Bufab has seen healthy growth and improved operating margin, according to its year-end report 2016, making it Bufab’s best year to date.
The 12 month period, which also saw the group acquire UK-based Montrose Holdings, saw net sales rise 16% to SEK 2,847 million (2,458), with organic growth at 4%.
Order intake exceeded net sales and both operating profit (SEK 272 million) and operating margin (9.5%) rose. Net sales, operating profit and profit after tax were all the highest on record for Bufab.
Net sales rose 14% to SEK 699 million, with organic growth at 4%.
Jörgen Rosengren, President and CEO, said: “The [Q4] increase was partly due to organic growth in most markets and partly to a good contribution from our acquisitions, which all performed well.
“Both Sweden and International improved their net sales and operating profit. The strong development in Sweden was particularly gratifying. The segment achieved its best result for three years despite a weak SEK and moderate growth in the industry.
“All in all, we are satisfied with development during the fourth quarter and for 2016 as a whole. A robust increase in net sales, operating profit, net profit and cash flow meant Bufab reported its best earnings ever. This development is no accident, but the result of purposeful work in line with the growth strategy we established in 2012.”
“2nd acquisition in 2 years”
Rosengren added: “The acquisition of Montrose Holdings Ltd in the UK in December is our fourth acquisition in two years and shows that our acquisition strategy is continuing to generate results. The acquired companies are developing well, work well with the other subsidiaries and made a strong contribution to Bufab’s earnings trend and cash flow during the year. We are continuously evaluating additional acquisition opportunities. As a result of a healthy cash flow in 2016 and an increased credit line, we have the financial capacity for more acquisitions.”
Looking ahead, the Bufab boss saw challenges in the shape of prevailing exchange rates as well as a trend towards rising commodity prices. However the firm is targeting increased market share and to build on the “healthy order intake” seen in Q4 2016.
Earlier this month, Bufab revealed it was looking for a new CFO.