Interim Report January - September 2020

26/11/2020 - July – September 2020
- Net Sales MSEK 131.6 (73.0)
- Order intake MSEK 323.7 (79.3)
- Operating profit (EBIT) MSEK 12.9 (-17.8)
- Operating profit (EBITDA) MSEK 22.8 (-2.8)
- Total Comprehensive income MSEK 4.8 (-6.6)
- Earnings per share, before and after dilution (SEK) 0.01 (-0.02)
- Cash flow from operating activities MSEK 11.0 (-23.9)

January – September 2020
- Net Sales MSEK 320.7 (248.3)
- Order intake MSEK 606.3 (320.7)
- Operating profit (EBIT) MSEK -1.7 (-38.3)
- Operating profit (EBITDA) MSEK 36.1 (1.5)
- Total Comprehensive income MSEK -7.5 (-13.7)
- Earnings per share, before and after dilution (SEK) -0.01 (-0.04)
- Cash flow from operating activities MSEK 22.5 (-47.1)

Comments from the CEO
Breaking through MSEK 900 order intake level 
With the record high order intake this quarter of SEK 324 million, more than four times higher than last year, we achieved a strong sales outlook. When we look at the 12-months rolling order intake, we arrived at a record high of SEK 909 million, 95% higher than last year. We are operating in a business environment with long-term relations and contracts from our governmental customers.  To assess our future sales position, we consider this 12- months rolling order intake number one of our key performance indicators. With three large sales orders in the past 9 months factored in, it is encouraging to see this performance indicator making such a significant upswing.

Sales up by 80%
We had yet another strong sales quarter with total sales up by 80%. This is proving the resilience of our business to the COVID-19 pandemic. Year to date we are now nearly 30% ahead of last year. TRaaS Sales were up by 19% in the quarter. This is somewhat below our expectations and mainly related to the temporary school closings in the USA, caused by the pandemic. To ensure proper education and social participation of children, some schools have reopened as of September. We are pleased that we can contribute again  to safer school zones with our School zone speed enforcement solutions.

Costa Rica deployment shifted
In February of this year Sensys Gatso, together with our consortium partners, signed a contract with the Costa Rican government for the country’s Nationwide Intelligent Transportation System. At the time, the 2020 budget for the execution of the project was approved by the Government. Due to Covid-19 circumstances, the parliament could not convene to approve the 2021 part of the budget. We expect this to occur latest in December of this year.  At the moment we expect the deployment of this SEK 192 million contract to be shifted into the beginning of 2021.

EBITDA-margin 17% and EBIT up by SEK 31 million 
With our high sales volume this quarter, the gross margin significantly improved by 3.5 percentage points to 37.4%. In addition, our operating expenses were SEK 6 million lower than last year. This resulted in a strong and profitable quarter. The EBITDA arrived at SEK 23 million, or 17% of sales. The operating profit EBIT increased by nearly SEK 31 million to SEK 13 million.

Directed share issue oversubscribed 
In September we issued new shares to raise equity capital for the amount of SEK 75 million. This directed share issue enabled us to diversify the shareholder base in the Company among long term investors and at the same time take advantage of the opportunity to raise capital in a time- and cost-efficient manner. 

The net proceeds from the oversubscribed Directed New Share Issue will primarily be used to support and accelerate the company’s growth plan, which includes investments in expanding in current and new markets to make traffic safer and cities more sustainable.

Strong Financial position
During the quarter we had a positive cash flow from operating activities of SEK 11 million. Our free available cash at the end of the period now amounts to a solid SEK 169 million, up by SEK 103 million compared to last year. This includes the equity capital funding of SEK 75 million and the first tranche of SEK 12,5 million of the SEK 50 million new Rabobank facility agreement.

Outlook 
In Q1 of this year, the COVID-19 pandemic started to impact all of us. Fortunately, we have seen in the past 6 months that our business has been minimally impacted. Some shifts in timing of deployment and temporary pausing of enforcement do not pose structural issues to our often long term contracts and customer relationships. Our order book was even reinforced in this quarter with the largest order in our history coming from the Middle East region. With higher sales, improved margins, and controlled expenses, our profitability has increased significantly. 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 26 November 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-q3-2020

Dial-in number
Sweden: +46 8 505 583 73
UK: +44 333 300 92 70
US: +1 8 338 230 589

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 26 November 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 and has 252 employees. The Sensys Gatso Group’s shares are listed on Nasdaq Stockholm.

Published: 26/11/2020