Capnor Weasel Bidco Oyj, Interim Report January – September 2021
CAPNOR WEASEL BIDCO OYJ
Interim Report
January – September 2021
Interim Report for the third quarter of 2021
|
KEY FINANCIALS |
|
|
Change |
|
|
Change |
|
|
EUR thousand |
Q3 2021 |
Q3 2020 |
in % |
YTD 2021 |
YTD 2020 |
in % |
FY 2020 |
|
Revenue |
21,282 |
16,412 |
30% |
63,496 |
45,685 |
39% |
74,125 |
|
EBITDA |
3,986 |
3,669 |
9% |
10,771 |
4,990 |
116% |
12,635 |
|
EBITDA margin |
19% |
22% |
|
17% |
11% |
|
17% |
|
EBIT |
1,902 |
2,011 |
-5% |
4,624 |
-517 |
-995% |
5,089 |
|
EBIT margin |
9% |
12% |
|
7% |
-1% |
|
7% |
|
Operational Cash Flow |
-883 |
1,509 |
-158% |
-2,799 |
2,589 |
-208% |
8,017 |
|
Operational Cash Flow % |
-4% |
9% |
|
-4% |
6% |
|
11% |
|
Adjusted EBITDA |
3,986 |
3,669 |
9% |
10,771 |
6,230 |
73% |
13,874 |
|
Adjusted EBITDA margin |
19% |
22% |
|
17% |
14% |
|
19% |
* YTD 2020 EBITDA, EBIT & Operational Cash Flow include an impact from goodwill bridge calculation in which there is an inventory fair value adjustment of MEUR -1.2. This adjustment was done in connection with Nordic Capital Fund IX’s acquisition of iLOQ and is an NRI. This impact has been eliminated in the Adjusted EBITDA
Management overview of the third quarter
Following a strong H1 2021, iLOQ was able to continue on its growth path in Q3 2021. Despite the strong comparison quarter Q3 2020, the Group’s revenue growth was 30% or higher for the fifth consecutive quarter with Q3 2021 revenue growth being 30%. The strong financial performance continued to prove that iLOQ has been able to continue accelerating its growth path.
The successful actions to mitigate potential supply-chain disruptions due to COVID-19 continued in Q3 2021. Management successfully continued measures to secure delivery capability and to mitigate possible unforeseen supply-chain disruptions in the third quarter to be able to meet customer demand. These actions continued the trend of higher inventory levels compared to Q3 2020. The company is likely to continue to hold higher than normal inventory levels in the coming quarters to mitigate any possible supply-chain disruption coming from the global component shortage. This increase in working capital had a material negative effect on the Group’s cash situation, but management sees that by strategically prioritizing delivery capability, the Group has been able to continue taking market share in Q3 2021.
Q3 2021 included multiple significant events for iLOQ: The iLOQ S50 APP became available for Huawei mobile phone users and, with it, the benefits of the iLOQ S50 mobile access sharing solution is reaching even further corners of the globe. Agustín Llobet Pedrero was appointed as Country Manager for iLOQ Spain. Agustín has widespread knowledge of the security industry. For over 20 years, he has worked for Casmar, one of the largest electronic security systems distributors in Iberia. His experience with distributing major brands of electronic locks and managing the Intrusion and Access Control Divisions will be an asset to iLOQ as business continues to grow in Spain. In September 2021, iLOQ was presented with the Product Innovation award at the Advanced Architecture Awards 2021 out of 256 candidates.
Third quarter 2021
The growth rate slowed down from the record high growth of Q2 2021 due to the strong comparison quarter of Q3 2020. Despite the strong comparison quarter, total revenue grew 30% compared to Q3 2020, driven by strong sales across all regions. Management expects the quarterly growth rates to continue to slow down closer to the Group’s long-term average in Q4 2021 due to the strong sales in the comparison quarter of Q4 of 2020. The stronger comparison quarters were caused by projects which were postponed from Q2 2020 to Q3 and Q4 2020.
EBITDA amounted to MEUR 4.0 (3.7), corresponding to a 19% (22%) EBITDA margin. The increase in EBITDA was mainly caused by the increased volumes
EBIT amounted to MEUR 1.9 (2.0), corresponding to a 9% (12%) EBIT margin. The decrease in EBIT was caused by a correction to goodwill depreciations which were increased in Q3 due to H1 2021 having too low depreciation levels.
Operational cash flow was MEUR -0.9 (1.5). The increased inventories to mitigate any possible COVID-19-related supply-chain disruptions continued to have a material negative impact on the Q3 2021 Operational cash flow. The company is expected to continue to have higher than normal inventories during the COVID-19 pandemic and until the global component situation improves to guarantee its ability to produce and ship iLOQ products to customers.
YTD September 2021
Total revenue grew 39% compared to YTD 2020, driven by strong sales across all regions. The high revenue growth was partly due to the comparison period being weaker than normal due to COVID-19 negatively affecting H1 2020 with Q3 2020 being the first stronger comparison period. Management expects the Q4 2021 growth rate to be slower and closer to the Group’s long-term average due to the strong sales in the comparison quarter of Q4 2020. Despite this, management believes that the company has been able to continue taking market share in YTD 2021 and is well positioned to continue the growth momentum in all regions during the rest of 2021 and 2022.
EBITDA amounted to MEUR 10.8 (5.0), corresponding to a 17% (11%) EBITDA margin. The increase in EBITDA was mainly caused by the increased volumes and related operational leverage.
EBIT amounted to MEUR 4.6 (-0.5), corresponding to a 7% (-1%) EBIT margin. The increase in EBIT was mainly caused by the increased volumes and related operational leverage.
Operational cash flow was MEUR -2.8 (2.6). The decrease was caused by continued efforts to mitigate any possible COVID-19 and global-component-shortage-related supply-chain disruptions. The increased inventories had a material negative impact on the YTD 2021 Operational cash flow. The company is expected to continue to have higher than normal inventories during the COVID-19 pandemic and until the global component situation improves to guarantee its ability to produce and ship iLOQ products to customers.
Quarterly Information
|
QUARTERLY INFORMATION |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
Q3 2021 |
|
Revenue |
14,040 |
15,234 |
16,412 |
28,440 |
19,043 |
23,172 |
21,282 |
|
EBITDA |
-116 |
1,437 |
3,669 |
7,644 |
2,494 |
4,291 |
3,986 |
|
EBITDA margin |
-1% |
9% |
22% |
27% |
13% |
19% |
19% |
|
EBIT |
-1,991 |
-537 |
2,011 |
5,606 |
492 |
2,230 |
1,902 |
|
EBIT margin |
-14% |
-4% |
12% |
20% |
3% |
10% |
9% |
|
Operational Cash Flow |
693 |
387 |
1,509 |
5,428 |
-3,194 |
1,277 |
-883 |
|
Operational Cash Flow % |
5% |
3% |
9% |
19% |
-17% |
6% |
-4% |
|
Adjusted EBITDA |
1,123 |
1,437 |
3,669 |
7,644 |
2,494 |
4,291 |
3,986 |
|
Adjusted EBITDA margin |
8% |
9% |
22% |
27% |
13% |
19% |
19% |
Declaration of the Board
We confirm that, to the best of our knowledge, the condensed financial statements give a true and fair view of the Group’s assets, liabilities, financial position and results of operations for the period. We also confirm, to the best of our knowledge, that the management overview includes a fair review of important events that have occurred during the first nine months of 2021.
Espoo November 12, 2021
Heikki Hiltunen Karl Petersson
President and CEO Member of the Board
INCOME STATEMENT
|
CONSOLIDATED INCOME STATEMENT, IFRS |
|
|
|
|
|
|
EUR Thousand |
Q3 2021 |
Q3 2020 |
YTD 2021 |
YTD 2020 |
FY 2020 |
|
|
|
|
|
|
|
|
Revenue |
21,282 |
16,412 |
63,496 |
45,685 |
74,125 |
|
Other income |
0 |
0 |
0 |
1 |
1 |
|
|
|
|
|
|
|
|
Materials and services |
-9,640 |
-7,173 |
-28,127 |
-21,976 |
-33,789 |
|
Employee benefit expenses |
-4,756 |
-3,177 |
-15,456 |
-10,552 |
-15,474 |
|
Depreciation, amortisation and impairment losses |
-2,084 |
-1,658 |
-6,147 |
-5,507 |
-7,545 |
|
Other operating expenses |
-2,900 |
-2,392 |
-9,143 |
-8,168 |
-12,229 |
|
Operating profit |
1,902 |
2,011 |
4,624 |
-517 |
5,089 |
|
|
|
|
|
|
|
|
Finance income |
-1 |
32 |
37 |
93 |
133 |
|
Finance cost |
-967 |
-1,066 |
-2,892 |
-3,114 |
-4,067 |
|
Net financial expenses |
-968 |
-1,034 |
-2,854 |
-3,021 |
-3,934 |
|
|
|
|
|
|
|
|
Profit (-loss) before taxes |
934 |
977 |
1,769 |
-3,538 |
1,155 |
|
|
|
|
|
|
|
|
Income taxes |
-327 |
-194 |
-762 |
507 |
-637 |
|
|
|
|
|
|
|
|
Profit (loss) for the financial period |
607 |
783 |
1,008 |
-3,031 |
518 |
|
|
|
|
|
|
|
|
Items that may be subsequently reclassified to profit or loss |
|
|
|
|
0 |
|
Translation differences |
-5 |
-9 |
-4 |
-11 |
-15 |
|
|
|
|
|
|
|
|
Total comprehensive income |
602 |
774 |
1,004 |
-3,042 |
503 |
BALANCE SHEET
|
CONSOLIDATED BALANCE SHEET, IFRS |
|
|
|
|
EUR Thousand |
Sep 2021 |
Sep 2020 |
Dec 2020 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Intangible assets |
101,238 |
102,899 |
102,650 |
|
Business value |
91,672 |
91,672 |
91,672 |
|
Property, plant and equipment |
4,728 |
3,409 |
4,519 |
|
Deferred tax assets |
490 |
474 |
478 |
|
Total non-current assets |
198,128 |
198,454 |
199,319 |
|
|
|
|
|
|
|
|
|
|
|
Inventories |
19,765 |
9,781 |
10,246 |
|
Trade and other receivables |
14,783 |
9,449 |
12,119 |
|
Cash and cash equivalents |
1,785 |
3,773 |
8,013 |
|
Total current assets |
36,333 |
23,002 |
30,378 |
|
|
|
|
|
|
Total assets |
234,461 |
221,456 |
229,697 |
|
|
|
|
|
|
EQUITY & LIABILITIES |
|
|
|
|
Equity |
|
|
|
|
Share capital |
80 |
80 |
80 |
|
Invested unrestricted equity fund |
142,980 |
142,980 |
142,980 |
|
Translation difference |
19 |
-11 |
15 |
|
Retained earnings |
-3,568 |
-8,027 |
-4,568 |
|
Total equity |
139,511 |
135,023 |
138,507 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Non-current liabilities |
|
|
|
|
Financial liabilities |
54,354 |
54,175 |
54,218 |
|
Non-current lease liabilities |
690 |
442 |
731 |
|
Non-current provisions |
933 |
744 |
1,026 |
|
Deferred tax liabilities |
18,107 |
18,444 |
18,743 |
|
Total non-current liabilities |
74,085 |
73,806 |
74,719 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Short-term interest-bearing liabilities |
2,535 |
0 |
0 |
|
Account payables and other liabilities |
16,235 |
11,208 |
13,569 |
|
Current lease liabilities |
942 |
565 |
1,017 |
|
Current provisions |
735 |
435 |
460 |
|
Current tax liabilities |
418 |
420 |
1,425 |
|
Total current liabilities |
20,866 |
12,628 |
16,471 |
|
|
|
|
|
|
Total liabilities |
94,950 |
86,433 |
91,190 |
|
|
|
|
|
|
Total equity and liabilities |
234,461 |
221,456 |
229,697 |
STATEMENT OF CASH FLOWS
|
CONSOLIDATED STATEMENT OF CASH FLOWS, IFRS |
|
|
|
|
|
|
EUR Thousand |
Q3 2021 |
Q3 2020 |
YTD2021 |
YTD2020 |
FY 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW FORM OPERATING ACTIVITIES |
|
|
|
|
|
|
Profit (Loss) for the financial period |
608 |
783 |
1,008 |
-3,031 |
518 |
|
Adjustments: |
|
|
|
|
|
|
Depreciation and amortization |
2,084 |
1,658 |
6,147 |
5,507 |
7,545 |
|
Unrealized exchange rate gains and losses |
0 |
0 |
0 |
0 |
-150 |
|
Financial Income |
1 |
-32 |
-37 |
-93 |
-133 |
|
Financial Expense |
968 |
1,066 |
2,892 |
3,114 |
4,067 |
|
Taxes |
327 |
194 |
762 |
-507 |
637 |
|
Other adjustments |
0 |
0 |
0 |
0 |
186 |
|
Change in Working Capital: |
|
|
|
|
|
|
Change in trade and other receivables |
89 |
-905 |
-2,664 |
1,372 |
-1,255 |
|
Change in inventory |
-4,586 |
-1,834 |
-9,519 |
-1,309 |
-1,774 |
|
Change in trade and other payables |
963 |
1,221 |
2,666 |
148 |
2,580 |
|
Change in provisions |
41 |
146 |
183 |
405 |
712 |
|
Interest paid |
-766 |
-949 |
-2,290 |
-2,506 |
-3,261 |
|
Interest received |
0 |
0 |
0 |
0 |
1 |
|
Income tax paid |
-348 |
-18 |
-2,446 |
-1,005 |
-1,050 |
|
Other financial items |
-62 |
-52 |
-152 |
-220 |
-319 |
|
Net cash flow from operating activities (A) |
-681 |
1,279 |
-3,450 |
1,876 |
8,304 |
|
|
|
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
|
|
Investments in intangible assets |
-1,090 |
-754 |
-3,224 |
-2,396 |
-3,671 |
|
Investments in tangible assets |
-262 |
-35 |
-988 |
-623 |
-1,210 |
|
Business acquisitions |
0 |
0 |
0 |
0 |
0 |
|
Net cash flow from investing activities (B) |
-1,352 |
-789 |
-4,212 |
-3,018 |
-4,881 |
|
|
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
|
Payments of lease liabilities |
-289 |
-238 |
-848 |
-734 |
-1,027 |
|
Proceeds from short-term liabilities |
2,535 |
0 |
2,535 |
10,000 |
10,000 |
|
Payments of short-tem liabilities |
0 |
-10,000 |
0 |
-10,000 |
-10,000 |
|
Net cash flow from financing activities (C) |
2,246 |
-10,238 |
1,687 |
-734 |
-1,027 |
|
|
|
|
|
|
|
|
CHANGE IN CASH AND EQUIVALENTS (A+B+C) |
213 |
-9,748 |
-5,975 |
-1,877 |
2,396 |
|
|
|
|
|
|
|
|
Cash and cash equivalents, in the beginning of period |
1,666 |
13,565 |
8,013 |
5,784 |
5,784 |
|
Net effect of exchange rate changes on cash and cash equivalents |
-94 |
-44 |
-253 |
-135 |
-167 |
|
Cash and cash equivalents, at the end of period |
1,785 |
3,773 |
1,785 |
3,773 |
8,013 |
Definitions of alternative performance measures
- EBITDA = EBIT before depreciation, amortization and impairments
- Operational Cash Flow = EBITDA + Change in trade and other receivables + Change in inventory + Change in trade and other payables + Change in provisions + Net cash flow from investing activities (C). Operational cash flow is used internally by the group to follow EBITDA which takes into account investments and change in working capital
- Operational Cash Flow % = Operational Cash Flow / Revenue
- Adjusted EBITDA = EBITDA excluding items affecting comparability
CONTACT
Additional information about the company can be found on the corporate website www.iloq.com. The company can be contacted by e-mail, info@iloq.com
For questions concerning this report please contact:
Heikki Hiltunen
CEO and President
Timo Pirskanen
CFO