Half year Report January - June 2018

30/08/2018 - April – June 2018
- Net sales MSEK 88.6 (68.2)
- Order intake MSEK 182.9 (64.6)
- Operating profit MSEK -0.6 (-14.6)
- EBITDA MSEK 8.6 (-4.7)
- The profit after tax MSEK -1.3 (-15.9)
- Total Comprehensive income MSEK 7.9 (-20.3)
- Earnings per share, before and after dilution, SEK 0.00 (-0.02)
- Cash flow from operating activities amounted to MSEK -4.9 (-13.2)

January – June 2018
- Net sales MSEK 160.2 (138.9)
- Order intake MSEK 235.7 (133.2)
- Operating profit MSEK -15.5 (-31.9)
- EBITDA MSEK 2.6 (-12.3)
- The profit after tax MSEK -14.4 (-32.3)
- Total Comprehensive income MSEK 6.2 (-36.7)
- Earnings per share, before and after dilution, SEK -0.01 (-0.05)
- Cash flow from operating activities amounted to MSEK -1.4 (-21.8)

Sales picking up

After an anticipated slow sales start of the year, due to lower order intake levels in the second and third quarter of 2017, we are now seeing our topline picking up. The sales in the quarter were up by 30% and year-to-date June sales were up by 15% compared to the same periods last year. The sales growth in the quarter is seen both in System Sales as well as Managed Services. It is also positive that growth is now coming from various regions. The USA, Middle East and Eastern Europe are performing well. Especially noteworthy is that our US business is recovering this quarter with increased sales opportunities emerging and intensified focus on collections overdue. After the Supreme Court decision in May to allow Automated Traffic Enforcement on the interstate roads in Iowa, our cameras have been activated again. The reactivation of these cameras will start to have an impact on our sales numbers in the second half of the year.

Good base for future sales

The total order intake for the quarter amounted to SEK 183 million. This is nearly 3 times higher than the same quarter last year but also the highest order intake value in the past two and a half years. It is good to note that this order intake is coming from customers in various regions like Europe, USA and Australia. On top of the high order intake we have received a procurement award from Belgium with a total potential order intake value of SEK 27 million, of which a purchase order of approximately SEK 5 million has been received. In the first half of 2018 we now have secured a total order intake of SEK 236 million. Together with the remaining SEK 144 million of Procurement Awards received as of Q4 2017, we have established a good base for our future sales.

Cost base stabilized

We are operating in competitive often tender driven markets, with a partly volatile business model. Our expenses have now stabilized at around SEK 40 million. To sustain our profitability, it is imperative that we keep a tight control of our cost base as we continue to grow our sales efforts. We keep evaluating the possibilities to make our cost base more flexible to better support our volatile business model.

Available cash

Our available cash at the end of the quarter was SEK 117 million, consisting of SEK 64 million in cash and SEK 53 million in available credit facilities. The second quarter resulted in a negative operating cash flow of SEK 5 million mainly caused by received prepayments on sales in previous quarters.

Outlook

The strong order intake that started in Q4 2017, continues to grow in the first half of 2018. After the quarter we secured approximately SEK 66 million order intake mainly from Australia together with a Procurement Award amounting up to SEK 70 million.

A balanced distribution of our sales and order intake across various regions, is a good indication of improved market conditions globally. It also reduces our dependencies on single markets. With an improving topline and tight cost control we expect a gradual improvement of our profitability.

Ivo Mönnink
CEO, Sensys Gatso Group

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 the 30th of August 2018.

Invitation to a presentation for press and analysts

On 30 Aug at 09:30 CEO Ivo Mönnink and CFO Simon Mulder will present the interim report of January-June 2018 and answer questions in an audiocast. The presentation can be followed online via the link on Sensys’ website: www.sensysgatso.com or https://digital.vevent.com/rt/fronto2~sensys-q2-2018

In order to participate in the audiocast you will need to register yourself.  This registration is done by an e-mail address, when accessing the link above.  

It is also possible to listen to the presentation and ask questions by phone; you can register via the two following options:

Pre-registration via web link
To take part in the telephone conference, we would ask you to pre-register in good time ahead of the event via the following web link:
http://emea.directeventreg.com/registration/7186187
Open the link and follow the instructions. When registration has been completed, a confirmation email will be sent to the email address specified during registration. This email will contain phones number and a code (Direct Event Passcode). Select the appropriate number to call.
To take part in the conference, when prompted, enter the code followed by “#”.

Directly by phone:
As an alternative to online registration to take part in the event via the telephone conference function, the following phone numbers may be called:
Sweden: +46 (0)8 566 194 25 
USA: +1 9 175 039 901
UK: +44 (0) 844 571 89 31

You will be prompted to enter an event code; ignore this, and wait instead (1–2 min) until the operator speaks, and then state your: Conference ID: 7186187 or “Sensys” to register.

Please call ten minutes before the time specified.

 Release (pdf)

For further information please contact:
Ivo Mönnink, CEO
e-mail: i.monnink@sensysgatso.com

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, Germany, the Netherlands, Sweden and the USA, and a branch office in the United Arab Emirates. The Sensys Gatso Group’s shares are listed on Nasdaq Stockholm and has 167 employees.

Published: 30/08/2018