Extract from the Stock Exchange Release published on 26 October 2018:
During the first three quarters of 2018, Cramo’s organic sales grew by 7.7% and comparable EBITA increased by 9.1% to EUR 95.7 million. The Group’s profitability also continued to improve compared to the previous year. The market environment remained good for both of our business divisions.
The Equipment Rental division’s third quarter was mixed. Scandinavia and several Eastern European and Central European countries continued performing well. The slowdown of residential construction growth in the Stockholm area had no material impact on third quarter sales in Sweden, which increased by 3.2% in local currency. Norway continued to improve sales and profitability supported by good market demand. Sales declined particularly in Finland, which negatively impacted the profitability of the ER Finland and Eastern Europe segment. Actions to change the current direction have been executed and positive effects are expected to follow starting from the first quarter of 2019. We will also continue our performance improvement actions in Germany.
I’m particularly satisfied with the performance of the Modular Space division as good improvement continued during the third quarter both in terms of sales and profitability; organic rental sales grew by 13.8% and EBITA increased by 16.6%. Germany in particular contributed positively as the firm actions taken to increase the operational effectiveness are showing results.
After the reporting period, on 4 October, the Swedish Competition Authority approved Cramo’s acquisition of the Swedish-based Nordic Modular Group Holding AB (“NMG”). After the acquisition, Modular Space is growing more than 60% in sales and it will expand into long-term rental business with inhouse manufacturing. The transaction is expected to have a positive impact on Cramo Group’s comparable EPS in 2019. As previously announced, Cramo has assessed strategic alternatives for its Modular Space business (Cramo Adapteo). The objective of the assessment is to maximize long-term shareholder value for Cramo’s shareholders. An outcome is likely to result in a separation of the Equipment Rental and Modular Space business divisions, which may include a demerger and separate listing of Cramo Adapteo during 2019. Cramo will announce further information on the schedule and process when the integration of NMG into Cramo Adapteo has progressed.