Interim Report January-June 2019

Improved competitiveness through recruitments and business acquisitions

Second quarter

• Net sales amounted to MSEK 70.0 (61.5), rendering a net sales growth of 14% (19%). Organic net sales growth was 14% (14%)
• Recurring revenue amounted to MSEK 41.3 (34.0)
• The quarter was impacted by one-off items affecting comparison amounting to MSEK 0.6 (1.2), whereof MSEK 0.6 (0.2) was attributable to acquisitions, and MSEK 0.0 (1.0) was attributable to the listing of the company’s shares on Nasdaq Stockholm
• Adjusted EBITA amounted to MSEK 13.8 (11.6) which corresponds to an adjusted EBITA margin of 20% (19%)
• Net income amounted to MSEK 7.4 (5.3)
• Earnings per share, before dilution, amounted to SEK 0.56 (0.43) and diluted to SEK 0.56 (0.40)
• Acquired 58% of More Intenz AB and 30% of janjoo AB to further strengthen competitiveness
  
  

The first six months

• Net sales amounted to MSEK 139.9 (120.0), rendering a net sales growth of 17% (19%). Organic net sales growth was 16% (14%)
• Recurring revenue amounted to MSEK 80.4 (66.2)
• The first six months were impacted by one-off items affecting comparison amounting to MSEK 0.9 (1.2) attributable to acquisitions and the listing of the company’s shares on Nasdaq Stockholm
• Adjusted EBITA amounted to MSEK 27.7 (23.2) which corresponds to an adjusted EBITA margin of 20% (19%)
• Net income amounted to MSEK 14.9 (12.0)
• Earnings per share, before dilution, amounted to SEK 1.12 (0.96) and diluted to SEK 1.12 (0.91)
• Acquired 58% of More Intenz AB and 30% of janjoo AB to further strengthen competitiveness

CEO’s comments 

We have continued to invest in long-term profitable growth in the second quarter. For the purpose of strengthening organic growth, more than 40 new colleagues have been recruited, beginning in August, within development, sales, and expert services. Through the recruitment we are investing in improved key competences, including expert services focused on programming. We have, in addition, completed two business acquisitions with the aim of strengthening our product offerings to both new and existing customers.

We achieved net sales of MSEK 70.0 in the second quarter, corresponding to an organic growth of 14% compared to the same quarter last year. Recurring revenue, which is of much importance to our growth, increased by 21% in the second quarter compared to the same period last year. Adjusted EBITA amounted to MSEK 13.8, corresponding to a margin of 20% – one percentage stronger than the second quarter, 2018.

Expert services, which grew by 2% compared to the second quarter, 2018. The organic growth was held back due to more than normal public holidays and internal training in programming (Python). As before, existing customers accounted for approximately 70% of revenue from expert services, which allows for predictability in our forecasts ahead.

Growth in the Other Nordic countries continues to develop positively, with 53% growth compared to the same quarter last year. The growth in the Other Nordic countries during the second quarter reflect the order intake we had during the last quarter 2018 and the first quarter 2019.The growth rate indicates that our strategy with verticals within real estate, utility, wholesale, and consulting is paying off, not least in the Other Nordic countries. The deals we have made in the second quarter are a great mix of small, mid-sized, and large companies. Worth mentioning among the large new customers are Docu Group, Hellanor A/S, Bengt Dahlgren AB, Mäklarsamfundet, Finspångs Tekniska Verk AB, and Private Barnehagers Landsforbund.

Growth in the first six months finished at 17%, whereof 16% is organic, and adjusted EBITA amounted to 20% – an improvement compared to the first six months in 2018.

We have, as I mentioned in the last interim report, invested much time and effort in the first six months to evaluate potential acquisitions, with the aim of strengthening our product offerings to both new and existing customers. Two of the companies we have assessed are janjoo AB and More intenz AB. We signed agreements in mid-June to acquire shares in both companies with options to acquire 100% of the shares when we have had a chance to get to know them better. 

janjoo AB develops and sells e-services, including handling of forms and case portals, which simplify and streamline the relationships between utility and real estate companies, in particular, and their customers. We have had a successful collaboration with janjoo AB over several years, which has led to half of their customers already being users of Lime.

More intenz AB sells and delivers services to help companies improve their sales and customer services. We have been referring customers to each other for several years and we have similar values and are active on the same markets. As our larger customers are asking for more support in this field, it is a logical step for More intenz AB to become a part of Lime. Our common offering creates an even greater value to the customers and thus sets us up to further strengthening our long term relationship.

In addition to the 15 new colleagues from janjoo AB and More intenz AB, I’d also like to welcome the forty or so new colleagues who will commence their training within development, sales, and expert services in our trainee program in early August. They are a welcome addition after the summer.

To all our customers, colleagues and shareholders: Have a nice summer holiday! We at Lime will take the opportunity to relax, recover and prepare ourselves to come back after the break and be fully focused on sales, customers, and the amalgamation of janjoo AB and More intenz AB, as well as on training of new work colleagues in order to achieve continued long-term profitable growth.

Have a nice summer!

/Erik Syrén, CEO of Lime Technologies

Read the entire report in the attached PDF.  

Invitation to webcast for the presentation of Lime Technologies’ Interim Report for January-June 2019 

On Friday, July 19, at 10:30 CEST, are analysts, investors, media and other interested parties invited to attend a webcast where Lime’s CEO, Erik Syrén, and CFO, Magnus Hansson, will comment on the published report and answer questions. The presentation will be held in English.

The presentation material will be available on Lime’s website.

The link to the webcast can be found here.

For more information, contact:

Lime Technologies AB (publ)

Erik Syrén, CEO / +46 707-38 50 72 / erik.syren@lime.tech
Magnus Hansson, CFO / +46 708-55 55 40 / magnus.hansson@lime.tech
Johan Holmqvist, Head of Investor Relations /+46 708-37 66 77 / johan.holmqvist@lime.tech

This information constituted inside information prior to publication. This is information that Lime Technologies 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 persons set out above, at 08.00 CEST on July 19, 2019.

About Lime

Lime helps businesses all over the Nordics to become better at customer care. The company develops and sells digital products for ”Customer Relationship Management”, development and management of customer relationships. Lime was founded in 1990 and has 230 employees. The company has offices in Lund, Stockholm, Gothenburg, Oslo, Copenhagen and Helsinki. Their customers include everything from sole traders to large organisations. www.lime-technologies.com

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