Interim Report January-March 2020

Long-term profitable growth

• Net sales amounted to MSEK 85.0 (69.9), rendering a net sales growth of 22 % (19 %). Organic net sales growth was 15 % (19 %)
• Recurring revenue amounted to MSEK 46.9 (39.1)
• The quarter was charged with items affecting comparability of MSEK 0.0 (0.3) attributable to the company's listing on Nasdaq Stockholm
• Adjusted EBITA amounted to MSEK 23.5 (13.8) which corresponds to an adjusted EBITA margin of 28 % (20 %)
• Net income amounted to MSEK 14.2 (7.5)
• Earnings per share, before dilution, amounted to SEK 1.07 (0.56) and diluted to SEK 1.07 (0.56)

CEO’s comment

During the first quarter of the year we achieved a growth of 22% and an EBITA margin of 28%. At this stage, we have only experienced limited impacts of the COVID-19 pandemic on our financial results. Like so many other businesses, we are impacted by lower new sales, higher customer churn, and customers requesting extended payment terms. In light of these signals, we are well aware that the crisis will affect us during coming quarters, and we have consequently implemented measures to lessen the adverse impacts.

Growth in the first quarter reached 22%, whereof organic growth of 15% compared to the same period last year. Operations in Sweden grew by 19%. The Other Nordic countries, which have been subject to stricter restrictions than Sweden, have been more affected but grew by 33%, nevertheless.

As previously expressed, increased profitability paves the way for continued investments. EBITA reached 28% in the first quarter, compared to 19% for the same period last year. The main reason for the increase is that a larger percentage of our costs are covered by recurring license revenues. Furthermore, other expenses, such as travel and conference expenses, have dropped as a result of travel bans and restrictions on gatherings of larger crowds.

Lime is strictly following recommendations from the authorities, meaning that the majority of our colleagues now work from home. Regular digital meetings are held throughout the workday, creating social interactions, and keeping productivity up. Thus, we have so far only seen limited effects of the pandemic on our financial numbers. At the same time, we are cautious about the future, as there is great uncertainty as to how long this crisis will last and how it will affect us.

Similar to so many other companies we are experiencing a drop in new sales, since customers acquire fewer licenses as a result of staff lay-offs, and more customers are requesting extended payment terms. However, many businesses will benefit from a CRM system when managing through a recession.

Lime has previously been through two major crises successfully, namely the 2001 IT crisis and the 2008 financial crisis, when we achieved both growth and profitability. We are even better equipped today, thanks to a higher proportion of recurring revenues, lower customer concentration, as well as having a broad range of customers from a variety of industries and markets. In addition, our financial position and profitability means we are well set to handle the crisis.

In previous recessions, our approach has been more like that of a tiger than a hedgehog. A tiger goes to attack when facing danger, a hedgehog curls up and hides. This time, Lime will once again be focused on growth and investment in marketing and sales. We will do this while also building crisis awareness within the organisation and developing new offerings and campaigns that will make a difference in the situation we now find ourselves in.

Our aim is to get through the crisis without staff layoffs and without support from government authorities. The objective is to keep everyone onboard and to keep our growth focus in mind. Our plans to launch operations in the Netherlands and to run our trainee program in August therefore remain in place. We are closely monitoring events globally and carefully evaluating how these affect our business. Should the situation significantly deteriorate, then the abovementioned plans may be deferred.

Moreover, we feel confident that investment opportunities will emerge during the crisis, including recruitments and acquisitions. We will continuously evaluate and possibly act on some of these opportunities, as we believe this will allow us to grow even faster once the economic trends improve.

We are proud of the high growth and solid profitability we achieved in the first quarter. Encouraged by these results, we are now ready to fight the crisis as a tiger and to maintain our growth focus, while also investing in marketing and sales. This strategy may have an adverse effect on profitability in the short term but will pave the way for continued long-term profitable growth.

Erik Syrén, CEO & President 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 2020 

On Tuesday, April 28, at 09.00 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 for investors.

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
Lars Andersson, Head of Investor Relations /+46 704-33 53 83 / lars.andersson@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 07.30 CET on April 28, 2020.
 

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 250 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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