Year-end report January-December 2019
Increased profitability enables further growth investments
The fourth quarter
- Net sales amounted to MSEK 81.8 (68.9), rendering a net sales growth of 19 % (20 %). Organic net sales growth was 14 % (19 %)
- Recurring revenue amounted to MSEK 44.3 (37.1)
- The quarter was impacted by one-off items affecting comparison amounting to MSEK 0.0 (6.9). The comparison figure is attributable to the listing of the company’s shares on Nasdaq Stockholm.
- Adjusted EBITA amounted to MSEK 20 (16) which corresponds to an adjusted EBITA margin of 24 % (23 %)
- Net income amounted to MSEK 12.1 (4.2)
- Earnings per share, before dilution, amounted to SEK 0.91 (0.34) and diluted to SEK 0.91 (0.32)
2019 in brief
- Net sales amounted to MSEK 289.7 (244.3), rendering a net sales growth of 19 % (20 %). Organic net sales growth was 16 % (16 %)
- Recurring revenue amounted to MSEK 167.2 (138.5)
- 2019 was impacted by one-off items affecting comparison amounting to MSEK 0.9 (9.4) attributable to acquisitions and the listing of the company’s shares on Nasdaq Stockholm
- Adjusted EBITA amounted to MSEK 67 (54) which corresponds to an adjusted EBITA margin of 23 % (22 %)
- Net income amounted to MSEK 39.0 (24.3)
- Earnings per share, before dilution, amounted to SEK 2.94 (1.94) and diluted to SEK 2.94 (1.83)
- Acquired 58 % of More intenz AB and 30 % of janjoo AB to broaden our offering
Proposed dividend
- The Board of Directors will propose to the Annual General Meeting a dividend of SEK 1.5 (1.00) per share, on a diluted basis, corresponding to MSEK 19.9
CEO’s comments
The fourth quarter is commonly Lime’s strongest, which was the case again this year. During the quarter, our employees have been highly focused on closing deals, delivering projects, issuing new releases, integrating acquisitions, as well as recruiting and training new staff members.
Growth in the fourth quarter 2019 reached 19 %, of which organic growth was 14 % compared to the same period last year. The Swedish market grew by 12% and on other Nordic markets the growth rate improved and now sits at 53 %.
The trend is that more of our expenses are covered by repetitive license revenues, and personell costs in relation to net sales is dropping. This leads to more predictable revenue and improved profitability. In the fourth quarter we achieved an adjusted EBITA of 24 %, to be compared to 23 % last year.
Improved profitability enables further investments, which in the last quarter was evident by recruitments, launch in a new market and also a business acquisition. Investments in further growth are expected to continue during 2020.
In the last quarter, we have again successfully recruited new staff members, of which more than 20 started their training in early January 2020. We have also initiated recruitments to our next trainee programme, which will start in early August.
As earlier communicated, we have worked through an assessment process to determine which market will be our first outside the Nordic region. This is now confirmed to be the Netherlands. Key determining factors are that our verticals (real estate, utility, wholesales and consulting) have strong presence there, that the culture is similar to that in the Nordic countries, and that the growth potential within CRM is high in the Netherlands. We are now searching for a local sales director and two to four sales representatives and consultants. Based on experience from other markets, it will take time to establish the operations and we do not expect to be profitable during the next few years. The initial focus will be on recruitments, training and brand building.
In parallel with assessing and evaluating potential new business acquisitions, we have also focused on integrating the two acquisitions from the third quarter: Janjoo and More intenz. Acquired as a minority shareholding in an initial stage, Janjoo has shown strong progress which strengthens our confidence that their products will boost our offerings to both new and existing customers. It has therefore been determined to exercise the first option, of two, to acquire an additional 35 % of the shares in Janjoo. This acquisition will take Lime’s total shareholding in Janjoo to 65 %. Thanks to Lime’s strong cash flow, the acquisition is financed by cash. Amalgamation and full integration of Janjoo’s operations into Lime started in January.
At Lime, we strive to be a good corporate citizen, one that our customers and employees are proud to be associated with. Thus, we are very pleased to announce that Lime’s operations now are climate positive thanks to our investments in a solar park outside Sjöbo with zero carbon dioxide emissions. This investment covers more than enough of Lime’s entire energy consumptions. To gain more insights to how we can provide even more equal opportunities and better diversity, a new mentorship program has been introduced under which everyone in the executive team has a newly recruited female staff member as a mentor.
The first year as a company listed on Nasdaq has now passed and we have successfully reached all our financial targets: overall growth of 19 % whereof 16 % organic growth and an EBITA margin of 23 %. At Lime, we are proud of our first year as a listed company, but we are not satisfied. As a company, we must always aim to develop and improve – we must never stagnate. That’s how we will continue to deliver customer value and how we will achieve long-term profitable growth.
/Erik Syrén, CEO & President, Lime Technologies AB (publ)
Read the entire report in the attached PDF.
Invitation to webcast for the presentation of Lime Technologies year-end report 2019
On Thursday, February 13, at 09.30 CET, analysts, investors, media and other interested parties are 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 08.00 CET on February 13, 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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