Interim report Jan - March 2018

17/05/2018 - January - March 2018

- Net sales MSEK 71.7 (70.7)
- Order intake MSEK 52.8 (68.6)
- Operating profit MSEK -14.9 (-17.3)
- EBITDA MSEK -6.0 (-7.6)
- The profit after tax MSEK -13.1 (-16.4)
- Total Comprehensive income MSEK -1.7 (-16.4)
- Earnings per share, before and after dilution, SEK -0.02 (-0.02)
- Cash flow from operating activities amounted to MSEK 3.5 (-8.5)

Comments from the CEO

Anticipated slow start

We closed the financial year 2017 with a good total order intake of approximately SEK 350 million. Due to lower order intake levels in the second and third quarter of 2017, we had anticipated a slow start of 2018. The sales in the first quarter amounted to SEK 72 million, which is in line with the sales of the first quarter 2017. These sales are mainly driven by repeat orders, service and maintenance and managed services from our existing customer base. Our US business was still suffering from May 2017 Iowa court ruling. After the quarter the Supreme court has reversed the decision authorizing Iowa Department of Transportation to Regulate Cities’ Automated Traffic Enforcement Cameras. We expect to reactivate the cameras and resume normal operations as early as June, resulting in recommenced sales as of the second half of the year.

Two major procurement awards

The total order intake amounted to SEK 53 million. On top of that we received procurement awards from Finland and the Middle East with a total potential additional order intake value of SEK 122 million. The procurement award from Finland has been won based on our excellent product and service performance in Sweden and our close connection to the Swedish Vision Zero Initiative. We are now finalizing the contract details. First orders related to this award are expected in 2018. The award from the Middle East is based on our successful in-vehicle traffic enforcement solution. In March we received the first order related to this award for a total amount of 8 million.

Continued cost control

The expenses have decreased in the quarter to SEK 40 million compared to SEK 42 million for the comparative period. The expenses are in line with the full year 2017 expenses, normalised for the one-off effect of the provision on a Middle East customer to the amount of approximately SEK 10 million taken into 2017. We continue to evaluate 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 122 million, consisting of SEK 67 million in cash and SEK 55 million available credit facilities. The lower sales volume in the quarter compared to Q4 2017 has resulted in a lower working capital need. As a result of this, cash flow from operations improved with SEK 11 million to positive approximately SEK 3.5 million compared to the fourth quarter last year.

Currency effects

Being an international company we are exposed to currency effects. The impact on the operating profit is minimal. The net financial item has been negatively impacted due to the currency effect on the vendor loan in Euro being translated into Swedish kronor. 

Outlook

Due to our increased sales efforts we have been awarded two major procurement awards on top of our regular order intake of 53 million. These two procurement awards have been received from Finland and the Middle East, for a total potential additional value of 122 million. To a large extent we expect these awards to translate into orders in 2018. The exact timing of this, however, is of course depending on the needs of our customers.

Ivo Mönnink
CEO, Sensys Gatso Group

 

Financial information

Invitation to a presentation for press and analysts

On 17 May at 09:30 CEO Ivo Mönnink and CFO Simon Mulder will present the interim report of January-March 2018 and answer questions in an audiocast. The presentation can be followed online via the link on Sensys’ website: www.sensysgatso.com or http://media.fronto.com/cloud/sensys/180517

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/2390039
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 8 669 049 624
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: 2390039 or “Sensys” to register.

Please call ten minutes before the time specified.

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, at 08.30 on the 17th of May 2018.

  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: 17/05/2018