Year End Report January–December 2024, Coor Service Management Holding AB
Year End Report January–December 2024, Coor Service Management Holding AB.
Fourth quarter of 2024
- Net sales in the fourth quarter amounted to SEK 3,192 (3,287) million. Organic growth was -3 per cent and growth from acquisitions 0 per cent, while exchange rate effects accounted for -0 per cent.
- Adjusted EBITA amounted to SEK 105 (166) million and the operating margin was 3.3 (5.1) per cent.
- EBIT was SEK 43 (86) million. Profit after tax was SEK-13 (30) million.
- Earnings per share were SEK -0.1 (0.3).
- The Board of Directors proposes a dividend of SEK 1.50 per share for 2024, of which 0.50 extraordinary dividend. It is proposed that the dividend be distributed in two payments of SEK 1.00 and 0.50 per share.
- In addition to the dividend, the Board of Directors intends to initiate a share buy-back programme of up to SEK 50 million after the 2025 Annual General Meeting with the intention of reducing the number of shares in Coor through subsequent cancellation of repurchased shares. Further details on the scope and duration of the buy-back programme will be announced if and when it is decided. Furthermore, it is the intention of the Board of Directors to propose recurring repurchases in the coming years and as a complement to the ordinary dividend with subsequent cancellation of shares.
Full-year 2024
- Net sales for the full year amounted to SEK 12,439 (12,443) million. Organic growth was -1 per cent and growth from acquisitions 1 per cent, while exchange rate effects accounted for -1 per cent.
- Adjusted EBITA amounted to SEK 546 (606) million and the operating margin was 4.4 (4.9) per cent.
- EBIT was SEK 372 (364) million. Profit after tax was SEK 126 (155) million.
- Earnings per share were SEK 1.3 (1.6).
- Cash conversion for full-year 2024 was 57 (86) per cent.
- Leverage in relation to adjusted EBITDA was 3.0 (2.5).
“In line with the communication on January 14, organic growth for the fourth quarter was -3 per cent and the Group's adjusted EBITA margin totalled 3.3 per cent. The negative trend was mainly impacted by operational challenges in both the Swedish and the Danish operations. At the beginning of 2025, Coor decided to implement a simplified and unified organisation, which will result in planned cost savings of approximately SEK 120 million. Our ambition to reach our long-term target margin of 5.5 per cent for the full year 2026 remains unchanged”.
Peter Viinapuu, Acting President and CEO, Coor
Quarterly summary
- During the fourth quarter, Coor continued to provide strong customer deliveries and earn trust from customers in a stable market. Coor has successfully both extended important contracts and won new business.
- Profitability in the fourth quarter is weak, mainly impacted by operational challenges in both the Swedish and Danish operations and a structural problem with a complex organisational structure that has resulted in increased costs.
– The operational challenges are linked to parts of the Swedish and Danish operations. Clear action plans are now being implemented during the first quarter with the aim of restoring profitability in the affected businesses.
– To address the structural problem of a complex organisation, the ongoing action programme is supplemented with a simplified and unified organisation to reduce personnel costs in administration. The reorganisation includes a reduction of 130 positions and entails full-year savings of approximately SEK 120 million.
- Cash conversion for the year is weak and is partly explained by changes in the contract portfolio and balance sheet effects at the end of the quarter but can also be linked to way of working. The company has taken several measures to restore the level of working capital in 2025.
GROUP EARNINGS SUMMARY
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|
Oct-Dec |
|
Jan-Dec |
||
|
|
2024 |
2023 |
|
2024 |
2023 |
|
Net sales, SEK m |
3,192 |
3,287 |
|
12,439 |
12,443 |
|
Organic growth, % |
-3 |
3 |
|
-1 |
2 |
|
Acquired growth, % |
0 |
3 |
|
1 |
2 |
|
FX-effects, % |
-0 |
0 |
|
-1 |
1 |
|
Adjusted EBITA, SEK m |
105 |
166 |
|
546 |
606 |
|
Adjusted EBITA-margin, % |
3.3 |
5.1 |
|
4.4 |
4.9 |
|
EBIT, SEK m |
43 |
86 |
|
372 |
364 |
|
Income for the period, SEK m |
-13 |
30 |
|
126 |
155 |
|
Earnings per share, SEK |
-0.1 |
0.3 |
|
1.3 |
1.6 |
|
Cash conversion, % |
- |
- |
|
57 |
86 |
|
Leverage, times |
- |
- |
|
3.0 |
2.5 |
Invitation to a press and analyst presentation
On 6 February 2025 at 10:00 CET, the company’s President and CFO will give a presentation on developments in the fourth quarter via a webcast. To participate in the webcast, please register in advance via the following links. The audio link is for listening only and when the participant wants to ask a verbal question. If the participants are not going to ask any questions, but want to see the presentation, just click on the link for the webcast.
Webcast Audience URL (to register for the web presentation without asking questions):
https://onlinexperiences.com/Launch/QReg/ShowUUID=94E9CA19-7D57-4964-A33F-4875532E55D3
Audio Conference Call Access (to register to listen to the presentation and to ask questions):
The power point presented as well as a recording of the webcast will be published on the Company's website www.coor.com under the Investors/Financial reports and presentations-tab.
For further information
For questions concerning the financial report, please contact our CFO and Director of Investor Relations Andreas Engdahl (+46 10 559 54 63).
For questions concerning the operations or the company in general, please contact Peter Viinapuu, acting President and CEO (+46 766 411 006) or Magdalena Öhrn, Director of Communications (+46 10 559 55 19).
More information is also available on our website: www.coor.com.
You will find the Q4 report here: Financial reports and presentations
This constitutes information which Coor Service Management Holding AB is required to publish under the EU’s Market Abuse Regulation. The information was submitted for publication through the above contact person on 6 February 2025 at 7:30 a.m. CET.
About Coor:
As the leading provider of facility management services, Coor aims to create the happiest, healthiest, and most prosperous workplace environments in the Nordic region. Coor offers specialist expertise in workplace services, property services and strategic advisory services. Coor creates value by executing, developing, and streamlining our customers’ service activities. This enables our customers to do what they do best.
Coor’s customer base includes many large and small companies and public-sector organisations across the Nordic region, including ABB, Aibel, Alleima, the Danish Building and Property Agency, DNV, DSB, Equinor, ICA, IKEA, Karolinska University Hospital in Solna, PKA - “Danish Police, Public Prosecution Authority and Prison and Probation Service”, PostNord, Saab, SAS, Skanska, Swedbank, Telia Company, Vasakronan and Volvo Cars.
Coor was founded in 1998 and has been listed on Nasdaq Stockholm since 2015. Coor takes responsibility for the operations it conducts, in relation to its customers, employees and shareholders, as well as for its wider impact on society and the environment. Read more at www.coor.com