Instalco implements savings - 110 people laid off - does not announce savings - IR
December 17, 2024 at 12:37 am EST
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The installation company Instalco is carrying out a cost-cutting program that includes laying off around 110 people. The program will burden the fourth quarter with approximately SEK 65 million.
- We have taken measures during the year to ensure Instalco's continued profitability and competitiveness in a challenging market climate. Despite this, I am not satisfied with our performance in 2024 and we are now taking action to prepare the company for profitable growth," says Robin Boheman, CEO of Instalco.
During the quarter, Instalco has also terminated assignments for approximately 100 people among the temporary staff, taken certain project write-downs and initiated mergers and closures of eight underperforming subsidiaries. During the period January-November, the companies that will be wound up had sales of approximately SEK 250 million and reported an ebita result of approximately SEK -30 million. In Instalco's report for the third quarter, the company stated that it had 161 subsidiaries.
Instalco also recognizes impairment of goodwill and other intangible assets of SEK 25 million in the fourth quarter.
The company also states that it has been a supplier to Northvolt. The remaining exposure to Northvolt is approximately SEK 60 million.
In a comment to Finwire, Instalco's IR manager Mathilda Eriksson states that the company does not disclose how large the savings will be.
In response to a question about the geographical impact of the cutbacks, she replies as follows.
"The cuts are adapted to local market situations and conditions, but it's a mix of countries and disciplines - no single one stands out."
Instalco AB, formerly Instalco Intressenter AB, is a Sweden-based installation and service supplier within areas of heating and plumbing, electrical, ventilation, cooling and industrial solutions. The Company offers installation and regular repairs of district heating, plumbing replacement, new construction and preventive maintenance; design, installation, and maintenance of electrical installation; technical solutions and installation of ventilation solutions for air treatment, air conditioning and indoor climate; design, installation and maintenance of water sprinklers; industrial pipe systems, machinery installation and installations of cooling systems, as well as installation of switchgear, transformers, busbars and power stations, among others. The services are designed mainly for commercial premises, housing, public construction, warehousing, offices and retail trade, as well as process industries. The Company operates in Sweden, Norway and Finland through numerous subsidiaries.