Absolent Group initiates cost reduction program

Absolent Group AB (publ) takes action to reduce costs within the group. The cost reduction program is a natural consequence of the ongoing consolidation of the acquired businesses as well as adapting to the market recovering from the effects of COVID-19. Within a short period of time, Absolent Group has implemented several measures including furloughs and reduction of non-essential costs. As a long-term measure, the new company-wide cost reduction program is estimated to generate annual savings of 50-60 MSEK and will result in one-time expenses of approximately 40-50 MSEK. The one-time expenses are expected to impact the second quarter of 2020. The action program is expected to start having a full effect during the last quarter of 2020.

In 2019, Absolent Group completed seven acquisitions resulting in 16 new companies in the group. To maximize synergies of the acquisitions, several companies will be merged, and some production sites and offices will be shutdown and relocated to common group facilities. As part of these mergers, we will continue to streamline our production processes and reduce costs of purchased components and raw materials.

Further, the demand has decreased in some customer segments due to COVID-19 and we expect that the market will need the remainder of 2020 and into 2021 to recover. The cost base of the concerned segments will be adjusted accordingly by reducing our workforce at the related production sites and offices.

In total, Absolent Group expects to reduce the global workforce by about a quarter of the total 530 employees within the next six months. We estimate that about 20 employees will be affected in Sweden, 80 employees in the United Kingdom and the remainder in the rest of the world. The process differs slightly in various countries, but notices has been placed where applicable and negotiations have been started with the relevant trade unions. Notices and redundancies affect both office and factory staff and the exact number of employees affected by the program will be known after all the negotiations have been completed.

Further information

Contact:

Axel Berntsson, CEO Absolent Group AB 0510 - 484000

Anna Åkerblad, CFO Absolent Group AB 0510 - 484000


Absolent Group AB is listed on Nasdaq First North Growth Market. Certified Adviser for Absolent Group AB is Erik Penser Bank AB Tel. 08 - 4638300. Email: certifiedadviser@penser.se

This information is information that Absolent Group AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 3:00 p.m. CEST on April 09, 2020.

Absolent Group AB (publ) | Staplaregatan 1 | SE-531 40 Lidköping Sverige

Org. nr: 556591-2986 | Tel: +46 (0) 510 48 40 00 | Fax: +46 (0) 510 48 40 29 | ir@absolentgroup.se



Uppföljning Absolent Groups åtgärdsprogram

Absolent Group AB (publ) vidtog under 2020 åtgärder för att minska kostnaderna i koncernen till följd av Covid-19. På kort sikt implementerade Absolent Group en rad olika åtgärder inklusive korttidspermitteringar och reducering av icke-kritiska kostnader. Som en långsiktig åtgärd minskade koncernen sina kostnader på årsbasis med 53 MSEK genom ett övergripande åtgärdsprogram som kommunicerades i juni 2020. Besparingarna har gradvis börjat träda i kraft under andra halvan av 2020 för att nå full nivå vid försäljning av Gallito i början av januari 2021. Tillhörande engångskostnader för åtgärdsprogrammet uppgick till 42 MSEK


Absolent Group cost reduction program follow-up

Absolent Group AB (publ) acted during 2020 to reduce costs within the group due to the effects of COVID-19. Within a short period of time, Absolent Group implemented several measures including furloughs and reduction of non-essential costs. As a long-term measure, the Group reduced the costs on a yearly basis of 53 MSEK through a company-wide cost reduction program communicated in June 2020. The action program was gradually implemented during the second half of 2020 and achieved full effect when Gallito was sold in the beginning of January 2021. Related one-time expenses of 42 MSEK were recorded.


ABSOLENT SLUTFÖR AVYTTRING AV GALLITO LTD I STORBRITANNIEN

Absolent Group har avyttrat Gallito Limited i Storbritannien. Avyttringen är i linje med Absolent Groups strategi och skärper fokuset på utvalda tillväxtplattformar.


ABSOLENT COMPLETES DIVESTITURE OF GALLITO LTD IN THE UK

Absolent Group has divested Gallito Limited in the UK. The divestment is in line with Absolent Group's strategy and sharpens the focus on core growth platforms.


Absolent förvärvar Tessu Systems B.V. i Holland

Absolent Group AB har idag förvärvat storköksventilationsbolaget Tessu Systems B.V. i Holland för 5,3 MEUR på kassa- och skuldfri basis plus en tilläggsköpeskilling som beror på bolagets resultat under 2021 och 2022. Tessu har de tre senaste åren haft en snittomsättning på 5,5 MEUR med en EBIT-marginal om ca 29 %. Tessu kommer omgående att konsolideras in i Absolent Group.


Absolent acquires Tessu Systems B.V. in the Netherlands

Absolent Group AB has acquired the commercial kitchen ventilation company Tessu Systems B.V. in the Netherlands for 5.3 MEUR on a cash and debt-free basis with an opportunity for an additional earn out conditional on Tessu's performance in 2021 and 2022. Tessu has during the last three years had an average turnover of 5.5 MEUR with an EBIT margin of circa 29 %. Tessu will be consolidated into Absolent Group immediately.


Absolent rekryterar ny CFO

Absolent Group AB har rekryterat Karin Brossing Lundqvist som ny CFO. Karin har en bred och djup bakgrund från ledande befattningar inom ekonomi och IS/IT i flera branscher, från snabbrörliga konsumentvaror till fordonsindustri. Karin har en kandidatexamen i ekonomi från Lunds universitet och kommer från positionen som CFO för DEKRAs svenska verksamhet. Hon och förväntas ansluta till Absolent vid halvårsskiftet 2021.


Absolent recruits a new CFO

Absolent Group AB has recruited Karin Brossing Lundqvist as a new CFO. Karin has an extensive background from executive positions in Finance and IS/IT in several industries spanning from FMCG to Automotive. Karin has a B Sc. In Business and Economics from Lunds university and is currently employed as CFO of the Swedish operation at DEKRA. She will join Absolent Group by mid-year 2021.








ABSOLENTS CFO AVGÅR

Absolent Group AB:s CFO, Anna Åkerblad, har idag sagt upp sig från sin anställning. Hon kommer att fortsätta i sin nuvarande roll under uppsägningstiden om fyra månader för att säkerställa en ordnad övergång till dess att en ny CFO tillträder. Rekryteringsprocessen av en ny CFO inleds omedelbart.


ABSOLENT'S CFO RESIGNS

Absolent Group AB:s CFO, Anna Åkerblad, has today handed in her notice. She will remain in her current position during the four months' notice period to ensure a structured handover until a new CFO joins the company. The process to recruit a new CFO will be initiated immediately.


Absolents styrelseordförande vinnare av Guldklubban för Region Väst 2020

Absolent Group AB:s styrelseordförande, Mikael Ekdahl, har idag blivit utsedd till vinnare av Guldklubban för Region Väst. Guldklubban är en utmärkelse för effektivt och affärsinriktat styrelsearbete instiftat av revisions- och konsultföretaget Deloitte och den ideella föreningen StyrelseAkademien.


Absolent's Chairman awarded the 'Golden Gavel' for Region West 2020

Absolent Group AB's Chairman of the Board, Mikael Ekdahl, has been awarded the Golden Gavel (Guldklubban) award for Region West. The Golden Gavel is an award for effective and business-oriented board work and was established by the auditing and consulting company Deloitte and the non-profit organization the Swedish Academy of Board Directors.


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