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). 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. The exit from remaining business in Prerov, Czech Republic, is in essence completed. In total, the operations under restructuring had sales of SEK 3 M (21) in the fourth quarter with an underlying operating result of SEK 2 M (-3). For the full year, net sales amounted to SEK 47 M (158) and the underlying operating result to SEK 2 M (-28).

Fourth quarter sales in the Parent Company, BE Group AB (publ), which consist of intra-Group services, amounted to SEK 29 M (56). Operating result amounted to SEK 11 M (43).

Net financial items for the full year amounted to SEK 2 M (-22). Profit before tax increased to SEK 85 M (0) and profit after tax increased to SEK 69 M (-1). Investments in the Parent Company amounted to SEK 1 M (-). At the end of the period, cash and equivalents in the Parent Company increased to SEK 71 M (44).

Group

Net financial items and tax

The Group´s consolidated net financial items in the fourth quarter amounted to SEK -5 M (-6), of which net interest accounted for SEK -3 M (-4). Net financial items for the full year amounted to SEK -16 M (-23) and net interest was SEK -12 M (-17). On an annual basis, consolidated net interest corresponded to 2.5 percent (3.2) of average interest-bearing net debt.

Taxes for the fourth quarter amounted to SEK -6 M (-4). Profit after tax increased to SEK 11 M (-5) and amounted to SEK 80 M (24) for the full year including items affecting comparability of SEK -12 M (-52).

As the Group´s profitability continues to improve the capitalized deferred tax assets referring to loss carryforwards are utilized. The deferred tax asset has decreased during the year, amounting to SEK 33 M (56).

Cash flow

The Group´s consolidated working capital amounted to SEK 572 M (492) at the end of the period and the average working capital tied-up for the fourth quarter was 12.9 percent (11.1). Cash flow from operating activities amounted to SEK 80 M (10) during the quarter and SEK 86 M (95) for the full year. Cash flow from investing activities was SEK -10 M (-9) for the fourth quarter and SEK -32 M (5) for the full year. Cash flow after investments therefore amounted to SEK 70 M (1) in the fourth quarter and SEK 54 M (100) for the full year.

Financial position and liquidity

At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 208 M (161) and the consolidated interest-bearing net debt was SEK 440 M (478). Equity amounted to SEK 892 M (802) at the end of the period and the net debt/equity ratio amounted to 49 percent (60).

Organization, structure and employees

The number of employees amounted to 667 compared with 665 at the same time in the previous year. The average number of employees during the year amounted to 668 (700).

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