Bravida Reports Strong Fourth Quarter 2016 Results

Building services provider Bravida has reported a robust performance for the fourth quarter of 2016, which ended on December 31. The company's net sales rose by 9 percent to SEK 4,277 million, compared to SEK 3,919 million in the prior-year period. Operating profit increased by 28 percent to SEK 353 million, with the operating margin improving to 8.3 percent from 7.0 percent.

The order backlog grew by 22 percent to SEK 8,644 million, providing a solid foundation for future business. During the quarter, Bravida completed four acquisitions, adding approximately SEK 430 million in annual sales. This strategic move aims to strengthen the company's market position, particularly in Finland, where the acquisition of Asentaja was completed to enhance its service offering.

While Bravida did not achieve its full-year growth target for 2016, the company is focusing on enhancing profitability in the coming year. As part of this effort, Bravida is reviewing the organization of its security, sprinkler, cooling, technical facilities management, and power businesses to optimize performance.

Cash flow from operations amounted to SEK 415 million, a decrease from the previous year's exceptionally strong performance. Bravida has stated an increased focus on achieving its cash flow targets in 2017. The company anticipates continued strong demand for its services and believes that a substantial order backlog, coupled with strategic pricing, will support sustained profitable growth.