Interim Report January - March 2021

27/04/2021 -
January – March 2021
- Net Sales MSEK 78.1 (95.6)
- Order intake MSEK 61.8 (61.6)
- Operating profit (EBIT) MSEK -14.1 (-13.7)
- Operating profit (EBITDA) MSEK -5.5 (1.0)
- Total Comprehensive income MSEK -0.9 (4.7)
- Earnings per share, before and after dilution (SEK) -0.01 (-0.02)
- Cash flow from operating activities MSEK -40.1 (9.6)

January – December 2021
- Net Sales MSEK 78.1 (454.9)
- Order intake MSEK 61.8 (788.4)
- Operating profit (EBIT) MSEK -14.1 (10.8)
- Operating profit (EBITDA) MSEK -5.5 (59.4)
- Total Comprehensive income MSEK -0.9 (-15.7)
- Earnings per share, before and after dilution (SEK) -0.01 (0.00)
- Cash flow from operating activities MSEK -40.1 (15.5)

Comments from the CEO
12-months rolling Order Intake at SEK 789 million - up 50%

The order intake during the first quarter totalled SEK 62 million compared to SEK 62 million last year. The order intake for the quarter mainly relates to repeat and smaller orders from our existing installed base as well as SEK 14 million purchase order under the announced procurement award from our Belgium customer of SEK 60 million. Including this procurement award the order intake would amount to SEK 108 million. With order intake in first quarters typically being somewhat lower, the 12-months rolling order intake arrived at SEK 789 million, an equal level compared to Q4 2020 and up 50 percent compared to last year.

School Zone Sales expected to pick up in Q2
Net sales in the quarter arrived at SEK 78 million, compared to SEK 96 million last year. This deviation is to a large extent due to the Managed Services business in the USA falling behind in the quarter by SEK 11 million. We believe this effect to be temporary, caused by COVID related school closings. Automated traffic enforcement in school zones can only be operational when kids attend schools, so not during weekends, vacation periods or forced school closings. Because of COVID, schools in the USA were closed most of the time between the summer period of 2020 through to March 2021, when they gradually reopened. Revenue recognition of school program citations is typically realized 30 days after the citation issuance. It can be expected therefore that the US TRaaS Sales will start picking up again in the second half of Q2 of this year. 

Strong Costa Rica contract position confirmed
In February 2020 Sensys Gatso, together with our consortium partners, signed a contract with the Costa Rican government for the country’s Nationwide Intelligent Transportation System. To confirm our position in the contract we travelled to Costa Rica in March to meet with our customer Cosevi, with our consortium partners and with members of the Costa Rican government. During these meetings both our strong legal position in the contract and the willingness of our customer to execute the contract were confirmed. Together with our consortium partners we agreed to further reinforce our contractual position in the coming months. With this, we believe the program will be rolled-out as projected, but on a different timeline. Our best estimate remains that first deliveries will start in the second half of 2021. 

20% of KSA contract delivered
After logistics challenges at our customer for our mobile solution in the Kingdom of Saudi Arabia, the execution of this large order resumed with deliveries in February. With these deliveries we have now executed 20 percent of the SEK 275 million total contract value.  The end-customers project and the rollout thereof is defining the speed of the deliveries. We are planning the next shipments to align with our customers requirements. We foresee the remainder of the deliveries under the contract still to be executed throughout 2021, with next deliveries scheduled in April.

Financing larger contracts
Our cash at the end of the period amounts to a solid SEK 102 million. This includes the first tranche of SEK 12,5 million of the SEK 50 million new facility agreement, which was signed with Rabobank in 2020, to facilitate further growth. In April 2021 we received the second and third tranche of the Rabobank financing, adding SEK 25 million to the available cash position. This additional funding enables the company to manage larger contracts and the  related buildup of inventory and work in progress, like for instance in the case of the Saudi contract.

Outlook
Our order book is strong and our costs are in control. Even with some short term COVID  related revenue impact, we retain our long-term plan to grow our net sales to more than SEK 1 billion, of which TRaaS revenues is more than SEK 600 million, in 2025. We also retain our ambition to increase our EBITDA margin to more than 15 percent in 2025.

Ivo Mönnink
CEO, Sensys Gatso Group

Invitation to a presentation
On 27 April at 10 am CET Sensys Gatso Group invites press, analysts, shareholders and stakeholders to participate in 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-q1-2021

Dial-in number 
Sweden: +46 8 5 055 83 68
UK: +44 333 300 92 61
US: +1 8 332 498 403
NL: +31 207 219 496

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, at 08.30 on 27 April 2021.

  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, Costa Rica, Germany, the Netherlands, Sweden and the USA, and a branch office in the United Arab Emirates and has 252 employees. The Sensys Gatso Group’s shares are listed on Nasdaq Stockholm.

Published: 27/04/2021