Very welcome to our web meeting presenting our interim report with my colleagues, Niklas Enmark , Executive Vice President, and Clein Johansson Ullenvik , Business Area Manager for Alligo. If we go to slide four, I'll give you some highlights from the report. The pandemic have had an effect on the group's operations also in the first quarter, even though the sales were recovered somewhat during March. The integration between Swedol and TOOLS continues according to plan, with store and purchasing coordination, as well as starting the implementation of own brands in the business area. Actions have been taken to mitigate the negative effects of lower demand in both business area, where Business Area Components & Services managed to maintain a stable profit development and complete the four acquisition with a total turnover of SEK 285 million in February.
The pandemic will likely continue to affect the group in the coming months as well, and we carefully follow the development and take actions accordingly, even though the group's financial position remains fairly strong. If we go to slide five, Clein will give you some more for the Alligo.
Okay, everybody, welcome to Alligo. The first time I say that in this forum, no more Tools, Consumables, Workwear & Protective Equipment , so a little bit shorter and a little bit more powerful. Revenues for the first quarter is more or less in line with last year. A little bit below, just growth, a little bit 1% up if you adjust for workdays and currencies. And of course, we, to varying degree, have been affected by COVID-19, but as we've said before, we have a huge homework to do ourselves also. We are not at all pleased with our performance in all parts of our organization. EBITA more or less in line with last year, a little bit less, but a bit our margin one tenth down compared to last year.
Some effects on purchasing prices, and also, effects of lack of containers and things like that. Fun fact, we even had the containers on Ever Given, which was stuck in Suez Canal, which is more fun, fun remark. The integration of Swedol and TOOLS continues, just as we planned, and the launch of the name was one very important cornerstone. We've launched common product assortments. We launched the very important strategic cornerstones with mission, vision, strategic direction, and core values. And the name is Alligo is where we all belong. That's what we're building our core values based on. We've changed the ERP system in Finland on time, below budget, and we will say, without any disturbances in the market.
So the customers shouldn't have noticed much, much, even if it was, of course, a tough period for our, our colleagues in Finland. Yeah, the co-located stores are now 11, and some 20 more to follow. So slide number six, and back to you.
Thank you. If we look at components and services, the sales in this area decreased by 3% during the first quarter, and was, of course, affected by Corona, as well as a weak start in January. But demand from industrial customers recovered gradually and was very strong during March. The acquired business contributed with SEK 45 million in turnover, and all in all, sales increased by 7%. Measures to improve efficiency and higher margins continue to contribute to stable profit development despite lower sales organically. Focus has also been on profitable growth, both organic and acquired, and the acquisition of SKF's spindle service operations in Sweden was followed by four corporate acquisitions, with a total turnover of SEK 25 million during the quarter. If we turn to slide seven, we give you some grouping summary.
As both Clein and I mentioned, the general demand in the quarter has been affected by customers' restraints and caution in all our main markets, but of course, with some variation between the different customer segments and countries. In total for the group, the net sales decreased by approximately 2% during the quarter for comparable units, including Swedol. As mentioned, measures have been taken for increased efficiency, and increased margin have resulted in stable earning trends for the components and service business area, while the Alligo business area works with initiatives for increased sales and efficiency in order to improve the profit development. In total, for the quarter, EBITDA decreased by 7% for the group, while the EBITDA margin remained almost the same as last year.
One of our main focus area is to continuously decrease funds tied up in working capital, and I'm very satisfied that the group cash flow from operating activities remained very strong during the quarter. The board of directors proposes a dividend of SEK 1.50 per share for the shortened financial year, which will be decided on the annual general meeting in May. This is a promised return for the company's dividend policy after last year's uncertainties for future development of the group, which resulted in no dividend being paid in 2020. So if we turn to slide eight, Niklas will give you some hints about our nice cash flow.
Thank you, Ulf. My name is Niklas Enmark. I'm CFO at Alligo Group. As we have mentioned before, these last quarters, we have taken a very vigilant approach relating to our cash flow and liquidity situation during the pandemic, making sure that the decrease in revenue has been met with a corresponding decrease in working cash flow and thus contributing to our cash flow. It's very positive to see that we continue also into this first quarter, showing a strong cash flow, and also that we, for the first time since the outbreak of the pandemic, is showing a positive organic growth in revenue. This last quarter, cash flow from operations before working capital increased to SEK 180 million.
Adding to this, a positive contribution from working capital with SEK 35 million means that we generated SEK 250 million of cash flow from operations during this quarter. The corresponding number for the last 12 months, basically since the acquisition of the Swedol and the start of the pandemic, amounts to SEK 1.3 billion, which then corresponds to a cash conversion of approximately 160%. Looking at working capital in this last quarter, we see a build-up of accounts payable as well as inventory. This is normally a sign of increased customer demand, which then reflects in high purchasing and accounts payable build-up. This is also in line with the improved customer sentiment at the end of the first quarter from some customer groups that we see.
IFRS 16 effects impacted the operating cash flow by some SEK 104 million positive, for the quarter, and SEK 400 million positive for the rolling 12-month period, which is then, of course, reduced by the same amount in the cash flow from financing activities. As I mentioned also before, our level of CapEx is higher today than before the Swedol acquisition. Of the CapEx during the quarter, the largest part has been attributed to the finalization of the Örebro logistics facility, and also for adaptation. This quarter also unpaid investments for the implementation of the common ERP system in Finland for Alligo. Going to slide nine, I will highlight some performance measures in summary, for the 12-month period.
After Q1 of this year, then Swedol has been included for the whole period, but we show some of these numbers for the historical periods, also including the Swedol acquisition for comparability reasons. Our top line revenue stood at approximately SEK 9.2 billion for the last 12 months. This means that since the inception of the pandemic, basically then in March of last year, we have lost approximately SEK 700 million in turnover, also taking into consideration additional acquisitions that we have made, and this corresponds to approximately 7% of revenue. Despite this, our EBITA margins have been kept on a pretty stable level, basically on the same as pre-pandemic level, and this in turn is due to hard work maintaining and also increasing our gross margins and with cost control.
Also, we have been able to generate good cash flow from operations, as we have stated, which here also can be seen in terms of an increased return on working capital. Our working capital turnover has increased to close to 5 times, and I'm especially pleased to see that we have been able to keep a stable inventory turnover despite the decreasing in the top line, and also now have a positive net between our days of payables and days of sales outstanding . Our financial position is strong. Operational net liability amounted to SEK 1.3 billion at the end of the quarter in relation to EBITDA and adjusted for accounting principles. Our net debt to EBITDA stood at 1.9 at the end of the period.
Cash and cash equivalents, including unused lines of credit facilities, total SEK 1.4 billion at the end of the period. Related to our other external financial objectives, our return on equity was 11%. This measure is, of course, affected by the restructuring reserve set aside last year. With the assets ratio, it's maintained on a very strong level at 13% at the end of the period. Handing back to you, Ulf.
Thank you, Niklas. Let's turn to slide 11, and you have seen this before, our three main focus areas. It's still the same. Of course, the middle one, number two, is continue to develop the group companies that we have, and of course, also acquisition-driven growth strategy within the business area components and services, and then also the integration and merger of TOOLS and Swedol in the business area, Alligo. If you turn to slide 12, Clein will give you some more about that.
Yes. As I said, we launched the name Alligo and our common core values, and that is more than it sounds. Because we are so convinced that with a good set of core values, especially when we are merging two large organizations, it's extremely important for us. So based on three words, commitment, collaboration, and competence, we will now start the real work with the core values for the group. The ERP system in Finland went live, and that is important for so many different reasons. It's especially important that it went well, thinking about that we will now in 2022 do the same in Norway and in Sweden.
So, failure in Finland would make us nervous in Sweden, but it went well in Finland, so now we are a little bit happier. Store integration continues, customer offers, smart services is an increasing demand from our customers, which is fun to see, that they have high demands on us. So smart services is increasing. I can skip supplier and product range and go directly to our proprietary brands, which are being launched in the TOOLS business, especially Gesto shoes will be first out, and we see some good effects of that being rolled out. The regional warehouses in Norway, ten and 10 of them have been closed. So we have a much more efficient logistic structure in Norway.
We have closed the Grolls former warehouse, the acquisition Swedol made in 2016 at a central warehouse in Gothenburg. That is now closed, and it's relocated to the extended Örebro central warehouse, and that has also gone well. So page thirteen, back to you, Ulf.
Thank you. As mentioned before, the main focus of the business area is to grow through acquisitions, and we're looking for companies working with industrial components as well as industrial services. Acquisition targets should be able to achieve a long-term sustainable profitability and growth. So if we turn to slide 14, this is how we look now in the business area. And based on this strategic process, we have so far been able to add five interesting companies with niche competence and offerings in industrial services, as well as industrial components, and with a total turnover around SEK 300 million. After the latest acquisition, the business area now have a substantial turnover in both our focus areas. Industrial components with some SEK 1.1 billion in annual revenue, and industrial services with some SEK 400 million in annual revenue.
Our company's competences and offerings will strengthen our market positions going forward, both individually and whenever advantages for customers are not combined. The acquisition pipeline continues to look interesting for further development, and hopefully we will be able to travel in the Nordics to meet companies after the summer months. So if we turn to slide 15, our last page today, you have seen our three focus area, and now the board of directors have given us a fourth focus area. So in an effort to provide the two business areas with better direct way to achieve their goals in an optimal manner, and thereby increase shareholder value, our group management has been assigned the task of investigating the possibility of splitting the group into two separate listed companies, as well as the conditions of such a split.
Further information of the result of the investigation will be presented by the board during this financial year. If we move on to page 16, we can take some Q and A.
Thank you. Ladies and gentlemen, if you wish to ask a question, please press zero one on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing zero two to cancel. Once again, if you have a question for the speakers, please press zero one on your telephone keypad now. There will be a brief pause while questions are being registered. Thank you. Our first question comes from the line of Kaloyan from DNB Markets. Please go ahead. Your line is now open.
Yes, good morning, Kaloyan Bonev from DNB Markets. Just to follow up where you finished off with the split up of the group, when you now have the mandate from the board, is there any areas where you are worried that you would come up with a reason for not splitting the group? Is there any areas where you would highlight extra concern, so to say, for not going ahead with?
Not really. Due to the former split, which we did with Bergman & Beving , we kind of did the setup that we would be able to do it again. So of course, we have some work within IT and others that we have to separate, but not that much. So I don't see any obstacles for not doing.
And when you compare it to the split up of Bergman & Beving and Addtech, would you consider this being a, an easier process to conduct than that one?
The listing process is kind of the same. Of course, the prerequisites for being a listed company increase and being tougher every year. But the separation that we did last time was very intense. I think we separated somewhat 300 IT systems, and we split the logistics with 220 trucks moving parts. So I think the separation process is much easier than last time.
Sounds promising. Sounds promising. Clein, when we look at Alligo, your, the new name for the company, how did you come up with that? It's just interesting to know.
We had a little contest in the management team, and the winner should be awarded a medium-priced bottle of wine. And one Gustav came up with a name, which I like it because it includes all and also go. All is including, we are merging to in a way different organizations, and we need speed and positivism, so the go. But in Esperanto, it should mean something like unite, which is also a good meaning. So that's the background of it.
Excellent. And you feel that all brands are strong enough to stand on their own feet and continue to be developed?
Sorry, in.
We lost, we lost you there for a couple of seconds.
My microphone is not the best at the moment. If you look at the concept brands, the four brands you are proposing to continue to develop, you feel that all of them are strong enough to put the energy into, rather than maybe putting them into, y eah, to say fewer of them?
It's a very good question, and, of course, they have different strengths, and we monitor that closely, and we have customer surveys continuously. And, depending on country, some are stronger, some are weaker. And on that note, Week 21, now we will close the brand Swedol in Norway, because it was such a small business, and TOOLS in Norway was a stronger brand. So, in Norway, it will be Univern and TOOLS, and Swedol will be phased out. But for all the other countries, those are the brands that we use there. But who knows in the future how we will mix our portfolio? But from Norway, there will be a change. So that's a good question.
Excellent. And good news on that, ERP change over in Finland went so well for you. When you look ahead to do the same thing now in Sweden and Norway, would you say that the relative size of the operations make the challenge bigger in Sweden and Norway? Or you have a good lesson from Finland that you can bring back to Sweden and Norway when we try to implement it?
Both, of course. I mean, Finland was our smallest country and the biggest need of a new ERP system. So in that sense, we could learn a lot, and we gave everybody involved in the project some self-confidence. So now when we take on the much larger countries, Sweden and Norway, of course, we start with some optimism and self-confidence, which is very, very important. But of course, the complexity is bigger in Sweden and Norway, absolutely.
I saw you just announced an acquisition in Finland in the reseller segment. How quickly would you now try to integrate that into the structure that you have in Finland with the new ERP system of this? Is this something you do quickly, or like done, maybe a little bit historically, that it's done in due course?
It's a good question as well. It depends from acquisition to acquisition. In some cases, we move together quickly, and we change ERP system quickly. Now, now we need to really stabilize and, and feel that we are satisfied with, with the performance, another coming weeks in, in the Jeeves environment in Finland. And then, Imatran Puu will be integrated. We are already active in that local market, but it will be a good complement to our market in that sense. So it will be done step by step, and we are always very, very cautious. We don't do anything to risk anything, losing customers or making our new colleagues nervous. But it will be integrated step by step.
Okay. I still see that you mentioned industrial accounts as being a challenge and a headwind looking at volumes. And I remember in the last conference call, you talked about a couple of account losses, and you were putting extra energy and the time to really counterbalance that. How has that worked out, and when could we say that you're hopeful that you come back to more balanced development towards industrial accounts?
Yeah, it's another good question, and we are struggling with that every day, and we would like to go from a defend mode to, and to be more active in winning new contracts. But a little bit different picture from country to country, but we were in very much, and we still are, to a certain extent, very much in a defend mode. So contracts we already had that comes up for renegotiations, that we start by winning them, and then we could move on and a little bit more of self-confidence. But to say when, it's very, very difficult, but we need to get better sales processes in place, get our sales forces to feel self-confidence again.
A little bit boosted by also portfolio, at one point with a private label will help them with our proprietary brands, gives us a much better competitive advantage in the local market. And there, we're already seeing a couple of cases, but it will take some time. We will manage, but it's frustrating. We would like to be the ones really pushing in the local market, but we are, to a certain extent, defending still.
And when I look at industry statistics for the construction sector and then the infrastructure part of it in the reseller segment, it seems that that is have continued to boom, so to say, over the last, say, quarters. Have you feel that you have managed to capture that market opportunity?
We have part of our organizations that are growing quickly and very nicely, and defending market shares and winning market shares. We have part of our organization which are decreasing quite a lot and potentially not keeping market shares. I'm not so sure, but we have good control of the different customer segments, and we can closely monitor where we feel we are strong as we should be, or where we need to put in extra efforts.
Excellent. And just a final question for you, Clein. If you look at the 10% margin target, how do you see the journey getting there? You just put up a lot of milestones like ERP platform, the warehouse integration projects, the store consolidation. Should we see the journey there as a step-by-step one with a continuous improvement in the operating margin? Or would you see it as that we're getting into more of a lumpy road, where you will have periods where margins would not move very much, and then you have quick step changes?
We are focusing now on building this platform, as you said, to try to be as efficient as possible and building a united group. And then we have all the strategic cornerstones in place now with the mission, vision, strategic direction, and the core values, and also even a name. And then the more operational activities continues. And one important thing, well, I don't think we've ever quantified it in time, but one important thing, of course, in achieving the 10% is the rollout of the proprietary brands. And that is also that activity that takes some time. I mean, for an external supplier, you can ask for a meeting and say, these are the new conditions, and we get a few percent better conditions. That goes quite quickly.
But when you need to first order bigger quantities from our suppliers in Far East, and then they should be shipped home, hopefully not with any disturbances in the Suez Canal or anything else, and they should arrive, and we should then train our salespeople to be confident that I will now manage to get this customer to buy Gesto shoes instead of any other brand. That is a time process. So in that aspect, relating to your question, that activity is a bit back heavy, so to speak. That is not a straight line. That will take some time before you see those effects.
Excellent. Thank you. Ulf, just a question on service. If you look at that operation, it seems like your footprint is now coming back to growth again when you're looking at what's happening with natural production in Sweden and so on. Is that the right kind of interpretation of it?
Yeah. I listened to Handelsbanken yesterday about their prognosis, and they also say that the recovery is fast, and the fastest growing is the industrial segment. So we also could see in the end of March and also in April, it's pretty good activities in the industrial area, especially in Sweden.
And then we correctly, as that kind of recovery, say, helps the consumer components and service operation with a short time, or is this more direct?
No, I think it will help kind of directly. We could see the OEM was growing pretty faster than the MRO business that we are predominantly in. But we can also see that the industrial is growing and our order books is growing as well. But then we also have to manage the supply chain because it's more coming up shortages of products. So we've been ahead of that and have ordered larger quantities that will stock up, so we will be able to supply our customers.
Interesting. Niklas, just one final question also for you. Looking at the structural reserve you put up, how much of that has been released in the quarter, and what is remaining of it?
Okay. This quarter, we released SEK 5 million, so it's SEK 87 million remaining of the structural reserve.
Excellent. Thank you very much.
Thank you.
Thank you.
Thank you.