Half year Report January - June 2020

20/08/2020 - April – June 2020
- Net Sales MSEK 93.5 (96.9)
- Order intake MSEK 282.6 (141.5)
- Operating profit (EBIT) MSEK -0.9 (-8.2)
- Operating profit (EBITDA) MSEK 12.3 (4.4)
- Total Comprehensive income MSEK -17.1 (-5.1)
- Earnings per share, before and after dilution (SEK) 0.00 (-0.01)
- Cash flow from operating activities MSEK 1.8 (-2.7)

January – June 2020
- Net Sales MSEK 189.1 (175.3)
- Order intake MSEK 316.2 (241.4)
- Operating profit (EBIT) MSEK -14.6 (-20.4)
- Operating profit (EBITDA) MSEK 13.3 (4.3)
- Total Comprehensive income MSEK -12.4 (-7.1)
- Earnings per share, before and after dilution (SEK) -0.01 (-0.02)
- Cash flow from operating activities MSEK 21.7 (-23.3)

Comments from the CEO

Resilient business during COVID-19 pandemic
As the COVID-19 pandemic is increasingly spreading across the world, we keep in very close contact with our employees and our customers. At the customer's side we continue to see the social relevance of the traffic safety industry we operate in. Without exception, Sensys Gatso is seen as an essential business, helping to  ensure the roads remain safe. Even in lockdown situations, like currently in the USA or Australia, we receive governmental permissions to continue maintaining and operating our activated traffic enforcement solutions. With most of our employees still working safely from home locations and with systems and tools in place that enable remote working for many of our employees, we have not seen any impact on the output of our workforce to date. This position makes our business resilient to the impact of the COVID-19 pandemic.

Order intake breaking records
Year to date we received a total order intake of  SEK 344 million, which is at the highest order intake in the history of our company. This is to a large extent driven by our deal sizes becoming larger. In the past 7 months we received orders from a customer in Australia for a total value of SEK 167 million and from Costa Rica for a total value of SEK 192 million. Including new TRaaS contracts in the USA and The Netherlands, our twelve months rolling order intake is now at SEK 665 million, another record in the history of Sensys Gatso.

Largest contract in our history
This momentum of larger contracts continues. After the quarter we received a contract from our customer in the Kingdom of Saudi Arabia for our in-vehicle solution. With a total value of SEK 275 million, this represents the largest single contract ever received by Sensys Gatso. The contract underscores Saudi Arabia’s commitment to increased traffic safety, in line with their vision 2030. It also demonstrates the effectiveness and scalability of our unique in-vehicle solution in various regions in the world.

TRaaS growth of 27%
Our strategic focus on recurring TRaaS revenue has resulted in a revenue growth of 12% in the second quarter and 27% in the first half of the year. The total TRaaS order intake year to date is SEK 146 million, of which SEK 109 million is from new contracts. As we are adding these new contracts, our TRaaS revenue continues to grow. Our TRaaS revenue of SEK 107 million now represents 57% of our total revenue, close to our long term ambition of at least 60% of total revenue. 

TRaaS drives the EBITDA-margin growth
During the quarter we received COVID-19 relief from the Dutch and US governments for a total of SEK 8.3 million, of which SEK 3.5 million has been accounted for in the Profit and Loss as a grant. The COVID-19 relief has enabled Sensys Gatso to maintain the workforce needed to execute on future revenues from the increased order intake.  Including this grant, the EBITDA arrived year to date at SEK 13 million or a margin of 7%.  Most of the profitability is coming from the segment Managed Services, which yields an EBITDA margin of 12.5%. Although the segment only contributes to 33% of revenue, the EBITDA share of the segment is 59%. It confirms our strategy to focus on the higher margin recurring revenue businesses in both our segments System Sales and Managed Services

Financial position strengthened 
Our cash at the end of the period amounts to a solid SEK 103 million. This includes the first tranche of SEK 12,5 million of the SEK 50 million new facility agreement, which was signed with Rabobank during the quarter, to facilitate further growth.

Outlook 
Traffic Safety continues to be a high priority for our government customers. With the “essential business” label for Sensys Gatso in all our markets, the execution of projects and TRaaS contracts continues. We therefore retain our expectation that the impact of the COVID-19 crisis for the group is limited. New and larger orders keep coming in and our order book is larger than ever before. We therefore retain our long-term ambition to grow our net sales to more than SEK 1 billion in 2025. Sixty percent, or more than SEK 600 million, of this revenue is to come from our recurring TRaaS business. We also hold-on to our ambition to increase our EBITDA margin to more than 15 percent by 2025. 

Ivo Mönnink
CEO, Sensys Gatso Group

Financial information

Invitation to a presentation for press and analysts
On 20 August at 10 am CET Sensys Gatso Group invites to a presentation/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-q2-2020

Dial-in number
SE: +46 8 505 583 55
UK: +44 333 300 90 35
US: 1 844 625 15 70

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 20 August 2020.

 

 The release (pdf)

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, 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 252 employees.

Published: 20/08/2020