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 13 M (47) in the second quarter with an underlying operating result of SEK -1 M (-9). For the first six months, net sales amounted to SEK 29 M (108) and the underlying operating result to SEK -2 M (-19).

Second quarter sales in the Parent Company, BE Group AB (publ), which consist of intra-Group services, amounted to SEK 26 M (18). Operating result amounted to SEK 13 M (2).

Net financial items in the first six months amounted to SEK 20 M (27). Profit before tax increased to SEK 33 M (29) and profit after tax was SEK 32 M (30). Investments in the Parent Company amounted to SEK 1 M (0). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 36 M (0).

Group

Net financial items and tax

Consolidated net financial items in the second quarter amounted to SEK – 4 M (-6), of which net interest accounted for SEK -3 M (-4). Net financial items for the first six months amounted to SEK -9 M (-11) and net interest amounted to SEK -7 M (-8). On an annual basis, consolidated net interest corresponded to 2.7 percent (3.0) of average interest-bearing net debt. Taxes for the second quarter amounted to SEK -10 M (-5).

Profit after tax increased to SEK 7 M (-14) including items affecting comparability of SEK -16 M (-42) in the second quarter and to SEK 46 M (20) for the first six months including items affecting comparability of SEK -26 M (-42).

Cash flow

Consolidated working capital amounted to SEK 575 M (588) at the end of the period and the average working capital tied-up for the second quarter was 10.8 percent (11.9).

Cash flow from operating activities amounted to SEK 17 M (-49) during the quarter and SEK 16 M (-12) for the first six months. Cash flow from investing activities was SEK -5 M (-1) for the second quarter and SEK -11 M (-5) for the first six months. Cash flow after investments therefore amounted to SEK 12 M (-50) in the second quarter and SEK 5 M (-17) for the first six months.

Financial position and liquidity

At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 151 M (113) and the consolidated interest-bearing net debt was SEK 496 M (586). Equity amounted to SEK 863 M (794) at the end of the period and the net debt/equity ratio amounted to 57 percent (74).

Organization, structure and employees

The number of employees decreased to 664 compared with 715 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 second quarter amounted to 670 (710).

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