Interim Report January - March 2022
January – March 2022
- Net Sales MSEK 113.4 (78.1)
- Order intake MSEK 83.5 (61.8)
- Operating profit (EBITDA) MSEK 15.7 (-5.5)
- Operating profit (EBIT) MSEK 5.6 (-14.1)
- Total Comprehensive income MSEK 12.3 (-0.9)
- Earnings per share, before and after dilution (SEK) 0.01 (-0.01)
- Cash flow from operating activities MSEK 59.0 (-40.1)
January – December 2022
- Net Sales MSEK 113.4 (506.8)
- Order intake MSEK 83.5 (368.2)
- Operating profit (EBITDA) MSEK 15.7 (83.5)
- Operating profit (EBIT) MSEK 5.6 (45.9)
- Total Comprehensive income MSEK 12.3 (45.5)
- Earnings per share, before and after dilution (SEK) 0.01 (0.04)
- Cash flow from operating activities MSEK 59.0 (9.1)
Comments from the CEO
Order Intake up 204%
The order intake in Q1 arrived at SEK 328 million, up more than 200% compared to last year. We were chosen as one of three vendors to supply, operate and support fixed systems for speed and red light enforcement in The Netherlands, and we received a procurement award of SEK 250 million in the quarter. The investment by the Dutch Public Prosecution Services authority is aiming to replace the existing automated traffic enforcement infrastructure. I am also pleased to see we added significantly to our TRaaS order backlog. Of the Q1 order intake, SEK 166 million relates to TRaaS recurring revenue, including SEK 26 million from three new cities we added in our strategic USA market. This is an increase of SEK 151 million compared to last year.
Total Sales up 44% with US TRaas Sales up 82%
We had a strong first quarter with total sales of SEK 113 million, up by 44%. Our strategic recurring TRaaS Sales arrived at SEK 69 million, up by 44%. In Q1 last year we had temporary, COVID related school closings that suppressed our sales. Our school zone related TRaaS business in the USA has returned to normal operations this quarter. This is reflected in our TRaaS Managed Services business which grew by 82%, from SEK 22 million to SEK 40 million. Our TRaaS sales arrived at 61% of total sales in the quarter, right on target with our 2025 ambition.
Successful Intertraffic show
End of March the largest global show in our industry, the Intertraffic, was conducted in Amsterdam. It was the first time after 2018 many suppliers and customers physically came together again. The show was a great success for Sensys Gatso, renewing many existing customer relationships and developing promising new ones in various regions.
EBITDA up by SEK 21 million
EBITDA arrived at 16 million for the quarter, up SEK 21 million compared to last year. The EBITDA growth can mainly be attributed to the rebound of our TRaaS Managed Services business, with higher margins, in the USA.
On a 12-months rolling basis, our EBITDA arrived at SEK 105 million, nearly 100% higher than in the same period last year. Main contributor is our gross margin, which arrived at 45% for the quarter, compared to 31% last year. On a twelve months rolling base, our gross margin arrived at 41%, 5 percentage points higher than last year. This demonstrates a structural margin improvement as we grow our TRaaS business year-on-year.
65% of Saudi Arabia contract delivered
To date in Q1 we have delivered 65% of this SEK 275 million contract for our unique Vehicle-in- Motion solution. We keep a steady pace in our deliveries to meet the requirements of our customer. Meanwhile we engage in discussions and testing to develop and possibly provide additional solutions for this key customer in the Middle East region.
Free available cash up 46%
Taking into account the total amount of available credit facilities, the free available cash at the end of Q1 amounted to SEK 149 million. This is 46% higher than last year. The increase is mainly driven by the cash conversion from earlier investments in inventory and work in progress related to customer contracts. With our strong available cash position and low level of debt, the company has a healthy financial position.
Supply chain costs stable throughout 2022
At Sensys Gatso we have long lead times for our sales, delivery and operations processes. Critical components are therefore sourced way in advance and have already been secured for 2022. Assembly of our systems takes place in our European factories, where most of the added value for our System Sales is realized. Our System Sales and Managed Services business models are hardly affected by increases in energy cost.
Today we expect no delivery issues in our supply chain and our supply chain costs to remain relatively stable throughout 2022.
No business in Russia or Ukraine
Sensys Gatso is deeply concerned and saddened by the war in Ukraine and the devastating impact on the people of the country. We have no business to date in Russia or Ukraine, no employees working from these countries and no supplies coming from the region. Sensys Gatso is not significantly impacted by increases in gas prices and has price agreements in place with suppliers to secure 2022 sales.
Outlook
Our order book is strong, our costs are in control, our profitable TRaaS business continues to grow and our financial position is strong. On top, we see in the short term limited impact from supply chain cost increases and the war in Ukraine. We therefore retain our long-term plan to, by 2025, grow our net sales to more than SEK 1 billion, of which TRaaS revenues is more than SEK 600 million. We also retain our ambition to increase our EBITDA margin to more than 15% in 2025.
Ivo Mönnink
CEO, Sensys Gatso Group
Invitation to a presentation
On 29 April at 10 am CET Sensys Gatso Group invites press, analysts, shareholders, and stakeholders to participate in an audiocast. The company’s CEO Ivo Mönnink and CFO Simon Mulder will present the financial results in English. The presentation in connection with this report will be published on the website.
The presentation/audiocast can be joined online or via telephone and will be available on the company’s webpage: https://www.sensysgatso.com
Link to the presentation/audiocast: https://tv.streamfabriken.com/sensys-gatso-group-q1-2022
Dial-in number
Sweden: +46 8 519 993 83
UK: +44 333 300 9030
US: +1 646 722 4904
This information is information that Sensys Gatso Group 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 person set out above, at 08.30 on 29 April, 2022.
For further information please contact:
Ivo Mönnink, CEO
e-mail: i.monnink@sensysgatso.com
e-mail IR: investors@sensysgatso.com
Telephone: +46 36 34 29 80
Sensys Gatso Group AB is a global leader in traffic management solutions for nations, cities and fleet owners. Sensys Gatso Group has subsidiaries in Australia, Costa Rica, Germany, the Netherlands, Sweden and the USA, and a branch office in the United Arab Emirates and has 263 employees. The Sensys Gatso Group’s shares are listed on Nasdaq Stockholm.
For further information, visit www.sensysgatso.com
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