Financial position and cash flow

At the end of the interim period, the equity ratio stood at 39 percent (38). Equity per share totalled SEK 42,63 (40.76) and the return on equity at the end of the interim period was 6 percent (10). Return on working capital, P/WC (EBITA in relation to working capital) amounted to 49 percent (61). The lower yield is partly due to a a slightly lower result and relatively higher working capital. 

The group’s interest-bearing net debt at the end of the interim period totalled SEK 5,600 m (5,410), including pension liabilities of SEK 59 m (60), leasing liabilities of SEK 355 m (351) and contingent considerations corresponding to SEK 146 m (266). Outstanding bank loans at the end of the interim period amounted to SEK  5,145 m (4,968), whereof short-term bank loans amounted to SEK 2,558 m (2,432). The credit facility of SEK 1,000 m due in the first quarter of 2024 has been extended after the end of the interim period and runs for another 12 months until the first quarter of 2025. The credit facility of EUR 98.2 m, which also matures in the first quarter of 2024, has an extension option of another 12 months which we intend to use. The group has a good margin in the covenants applicable under the banking agreements, which stipulate an interest coverage ratio of at least 4.0 times and an equity ratio exceeding 25 percent.
As of the end of the interim period, the interest coverage ratio amounted to 6.3 times, as defined in the bank agreements.

The net debt/equity ratio totalled 1.1 compared to 1.1 at the beginning of the interim period. The intention is to reduce indebtedness through self-generated cash flow.

Cash and cash equivalents, consisting of cash and bank balances, together with approved but non-utilised credit facilities, totalled SEK 661 m (890) on September 30, 2023. 

Cash flow from operating activities reached SEK 325 m (558) during the interim period. The change is mainly due to increased capital tie-up in stock and accounts receivables, above all driven by increased net sales and broadening of the product portfolio which temporarily increased the inventory. Paid out contingent consideration related to  acquisitions of companies in previous years amounted to SEK 16 m (818). Net investments in non-current assets during the interim period amounted to SEK 195 m (186) and is mainly attributable to investments in instruments for rental to customers. Repurchase of treasury shares amounted to SEK 0 m (49). Exercised, issued and repurchased call options amounted to SEK -9 m (23). A dividend of SEK 146 m (243) has been paid to the parent company´s shareholders.