Interim Report July - September 2018

22/11/2018 - July – September 2018
- Net sales MSEK 95.7 (70.9)
- Order intake MSEK 100.7 (59.4)
- EBITDA MSEK 18.2 (-8.9)
- EBIT Operating profit MSEK 8.8 (-18.2)
- Total Comprehensive income MSEK 1.2 (-25.0)
- Earnings per share, before and after dilution, SEK 0.00 (-0.03)
- Cash flow from operating activities amounted to MSEK 11.6 (-10.2)

January – September 2018
- Net sales MSEK 255.9 (209.8)
- Order intake MSEK 336.3 (192.6)
- EBITDA MSEK 20.9 (-21.3)
- Operating profit MSEK -6.7 (-50.1)
- Total Comprehensive income MSEK 7.4 (-61.7)
- Earnings per share, before and after dilution, SEK -0.01 (-0.07)
- Cash flow from operating activities amounted to MSEK 10.3 (-31.9)


A strong quarter with high activity

In the third quarter, net sales rose to SEK 95.7 million (70.9), up 35 percent. For the first three-quarters of the year, net sales increased by 22 percent to SEK 255.9 million (209.8). Our strong order intake that started in Q4 2017, was the main contributor to our top-line growth. Our activity level was high, and the order intake continued to be robust during the third quarter. The order intake for the quarter was SEK 100.7 million (59.4). New orders and procurement awards were received from Australia, The Netherlands, France, Saudi Arabia and the US. Our improved top-line and tight management of cost in the quarter resulted in an increased operating income, EBITDA, of SEK 18.2 million (-8.9). For the first three quarters our operating income, EBITDA, has grown to SEK 20.9 million (-21.3). The main performance driver this quarter was our Managed Services business in the strong US market.

Scalability in the US market

Our go-to-market strategy in the US is focused on Managed Services including software, equipment, maintenance and services. Our software products Puls and Xilium help our customers to manage traffic data and provide for a back-office function. With the latter we can offer our customers flexible solutions to manage their enforcement process; from analysing the offences till sending out the citations and collecting the fines. This scalable software platform provides us with opportunities to diversify into new verticals like i.e. uninsured vehicle and parking enforcement.

During the quarter, we renewed rental, maintenance and service contracts for customers with limited investments in equipment for Sensys Gatso. We also signed several new contracts for Managed Services in the US and the Speed Enforcement program in Iowa was resumed. In addition, after the close of the third quarter, we finally got the green light to turn on our Uninsured Vehicle Enforcement Diversion (UVED) Managed Services program in Oklahoma. The contract was awarded in November 2017 and operations have started in November 2018.

High gross margin and costs in control

Recurring revenues from contracts improved our gross margin to 49 percent (32) in the third quarter and to 43 percent (38) for the first three quarters. We are operating in competitive and often tender driven markets with volatility in the tender cycles. Tight cost control will remain a priority. The past quarters we have focussed on minimizing overhead costs and we have achieved an overall stable cost level which amounts to approximately SEK 40 million for the third quarter. During the year our total number of full-time employees has increased from 154 to 168. The increase in employees relates for the most part to the hiring of direct employees to support the increase in our business in the US and Australia, which are part of Cost of Goods Sold.

Continuous innovation

As communicated at our AGM in May of this year we continue our history of innovation. Our global development team has been working to create a new scalable and flexible platform to create our best solution yet. We will present this new platform in December, at the 2018 Gulf Traffic in Dubai. The development efforts related to this new platform are being capitalized on the balance sheet as an intangible asset.

Available cash and solid financial position

Our available cash at the end of the quarter was SEK 122.4 million (53.9). During the quarter, we have seen a strong operating performance with efficient capital management. This resulted in a positive operating cash flow of SEK 11.6 million (-10.2) for the quarter and SEK 10.2 million (-31.9) for the first three-quarters. We closed the quarter with a solid financial position. The equity/assets’ ratio improved to 73 percent (53) thanks to the net profit for the quarter and the conversion of part of the vendor loan.


Activity creates results. The strong order intake that started in Q4 2017 continued the first three quarters. Our dedicated teams in Europe and the US were driving us to a good performance in the third quarter. So far, in the fourth quarter with new contracts from France and Australia, we continue to see high interest for our enforcement solutions. Our business mix is improving across various regions and solutions.

We are in the business of saving lives in traffic, across the world. With our strong heritage and our highly committed people we continue to be a solid business partner for creating innovative solutions for sustainable cities, safe rural roads and managed highways. With an improving top-line and tight cost control we aim for a gradual improvement of our profitability.

Ivo Mönnink
CEO, Sensys Gatso Group

Financial information

Invitation to a presentation for press and analysts

On 22 November at 09:30 CEO Ivo Mönnink and CFO Simon Mulder will present the interim report of the third quarter 2018 and answer questions in an audiocast. The presentation can be followed online via the link on Sensys’ website: or by

In order to participate in the audiocast you will need to register yourself.  This registration is done by an e-mail address, when accessing the link above. 

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 9 175 039 901
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: 4464719 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 22 November 2018.




For further information please contact:
Ivo Mönnink, CEO

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: 22/11/2018