Interim Report January-March 2019
Best quarter ever
- Net sales amounted to MSEK 69.9 (58.5), rendering a net sales growth of 19% (18%). Organic net sales growth was 19% (14%)
- Recurring revenue amounted to MSEK 39.1 (32.1)
- The quarter was charged with items affecting comparability of MSEK 0.3 (0) attributable to the company's listing on Nasdaq Stockholm
- Adjusted EBITA amounted to MSEK 13.8 (11.6) which corresponds to an adjusted EBITA margin of 19.8% (19.8%)
- Net income amounted to MSEK 7.5 (6.7)
- Earnings per share, before dilution, amounted to SEK 0.56 (0.54) and diluted to SEK 0.56 (0.50)
We are proud of the strong growth and solid results we have achieved during the first quarter. Having said that, we are also aware that as a growth company we must perform at ourall-time-best, almost every quarter. Growth is what enables us to progress rapidly with product development, what intensifies our competitiveness and retains our team members.
Net sales in the first quarter amounted to MSEK 69.9, corresponding to an organic growth of 19% compared to the same quarter last year. Recurring revenue, which is an important growth driver, increased by 22% during the first quarter compared to the same quarter last year.
Being a growth company within the IT industry is, and should be, a challenge. This is a result of constant changes in the external environment, bold competitors and an exceptionally tough contest for skilled personnel. Regardless of the challenges, and the hardship that comes with growth, the alternative is far worse. Settling and becoming complacent is a recipe for stagnation. At Lime we are always proud of what we have achieved, but never complacent. We must always strive to move forward and make progress, both as a company and as individuals.
An important driving force in our organic growth is new sales and taking market shares away from our competitors. In the first quarter, we have signed several major deals, not least within our focus verticals in Finland and Norway. We have proudly welcomed Bolig-byggelaget Tobb AS and AS Pellerin as new real estate customers, Elenia Oy and Trönder-energi AS as new utility customers, and Oy Flikenberg, Oy Snellman, Wulff Oy and Forlags-huset Vigmostad & Björke AS as new wholesales customers.
Recruitment is another critical driving force for our organic growth. In my fourth quarter comments, I mentioned how we had been successful in recruiting more new employees relatively early in our recruitment process. Initially this leads to increased costs, but in the long-term it has positive effects on both growth and profitability. During the first quarter 2019, we achieved an adjusted EBITA of MSEK 13.8, corresponding to an EBITA margin of 20%, which is particularly pleasing considering the higher than expected costs for person-nel.
Even though we have had success in recruiting more employees than expected in the fourth quarter 2018, we are maintaining our strong recruitment focus in order to underpin the growth ambition. We will continue to expand our trainee program and achieve a number of recruitments before the trainees start their training period in early August.
To support our organic growth, we are constantly looking for smaller acquisitions to strengthen our product portfolio. In this respect, we have had a number of interesting discussions in the first quarter. It remains to be seen if these discussions will result in more wisdom, cooperation or in fact in business acquisitions.
As mentioned, we are very proud of the strong growth and solid profitability in the first quarter, but we are not completely satisfied. We are committed to continuing our efforts to progress and advance. Our focus is on maintaining long-term profitable growth.
Erik Syrén, CEO of Lime Technologies AB (publ)
Read the entire report in the attached PDF.
Invitation to webcast for the presentation of Lime Technologies’ Interim Report for January-March 2019
On Monday, April 29, at 15.30 CET, 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 / email@example.com
Magnus Hansson, CFO / +46 708-55 55 40 / firstname.lastname@example.org
Johan Holmqvist, Head of Investor Relations /+46 708-37 66 77 / email@example.com
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 15.05 CET on April 29, 2019.
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