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Swedish safety solutions provider HAKI Safety has reported an 8% increase in net sales for the fourth quarter of 2024, reaching £21.6 million (up from £20.1 million in Q4 2023).
The company attributed the growth to strong organic performance, which saw an 11% rise, despite headwinds from exchange rate fluctuations and divestments.
In a statement, Sverker Lindberg, President and CEO of HAKI Safety, described the quarter as a “good end to the year with continued growth in a soft market.” The company’s adjusted EBITA (earnings before interest, taxes, and amortisation) also saw a significant boost, rising 32% to £1.85 million, up from £1.41 million in the same period last year.
Key Financial Highlights for Q4 2024
- Net sales: £21.6 million (+8% year-on-year).
- Adjusted EBITA: £1.85 million (+32%).
- Operating profit: £1.48 million (flat compared to Q4 2023).
- Net result after tax: £0.74 million (up from £0.52 million in Q4 2023).
- Earnings per share (before dilution): £0.027 (up from £0.019).
The company’s cash flow from operating activities, however, declined sharply to £1.04 million, compared to £5.25 million in the same period last year. This was attributed to ongoing acquisition activities and market challenges.
Full-Year Performance
For 2024, HAKI Safety reported a 12% decline in net sales to £77.7 million, down from £87.9 million in 2023. Organic sales fell by 5%, while acquisitions and divestments contributed to a further 7% decline.
Adjusted EBITA for the year stood at £5.70 million, down from £7.03 million in 2023, reflecting the softer market conditions.
Despite the annual decline, the company highlighted its resilience in a challenging environment, with a gross margin improvement to 35.8% (up from 33.4% in 2023).
Strategic Moves and Acquisitions
HAKI Safety continued its expansion strategy during the quarter, acquiring Semmco Group on 29 October 2024. Semmco, which has an annual turnover of approximately £7.4 million, is expected to bolster HAKI’s market position in the safety solutions sector.
Following the close of the reporting period, the company announced on 30 January 2025 that it had signed an agreement to acquire Trimtec.
The Board also revealed that it is considering a new issue of shares to support its growth ambitions. Additionally, a strategic review has been initiated for Landqvist Mekaniska Verkstad, one of HAKI’s remaining portfolio companies.
