Within the framework of the strategic review, which aims to streamline operations and strengthen the balance sheet, a number of strategic divestments are carried out within the Infrastructure and Services segments. The divestments lead to an increased degree of specialisation, reduced operational risk and strengthened growth, profitability and cash flow for remaining operations.
- A review of the group's operations has been carried out as part of the ongoing strategic review. The process has identified a number of businesses whose cash flow generation, profitability level or risk profile no longer meet
Vestum 's requirements, or which for other reasons do not fitVestum 's strategic direction. - In line with this,
Vestum has today entered into an agreement to divest 100% of the shares inArctic Infra AB including subsidiaries, which means thatVestum is leaving the construction market in northernSweden . The purchase price amounts toSEK 54 million on a cash and debt free basis.Arctic Infra AB was part of the Infrastructure segment and was, in terms of net sales, the largest company within theVestum group. The divestiture is subject to customary closing conditions, including FDI approval. Vestum has further divested 100% of the shares in the following companies:Kvalitetsmark R AB (Infrastructure)Hyrex Holding AB including subsidiaries (Infrastructure)Powerstruc AB (Infrastructure)Amsler Hiss AB (Services)
- In accordance with IFRS 5, the divested operations will be reported separately as divested operations in future reports.
Comment from
We continue to streamline the structure to increase the degree of specialisation and are, after the divestments, a strengthened group. We are making a shift where operational risks are reduced while the financial profile is strengthened. The divested businesses are in general solid companies, but deviate from our continued growth journey with an increased focus on market-leading product and services companies with high profitability within civic infrastructure, says Simon Göthberg,
Financial effects
The financial effects of the divestments, on a rolling 12-month basis as of
KPI (SEKm) | Oct 2022– (Reported figures) | Oct 2022– (Remaining operations) | Jan-Dec 2022 (Reported figures) | Jan-Dec 2022 (Remaining operations) |
Net sales | 6,580 | 5,713 | 6,106 | 5,162 |
Adjusted EBITA | 618 | 623 | 651 | 587 |
Adjusted EBITA margin | 9.4% | 10.9% | 10.7% | 11.4% |
Financial net debt | 2,449 | 2,276 | - | - |
Financial net debt / EBITDA | 2.8x | 2.7x | - | - |
- The divestments reflect
Vestum 's ambition to achieve a financial net debt in relation to EBITDA of maximum 2.5x, and in the medium term to achieve an EBITA margin of at least 12.0%. - The divestments lead to total preliminary realised losses of
SEK 490 million , which are booked in the income statement for the fourth quarter under the item profit/loss from divested operations. The realised losses do not affect the group's cash flow. - The strategic review is ongoing and expected to be completed in the first quarter of 2024.
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