Prevas Publishes Year-End Report for 2023

Prevas reports a new record year for sales, profits and cashflow. Increased customer value in deliveries, good cost control and balanced recruitment have led to a stable quarter concluding a strong year.

The turnover during the fourth quarter amounted to 399.3 MSEK (389.7), which gives growth of 2.5 percent, of which approximately one quarter was organic. At the same time profits came in strongly with EBITA profits of 44.2 MSEK (52.2) and an EBITA margin of 11.1 percent (13.4). It is worth noting that utilization was lower than the previous year. Through increased customer value in deliveries, good cost control and balanced recruitment we have been able to focus our work on maintaining a good margin. The final quarter of the year was one working day shorter (63 compared to 64), which affected both the turnover and the EBITA profits negatively compared to the previous year. The cash flow from the ongoing operations remained strong and amounted to 41.2 MSEK (27.8).

Overall we report a strong 2023 with growth in turnover of 12 percent and an EBITA margin of 11.4 percent. For the full year we see a growth in turnover that exceeds our financial goals by 10 percent and an EBITA margin that lies slightly below our goal of a long term margin of 12 percent. If we adjust for the calendar effect (two days fewer than 2022) the comparable EBITA margin is 12 percent, which is in line with our objective. We are proud that we are delivering an all-time-high turnover and profit in the prevailing market climate. Based on the year’s strong profits and good financial situation the Board proposes an increased dividend of 4.75 SEK per share (4.50).
 

Magnus Welén, CEO

To read the word from the CEO in full, see year-end report page 4-5.

The quarter in brief

• Net turnover amounted to 399.3 MSEK (389.7), an increase of 9.6 MSEK and 2.5 percent.
• Operating profit EBITA amounted to 44.2 MSEK (52.2), which gives an operating margin of 11.1 percent (13.4). The quarter was one working day shorter than the corresponding period of the previous year, which affected the operating profit EBITA negatively by approximately 5 MSEK.
• Operating profit EBIT amounted to 42.4 MSEK (50.5), which gives an operating margin of 10.6 percent (13.0).
• Profit after tax amounted to 31.4 MSEK (35.9).
• Profit per share before dilution was 2.42 SEK (2.74) and after dilution was 2.42 SEK (2.74).
• The cash flow from operating activities amounted to 41.2 MSEK (27.8).

The period in brief
 

• Net turnover amounted to 1,482.6 MSEK (1,324.0), an increase of 158.6 MSEK and 12.0 percent. More than half the growth was organic and the remainder comes from acquisitions made during 2022 and 2023.
• Operating profit EBITA amounted to 169.4 MSEK (164.5), which gives an operating margin of 11.4 percent (12.4). The full year was two working days shorter than the previous year, which affected the operating profit EBITA negatively by approximately 10 MSEK.
• Operating profit EBIT amounted to 162.4 MSEK (159.2), which gives an operating margin of 11.0 percent (12.0).
• Profit after tax amounted to 120.9 MSEK (121.9).
• Profit per share before dilution was 9.28 SEK (9.32) and after dilution was 9.23 SEK (9.29).
• The cash flow from operating activities amounted to 164.5 MSEK (103.3).
• The Board proposes a dividend of 4.75 SEK per share (4.50).

Significant events

• Acquisition of DVel. Prevas has acquired 51 percent of DVel AB. DVel is one of Sweden's largest suppliers of customized hardware test systems and is based in Lund with 25 employees. The transition occurred on October 2nd, 2023.
   
• Acquisition of Unibap’s industrial operations within robotics and AI. Prevas and Unibap agreed on an operational transition regarding the 4 employees and ongoing assignments of Unibap's industrial operations. The operational transition occurred on August 1st 2023.
   
• Acquisition SDS MedteQ. There has been an operational transition for employees and ongoing operations from SDS MedteQ to Prevas. The operations transferred to Prevas in June 2023. Since it was founded in 2020, SDS MedteQ has offered regulatory premium services and advice to medtech companies around the world.
   
• 40 percent of Prevas Gävle AB was acquired by Prevas AB. Ownership of the subsidiary was therewith 100 percent from the start of 2023.

All above acquisitions have had a marginal impact on Prevas’ earnings per share during the 2023 financial year.

Prevas' year-end report 2023 will be available at https://www.prevas.com/Financial-Reporting and is attached to this press release.

Presentation of Prevas’ year-end report 2023

Wednesday, February 14 at 09.00 a press and analyst presentation will be held which can be followed via webcast (https://ir.financialhearings.com/prevas-q4-2023) and conference call (https://conference.financialhearings.com/teleconference/?id=5009708).

The presentation is given in English by Magnus Welén (CEO) and Helena Burström (CFO) from Prevas AB. No pre-registration is required.

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 February 14th, 2024, at 08.30.

For more information, please contact:
Magnus Welén, President & CEO, Prevas AB, Mobil: +46 70 593 44 57, E-mail: magnus.welen@prevas.se
Helena Burström, CFO, Prevas AB, Mobil: +72 201 11 14, E-mail: helena.burstrom@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 900 people in Sweden, Denmark and Norway. Prevas is listed on NASDAQ Stockholm since 1998. For more information about Prevas, visit www.prevas.com.

Tags: