It is with great pride that I look back on a very strong year for Addtech, with a high level of growth and profitability in all business areas. The financial year was marked by continued strong demand for sustainable technical solutions but also by challenges in the form of increased inflationary pressure, supply chain disruptions and a general uncertainty associated with our external environment. Our strong positions in selected niches, combined with the great commitment and performances of our companies, generated record-high organic sales growth of 17 percent with a strengthened EBITA margin of 13.6 percent (12.8). Our well-proven business model, with its focus on entrepreneurship, has again proven its strength.

FOURTH QUARTER 

The financial year ended in a very strong fourth quarter with solid contributions from all business areas. A high level of customer activity, combined with overall good delivery capacity resulted in sales increasing by 34 percent, 21 percent of which was organic. Despite the high level of invoicing in the quarter, our order book remained well filled and of good quality. Through good cost control and active dialogues with suppliers and customers, our companies have been able to manage continued inflationary pressure and we are able to report a strengthened margin of fully 14.4 percent and EBITA growth of 47 percent. 

FULL YEAR

The combination of high levels of customer activity and favourable returns on organic growth, as well as ten carefully selected acquisitions, has resulted in a sales increase of 33 percent and a very strong EBITA growth of 41 percent. 

Over the year, the business climate has been highly favourable in most of our key customer segments and geographies. Sales of input components and solutions for manufacturing companies in special vehicles and electronics, as well as in the medical and mechanical industries have experienced a highly favourable development. The major infrastructure investments, to meet increased energy needs, generated continued favourable demand for our companies active in the expansion of local and regional grids, while demand in wind power was somewhat weaker. The demand for electricity-related products for building and installation customers was very good, and demand for solutions for the defence, rail and marine industries increased sequentially over the year. The business situation was highly favourable in the process industry in general, while the sawmill industry's willingness to invest in major projects slackened over the year. 

Geographically, all of the Nordic markets experienced a very good business situation over the year, with Norway having the strongest development. Our largest markets outside the Nordic region - DACH, the UK and Benelux - experienced very favourable development. In total, the Group's international presence has increased, now amounting to 36 percent of consolidated sales. 

For the full year, the cash flow from operating activities improved significantly on the preceding year at SEK 1,911 million (1,121) thanks to high earnings growth, a good operating margin and measures for more efficient working capital. Our long-term financial target, P/WC, remaining at a high 66 percent. 

ACQUISITIONS

Acquisition activities continued as planned, with a total of ten acquisitions taking place over the year, followed by another four after the end of the period. In total, these 14 acquisitions have added approximately SEK 1,200 million in sales and we have welcomed 382 new employees to the Group. In line with our strategy, the proportion of acquisitions outside the Nordic region has increased, as have our acquisitions of companies with a high degree of value generation and a clear sustainability profile. Regardless of the geographies in which acquisitions are made, strategic and cultural matching is always in focus. Besides being a high performer in a technical niche that strengthens our existing operations, the company must also fit culturally as this is a decisive factor in our decentralised organisation. This also fosters preconditions for various forms of collaboration in networks such as those our business units comprise.

It is our strong culture, with a focus on entrepreneurship and networking, that continues to attract many privately owned companies to become part of Addtech. Combined with a strong balance sheet, our relationship-based acquisition process with an attractive and well-stocked pipeline means that we perceive good opportunities to maintain a favourable rate of acquisitions.