Momentum Group, industrial owner from Sweden

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I thought I’d start a thread on Momentum Group. The company doesn’t seem to be very well known on the forum (in Finland?), but perhaps there are people interested in the company who could share their thoughts and knowledge? I found, among other things, Verneri’s informative initial purchase in the “Buy/Sell” thread from July '22, and there has been writing about the company in the Boreo thread in February '21.

Quoted and translated from the website:
Momentum Group operates, develops, and acquires successful sustainable companies in the Nordic region through active ownership with decentralized profit and business responsibility. The Group consists of several companies that together form one of the Nordic region’s leading suppliers of industrial components, industrial services, and other industrial services. What the companies have in common is that they help make customers’ operations easier, safer, and more profitable by offering sustainable, long-lasting products and services with a strong local presence close to the customers. The Group’s revenue is approximately SEK 1.7 billion and it has around 550 employees.

A list of the companies can be found on the website: https://www.momentum.group/en/our-companies

From the 2022 Annual Report:

  • Revenue increased by 17 percent to SEK 1,739 million (1,491), of which 10 percent was from comparable units.

  • Operating profit rose by 19 percent to SEK 185 million (155), corresponding to an operating margin of 10.6 percent (10.4). The result included items affecting comparability of SEK -6 million (-6), which were due to the separate listing process.

  • EBITA grew by 19 percent to SEK 204 million (171), corresponding to an EBITA margin of 11.7 percent (11.5).

  • Profit for the period increased by 20 percent to SEK 140 million (117), corresponding to earnings per share of SEK 2.70 (2.30).

  • Return on working capital (EBITA/WC) was 61 percent (61).

  • The equity ratio was 42 percent (47) at the end of the period.

  • The Board of Directors proposes a dividend of SEK 1.00 per share (–).

Momentum Group’s financial targets:

EBITA growth >15 %
Profitability EBITA/WC >45 %
Dividend >30 %

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