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Sensys Gatso sets long-term goal of SEK 1 billion in Sales by 2025
20-02-2020
Today Sensys Gatso Group AB (Sensys Gatso), a global leader in traffic safety solutions, presents its long-term financial goals for 2025. In summary the company aims to reach total Sales of more than SEK 1 billion, of which at least SEK 600 million TRaaS recurring revenues, and an EBITDA-margin higher than 15 percent. Management will provide more information in the audiocast, today at 9am CET.
Traffic Enforcement as a Service, TRaaS, is our service offering where we build, maintain, service, and operate enforcement programs.
“Sensys Gatso has shown good progress in the order intake of TRaaS business during 2019 and the beginning of 2020, expanding into new segments and new markets. We felt it was time to define our new ambitions and to share our long-term plan and goals”, comments Ivo Mönnink, CEO Sensys Gatso.
Sensys Gatso’s long-term financial goals
| TSEK | 2019 | 2025 | CAGR |
| Total Net Sales | 406 | > 1000 | > 16% |
| of which TRaaS recurring sales: | 177 | > 600 | > 22% |
| EBITDA | 7% | > 15% |
It is Sensys Gatso’s long-term ambition to grow the Net Sales from SEK 406 million in 2019, with a CAGR of more than 16%, to more than SEK 1 billion by 2025. Of this total sales, the strategic TRaaS recurring revenue part is targeted to grow from 177 million in 2019, with a CAGR of more than 22%, to more than SEK 600 million by 2025. The overall profitability ambition increases with at least 8 percentage points from 7% in 2019 to more than 15% by 2025.
Realizing our Growth Strategy with TRaaS
There is significant leverage in Sensys Gatso’s TRaaS-business model. Our TRaaS business is based on long-term customer contracts. Each new Sensys Gatso program in operation generates revenue, margin and cash-flow on a yearly basis, typically for more than five years. Sensys Gatso has a good track record in extending the contracts beyond five years with a retention/renewal rate of more than 85 percent.
To facilitate further growth, Sensys Gatso and Rabobank intend to increase the current total facilities granted by the Rabobank with additional SEK 50 million. The facility increase will be provided to Sensys Gatso upon request, and is conditional on meeting agreed covenants, with steps of SEK 12.5 million each 6 months. The expectation is that parties will agree to the covenants and terms in March 2020. The additional facility is conditional upon final approval of the Rabobank credit committee.
Dividend
Generated net profit will be re-invested in the company to finance the growth plan. When the growth plan is fully financed, dividend will materialize after assessment of the company’s financial position, organic growth opportunities, investments, acquisition opportunities and cash-flow.
Invitation to a presentation for press and analysts
The extended Investor Presentation will be held online today in connection with our Year-End report for Q4 and fourth quarter 2019. Presentations will be held by Ivo Mönnink, CEO and Simon Mulder, CFO.
The presentation @9am today can be followed via this link:
https://tv.streamfabriken.com/sensys-gatso-group-q4-2019
Dial-in number
SE: +46850558354
UK: +443333009266
US: 18335268347
The presentation/audiocast can be joined online or via telephone and will be available on the company’s webpage https://www.sensysgatso.com
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 20 February, 2020.
For further information:
Ivo Mönnink, CEO
E investors@sensysgatso.com
Sensys Gatso Group AB is a global leader in traffic management solutions for nations, cities and fleet owners. Sensys Gatso Group has subsidiaries in Australia, Germany, the Netherlands, Sweden and the USA, and a branch office in the United Arab Emirates. The Sensys Gatso Group’s shares are listed on Nasdaq Stockholm and has 195 employees.