In 2020, we achieved a strong EBITA, which exceeded our expectations. At the Annual General Meeting, the Board of Directors will propose a 2020 dividend distribution of
CEO
"In 2020, our three-year strategic period came to an end. During this period, we successfully managed to increase EBITA by
We conclude the strategic period by proposing dividend payment of
We are very pleased with the progress and results delivered in 2020, and with the launch of our new strategy - CORE+ - that will set new standards for the period from 2021 to 2023.
Finally, I want to thank our dedicated and skilled employees. Together, we succeeded in delivering strong results despite the challenges brought about by COVID-19.
We have become stronger as a company and as a group.”
Financial highlights (DKK million) | Q4 2020 | Q4 2019 | 2020 | 2019 | |||
Revenue | 3,057 | 3,077 | 11,465 | 11,679 | |||
EBITDA | 191 | 161 | 637 | 538 | |||
EBITA | 145 | 115 | 455 | 360 | |||
Earnings before tax | -7 | 73 | 300 | 120 | |||
Cash flow from operating activities | 432 | 305 | 813 | 300 | |||
Financial ratios (%) | |||||||
Organic growth adj. for number of working days | -2.1 | 2.6 | -2.0 | 4.9 | |||
EBITDA margin | 6.2 | 5.2 | 5.6 | 4.6 | |||
EBITA margin | 4.7 | 3.7 | 4.0 | 3.1 | |||
Net working capital, period-end/revenue (LTM) | 9.7 | 11.0 | 9.7 | 11.0 | |||
Gearing (NIBD / EBITDA), no. of times | 0.2 | 1.7 | 0.2 | 1.7 |
2020 revenue
- Adjusted organic growth amounted to -2.0% (4.9%), partly due to a declining demand caused by COVID-19 and partly due to our Better Business initiatives.
2020 EBITA
- The results for our core business exceeded our expectations with EBITA being up by
DKK 56m toDKK 456m compared to the original guidance. - Focus on strategic suppliers and concept sale, project Better Business and Operational excellence were stronger than expected. See the follow-up on page 8 in Annual Report 2020.
Dividend distribution
- At the Annual General Meeting, the Board of Directors will propose dividend distribution of
DKK 28.00 per share, corresponding to a payout ratio of 92%.
2021 outlook
- We expect revenue of approx.
DKK 11,550m equal to an organic growth of approx. 0%. - Better Business initiatives are expected to reduce revenue by
DKK 200m . The adjusted organic growth amounts to approx. 2%. - We expect an EBITDA of approx.
DKK 650m , corresponding to an EBITA ofDKK 465m .
See the remaining assumptions on page 9 in Annual Report 2020.
Introduction of our new CORE+ strategy
With CORE+ we will be building on the solid foundation of our core. The new strategy focuses on four areas: Concepts, Climate & Energy, Industry and Trade. Areas in which we have a solid track record and see further opportunities for profitable growth in the years to come.
Our ambitions for the strategic period from 2021 to 2023 can be found on page 17 in Annual Report 2020.
Audio webcast and teleconference today
The presentation of Annual Report 2020 will be made in English on
Teleconference call-in numbers:
DK: tel. +45 823 331 94
US: tel. +1 833 526 8384
Contacts
CEO
CFO
IR Director,
Enclosure: Annual Report 2020, pages 1-155, including Q4 2020 quarterly information.
Facts about Solar
Solar is a leading European sourcing and services company mainly within electrical, heating and plumbing, ventilation and climate and energy solutions. Our core business centres on product sourcing, value-adding services and optimisation of our customers’ businesses.
We facilitate efficiency improvement and provide digital tools that turn our customers into winners. We drive the green transition and provide best in class solutions to ensure sustainable use of resources.
Disclaimer
This announcement was published in Danish and English today via Nasdaq Copenhagen. In the event of any inconsistency between the two versions, the Danish version shall prevail.
Attachments
SOLA -2020-12-31- No. 2 2021 Annual Report 2020
© OMX, source