23/02/2017 - October – December 2016
- Net sales MSEK 104.0 (178.7)
- Order intake MSEK 66.6 (186.4)
- Operating profit MSEK -4.6 (21.4)
- EBITDA MSEK 5.8 (37.7)
- The profit after tax MSEK -0.2 (19.9)
- Comprehensive income 3.7 MSEK (14.6)
- Earnings per share, before and after dilution, SEK 0.00 (0.03)
- Cash flow from operating activities amounted to MSEK 38.9 (9.8)
January – December 2016
- Net sales MSEK 436.6 (397.8)
- Order intake MSEK 199.9 (292.4)
- Operating profit MSEK -23.2 (48.7)
- EBITDA MSEK 25.3 (75.5)
- The profit after tax MSEK -24.4 (40.9)
- Comprehensive income MSEK -0.7 (29.4)
- Earnings per share, before and after dilution, SEK -0.04 (0.07)
- Cash flow from operating activities amounted to MSEK 88.4 (37.7)
Numbers prior 1 August 2015 are for Sensys Traffic AB stand-alone.
Comments from the CEO
Looking back at Sensys Gatso’s 2016, two main themes can be identified. On one hand, it has been a successful year of transformation for the group, where we streamlined the organization and increased the proportion of recurring revenues in line with our long-term strategy. On the other hand, it was also a year where unfavorable geopolitical developments worked against our progress and the market in general. The low oil price in combination with the outcome of the US presidential election has caused disturbances especially in the Middle East business. However, as pointed out already in the last quarter, things might turn around rapidly and we remain optimistic about our underlying performance and long-term prospects. It is evident that the demand for traffic safety is growing on a global basis, and we know that the value we can provide is fundamental.
Full year sales in our two business segments amounted to SEK 436.6 million with SEK 370.3 million for System Sales and SEK 66.3 million for Managed Services. In the fourth quarter, the net sales amounted SEK 104.0 million, with SEK 84.9 million for System Sales and SEK 19.0 million for Managed Services. EBITDA reached SEK 5.8 million (37.7) and operating profit came in at SEK -4.6 million (21.4).
Order intake during the quarter amounted to SEK 66.6 million (186.4), which is higher than the previous quarter (44.8) but lower than Q4 last year. Order intake between the quarters can be very volatile. In the quarter, we have received orders from Sweden worth SEK 28.0 million and from the UAE worth SEK 5.0 million, along with several smaller orders mainly in Europe. After the end of the year, we have also received two orders from Belgium worth SEK 18.6 million in total, covering traffic safety systems in Brussels and Flanders, as well as orders in Southern Europe to the amount of SEK 25.6 million.
We have been able to maintain a strong cash flow performance throughout the year – cash flow from operating activities amounted to SEK 88.4 million despite the costs of SEK 16.0 million relating to the transformation program for 2016. The cash flow from operations in the fourth quarter amounted to SEK 38.9 million. As an effect of this strong cash flow during 2016, we have been able to repay our loans to the amount of SEK 66.2 million and repay on our flexible credit facilities to the amount of SEK 42.7 million. We are now in the middle of the first quarter of 2017, in which we expect our transformation program to reach full effect in terms of cost savings of SEK 5 million per quarter compared to one year earlier for the operations in Sweden and the Netherlands, as well as reduction of net working capital.
In addition, we have considerably improved our available free cash position during the year, taking into account repayment of bank loans, credit facilities and also loan to shareholders relating to the acquisition of GATSO for a total amount of SEK 109.4 million. The closing available free cash amounts to of SEK 85.5 million in comparison to SEK 57.7 million at the end of last year.
The short-term market outlook is volatile in the System Sales segment and might prove uncertain due to the global geopolitical changes. However, we will continue to focus on our strategy and will be ready to manage any business opportunities when they arise. The long-term trend, no matter the political direction, is in favor of sustainable solutions and services and with our extended scale Sensys Gatso Group will benefit from this movement.
Invitation to a presentation for press and analysts
On 23 February 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 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: 68274778 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 publish to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act.
This information was submitted for publication on 23 February 2017 at 08:30.
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 and has 169 employees.