AVTECH Sweden AB (publ) YEAR END REPORT JANUARY - DECEMBER 2017
- AVTECH-group turnover for the fourth quarter 2017 amounted to MSEK 4.1 (3.2). Turnover for the twelve-month period amounted to 14.1 (11.5).
- Operating profit before depreciation for the fourth quarter 2017 was MSEK +0.3 (-2.7) for the 12-month period + 1.3 (-5.5)
- Net result for the fourth quarter 2017 amounted to MSEK -0.3 (- 2.7) and for the 12-month period -3.5 (-11.5) or SEK -0.06 (-0.20) per share.
- During the 12-month period, investments in new products were made. MSEK 3.7 (3.0) of these new investments have been activated.
- Cash flow from operating activities for the fourth quarter 2017 amounted to MSEK -1.0 (-1.3). Group liquid funds at the end of the year MSEK 20.4 (last year end 25.1).
- Equity capital at the period totaled to 30.0 MSEK (last year 33.9) or SEK 0.52 (0.60) per share. The Group's solidity ratio was 95.9 (96.9) percent.
- During the year, our partnership with the Met Office (UK) further deepened. Met Office (UK) for its part has developed, High-Resolution Weather (HRW), a unique refined weather forecast. This forecast is now a weather grid of 10x10 km which is considerably better than the market standard 140x140 km. A refined weather grid means, among other things, that a turbulence can be detected in e.g. 10 000 m altitude directly over the tip of Jylland (Denmark) rather than traditional projections where turbulence warnings issued over large parts of the North Sea. When the High-Resolution Weather (HRW) estimates are combined with AVTECH’s unique skills to transmit detailed and accurate information via data link directly, and in real time to the aircraft cockpit, increasing the possibilities for airlines to significantly improve fuel economy, safety, and timing accuracy.
- In April, a collaboration was established between the Met Office (UK), easyJet, Gatwick airport in London and AVTECH. The intention is to improve the efficiency of arriving aircraft to Gatwick, using Aventus as timing tool (TBO - Time Based Operation).
- In June 2017 the company announced that AVTECH and easyJet, one of Europe's leading airlines, has agreed to deploy AVTECH`s Aventus NowCastTM Full Flight to the whole easyJet fleet, including both Swiss and British aircrafts. The decision was a result of the positive results from the completed product evaluation. Commissioning of Aventus for the remaining part of easyJet's fleet is now in the final phase.
- In September, the first version of AVTECH's Aventus SIGMA solution was ready developed. Aventus SIGMA is a high quality service that with high precision presents, in real time, significant weather conditions such as icing, turbulence, volcanic ash, etc. to the cockpit of the aircraft. In the first version, AVTECH, and the Met Office (UK) focused on high resolution turbulence along the selected trajectory. Aventus SIGMA, during the fourth quarter of 2017 has been put into operation at BRA - Braathens Regional Airlines and Norwegian Airlines.
- In October, AVTECH announced that a commercial cooperation has begun with Lufthansa Cargo AG on Aventus NowCastTM. The product gives the pilot access to weather data of the highest quality and efficiency can then be achieved in terms of optimizing the flight path, thus reducing both fuel consumption and environmental impact. The discussions with other airlines in the Lufthansa Group also continues, where business conditions are fairly similar.
- During the year, efforts have been made to further develop Aventus system (NowCastTM and SIGMA). This development work has been conducted in cooperation with, among others, Norwegian and BRA. These efforts have resulted in an extension of the applicability of the products, including the types of aircraft that are not yet fully adapted to use the information from Aventus system.
- During the year, efforts were made to further customize user Aventus system. In September, the ongoing work to develop a SIGMA iOS Tablet App was announced, where weather forecasts and warnings as well as Aventus NowCast are visualized for the pilot user. The product should also be able to become a powerful tool for other flight operations personnel.
Events after the year end
- In 2018, EasyJet is expected to join the group of developing clients for SIGMA weather warning system where BRA and Norwegian already are included.
- A rising market demand for products and services in our segment and a broadening of AVTECH products has led to a decision on a substantial increase in marketing activities for 2018.
- The in 2017 established cooperation project between the Met Office (UK), easyJet, the airport at Gatwick in London and AVTECH continues . Within the framework of cooperation, different solutions to streamline airspace utilization are discussed. The project will continue with the objective to develop the technical and financial models for start-up of an implementation project during 2018.
- In January, a close group of pilots began using SIGMA iOS Tablet App. This is done as a last step of verification and product customization for a launch in Q2 2018.
- AVTECH's stated strategy of customer-driven development of products and services has led to a close collaboration with our customers. This has resulted in products with high customer benefit that is user friendly and easily integrated without the need for changes in the aircraft's hardware.
For further information, please contact
Christer Fehrling, CEO, +46 (0) 8 544 104 80
Britt-Marie Lodenius, CFO, +46 (0) 8 544 104 80
or visit the company website www.avtech.aero
AVTECHs Sweden AB ( publ), corporate identity number 556568-3108, domiciled in Stockholm.
Postal and visiting address: Färögatan 33, 24 tr, 164 51 Kista, Sweden.
The company's B-shares (ticker AVT B) traded since February 2012 on NASDAQ OMX First North. The company's Class A shares are not traded in an active market. Certified Adviser is currently Redeye AB (www.redeye.se), tel: +46(0)8-545 01 330. For the explanation of technical terms, see Glossary on page 73 of the Company's share issue prospectus of 2011.
The information in this press release is such that AVTECH Sweden AB (publ ) is obliged to publish under the EU market Abuse Regulation. The information was provided by the above contact person's Secretariat, for publication February 16, 2018 at 08:30 GMT.
About AVTECH Group
AVTECH develops products and services for digital Air Traffic Management. Customers are the global aviation industry players such as airlines, airports, air traffic services providers, technology companies and aircraft manufacturers. With the help of the company's products and services, each individual flight or whole flight operation can be optimized in terms of cost, noise and emissions, efficiency, capacity, punctuality and safety. Headquartered in Stockholm, Kista. For more information, see www.avtech.se.