GOOD DEVELOPMENT IN PORTFOLIO COMPANIES GAVE RECORD RESULTS
Positive development in all holdings gave Stena Adactum a record result in 2019. The most important events during the year included Stena Renewable’s billion SEK investment in new wind farms. ”Several of our holdings have a clear environmental profile and the knowledge generated in this area is shared between the companies,” says Stena Adactum’s Managing Director Martin Svalstedt.
Stena Adactum is Stena AB’s wholly-owned investment company. The investment model is based on acquiring companies with good potential for growth and profitability, and then taking the next step of developing and strengthening the company as an active partner. The strategy is long-term. Many holdings – such as wholly-owned Ballingslöv International, Blomsterlandet and Envac – have been part of the portfolio since the early 2000s, when Stena Adactum was established. Today, the portfolio comprises eight companies with revenue totalling SEK 17 billion.
ambitious business objective
The most recent acquisition is the principal shareholding in the listed company Beijer Electronics, which was acquired from Stena Sessan during the year. The holdings are all characterised by low indebtedness and stable finances. ”When we invest, we do so with responsibility and respect for the expertise found in the company. We also have the ambitious business objective to double the value of the invested capital every five years. We exert active ownership and perform continuous evaluation to monitor how the company is developing,” says Martin Svalstedt.
STRONG SALES FOR BALLINGSLÖV
Stena Adactum’s single largest holding is Ballingslöv International, which comprises seven kitchen brands, and a holding in Svedberg, a bathroom furniture manufacturer. Ballingslöv International developed positively in 2019, like the other wholly-owned portfolio companies, Blomsterlandet, Envac – world-leading automated waste disposal systems – and Captum, a consumer credit provider. ”Since 2018, Blomsterlandet has added seven new garden centres and, parallel to this, also increased its focus on e-commerce. Envac achieved sound growth with a strong order intake, while Captum’s volume-based expansion continued, with new customers and stable development,” Martin Svalstedt comments.
NEW WIND FARMS AND ACQUISITIONS
Sustainability plays a key role for Stena Adactum. Part of the work concerns using active ownership and board work to influence the portfolio companies, and also to share knowledge of this area between the companies.
In addition, several of the holdings have a clear environmental profile. These include Stena Renewable, which owns and manages 115 wind farms with energy production of around 710 million kWh, equivalent to Malmö city’s consumption of domestic electricity. During the year it was also determined that Stena Renewable is to invest SEK 1.7 billion in Vindpark Åby-Alebo in Mönsterås Municipality, where 36 wind turbines in total are to be established – making it the largest wind farm in southern Sweden. During the autumn, new wind farms outside Örebro and Ludvika were also commissioned, together with the planning of new wind farms and the expansion of existing sites.
The positive performance of all portfolio companies gave a record result for Stena Adactum. ”Our financial strength gives opportunities to support the other Stena business units as required. The ambition for 2020 is to continue to prioritise profitability and also to take the lead among investment companies when it comes to sustainability,” says Martin Svalstedt.
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