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 2019.

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 25 M (27) during the period and derived from intra-Group services. These intra-Group services mainly include central expenses for IT and business systems, the subsidiaries’ use of the BE Group brand and Finance. 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 except for expenses for IT and business systems which are included in the result for the business areas since the first quarter 2020. Comparative numbers have been restated. Out of the total costs for the Parent Company, of SEK 11 M (15), SEK 8 M (10) was allocated to the subsidiaries. The operating result amounted to SEK 13 M (12).

Net financial items for the quarter amounted to SEK 8 M (10). Profit before tax amounted to SEK 21 M (22) and profit after tax amounted to SEK 17 M (20). 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 9 M (136).

Net financial items for the first six months amounted to SEK 23 M (-1). Profit before tax amounted to SEK 49 M (24) and profit after tax was SEK 47 M (20). Investments in the Parent Company amounted to SEK 0 M (0).

Group

Net financial items and tax

The Group´s consolidated net financial items in the second quarter amounted to SEK 3 M (-7), of which net interest amounted to SEK -4 M (-5). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -3 M (-3). Net financial items for the first six months amounted to SEK -22 M (-13) and net interest amounted to SEK -9 M (-11) of which SEK -6 M is related to leasing according to IFRS 16.

Taxes for the second quarter amounted to SEK -6 M (-6). Profit after tax amounted to SEK 18 M (19) and was SEK -5 M (39) for the first six months including items affecting comparability of SEK -40 M (-).

Cash flow

The Group´s consolidated working capital amounted to SEK 455 M (553) at the end of the period and the average working capital tied-up for the second quarter was 13.0 percent (11.7). Cash flow from operating activities amounted to SEK 95 M (67) during the quarter, of which SEK 22 M (20) refers to IFRS 16 and to SEK 188 M (129) for the first six months of which SEK 44 M (40) refers to IFRS 16. In addition to this, approximately SEK 30 M refers to a deferral of tax payments. Cash flow from investing activities amounted to SEK -6 M (-3) during the quarter and SEK -13 M (-18) for the first six months. Cash flow after investments thus amounted to SEK 89 M (64) during the second quarter and SEK 175 M (111) 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 176 M (258) and the interest-bearing net debt excl. IFRS 16 was SEK 254 M (402). Equity amounted to SEK 921 M (922) at the end of the period.

To ensure the Group’s liquidity buffer, several sources of financing have been evaluated and the assessment is that the need for liquidity has been met.

Organization, structure and employees

The number of employees amounted to 640 compared to 643 at the same time last year. The average number of employees during the quarter amounted to 637 (652).

The comparative figures for 2018 are prepared according to previous accounting principles regarding leasing (IAS 17).

The figures for 2019 and 2020 includes the effects of IFRS 16.