Parent Company & consolidated items

Parent Company & consolidated items include the Parent Company, Group eliminations and also parts of the Group’s operations undergoing restructuring (BE Group Czech Republic, BE Group Slovakia, BE Group Produktion Eskilstuna and RTS Estonia) are reported under Parent Company & consolidated items. BE Group Produktion Eskilstuna has been reported under Parent Company and Group items since the fourth quarter of 2017. Comparative numbers have been restated.

The restructuring of these operations, approved by the Board of BE Group partly in the first quarter of 2016 and partly in the second quarter of 2017, are completed.

In total, the operations under reconstruction had sales of SEK 15 M (61) in the first quarter with an underlying operating result of SEK -1 M (-10).

First-quarter sales in the Parent Company, BE Group AB (publ), amounted to SEK 26 M (6) and derived from intra-Group services. The operating result amounted to SEK 13 M (-6).

Net financial items amounted to SEK -18 M (-2), which can largely be attributed to negative currency effects connected to the Company´s loan in EUR. On a Group level, this effect is reallocated through hedging of net investments in foreign subsidiaries. The result before tax was SEK -5 M (-8) and the result after tax was SEK -4 M (-6). Investments in the Parent Company amounted to SEK 0 M (0). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 5 M (18).

Net financial items and tax

Consolidated net financial items in the first quarter amounted to SEK -4 M (-5), of which net interest accounted for SEK -3 M (-4). On an annual basis, consolidated net interest corresponded to 2.70 percent (3.25) of average interest-bearing net debt.

Taxes for the first quarter amounted to SEK -12 M (-7). Profit after tax improved to SEK 39 M (34) for the first quarter.

Cash flow

Consolidated working capital amounted to SEK 554 M (502) at the end of the period and the average working capital tied-up for the first quarter was 10.7 percent (11.1). Cash flow from operating activities was SEK -1 M (37). The negative effect on the cash flow from the increase in working capital has largely been compensated by the operating result. The higher working capital is mainly an effect of higher inventories.

Cash flow from investing activities in the first quarter was SEK -6 M (-4). Cash flow after investments was thereby SEK -7 M (33).

Financial position and liquidity

At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 139 M (134) and the consolidated interest-bearing net debt was SEK 504 M (528). In the first quarter, the company repaid external interest-bearing debt in an amount of SEK 15 M (15).

At the end of the period, equity amounted to SEK 852 M (804) and the net debt/equity ratio amounted to 59 percent (66).

Extensions of the company’s existing credit agreements with Skandinaviska Enskilda Banken and Svenska Handelsbanken were signed during the period. The total facility amounts to SEK 800 M, including guarantee facilities, and expires March 2020.

Organization, structure and employees

The number of employees decreased to 675 compared with 705 at the same time in the previous year. The decrease is mainly due to the restructuring done last year. The average number of employees during the first quarter amounted to 670 (708).

The Group´s cash flow from operating activities, SEK M