Bricknode interim report: January – March 2023
Bricknode has today published its interim report for the period January – March 2023. The report is attached to this press release and is available on the Bricknode website.
Q1 2023 in brief
- Entered purchase agreement with Huddlestock Fintech AS ("Huddlestock") regarding the transfer of all operational assets of Bricknode for 41,138,911 consideration shares in Huddlestock
- Net revenue increased by 7% to 5,002 (4,671) TSEK
- Net revenue retention rate 96% (107%)
- Earnings per share amounted to -0,39 (-0,41) SEK
- EBIT result amounted to -3,518 (-3,962) TSEK and the margin amounted to -70% (-85%)
Comments from co-CEOs, Stefan Willebrand & Erik Hagelin:
During Q1 we announced what we think is a great marriage between Bricknode and Huddlestock. These are two companies with the same vision and purpose. We both provide the “pipes and plumbing” for digitalizing capital and investment markets and our purpose is to empower our clients to deliver access to global capital markets through simple, accessible, and personalized trading and investing solutions.
Bricknode has invested a lot of time and capital into building wealth management solutions with its extensive ecosystem of applications, while Huddlestock has focused more on the real-time trading area of finance. Huddlestock has also managed to build up a cash flow generating division which offers customized solutions to customers.
By combining the scalable SaaS products that Bricknode has developed with the solutions division of Huddlestock, the new group can truly become a one-stop shop for clients. Huddlestock already serves a diverse portfolio of clients all the way up to tier 1 banks, and this offers Bricknode a way to play in a larger arena much faster than it could have achieved itself.
The real-time trading infrastructure that Huddlestock has created perfectly integrates with the wealth management applications of Bricknode so there are literally no overlaps.
From an organizational perspective Bricknode comes out of a significant downsizing of its staff members while Huddlestock has been growing. The staff of each company have combined to form an 85-strong workforce that’s well suited to accelerate the company’s growth towards profitability.
Together, the two companies will be highly competitive in serving their main client sectors which are:
- Banks, neobanks, and online banks
- Wealth managers
- Asset managers
- Brokerage and investment banks
- Corporate finance firms
- Pension providers
- Fintech platforms
- Lenders
Another highlight, except for the combination of current cashflow and the high future margins that scalable products bring to the equation, is the regulatory licenses that Huddlestock owns. We have been very excited about combining our technology products with a brokerage license of our own for some time to increase sales, margins and shorten sales cycles. Huddlestock already operates B2B brokerage services with its regulatory licenses and software from external providers. The joint company group can now offer this complete service using native technology.
As we write these comments, the Bricknode and Huddlestock organizations have already been integrated and now work as one big global team.
We are committed to working within Huddlestock for the long term to realize our combined vision of helping financial institutions harness the power of technology to reduce friction for end customers in the financial markets!
Plan for shareholders of Bricknode Holding
We are working as quickly as possible for the shareholders of Bricknode Holding AB to become direct shareholders of Huddlestock Fintech AS, which is listed on Euronext Growth Oslo. To do this with maximum cost efficiency the first step is to complete the delisting of Bricknode from Nasdaq First North Growth Market. We have received approval from Aktiemarknadsnämnden to proceed and our ambition is to submit the request for delisting in the middle of July 2023. The intention is to complete the delisting shortly after.
Bricknode Holding is going to receive a total of 41,138,911 shares in Huddlestock. As mentioned in the press release on 15 March we intend to use some of the shares received, and/or the proceeds from the sale of such shares, to repay lenders and finance the operations of the company. Following the delisting of Bricknode Holding the process of distributing shares to the shareholders can begin. We are currently working with an external provider on a detailed plan and more info about that will follow.
The distributions will happen in a few tranches and in accordance with what Swedish corporate law permits regarding distribution of assets. Our goal is to finalize the last distributions before the end of Q1 2024.
Shares of Huddlestock Fintech AS are available for trading on Euronext Growth Oslo which can be accessed by clients of many brokerage firms including Avanza and Nordnet.
Huddlestock Fintech AS has obtained the ownership of the operating companies of Bricknode Holding which are Bricknode Software AB, Bricknode Platform AB and Bricknode Ltd. This means that owners of shares of Huddlestock Fintech AS are owners of the businesses and the assets that Huddlestock Fintech AS purchased from Bricknode Holding AB.
Contacts
Bricknode
Stefan Willebrand, Founder & co-CEO
+46 8 122 086 87
Certified Adviser
Amudova AB
+46 8 546 017 58
About Bricknode
Bricknode is a B2B-focused SaaS company that provides scalable, cloud-based software enabling financial companies to launch digital banking products at speed. The platform makes it easy for customers to build or transform almost any financial product with complete software for investment management, funds, and lending. The company also offers outsourcing solutions for back-office administration. Bricknode was founded in 2010 and supports financial companies globally. Find out more at bricknode.com or follow Bricknode on LinkedIn & Twitter.
This is information that Bricknode Holding 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 08:00 CEST on 17 May 2023.
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