Future prospects and events after the reporting period
Future prospects
Addtech operates on an international technology trading market where demand is largely influenced by macroeconomic factors. Group companies operate in different but carefully selected niches, resulting in a smoothing effect between sectors, geographical markets and customer segments. Our independent companies continually work to adapt to changes based on their market and the competitive situation.
Historically, Addtech's continuous pursuit of profit growth, profitability (P/WC) and development have provided good average value growth. Our cash flow and financial position form a stable foundation for continued long-term profitable growth based on the same mission.
Events after the reporting period
On 3 April 2017, Dovitech A/S, Denmark, was acquired to become part of the Components business area. Dovitech delivers inductive special solutions as well as electromechanical- and automation products. The company has sales of around DKK 80 million and five employees.
On 6 April 2017, Craig & Derricott Holdings Ltd, Great Britain, was acquired to become part of the Power Solutions business area. Craig & Derricott is engaged in design, manufacturing and marketing of low electrical control equipment and switchgear for the UK market and export markets. The company has sales of about GBP 10 million and 90 employees.
On 11 May 2017, Addtech announced that the Board of Directors has decided on a new dividend policy. The new policy has the objective of proposing a dividend that exceeds 30 percent of average Group profit after tax over a business cycle.
On 12 June 2017, Addtech sold Batteriunion i Järfälla AB to Midac S.P.A. Batteriunion AB with a sales of about SEK 140 million and 16 employees, has belonged to the business area Power Solutions.
Proposed allocation of earnings 2016/2017
| The following amounts are available for distribution by the Annual General Meeting of Addtech AB: | |
|---|---|
| Retained earnings | 516 SEKm |
| Profit for the year | 210 SEKm |
| 726 SEKm | |
| The Board of Directors and the CEO propose that the funds available for distribution be allocated as follows: | |
| A dividend paid to shareholders of SEK 3.50 per share 1) | 234 SEKm |
| To be carried forward | 492 SEKm |
| 726 SEKm | |
| 1) Based on the number of shares outstanding at 31 May 2017. The total dividend payout may change if the number of treasury shares repurchased changes prior to the proposed dividend record date of 4 September 2017. | |