Parent Company & consolidated items

Parent Company & consolidated items include the Parent Company, Group eliminations and also parts of the Group’s operations undergoing restructuring. For additional information see the Annual Report for 2018.

The effects regarding IFRS 16 were reported under Parent Company & consolidated items and have not been allocated to the two business areas.

Sales for the second quarter of the Parent Company, BE Group AB (publ), amounted to SEK 27 M (26) during the period and derived from intra-Group services. These intra-Group services mainly include licensing fees regarding the subsidiaries’ use of the BE Group brand and central expenses for IT, Finance and Purchasing, etc. These expenses are distributed and invoiced to all subsidiaries in the Group. In the result follow-up of the business areas, these intra-group expenses have been eliminated. Out of the total costs for the Parent Company, of SEK -15 M (-13), SEK -10 M (-12) was allocated to the subsidiaries. Operating result amounted to SEK 12 M (13).

Net financial items for the quarter amounted to SEK 10 M (20). Profit before tax amounted to SEK 22 M (33) and profit after tax amounted to SEK 20 M (32). Investments in the Parent Company amounted to SEK 0 M (1). At the end of the period, cash and equivalents in the Parent Company increased to SEK 136 M (36).

Net financial items for the first six months amounted to SEK -1 M (2). Profit before tax amounted to SEK 24 M (28) and profit after tax was SEK 20 M (28). Investments in the Parent Company amounted to SEK 0 M (1).

Group

Net financial items and tax

The Group´s consolidated net financial items in the second quarter amounted to SEK -7 M (-5), of which net interest accounted for SEK -5 M (-3). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -3 M (-). Net financial items for the first six months amounted to SEK -13 M (-9) and net interest amounted to SEK -11 M (-7) of which SEK -6 M is related to leasing according to IFRS 16.

Taxes for the second quarter amounted to SEK -6 M (-10). Profit after tax increased to SEK 19 M (7) and amounted to SEK 39 M (46) for the first six months including items affecting comparability of SEK 0 M (-16).

Cash flow

The Group´s consolidated working capital amounted to SEK 553 M (575) at the end of the period and the average working capital tied-up for the second quarter was 11.7 percent (10.8). Cash flow from operating activities increased to SEK 67 M (17) during the quarter, of which SEK 20 M is an effect of the implementation of IFRS 16 and to SEK 129 M (16) for the first six months, of which SEK 40 M is an effect of the implementation of IFRS 16. Cash flow from investing activities was SEK -3 M (-5) during the quarter and SEK -18 M (-11) for the first six months. Cash flow after investments therefore amounted to SEK 64 M (12) during the second quarter and SEK 111 M (5) 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 258 M (151) and the interest-bearing net debt excl. IFRS 16 was SEK 402 M (496). Equity amounted to SEK 922 M (863) at the end of the period.

Organization, structure and employees

The number of employees amounted to 643 compared with 664 at the same time last year. The average number of employees during the quarter amounted to 652 (670).

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