AVTECH SWEDEN AB (publ) INTERIM REPORT JANUARY - MARCH 2020
KEY FIGURES AND EVENTS
|Operating profit before depreciation||+0,3||+0,5||+0,9|
|Net profit per share, SEK||0,0||-0,005||0,002|
|Cash and cash equivalents||12,3||13,3||14,1|
|Equity per share, SEK||0,50||0,50||0,50|
|Equity ratio, %||93,2||92,7||93,0|
Sales for the quarter developed less than expected as the contract process with a European charter company was paused due to COVID-19.
- During the period, AVTECH and Southwest began preparations for a test of Aventus full-flight winds.
- From mid-March, all staff work from home to reduce the spread of infection.
- The development of proFLIGHT is proceeding according to plan. During the latter part of the quarter, a decision was made to postpone the launch of the payment solution until the market recovers. At the end of the period, the number of proFLIGHT users exceeded 1300 from more than 150 airlines.
- During the period, access to flightplans was established via the FAA (Federal Aviation Administration), which in the long term strengthens AVTECH's service offering in the North American market.
- The AVTECH team was strengthened in February by a technical project manager, Bahram Bahar, with background from aviation and computer science as well as many years of experience in the telecommunications industry.
- As part of the ongoing cost review, at the end of March, a termination was made to renegotiate the lease for the current office space.
- AVTECH has become an Authorized IATA Turbulence Aware Data Agent which allows us to provide this data layer in proFLIGHT.
- The main focus of the quarter's marketing has been Environment, Cruise Optimizer and ProFLIGHT.
- On January 30, AVTECH conducted an online webinar for proFLIGHT. This generated a great deal of interest with over 138 people from more than 67 airlines.
- On February 7, a press release was released of Norwegian regarding their experience of using AVTECH's Cruise Optimizer service, and the savings of 10-15,000 tonnes of CO2 per year it is expected to generate.
- Attending the Flight Ops IT Conference - Americas on March 11-12 in Miami, USA. There, AVTECH's cruise optimizer was launched on the US market, with Norwegian presenting its positive experiences of deploying and utilizing the service as well as the experienced savings. A video recording of the presentation is available here (https://youtu.be/-O-BZ6pZNjs). Airline attendance at the conference was lower than normal due to COVID-19.
- Promotional campaigns via email and social media
- proFLIGHT and Cruise Optimizer campain targeted towards air cargo operators
- Campaign on IATA Turbulence Aware Data in proFLIGHT
EVENTS AFTER THE PERIOD
proFLIGHT is now used by over 1380 pilots from more than 170 different airlines. At a reduced speed, the work now continues in order to strengthen the app with features requested by pilot users and to prepare for EASA certification. In parallel, marketing efforts continue to increase the number of users. The focus right now are cargo airlines, which are experiencing an increased demand during the crisis.
- To meet lower revenues in the reactions to COVID-19, from April, we reduced staff working hours within the framework of state aid for short-term leave. This provides an opportunity to retain important personnel and competence before the situation turns.
- Preparations for a full-flight winds test with Southwest are continuing and our current estimate, which is subject to change in the current situation, is that a test period could start during the second quarter. Southwest Airlines still operates a large number of flights and, during April, temporarily became the world's largest airline based on the number of passenger seats flown.
- A new website is under construction to be launched in Q2.
- Due to the current situation in the world, we are postponing the launch of a planned information campaign focusing on environmental impact and modern technology in the cockpit.
- A video campaign together with MetOffice is planned around the benefits of high-resolution weather.
- Preparatory planning of a service for monitoring flight through volcanic ash has been carried out. A project will take about 6 months from the start and is currently awaiting go-ahead from a dedicated development customer. This service is considered to be of interest to more airlines.
- In the current situation, activities are paused with airport related projects such as Gatwick and Arlanda.
For further information, please contact
David Rytter, CEO, +46 (0) 8 544 104 80
Britt-Marie Lodenius, Chief Financial Officer, +46 (0) 8 544 104 80
AVTECH Sweden AB (publ), corporate identity number 556568-3108, has its registered office in Stockholm municipality.
Postaddress: Färögatan 33, 24 tr, 164 51 KISTA, Sweden.
The company's B-share (short-term AVT B) has been traded on the NASDAQ First North Growth Market since February 2012. The company's A-share is not traded on any marketplace. Certified Adviser is Redeye AB (www.redeye.se), tel: 08-121 576 90, e-mail address firstname.lastname@example.org. For explanation of technical terms, see glossary on page 73 of the Company's New Issue Prospectus 2011.
The information in this pressrelease is published in accordance with EU Market Abuse Regulation (MAR) The information was submitted, through the above contact person's provision, for publication on April 30th 2020 kl 08.30 CET