Polygon AB (publ) – Interim report 1 Jan – 30 Sep 2016

Positive trend continues and gains more speed during Q3

STOCKHOLM, Sweden--()--Regulatory News:

Positive trend continues and gains more speed during Q3

THIRD QUARTER 2016

· Sales in the quarter were up 16% compared to the same period of last year, driven by strong organic growth. Growth was generated by the combined effects of an increased share of wallet from existing customers, recently awarded new contracts and the summer rains in central Europe. Comparable business in the US, after the closing of the PDR activity last year, increased by double digits.

· Order intake was continuously good during the quarter which will materialize in the fourth quarter.

· Adjusted EBITA amounted to EUR 9.3 million (4.7), an increase close to 100%, compared to the previous year. The main earnings improvement came from continental Europe and, like in Q2, was driven by Germany which, along with the US, is continuing to perform well following the restructuring activities last year.

· Operating profit before amortization (EBITA) was EUR 9.1 million (4.4).

· The roll out of the new field force system continued in mid-September with additional users going live.

JANUARY - SEPTEMBER 2016

· Sales for the first nine months grew by 7.3%, following a strong second and third quarter. Underlying organic growth adjusted for restructuring in the US and currency effects were positive at 11%. Polygon gained large contracts during the period (UK, Germany and Norway), thereby strengthening the market position.

· Adjusted EBITA amounted to EUR 21.8 million (12.5), an increase of 74% compared to the previous year. 11 countries out of 13 improved their earnings. A large part of the improvement has come from Germany and the US following the restructuring in Q2 2015.

· Operating profit before amortization (EBITA) was EUR 21.2 million (7.7). Items affecting comparability have decreased by EUR 4.2 million from EUR 4.8 million 2015. EUR 4.0 million was booked last year for the restructuring in Germany and the US.

· Cash flow from operating activities of EUR 15.3 million was hampered by the strong activity in the third quarter resulting in build-up of receivables and work in progress. Net debt was EUR 99.3 million (107.4).

· In January 2016 the Board of Directors was strengthened with the addition of Ole Skov.

· On 29 June, Polygon received permission from bond holders to reorganize internal debt structure.

Interim report 2016 (http://www.polygongroup.com/globalassets/global/reports/kvartalsrapport-q3_2016_final.pdf)

Polygon – Q3 result investor call invitation 2016 (http://www.polygongroup.com/globalassets/global/reports/polygon---q3-2016-investor-call-invite-14-october-2016-1.pdf)

Polygon Q3 – presentation (http://www.polygongroup.com/globalassets/global/reports/polygon---q3-2016-presentation-final.pdf)

This information is information that Polygon 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 17.30 CET on 10th of October 2016.

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Contacts

For further information, visit www.polygongroup.com or contact:
Mats Norberg, CFO at Polygon
Mail: mats.norberg@polygongroup.com
Phone: +46 (0) 70 331 65 71

Contacts

For further information, visit www.polygongroup.com or contact:
Mats Norberg, CFO at Polygon
Mail: mats.norberg@polygongroup.com
Phone: +46 (0) 70 331 65 71