength of our business, where our independent companies can adapt and accelerate based on their specific conditions. This flexibility allows us to develop our business at the group level with profitability and earnings growth.
Another important aspect of our business culture is the drive for continuous improvement. Throughout the year, we have seen examples of how our companies find ways to collaborate. In the fourth quarter, I would particularly like to highlight the collaboration between Momentum Industrial and Mekano, where Mekano took over two of Momentum Industrial's workshops in Gothenburg and Trollhättan. At the same time, Momentum Industrial started the relocation of its central warehouse, which is progressing according to plan without any impact on deliveries.
During the year, we increased EBITA by 22 per cent, exceeding our financial target of at least 15 per cent annual growth. Our profitability, measured as EBITA in relation to utilised working capital (WC), reached 59 per cent, well above our target of at least 45 per cent. This enabled us to generate strong operating cash flow of SEK 323 million. The cash flow not only financed our acquisitions, investments, and a dividend to shareholders of SEK 54 million - we also successfully reduced our operational net loan liability by SEK 74 million.
For 2024, a dividend of 1.30 SEK per share (1.10) is proposed, corresponding to a payout ratio of 36 per cent - also exceeding our target of at least 30 per cent.
Continued focus on growth and value creation
After a 2024 marked by challenging market conditions, we look forward to 2025 with great confidence. We will continue to invest in our existing businesses and execute value-creating acquisitions to strengthen our market position and create long-term value for our shareholders.
Since our listing in March 2022, Momentum Group has almost doubled its revenue and welcomed 23 companies into our group. With a solid balance sheet, strong cash flow, available cash and cash equivalents of approxima-tely SEK 860 million and good acquisition opportunities, we will continue our successful growth journey.
Finally, I would like to extend my gratitude to all employees, customers, and partners for the past year. I look forward to another exciting year, where we continue to work together to contribute to a more profitable and sustainable industry in the Nordics.
Ulf Lilius, President & CEO
A quarterly presentation is available on the company's website, momentum.group, where Ulf Lilius, CEO and Niklas Enmark, CFO present the report and provide an update on operations.
For further information, please contact:
Ulf Lilius, President & CEO
Tel: +46 8 92 90 00
Niklas Enmark, CFO
Tel: +46 703 93 66 73
niklas.enmark@momentum.group
Ann-Charlotte Svensson, IR
Tel: +46 720 85 72 62
ann-charlotte.svensson@momentum.group
About Momentum Group
Momentum Group develops and acquires successful, sustainable companies in the Nordic region through active ownership with decentralised profit and business responsibility. The Group consists of a number of companies that together constitute one of the Nordic region's leading suppliers of industrial components, industrial services and other related services for customers in industry and industrial infrastructure. What the businesses have in common is that they help make customers' operations easier, safer and more profitable by offering sustainable, long-life products and services with a strong local presence close to customers. The Group generates revenue of approximately SEK 2.9 billion and some 800 employees. Momentum Group's B share is listed on Nasdaq Stockholm. For more information, please visit momentum.group.
This information is information 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 2025-02-14 07:55 CET.
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