Year-End Report for 2017

22/02/2018 - October – December 2017
- Net sales MSEK 83.3 (104.0)
- Order intake MSEK 156.3 (66.6)
- Operating profit MSEK -4.7 (-4.6)
- EBITDA MSEK 5.4 (5.8)
- The profit after tax MSEK -12.6 (-0.2)
- Total Comprehensive income MSEK -3.2 (3.7)
- Earnings per share, before and after dilution, SEK -0.01 (0.00)
- Cash flow from operating activities amounted to MSEK -7.3 (38.9)


January – December 2017
- Net sales MSEK 293.1 (436.6)
- Order intake MSEK 348.9 (199.9)
- Operating profit MSEK -54.8 (-23.2)
- EBITDA MSEK -15.9 (25.3)
- The profit after tax MSEK -61.8 (-24.4)
- Total Comprehensive income -64.9 MSEK (-0.7)
- Earnings per share, before and after dilution, SEK -0.09 (-0.04)
- Cash flow from operating activities amounted to MSEK -39.3 (88.4)

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:

October - December 2017
- Adj. EBITDA MSEK 5.4 (5.8)

January – December 2017
- Adj. EBITDA MSEK -15.9 (29.4)


COMMENTS FROM THE CEO
Recovering Sales

Sensys Gatso has seen improving sales in the fourth quarter. The sales in the fourth quarter amounted to SEK 83.3 million, which is an improvement of 17.5 percent compared to last quarter.

The improvement of sales is mainly due to increased sales activities in our segment of System Sales, which has shown an improvement of 22.0 percent compared to the third quarter. These sales mainly consist of recurring service and maintenance with multiple repeat orders from existing customers. 

After a decline in sales in the third quarter due to the impact of the Iowa court ruling, our Managed Services activities have been stable on approximately SEK 12 million in the fourth quarter.  During the year we managed to expand our customer base in the US by rolling out new programs, which will drive our recurring Managed Services sales going forward. 

Strong order intake growth

The order intake was very strong with SEK 156 million in the quarter. Compared to the previous quarter the order intake increased with 163 percent. This growth is a result of our sales and development efforts in combination with easing market situations. Almost half of this order intake is related to multi-year Managed Services contracts, strengthening our long-term recurring revenue base. We expect to deliver approximately SEK 100 million of the order intake in 2018, starting as of the second quarter.

Improved EBITDA performance in the quarter

The EBITDA performance in the quarter amounted to SEK 5.4 million, which is an improvement of SEK 14.3 million compared to the previous quarter. This is mainly a result of an increased sales approximately 22 percent with a stable cost base in combination with excellent customer service delivery.

Available cash

The available cash at the end of the fourth quarter was SEK 121.3 million, consisting of      SEK 58.9 million in cash and SEK 62.4 million available credit facilities. With this strong cash situation, we are in the position to execute on our strategic growth opportunities. 

Outlook

We are in the process of improving the recurring sales part of our business, both in System Sales and Managed Services. However, we remain dependent to a large extent on our one-off volatile project business. Short-term we will focus on improving the efficiencies in this part of our business.

Longer term we expect improving market conditions for traffic enforcement solutions due to global economic recovery. We will continue to focus on our strategy to grow our managed services activities and deliver innovative software and hardware solutions across the world.

Ivo Mönnink
CEO, Sensys Gatso Group

 

Invitation to a presentation for press and analysts

On 22 February at 09:30 CEO Ivo Mönnink and CFO Simon Mulder 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 or http://media.fronto.com/cloud/sensys/180222

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:
http://emea.directeventreg.com/registration/5764349
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: 5764349 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 22nd of February 2018.

  Release (pdf)

 

For further information please contact:
Ivo Mönnink, CEO
e-mail: i.monnink@sensysgatso.com

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: 22/02/2018