25/08/2016 - April – June 2016
(Numbers 2015 for Sensys Traffic stand alone)
- Net sales MSEK 100.0 (64.5)
- Order intake MSEK 61.4 (23.0)
- EBITDA MSEK 6.5 (17.8)
- The profit after tax MSEK -0.9 (13.5)
- Earnings per share, before and after dilution, SEK 0.00 (0.02)
- Cash flow from operating activities amounted to MSEK 12.0 (19.1)
- Adj. EBITDA MSEK 1.8
January – June 2016
(Numbers 2015 for Sensys Traffic stand alone)
- Net sales MSEK 264.2 (118.8)
- Order intake MSEK 88.5 (66.2)
- EBITDA MSEK 9.8 (36.7)
- The profit after tax MSEK -20.9 (26.9)
- Earnings per share, before and after dilution, SEK -0.03 (0.05)
- Cash flow from operating activities amounted to MSEK 14.6 (38.8)
- Adj. EBITDA MSEK 35.2
COMMENTS FROM THE CEO
In the second quarter, underlying business performed as expected. However, the uncertain macro-political environment has impacted customer behaviour, especially in the Middle East, which has consequently delayed some orders.
During the second quarter, net sales amounted to SEK 100.0 million (64.5), EBITDA amounted to SEK 6.5 million (17.8) and operating profit was SEK -2.9 million (17.5). The initial estimate of the financial effects of the transformation programme amounted to SEK 30 million, which has been taken into account in the first quarter. As a result of new estimations, the EBITDA and operating profit as stated above, have been positively affected by SEK 4.7 million, due to a reversal of the provision The adjusted EBITDA amounted to SEK 1.8 million, and the adjusted operating profit amounted to SEK -7.5 million.
Order intake amounted to SEK 61.4 million (23.0), which is higher than the previous quarter thanks to the Latvian order that was announced during the period. The order intake during the first half of 2016 has mainly derived from smaller orders besides the order from Latvia. As we have had many smaller orders during the first half of 2016, we are therefore pleased to have received orders after the end of the quarter, one from the UAE worth EUR 1.5 million to be delivered the fourth quarter this year, as well as an order yesterday worth EUR 1 million from Middle East and Northern Africa planned to be fully delivered in the first quarter 2017
During the second quarter we have continued to execute on the transformation program. The estimates on cost savings and the reduction of net working capital remain valid, even though we see a potential for further improvements ahead.
Since last quarter, we are reporting the breakdown of our two business segments, System Sales and Managed Services. In the second quarter, sales in System Sales amounted to SEK 85.3 million, and Managed Services amounted to SEK 14.7 million.
In System Sales, we have started to roll out the order covering traffic safety systems in Latvia and also the order covering speed enforcement systems in Sweden. This clearly shows how timeframes can differ between customers, as the Latvian contract was received in June and delivery could start almost immediately, compared to the Swedish contract which was signed back in October 2015.
In Managed Services, we have started to roll out the order from Southern California covering an upgrade of the red light camera received in October 2015. The contract runs for five years. We are also expanding the installed base in other US cities.
With effect from 19 May 2016, Claes Ödman is appointed Chairman of the Board and Kerstin Sjöstrand, Pia Hofstedt and Katarina Staaf have been appointed as new members of the Board. The members of the Board have long and extensive experience in several different sectors both in Sweden and internationally. The Board includes directors with technical, commercial as well as financial expertise.
We welcome our new board members to Sensys Gatso Group and thank our parting board members for their extensive insight and guidance over the last years.
Optimistic about future prospects
We maintain our optimistic view of our future prospects and will continue to work in line with our strategy to ensure a larger proportion of recurring revenues and a more streamlined business. We see an increasing interest in our services across our regions and believe that our extended scale and reach will benefit the business on a long-term and sustainable basis.
Invitation to a presentation for press and analysts
On 25 August at 09:30, CEO Torbjörn Sandberg 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: www.sensysgatso.com
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: +1 866 904 9624
UK: +44 (0) 844 571 8931
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: 67889415 or “Sensys” to register.
Please call ten minutes before the time specified.
CEO, Sensys Gatso Group
This is information that Sensys Gatso Group AB (publ) must make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:30 on 25 August 2016.
For further information please contact:
Torbjörn Sandberg, CEO
+46 76 843 43 76
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. The Group has 202 employees and is the result of a merger of Sensys Traffic AB and Gatso Beheer B.V. following the aquistion of Gatso Beheer.