22.08.2023

Record result for Alimak

Swedish international hoist and mastclimber group Alimak has posted a record result for the first half, driven mostly by the acquisition of Tractel during the period.

First Half
Total revenues for the six month to the end of June were SK3.53 billion (€297 million) up 75.2 percent on the same period last year, although if the result is compared on the basis that Tractel would have ben included sine the start of the year – so apples for apples, the increase in 13 percent. Pre-tax profits came in at SK344 million (€28.9 million) up 58 percent on last year.

The revenues are made up as follows.

Construction:
Revenues: SK869 million (€73 million) +43%
Order intake: SK945 million(€79.5 million) +40%
Operating profit: SK157 million (€13.2 million) +49%

Façade Access:
Revenues: SK980 million (€82.4 million) +62.3%
Order intake: SK926 million (€77.9 million) +36%
Operating profit: SK55 million(€4.6 million) x4.3 fold

Industrial:
Revenues: SK651 million (€54.7 million) +22.3%
Order intake: SK745 million (€62.6 million) +10.9%
Operating profit: SK155 million (€13 million) +58.4%

Wind:
Revenues: SK339 million (€28.5 million) +25.6%
Order intake: SK395 million (€33.2 million) +44%
Operating profit: SK63 million (€5.3 million) +80%

Height Safety Solutions: New division from Tractel
Revenues: SK735 million (€61.8 million)
Order intake: SK699 million (€58.8 million)
Operating profit: SK154 million (€12.9 million)

Chief executive Ole Kristian Jødahl said: “I am pleased to see that during the second quarter we delivered earnings and margin in line with our profitable growth agenda. We had very strong performance in the Industrial, Wind and Height Safety and Productivity Solutions divisions. Facade Access and Construction reported lower organic order intake and revenue, but the sales pipeline remains solid for both divisions going forward. In total, group order intake was equal to revenue in absolute value.”

“Looking at division level, order intake in Facade Access increased by 4%, with an organic decrease of 55%. The quarter is compared to a strong Q2 last year, which included a major project in the Middle East with a substantial contract value. We also saw some impact of the higher interest rates, on projects being put on hold or delayed. Our higher margin expectations have led us to step out of a few tenders, but beyond those decisions, we see our market position being strengthened by the combined offering and engineering capabilities resulting from the Tractel acquisition. The Facade Access division continues to execute on the transformation program to deliver significantly improved margins.”

“The Construction division delivered a stable quarter, despite more challenging market conditions. Order intake increased 34% with an organic decrease of 4%, however at a good level. Used, rental and service activities remained strong overall in the division. In Height Safety and Productivity Solutions order intake remained on a high level. Revenue increased by 15% (aggregated). I am very satisfied with the continued high performance of this acquired business.”

“Industrial had another strong quarter with an order intake increase of 12%, and with an organic increase of 8%. The order intake was especially strong in the service segment. Earnings and margin increased significantly, which is pleasing to see. It is also very encouraging to see that the Wind division continues the positive development that we have seen in the recent quarters. Order intake increased by 28%, and by 21% organically.”

Vertikal Comment

This is an exceptional first half for Alimak, which with the Tractel acquisition looks set for a whole new period in its history. It has a nice balance between construction related business, industrial, maintenance and infrastructure – also an increasing slice of its revenues are coming from after sales activities. It will therefore be resistant to the ups and downs of the more cyclical sectors such as construction. Hoists remain a large part of its activities and still run through the business, but mast climbers are now just a small part of the company’s activities.

It will be interesting to watch how the company develops in 2024.