Accounting policies
This interim report was prepared in accordance with IFRS and IAS 34 Interim Financial Reporting. Information in accordance with IAS 34.16A exist, except in the financial statements and the related notes also in other parts of the year end report. The interim report for the parent company was prepared in accordance with the Swedish Annual Accounts Act (1995:1554) and the Securities Market Act (2007:528) in compliance with recommendation RFR 2 Accounting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies and basis for calculations applied in the 2020 annual report for AddLife AB were also used in the interim report. The amendments to IFRSs applicable from 1 January, 2021 have no effects to AddLife's financial reports for the interim period ended 31 March, 2021.
Alternative performance measures
AddLife presents certain financial measures in the interim report that are not defined according to IFRS. The Company believes that these measures provide valuable supplemental information to investors and the Company's management as they allow for evaluation of trends and the Company’s performance. Since all companies do not calculate financial measures in the same way these are not always comparable to measures used by other companies. These financial measures should therefore not be considered as a replacement for measurements as defined under IFRS. This report provides information in greater detail regarding definitions of financial performance measures.
Transactions with related parties
No transactions with related parties that materially affected the Group’s financial position and earnings took place during the interim period.
Events after the end of the interim period
On 7 April 2021, AddLife acquired all shares in Vision Ophthalmology Group GmbH (VOG), a leading European distributor and manufacturer in ophthalmology (eye surgery), with operations in Switzerland, Germany, the UK and Poland. VOG has a turnover of approximately EUR 70m and has 190 employees. For more information on the acquisition of VOG, see Acquisitions.
On 12 April 2021, AddLife signed an agreement to acquire all the shares of Healthcare 21 Group, HC21, a leading independent Life Science distributor with operations in Ireland and the UK. HC 21 has sales of approximately EUR 171m and around 450 employees. For more information on the acquisition of HC21, see Acquisitions.
In connection with the acquisitions, additional credit facilities of SEK 2 250m were obtained from Handelsbanken. The credit agreement is for 12 months with an option to extend for up to an additional 24 months.
Two new issues of class B shares were carried out in conjunction with the two acquisitions. The newly issued shares have been used to pay for the acquisitions, in accordance with the mandate given to the Board of Directors at the Annual General Meeting in May 2020. The first issue was carried out on 7 April 2021 and included 3,862,216 class B shares. The first share issue increased AddLife's share capital by SEK 1,966,870.07. The second issue was carried out on 12 April 2021 and included 4,089,742 class B shares. As a result of the second share issue, AddLife's share capital was increased by SEK 2,082,739.85. After the two new issues, the share capital amounts to SEK 62,358,949.47. The total number of shares amounts to 122,450,250, with the number of class A shares unchanged at 4,615,136, while the number of class B shares increased from 109,883,156 to 117,835,114. Shares held in treasury have decreased from 2,007,149 to 507,149 class B shares after 1,500,000 class B shares were used as part of the payment for the shares in Vision Ophthalmology Group.
No other events of significance to the Group occurred after the end of the interim period.
Risks and uncertainties
AddLife’s earnings and financial position, as well as its strategic position, are affected by various internal factors within AddLife’s control and various external factors over which AddLife has limited influence. AddLife’s most significant external risks are the state of the economy and market trends combined with public sector contracts and policy decisions, as well as competition. The risks and uncertainties are the same as in previous periods. For more information, see the section “Risks and uncertainties” in the administration report, in AddLife’s annual report 2020. The Parent Company is indirectly affected by the above risks and uncertainties through its function in the Group.