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Half year Report January - June 2017
31-08-2017
April – June 2017
- Net sales MSEK 68.2 (100.0)
- Order intake MSEK 64.6 (61.4)
- Operating profit MSEK -14.6 (-2.9)
- EBITDA MSEK -4.7 (6.5)
- The profit after tax MSEK -15.9 (-0.9)
- Comprehensive income MSEK -20.3 (1.8)
- Earnings per share, before and after dilution, SEK -0.02 (0.00)
- Cash flow from operating activities amounted to MSEK -13.2 (12.0)
January – June 2017
- Net sales MSEK 138.9 (264.2)
- Order intake MSEK 133.2 (88.5)
- Operating profit MSEK -31.9 (-17.3)
- EBITDA MSEK -12.3 (9.8)
- The profit after tax MSEK -32.3 (-20.9)
- Comprehensive income MSEK -36.7 (-17.2)
- Earnings per share, before and after dilution, SEK -0.05 (-0.03)
- Cash flow from operating activities amounted to MSEK -21.8 (14.6)
COMMENTS FROM THE CHAIRMAN OF THE BOARD
In connection with today’s interim report, the Board proposes a rights issue in order to strengthen the company’s financial structure and facilitate growth based on Sensys Gatso’s competitive platform and unique position. In addition, earlier this week, we announced the appointment of the next CEO, Ivo Mönnink, who will be leading the group into its next phase. I encourage all our shareholders to carefully read the separate press releases on both these initiatives.
I would also like to take the opportunity to thank Torbjörn Sandberg for his excellent efforts as CEO of Sensys Gatso. Under his leadership, Sensys Gatso has successfully finalized the integration of Sensys Traffic and Gatso Beheer as well as completed the development of the core of our platform from which we will build our future growth.
COMMENTS FROM THE CEO
In the second quarter the sales in our two business segments amounted to SEK 68.2 million (100.0) with SEK 51.9 million (85.9) for System Sales and SEK 19.1 million (15.3) for Managed Services. The gross margin amounted to 46.8% (36.5) which is a significant increase as a result of the mix in sales between System sales and Managed Services.
The EBITDA for the second quarter amounted SEK -4.7 million (6.5) and operating profit came in at SEK -14.6 million (-2.9).
Order intake during the second quarter amounted SEK 64,6 million compared to SEK 61.4 million in the corresponding period last year. Looking at the first half year the order intake amounted to SEK 133,2 million (88.5), which is a significant improvement compared to the first half last year.
The payment capability among the customers in the Middle East has decreased, which has impacted our sales negatively. However, it is again important to highlight that we have not lost any significant deals and that our competition is facing the same challenges. Despite these challenges, we still remain optimistic about our future.
The available cash at the end of the second quarter has decreased to SEK 64.5 million compared to SEK 78.3 million at the end of the first quarter 2017. The decrease in available cash is due to negative operating cash flow and a decrease in available credit facility. The cash flow from operating activities totalled SEK -13.2 million during the second quarter (12.0) in 2017. The negative operating cash flow is caused by a negative operating profit and an increase in inventories during the second quarter. The credit facility has decreased with SEK 10 million during the quarter.
After the acquisition of Gatso, Sensys Gatso Group has shown a strong performance in operating cash flow up until 2016. This cash flow has been used primarily to finance the transformation program expenses and to repay bank loans relating to the acquisition and short term shareholder loans. The group has made full redemption on the acquisition loan after the reporting period in July 2017.
Looking at the short-term outlook, it is hard to assess when the volatile and uncertain market situation will ease. However, we will continue to focus on our strategy and will be ready to manage any business opportunities when they arise. The demand for our systems and services has large potential to increase over time supported by the global trends in favour of sustainability and traffic safety.
Torbjörn Sandberg
CEO, Sensys Gatso Group
Invitation to a presentation for press and analysts
On 31 August at 09:30, Chairman Claes Ödman, CEO Torbjörn Sandberg and CFO Niki Gatsonides will present the report and answer questions in an audiocast. The presentation can be followed online via the link on Sensys’ website: www.sensysgatso.com or http://media.fronto.com/cloud/sensys/170831
It is also possible to listen to the presentation and ask questions by phone; you can register via the two following options:
Pre-registration via web link
To take part in the telephone conference, we would ask you to pre-register in good time ahead of the event via the following web link:
http://emea.directeventreg.com/registration/71009390
Open the link and follow the instructions. When registration has been completed, a confirmation email will be sent to the email address specified during registration. This email will contain phones number and a code (Direct Event Passcode). Select the appropriate number to call.
To take part in the conference, when prompted, enter the code followed by “#”.
Directly by phone:
As an alternative to online registration to take part in the event via the telephone conference function, the following phone numbers may be called:
Sweden: +46 (0)8 566 194 25
USA: +1 8 669 049 624
UK: +44 (0) 844 571 89 31
You will be prompted to enter an event code; ignore this, and wait instead (1–2 min) until the operator speaks, and then state your: Conference ID: 71009390 or “Sensys” to register.
Please call ten minutes before the time specified.
This information is information that Sensys Gatso Group 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 08.30 on the 31st of August 2017.