A challenging market with exciting opportunities going forwards

2023 was an exciting and challenging year for Bravida. Despite it being a difficult market, we are relatively stable. We are an enabler regarding the climate transition and ensure that what needs to work works, regardless of the economic cycle and global situation.

 

Despite economic headwinds, Bravida delivered a relatively stable result, with steady demand and good profitability for service. Our automation business reached SEK 1 billion in sales during the year. The challenges in 2023 – cash flow and lower profitability in three Danish regions – were handled decisively and will be a major focus of our business activities going forwards. Åsa Neving, our CFO, explains more about this on page 67, in the Annual and Sustainability Report. I would like to talk about the opportunities and challenges facing Bravida for the future.

We are an enabler regarding
society’s climate transition

Housing and construction account for a large share of climate-affecting emissions. By implementing energy-efficient installations in new buildings and energy-efficiency measures in older properties and facilities, together with our industry colleagues we contribute to a more sustainable future. This development is best achieved through cooperation – both within our industry and with politicians.
 
Digital developments can make a big difference. With proptech, automation and energy optimisation of buildings and facilities, we can optimise energy use in buildings and facilities, as well as running and servicing technical solutions remotely. Technology is developing rapidly and our services are becoming ever more efficient. With fossil-free service and transport, we can make even more difference. The technology is in place, not least at Bravida, and there is a desire in many companies to be sustainable.

But we can speed up the transition. This requires more incentives to make sustainable choices in society, such as extended green technology grants and requirements for energy-efficient buildings in the public sector. We in the industry, together with politicians, now need to make it easier to make these choices.

 

Leadership is crucial in an uncertain market

Society is also facing many other changes, not least an uncertain interest rate situation and weak construction activity. For many years, our motto of “margins over volume” has served us well – and it will continue to serve us well in the future too. To counteract future challenges, we will focus even more on the Bravida Way – our common method of working – and our procedures for project selection and cost control throughout the organisation.
 
Our leaders play a crucial role in this work, and this is becoming even more important as we grow. It involves being able to lead the organisation and its people in a good way while also strengthening our common culture. In recent years, we have therefore invested in, for example, training our leaders. Things are moving in the right direction. An important confirmation of this is that our accident figures, LTIFR, decreased by 3 percent at the Group level in 2023, while our staff turnover decreased to 11.6 (12.9) percent.
 

Major opportunities going forwards – but the fundamentals remain the same

We ended the year with improved cash conversion and a large order backlog. We have good long-term prospects and a strong balance sheet that we can use for acquisitions and dividends. For the ninth consecutive year, we feel confident to propose an increase in the dividend to our shareholders. Looking ahead, we see stable demand for service and good prospects in the infrastructure, industry and defence segments. Bravida is ready for the future, further technology development and the green transition.

But it’s not all about advanced models and remote control. Some things require practical hands-on expertise, both now and in the foreseeable future. There are things that we expect to just work. There should be water in the tap, electricity in the wall socket and fresh air indoors. It is our fitters, technicians, project managers, engineers and other staff who make this happen. Around the clock, all year round.

Mattias Johansson

CEO and Group President
Stockholm, March 2024