Prevas: interim report January – June 2021

Strong quarter and first six months.

April – June

• Net turnover 313.2 MSEK (194.0)
• Operating profit/loss EBITA 29.8 MSEK (14.6)
• Operating margin EBITA 9.5 % (7.5)
• Profit after tax 17.5 MSEK (11.3)
• Profit per share 1.35 SEK (1.14)

January – June

• Net turnover 614.1 MSEK (410.3)
• Operating profit/loss EBITA 61.3 MSEK (36.8)
• Operating margin EBITA 10.0 % (9.0)
• Profit after tax 40.4 MSEK (27.9)
• Profit per share 3.10 SEK (2.80)

A word from the CEO

Strength in progress.

Strong quarter and first six months

The year's good development continues and earnings for the second quarter are strong. A comparison of the earnings with the second quarter of last year is atypical considering the global effects of the pandemic. Compared with the first quarter of this year, the second quarter had two working days less, which has had a major impact on profitability. Nevertheless, our operational earnings for the second quarter are on par with the first quarter.

Sales reached SEK 313 M (194), EBITA at SEK 29.8 M (14.6), which corresponds to a margin of 9.5% (7.5) for the second quarter. Profit per share increased to SEK 1.35 (1.14).

Due to the strong development of the Prevas share, a cost has been incurred burdening earnings after tax. This cost is attributable to the synthetic option program described in more detail on page 14.

Successful customer collaborative projects

We see market conditions as very strong. Most customers in all industries are very active and have substantial needs for development needs. Demand ranges from reinforcement in customer projects to undertakings in various forms. During the period, international customers have requested assistance in both product development and production development, which we see as a sign of Prevas' present strong market position.

A customer collaborative project that we are particularly proud of is what we have done together with 4Life Solutions. Working together, we have developed the water purifier SaWa, which can cleanse drinking water in four hours for people in the world's poorest countries. Access to safe drinking water can reduce occurrences of a wide range of diseases. Every year, 500,000 people die because they lack access to clean drinking water. Using only the rays of the Sun, a SaWa unit can transform biologically polluted water into clean drinking water. 

Important work for the future

Since the acquisition of the Evotech Group on January 4, we have worked with integration as well as matters relating to co-ownership. Each situation has been handled with the involved parties and this has resulted in the acquisition of a number of minority shares, the formation of a new subsidiary with co-ownership, Prevas InfoVis AB, and the divestment of Tritech Solutions AB. Not anything revolutionary, but overall a good structure for future expansion. The divestment also provides funds that can be used in future potential acquisitions.

At the close of first half of the year, we acquired a small cutting-edge company within life science – MEDQURE. We are thus further strengthening Prevas' position in meeting the ever-increasing demand for regulatory advice and certification in medical technology.

During the period, we also launched an internal long-term incentive program that was fully subscribed.

I would like to thank all our employees. We have worked closely with our customers in complex assignments. At the same time, for the first time in many years, we have generated dividends, and in several areas there have been extraordinary initiatives with integration. Thank you for your contributions in an exciting first half of the year and I am looking forward to an equally exciting second half.

Johan Strid, CEO Prevas AB

This information is such that Prevas AB (publ) is required to make public in accordance with EU regulations to prevent market abuse and the Securities Market Act. The information was submitted by the below contact person for publication on July 21th, 2021, at 08.30.

This is a translation of an original document in Swedish. In case of dispute, the original document should be taken as authoritative (Delårsrapport jan-juni 2021 at www. prevas.se). Or contact the company direct.

The interim report will later on also be available in English.

For more information, contact
Johan Strid, President & CEO, Prevas AB, Mobil: +46 703 79 10 61, E-mail: johan.strid@prevas.se
Andreas Lindahl, CFO, Prevas AB, Mobil: +46 070 547 08 25, E-mail: andreas.lindahl@prevas.se

About Prevas
Prevas is a development hub with ingenuity at its core. With a high technical competence and a deep business understanding, we help customers from a wide variety of industries benefit through continuous technological innovation. Good for people, planet, and profit. Prevas was established in 1985 and currently employs 800 people in Sweden, Denmark and Norway. Prevas is listed on NASDAQ Stockholm since 1998. For more information about Prevas, visit www.prevas.com.

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