Interim Report July - September 2017

23/11/2017 - July – September 2017
- Net sales MSEK 70.9 (68.4)
- Order intake MSEK 59.4 (44.8)
- Operating profit MSEK -18.2 (-1.4)
- EBITDA MSEK -8.9 (9.7)
- The profit after tax MSEK -17.0 (-3.3)
- Comprehensive income MSEK 25.0 (12.8)
- Earnings per share, before and after dilution, SEK -0.03 (-0.01)
- Cash flow from operating activities amounted to MSEK -10.2 (24.6)

January – September 2017
- Net sales MSEK 209.8 (332.6)
- Order intake MSEK 192.6 (133.3)
- Operating profit MSEK -50.1 (-18.6)
- EBITDA MSEK -21.3 (19.6)
- The profit after tax MSEK -49.2 (-24.1)
- Comprehensive income MSEK -61.7 (-4.4)
- Earnings per share, before and after dilution, SEK -0.07 (-0.04)
- Cash flow from operating activities amounted to MSEK -31.9 (39.2)

Items affecting comparability
The effects of the one-off costs concerning the transformation program and a release of a contingent liability under Other operating income has effected the comparability of our interim financial statements. The adjusted financial figures are as follows:

July – September 2017
Adj. EBITDA MSEK -8.9 (-11.5)

January – September 2017
Adj. EBITDA MSEK -21.3 (23.6)



Steady sales
Sensys Gatso has been able to keep an overall steady level of sales over the quarters, event though big opportunities in the Middle East and other regions have been postponed. In the third quarter the sales amounted to SEK 70.9 million (68.4), of which System Sales contributed SEK 58.9 million (52.2), which is in line with our 12 months run rate. The steady sales level in 2017 is mainly a result of our long-term customer relations, with repeat orders and maintenance contracts.

The Managed Services segment declined this quarter to SEK 11.9 million compared to SEK 16.2 million in 2016. Sales in the quarter was impacted mainly by the earlier communicated effect of the court ruling in Iowa. Despite this effect, we have been able to expand our customer base with new contracts and roll-outs of new programs in the USA.

The gross margin for the quarter was 32.3 percent (36.0). The gross margin was impacted by lower sales in the segment Managed Services, which typically has a higher gross margin. Besides the unfavourable sales mix in the quarter, the gross margin of 2016 was influenced by the release of the provision relating to the transformation program.

Higher order intake
The total quarterly order intake increased significantly to SEK 59.4 million compared to SEK 44.8 million in the corresponding period last year and is in line with the 12 months run rate. The order intake during the first nine months was SEK 192.6 million (133.3), which is a 44 percent improvement compared to last year.

During 2017 we have been successful in renewing our Managed Services programs in the USA with a contract value of SEK 37.9 million. We are specifically excited and proud that Sensys Gatso has been selected as a business partner by the state of Oklahoma in November of this year. This innovative state wide solution, to solve the challenges with uninsured vehicle enforcement, takes Sensys Gatso into new market opportunities. The focus on innovative software and hardware solutions is in line with our strategy to grow our managed services activities across the world.

After the end of the period Trafikverket has extended their framework contract with Sensys Gatso for another two years. We are particularly proud over this and see this as a proof of our excellent partnership already lasting for over 10 years.

EBITDA performance in the quarter
The EBITDA for the third quarter improved to SEK -8.9 million compared to the adjusted EBITDA of SEK -11.5 million for the same period last year. The third quarter 2016 adjustments related to one-off effects of the transformation program and contingent liability release. We continue to focus on increasing sales and cost reductions to further improve our EBITDA performance.

Increased available cash due to successful rights issue
The available cash at the end of the third quarter was SEK 53.9 million. On October 23, after the end of the third quarter, Sensys Gatso Group’s rights issue has successfully been finalized with an oversubscription of approximately 30 percent. Through the rights issue, Sensys Gatso has received proceeds amounting to SEK 85.1 million before issue costs and after set-off against short term liabilities to shareholders.

Improving outlook
Looking at the short-term, it appears that the volatile and uncertain market situation is beginning to ease. We will continue to focus on our strategy to grow our managed services activities and deliver innovative software and hardware solutions across the world.

The global trends are in favour of sustainability and traffic safety. With our integrated group companies, our global presence and improved capital structure, we are now in a good position to grow our business.

Ivo Mönnink
CEO, Sensys Gatso Group

Financial information

Invitation to a presentation for press and analysts
On 23 November at 09:30 CEO Ivo Mönnink and CFO Niki Gatsonides will present the report and answer questions in an audiocast. The presentation can be followed online via the link on Sensys’ website: or

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:
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: 4298157 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 above, at 08.30 on the 23rd of November 2017.




For further information please contact:
Ivo Mönnink, CEO

Published: 23/11/2017