Comment from CEO Fredrik Nordling
For the fourth quarter, Saxlund reported sales of SEK 78.6 million, an increase of 17 percent compared to the same period last year. There has been strong sales in all markets, particularly in project operations.
The EBITDA result for the quarter amounted to -1.8 MSEK, which is an improvement compared to the previous year of approximately 11.2 MSEK. The last quarter is normally a weak quarter for our business and it is pleasing that we are making such a strong improvement. The quarter is also affected by a one-off effect of 2.0 MSEK in the UK which relates to a period before 2024. Without this effect, we show a positive EBITDA result for the quarter. It is of course unfortunate that we need to make this adjustment in the UK, but we have control over the situation and are implementing measures to avoid similar adjustments in the future.
When we sum up the year, I see that despite the changes we have implemented in recent years, we have a tough start. Then there is a clear turnaround during the summer, and we deliver a strong third quarter – in fact, the strongest in five years.
Some of the highlights during the year include Germany delivering a strong year despite a challenging market climate in the domestic market. We signed a major agreement with the world’s largest furniture manufacturer. We have delivered well in hydropower in the Swedish market, where we have worked with both new and old customers over the past two years. This, combined with the high quality of what we have delivered to our customers, has meant that hydropower is a strong contributor to our margin improvement.
In previous quarters, I have announced that we have a weaker order book than we have had historically. The order book has improved somewhat during the quarter but remains at a lower level than desirable. Our pipeline is strong and I expect that we will strengthen the order book from current levels going forward.
Our focus is to grow our aftermarket, which has happened by four percent. The margin has increased by a full five percent within the segment when we compare between years. This is a contributing factor to the improved result.
Personnel costs have increased more this year compared to previous years, which is due to the contractual wage increases that have been high during the year. Despite inflation and rent increases, we have reduced OPEX during the year by approximately five percent. We continue to work purposefully to streamline and maintain tight cost control.
The necessary share issue that Saxlund carried out during the third quarter has meant that the group is free of long-term liabilities other than leasing. This results in reduced financing costs and a better environment for doing sound business.
During the quarter, we have carried out a reverse split, which means that we have merged shares and significantly changed the number of shares and the share price. The decision was made to facilitate trading of the share.
Our previous focus on profitability and efficiency will continue in 2025. We have two good quarters behind us and I look forward to seeing the impact of that focus in the coming quarters. After that, the plan is to gradually intensify our focus on growth again.
Fredrik Nordling, CEO