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StrongPoint
Quarterly Report • Oct 18, 2024
3767_rns_2024-10-18_d0c60086-6d81-44fa-b3a6-0fa60a1fad41.pdf
Quarterly Report
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Q3 and YTD 2024 Financial report and status
Key figures
| MNOK | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|---|
| Revenue | 313.1 | 292.9 | 969.3 | 1,011.5 | 1,342.4 |
| EBITDA | 12.2 | 3.8 | -3.0 | 19.3 | -1.3 |
| EBITDA margin | 3.9 % | 1.3 % | -0.3 % | 1.9 % | -0.1 % |
| EBITDA excluding option cost | 13.2 | 5.8 | 0.9 | 24.4 | 5.1 |
| Operating profit (EBIT) | 2.2 | -5.1 | -34.2 | -8.5 | -39.4 |
| Ordinary profit before tax (EBT) | 3.8 | -13.5 | -38.6 | -7.0 | -45.3 |
| Cash flow from operational activities | 10.1 | -24.5 | 15.7 | -8.5 | 25.2 |
| Disposable funds | 60.9 | 82.6 | 60.9 | 82.6 | 95.2 |
| Earnings per share (NOK) | 0.06 | -0.21 | -0.67 | -0.11 | -0.77 |
CEO's Perspective
Following several very tough quarters, we are now starting to see some positive effects of organizational, cost and commercial measures taken earlier. Revenue is up 7% driven by strong projectdriven performance in the Baltics and Sweden as well as from e-commerce. Despite a continued challenging shopfitting market in the UK our Group profit figures are back to black. In addition to a generally slightly more positive business environment, we are having great success with the roll-out of our Order Picking solution at Sainsbury's in UK. This quarter we went live with our Order Picking solution in the first Sainsbury's stores and as we close this
quarter the number of stores live with our solution is 13. Whereas the fourth quarter with the holiday season is a 'freeze' period where no additional stores will be added, we expect all, close to 300 stores, to be rolled out during the first two quarters of 2025. With this backdrop, I remain cautiously optimistic about the short-term improvement in our business operations and am very inspired by what we can achieve with these break-through customers and solutions.
Jacob Tveraabak CEO of StrongPoint
Our revenue in the third quarter of 2024 was 313 MNOK, representing a 7% increase compared to same quarter in 2023. The overall growth was held back by a very weak shopfitting market in the UK & Ireland with revenue down by more than 40% in the quarter. However, overall growth ended positive driven by strong performance in the Baltics & Finland and Sweden, with a 36% and 25% revenue growth respectively. Revenue from e-commerce increased a staggering 176%, although from a lower revenue starting point, driven by product revenue from Grocery Lockers and increased recurring software license revenue from Order Picking. Our recurring revenue grew by 10%, driven by the initiated store roll-out of Order Picking at Sainsbury's. Considering only recurring software license revenue, our rolling twelve-month revenue grew by 33% compared to same period last year. Going forward, with both Sainsbury's and other new customers on our Order Picking solution, we expect our recurring software license revenue to grow with the e-grocery market growth, and this will constitute an ever more important part of building a robust business going forward.
Reported EBITDA for the quarter was 12.2 MNOK, reflecting a more than 8 MNOK improvement compared to the same quarter in 2023. This improvement was achieved despite a massive drop of approx. 14 MNOK in EBITDA in our UK & Ireland business, following the significant revenue drop in shopfitting. Measures to improve this are well under way and include better quality assurance in shopfitting work as well as building a broader customer base. Organizational and cost reduction measures implemented earlier this year, with the last measures coming into effect end Q2, have been important to achieve the profitability improvement at the Group level.
Whilst we will continue our efforts to improve short-term financial performance, we are fully focused on delivering on the important roll-out of our Order Picking solution to Sainsbury's. With the announcement of such an esteemed grocery retailer as Sainsbury's, our UK & Irish businesses are experiencing more solution and product interest than ever before. As examples, we now have 3 confirmed proof of concepts (POCs) for our Vensafe loss prevention solution, aimed at reducing the significant theft issues in stores. Also, we have confirmed a POC for Grocery Lockers, aimed at reducing the last mile delivery cost of e-groceries, compared to home delivery which is so prevalent in the UK market. In addition to the positive development on the customer side in the UK, our E-commerce offering is gaining attention worldwide. As an example of this was the confirmation of New Zealand's leading quick-commerce company, Delivereasy, starting to apply our Order Picking solution to fulfil all its grocery orders.
Whereas we continue to observe much market uncertainty in the short-term I am cautions about promising continued significant short-term financial improvements. That said, as the organizational, cost and commercial measures taken earlier have started bearing fruits this quarter, I am hopeful about positive trends and improved performance for the remainder of the year and into 2025.
In conclusion, I extend my profound thanks to our dedicated StrongPoint team, our valued customers, our partners, and our shareholders for their support in these turbulent times. Together, we will continue to uphold our commitment to providing retail technology in every shopping experience for a smarter and better life.
Stay safe, strong, and passionate!
HIGHLIGHTS
Financial performance 3rd quarter
- y Revenue increased 7% to 313 MNOK (293) in the third quarter compared to the same quarter last year. Stronger project-driven performance in Sweden and the Baltics.
- y Rolling twelve months recurring revenue increased by 10% to 346 MNOK for the same period.
- y EBITDA for the quarter ended at 12 MNOK (4), with EBITDA margin of 3.9% (1.3%).
- y Cash flow from operations was 10 MNOK (-25) for the quarter.
Continued customer success in priority areas
- y Leading New Zealand Quick Commerce company, Delivereasy, selected StrongPoint's Order Picking solution to fulfil all its grocery orders.
- y The world's first AutoStore™ with frozen goods, installed by StrongPoint for Haugaland Storhusholdning, was officially opened in September.
- y Started rollout of Self-Checkouts to Maxima in the Baltics.
Outlook and long-term ambitions
- y While there has been an overall uptick in our results in this quarter, overall market uncertainty continues to be a significant factor. As a result, we remain cautiously optimistic about the longterm outlook.
- y We continue to maintain our long-term ambitions of healthy revenue growth and an EBITDA margin of >10%.
| Revenue | Q3 | YTD | Year | ||
|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 |
| Scandinavia | 128.8 | 119.8 | 490.8 | 492.6 | 633.9 |
| International incl Product | 184.3 | 173.2 | 478.5 | 519.0 | 708.5 |
| ASA/Elim | - | - | - | - | - |
| Total | 313.1 | 292.9 | 969.3 | 1,011.5 1,342.4 |
StrongPoint Group
Operating revenue per quarter (MNOK) EBITDA per quarter (MNOK)
StrongPoint Group
StrongPoint is a grocery-focused retail technology company that serves customers with products and solutions for in-store and online shopping.
| EBITDA | Q3 | YTD | Year | ||
|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 |
| Scandinavia | 15.7 | 11.9 | 39.5 | 37.2 | 41.5 |
| International incl Product | 1.0 | 0.4 | -21.9 | 7.0 | -10.4 |
| ASA/Elim | -4.4 | -8.5 | -20.6 | -24.9 | -32.4 |
| Total | 12.2 | 3.8 | -3.0 | 19.3 | -1.3 |
| Number of employees 1 | 512 | 523 | 512 | 523 | 524 |
1) This includes 12 employees who were employees as of 30 September 2024, but who will be leaving during 2024/2025 as part of previous restructuring processes. Moreover, there were five employees added from the acquisition of Hamari in Finland in Q4 2023.
2) The Q4 2023 EBITDA was -20.6 MNOK, including non-recurring restructuring and M&A costs of 7.3 MNOK and write-downs 10.6 MNOK. Excluding these costs, the Q4 2023 EBITDA was -2.7 MNOK.
3) The Q2 2024 EBITDA was -9.1 MNOK, which includes restructuring cost and severance pay of 10 MNOK. Excluding these costs, EBITDA was 0.9 MNOK.
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Financial performance
In Q3 2024, the total revenue increased by 7% compared to the same quarter last year, with an 8% revenue increase in Scandinavia and 6% increase in International. Overall, there are gradual signs of improvements in several markets, with significant revenue increase in Sweden, Baltics & Finland and Spain. Some of this revenue increase is attributable to deliveries from our order reserve.
In Scandinavia, revenue increased by 8%, mainly driven by Sweden on several products including ESL rollouts and an increase in the sale of Grocery Lockers. In Norway, we had the first sale of our own proprietary Self-Checkout solution to a grocery retailer in the country of Iceland.
35 120 Personnel costs were 82.3 MNOK in Q3 2024 compared to 83.2 MNOK the same quarter last year. This includes personnel costs of 1.5 MNOK relating to Finland, which were not included in the Q3 2023 figures. For the same period, other operating expenses decreased from 40.3 MNOK to 38.3 MNOK due to a prudent cost approach.
The International segment saw revenue increase in all regions except for the UK & Ireland, which had a revenue decline of 41% for the period. In the UK, there is a mixed picture with a significant decline in Shop Fitting revenue, which is impacting the performance of this quarter. On the other hand, there is an increased customer interest and activity in other parts of our portfolio. In addition, we are having good progress on the Order Picking delivery to Sainsbury's, with the first 13 stores having gone live at the end of September. Therefore, we continue to strengthen our sales capacity in the UK.
25 30 100 The EBITDA increased to 12.2 MNOK in Q3 2024 (3.8 MNOK).
20 The rolling twelve months recurring revenue increased by 10% from 314 MNOK in Q3 2023 to 346 MNOK in Q3 2024.
5 10 15 60 80 This is attributed to a 33% increase in license revenue, of which the majority of the growth is related to Order Picking for Sainsbury's.
-5 40 As of the end of Q3 2024, the net interest-bearing debt was 109.3 MNOK, representing an increase of 4.2 MNOK compared to the end of Q2 2024.
In the other markets, the Baltics & Finland revenue increased by 36%, driven by increased volume of selfcheckout sales. Finland, which was consolidated for the first time in Q4 2023, contributed with 3.7 MNOK in revenue. Moreover, Spain saw a 31% increase attributable to increased CashGuard sales.
During the quarter, the gross margin decreased from 44.1% to 42.7% year on year, mainly due to the product mix with higher product sales of ESLs, Self-Checkout and Lockers, as well as lower service revenue driven by the reduction in Shop Fitting volumes in the UK. The cost of goods sold is still impacted by higher prices driven by inflation and depreciation of the NOK compared to the USD and EUR, which consequently increases the purchase price. Mitigation efforts continue to protect and improve the gross margin on both our own products and third party products.
Continued customer success in priority areas
Delivereasy, New Zealand's leading Quick Commerce technology company chose StrongPoint's Order Picking solution for all its grocery e-commerce orders. This is further proof of the value proposition of our Order Picking solution and an example of how our solution can be scaled even to regions beyond our target markets.
StrongPoint achieved a milestone in September with the installation of the world's first AutoStore™ that can handle frozen goods as well as chilled and ambient temperature. This is the conclusion of a long-standing project and means StrongPoint has gathered unrivalled expertise in the installation process of the world's most cutting-edge cube automation solution for grocery retailers.
The official unveiling of the solution at Haugaland Storhusholdning in Norway allowed the public to see the technology in action. The event attracted media attention from Europe, USA and Asia, reflecting the global interest in this groundbreaking technology.
Outlook and long-term ambitions
While there has been an overall uptick in our results in this quarter, overall market uncertainty continues to be a significant factor. As a result, we remain cautiously optimistic about the longer term outlook.
Despite these challenges, we continue to see sustained and positive customer interest across our diverse solution portfolio. This reinforces our confidence in both our competitive positioning and long-term strategic direction. We remain fully committed to delivering on our long-term objectives, targeting steady revenue growth and maintaining an EBITDA margin in excess of 10%.
StrongPoint Solutions
*) Proprietary technologies
Online
Grocery Picking
Order Picking solution * AutoStore Automated Fulfilment Warehouse Management Software (WMS)
Last mile
Click & Collect Lockers * Drive-thru * Pick-up in-store * Home delivery with route optimization
In-store
In-store Productivity
ShopFlow Logistics * Digi Scales and Wrapping Systems Electronic Shelf Labels Grocery Cooling Solutions Autonomous Mobile Robots (AMRs)
Payment Solutions
CashGuard Cash Management *
Check Out Efficiency
Self-Checkout * Self-Scanning Vensafe Sales Automation *
Retail Management
POS Systems Commerce Management System
Shop Fitting
StrongPoint's product-market fit – our 'double opportunity'
Grocery retailers are facing pressures like never before – in-store and online.
The growth in In-store costs for goods, transportation and labour have recently come down, but is still higher than two-three years ago. This has driven many customers to shop at discounters. In addition, theft in-store is a growing concern for retailers and their staff.
In mature grocery e-commerce markets such as the UK where e-grocery makes up over 13% of the grocery market, profitability is a major challenge and costs continue to surge.
This means that grocery retailers need to find efficiency-savings in-store and online to maintain their already razor-thin margins. As well as ensuring a safe and secure working and shopping environment.
StrongPoint focuses on providing smart retail technologies to grocery retailers to boost profitability in-store and online.
From in-store self-checkouts, electronic shelf labels, cash management solutions to worldclass e-commerce fulfilment solutions, StrongPoint solutions cut grocery retailers costs and create outstanding customer experiences.
The StrongPoint double opportunity
Grocery retailers are under pressure:
- y Labour costs going up
- y Discounters becoming mainstream
- y In mature e-commerce markets, profitability a challenge
StrongPoint Opportunity #1 Efficiency-saving in-store solutions
StrongPoint Opportunity #2 Efficiency-saving e-commerce solutions StrongPoint Double Opportunity:
Technology solutions solving
1) instore and 2) online challenges
Scandinavia
The business segment Scandinavia currently consists of the operating business units in Norway and Sweden. The revenue also includes some deliveries to Denmark and Iceland.
The market conditions are slowly improving, in particular in Sweden, with higher customer activity levels and interest in our product portfolio. The revenue in the Scandinavian segment increased 8% compared to the same quarter last year, driven by a 25% increase in Sweden mainly through higher volumes on CashGuard, ESL and Lockers. This increase was partly offset by an 8% revenue decrease in Norway, which is experiencing a weaker market compared to Sweden. The EBITDA for Q3 2024 increased from 11.9 MNOK to 15.7 MNOK year on year as a result of both the revenue increase as well as effects from completed cost reduction measures.
Norway
The revenue for Norway in Q3 2024 decreased by 8% compared to the same quarter last year, due to a 20% decrease in product revenue (mainly CashGuard and ESL), partly mitigated by a 7% increase in service revenue for the same products.
Sweden
The revenue in Sweden increased by 25% compared to the same quarter last year, mainly due to a 58% increase in product revenue with increases in CashGuard, ESL and Lockers. Service revenue increased by 4%.
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 |
| - Norway | 57.7 | 62.9 | 275.3 | 272.6 | 340.3 |
| - Sweden | 71.1 | 56.9 | 215.4 | 220.0 | 293.6 |
| Total Revenue | 128.8 | 119.8 | 490.8 | 492.6 | 633.9 |
| EBITDA | 15.7 | 11.9 | 39.5 | 37.2 | 41.5 |
| - In % | 12.2 % | 9.9 % | 8.0 % | 7.6 % | 6.5 % |
| EBT | 14.9 | 11.3 | 35.4 | 33.3 | 35.1 |
| - In % | 11.6 % | 9.4 % | 7.2 % | 6.8 % | 5.5 % |
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 |
| Products | 28.3 | 35.5 183.4 190.5 230.4 | |||
| Services | 29.4 | 27.4 | 92.0 | 82.0 109.8 | |
| Revenue | 57.7 | 62.9 275.3 272.6 340.3 |
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 |
| Products | 35.3 | 22.4 105.8 117.7 155.2 | |||
| Services | 35.8 | 34.5 109.6 102.3 138.4 | |||
| Revenue | 71.1 | 56.9 215.4 220.0 293.6 |
OUR MARKETS
Key markets *
*) Other major markets in Europe, plus USA and South Africa, are served through partners.
International incl. Product
The business segment International incl. Product consists of the operating business units in the Baltics, Spain and UK & Ireland, in addition to partner sales in the rest of Europe and rest of world. The ongoing Product activities for own products have been allocated to this segment.
The business segment International including Product increased in revenue by 6% compared to same quarter last year. UK & Ireland had a decline of 41%. Baltics & Finland had a revenue increase of 36%. Finland, which was consolidated for the first time in Q4 2023 after closing the acquisition of Brand ID Hamari Group Oy in October 2023, contributed with MNOK 3.7. Spain had an increase of 31% and Rest of Europe had an increase of 148%. In addition to the revenue increase both in Baltics & Finland and Spain driven by product sales, there are signs of improvement in these markets, with higher customer interest. In the UK, there is a mixed picture as the revenue decline in its entirety is attributable to Shop Fitting, but with an increased customer interest and activity in other parts of our portfolio. Therefore, we continue to strengthen our sales capacity in the UK.
EBITDA for Q3 2024 ended at 1.0 MNOK compared to 0.4 MNOK for the same quarter last year. The profitability continues to be impacted by our ongoing development costs to support the e-commerce Order Picking solution and the new cash management solution, CashGuard Connect, as we seek to leverage new commercial opportunities from these positive commercial developments and associated opportunities.
Baltics & Finland
Revenue from the Baltic & Finland operations increased by 36% compared to the same quarter last year, including a 52% increase in product revenue, mainly due to Self-Checkout deliveries to Maxima, as informed in the previous quarter. Service revenue increased by 20%, driven by the installation of Self-Checkouts. In Q3 2024, the total revenue contribution from Finland was 3.7 MNOK.
The Spanish revenue increased by 31% compared to the same quarter last year, due to a 43% increase in product revenue driven by higher CashGuard sales. StrongPoint Cash Tech S.L., a joint venture in which StrongPoint has a 60% holding, is managing the development of the new cash management solution, CashGuard Connect, as announced in April 2024. In Q3 2024, development costs of 5.9 MNOK were capitalized. Most of the development costs for the joint venture are capitalized, as opposed to other development costs in the group, which are expensed over the profit and loss statement.
UK & Ireland
| Spain | |||||
|---|---|---|---|---|---|
| Q3 | YTD | Year | |||
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 |
| Products | 16.3 | 11.4 | 38.8 | 44.0 | 67.6 |
| Services | 5.4 | 5.1 | 16.3 | 15.2 | 20.0 |
| Revenue | 21.7 | 16.5 | 55.0 | 59.1 | 87.6 |
The revenue decreased 41% compared to the same quarter last year, due to a reduction in Shop Fitting revenue of 51%. The reduction is driven by lower activity in the Shop Fitting segment and some lost tender offers. Several mitigating actions have been initiated, including improvements in the quality of our project deliveries, broadening the customer base and strengthening the sales team. As a consequence, the activity level and customer dialogues are improving and we are anticipating an uplift in Shop Fitting volume going forward. The Shop Fitting revenue decrease was partly mitigated by an increase in Order Picking revenue, as we are progressing with the rollout plan on Sainsbury's, having gone live with 13 stores as per the end of September 2024. This is just the start of the roll-out, which will continue into the New Year, and it is estimated to be fully rolled out by the second quarter 2025.
Partners
Partner revenue relates to outside of our core markets. In Q3 2024, revenue increased by 148% compared to the same quarter last year, driven by higher volume on deliveries of Grocery Lockers to the USA.
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 |
| Products | 44.4 | 29.3 100.7 | 93.8 131.1 | ||
| Services | 34.7 | 28.8 | 96.2 | 85.3 124.4 | |
| Revenue | 79.1 | 58.1 196.9 179.1 255.5 |
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 |
| Products | 24.9 | 11.3 | 50.7 | 54.3 | 77.7 |
| Services | 8.9 | 2.3 | 12.0 | 7.0 | 4.2 |
| Revenue | 33.7 | 13.6 | 62.7 | 61.3 | 81.9 |
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 |
| Products | - | - | - | - | - |
| Services | 49.8 | 84.9 163.8 219.4 283.5 | |||
| Revenue | 49.8 | 84.9 163.8 219.4 283.5 |
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 |
| - Baltics & Finland | 79.1 | 58.1 | 196.9 | 179.1 | 255.5 |
| - Spain | 21.7 | 16.5 | 55.0 | 59.1 | 87.6 |
| - UK & Ireland | 49.8 | 84.9 | 163.8 | 219.4 | 283.5 |
| - Rest of Europe | 33.7 | 13.6 | 62.7 | 61.3 | 81.9 |
| Total Revenue | 184.3 | 173.2 | 478.5 | 519.0 | 708.5 |
| EBITDA | 1.0 | 0.4 | -21.9 | 7.0 | -10.4 |
| - In % | 0.5 % | 0.2 % | -4.6 % | 1.4 % | -1.5 % |
| EBT | -8.7 | -8.1 | -50.5 | -17.7 | -51.5 |
| - In % | -4.7 % | -4.7 % | -10.6 % | -3.4 % | -7.3 % |
Products
In-store Productivity
Revenue for the In-Store Productivity segment increased by 12% compared to the same quarter last year, mainly relating to increased ESL product revenue in Sweden.
Payment Solutions
The revenue increased by 14% compared to the same quarter last year, which includes an increase in product revenue in Sweden and Spain, partly offset by a decrease in Norway.
Check Out Efficiency
Revenue increased by 55% compared to the same quarter last year, driven by increased self-checkout volume in the Baltics, driving both product sales and service revenue. In addition, there was a small increase in Vensafe revenue in Sweden.
Shop Fitting
Revenue for the Shop Fitting segment declined by 51% compared to same quarter last year. The Shop Fitting segment relates in its entirety to the UK & Ireland segment. As explained in the regional section above in this report, several mitigating actions have been taken.
Other retail technology
Other retail technology, mainly POS/ERP and software projects in the Baltics, remained flat during the period.
E-commerce logistics
E-commerce logistics consists of Autostore, Grocery Lockers and Order Picking. Revenue increased by 176% compared to the same quarter last year, driven by product revenue on Grocery Lockers and increased license revenue from Order Picking, with the latter being included in service revenue. Service revenue also includes consulting and professional services, as well as support revenue.
StrongPoint Group
Relative share of revenue per segment (%)
| In-store Productivity |
|---|
| Payment Solutions |
| E-commerce logistics |
| Check Out Efficiency |
| Shop Fitting |
| Other retail technology |
Segments
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| Q3 | YTD | Year | ||||
|---|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 | |
| Products | 45.3 | 37.1 236.4 172.7 219.7 | ||||
| Services | 25.9 | 26.5 | 82.9 | 75.8 100.1 | ||
| Revenue | 71.2 | 63.6 319.3 248.5 319.7 |
| Q3 | YTD | Year | ||||
|---|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 | |
| Products | 25.1 | 21.7 | 72.7 107.7 148.2 | |||
| Services | 30.4 | 26.9 | 89.5 | 83.4 111.3 | ||
| Revenue | 55.5 | 48.6 162.2 191.1 259.5 |
| Q3 | YTD | Year | ||||
|---|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 | |
| Products | 36.0 | 23.2 | 87.2 | 82.6 117.6 | ||
| Services | 17.3 | 11.3 | 44.2 | 32.2 | 44.4 | |
| Revenue | 53.3 | 34.5 131.4 114.8 162.0 |
| Q3 | YTD | Year | ||||
|---|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 | |
| Products | - | - | - | - | - | |
| Services | 42.0 | 84.9 144.4 219.4 283.5 | ||||
| Revenue | 42.0 | 84.9 144.4 219.4 283.5 |
| Q3 | YTD | Year | ||||
|---|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 | |
| Products | 19.4 | 19.6 | 48.4 | 65.8 | 89.7 | |
| Services | 24.9 | 24.9 | 74.8 | 71.3 101.5 | ||
| Revenue | 44.3 | 44.4 123.2 137.1 191.1 |
| Q3 | YTD | ||||
|---|---|---|---|---|---|
| MNOK | 2024 | 2023 | 2024 | 2023 | 2023 |
| Products | 23.4 | 8.3 | 34.8 | 71.6 | 86.9 |
| Services | 23.5 | 8.7 | 54.1 | 29.2 | 39.7 |
| Revenue | 46.9 | 17.0 | 88.9 100.7 126.6 |
Rolling 12 months recurring revenue (MNOK)
Recurring revenue consists of service and support agreements including spare parts, software license revenue and product rentals.
The Q3 2024 recurring revenue increased by 10% compared to the same quarter last year. This mainly due to a 33% increase in license revenue driven by the Sainsbury's Order Picking contract.
Cash flow and equity
Cash flow from operational activities in the third quarter was 10.1 MNOK (-24.5), driven by improved operational performance and reduction in inventory. The Group's holding of own shares at the end of the third quarter amounted to 213,950, which represents 0.5 per cent of the outstanding shares. The Group has shareholder programs for the Board of Directors, the Group executive management and employees. 162,115 shares have been assigned so far in 2024 (148,706 in the year 2023). StrongPoint has a longterm incentive program for management and key employees. More information on the program can be found in note 6.
Net interest bearing debt
The interest-bearing debt mainly relates to the short-term bank overdraft. In addition, it includes a term loan in our Spanish subsidiary, booked in long-term and short-term interest-bearing liabilities. Of leasing liabilities, the IFRS 16 rent obligations are extracted from interest-bearing debt, as these are not interest-bearing. The remaining leasing liabilities relate to service cars and company cars from leasing institutions and are thus included in the interestbearing debt.
As of end Q3 2024, the net interest-bearing debt was 109.3 MNOK, representing an increase of 4.2 MNOK compared to Q2 2024.
Disposable funds were 60.9 MNOK as of 30 September 2024, comprising cash and cash equivalents of 34.0 MNOK and 26.9 MNOK of undrawn funds from the Group's bank overdraft facility of 150 MNOK. Earlier this year, we informed that we had entered into a refinancing arrangement which would replace our current bank overdraft from Danske Bank. The new facility, which will be with Norion Bank, will be a combination of an RCF and working capital financing of up to 200 MNOK.
As part of this new financing, there will be a 30% equity covenant only and no leverage covenant. The implementation of the working capital financing is well underway and expected to improve the available disposable funds going forward.
| KNOK | 30.09.2024 | 30.09.2023 | 30.06.2024 | 31.12.2023 |
|---|---|---|---|---|
| Long term interest-bearing liabilities | 5,215 | 8,656 | 5,052 | 4,983 |
| Long term lease liabilities | 68,437 | 76,198 | 71,109 | 83,513 |
| Short term interest-bearing liabilities | 2,926 | 3,424 | 3,772 | 7,962 |
| Short term lease liabilities | 24,472 | 21,692 | 23,397 | 14,316 |
| Bank overdraft (credit facilities) | 123,071 | 104,495 | 109,938 | 94,153 |
| = Interest-bearing debt and leasing liabilities | 224,121 | 214,465 | 213,268 | 204,926 |
| Of which IFRS 16 rent liabilities not interest bearing | -80,812 | -85,783 | -82,596 | -84,827 |
| = Interest-bearing debt | 143,309 | 128,682 | 130,672 | 120,100 |
| Cash and cash equivalents | -34,015 | -37,141 | -25,603 | -39,340 |
| = Net interest-bearing debt | 109,294 | 91,541 | 105,068 | 80,760 |
Click here to read more about the opening ceremony and to watch the video we have made
Automation
StrongPoint has installed the world's first AutoStoreTM Multi-Temperature SolutionTM with a frozen zone for Haugaland Storhusholdning which was officially opened in September.
In the world of grocery cube storage automation, this is a significant breakthrough. The fact that StrongPoint was chosen for this major project is a testament to its unique expertise in the grocery sector, which is far more complex than other retail segments.
Order Picking
StrongPoint is making significant progress in the deployment of its Order Picking solution with the UK grocery retailer Sainsbury's. To date, the solution has been successfully implemented in 13 grocery stores and will be rolled out further in the new year.
The first phase rollout of StrongPoint order picking software with Sainsbury's has been very successful, customer feedback has been positive and we are extremely pleased with the project so far. We look forward to completing full scale phase 2 roll out in 2025 and continuing to build on the relationship with Sainsbury's moving forward.
Sainsbury's spokeperson
CashGuard Connect
The development and industrialization process of CashGuard Connect is progressing well. The final required developments are being completed, allowing us to proceed with the installation of machines in the next planned pilot stores.
In parallel, preparations for the production launch of the hardware are advancing smoothly, with the goal of having the first units ready in Q4 2025. Interest in the project remains strong, and we continue to actively drive this strategic initiative for StrongPoint.
Strategic Projects Update
Statement from the Board
The Board and group CEO have today considered and approved StrongPoint's financial statements for the third quarter and YTD 2024, including comparative consolidated figures for the third quarter and YTD 2023. This report has been prepared in accordance with IAS 34 on interim financial reporting as determined by the European Union, and with supplementary requirements pursuant to the Norwegian Securities Trading Act. The Board and CEO hereby declare, to the best of their knowledge, that the financial statements for the third quarter and YTD 2024 have been prepared in accordance with prevailing accounting principles and that the information in the financial statements gives a true and fair view of the assets, liabilities, financial position and profit of the group taken as a whole per 30 September 2024 and per 30 September 2023. To the best of their knowledge, the report gives a true and fair overview of important events during the accounting period and the impact of these events on the financial statements.
The Board of Directors of StrongPoint ASA Vilnius, 17 October 2024
Morthen Johannessen Chairman
Ingeborg Molden Hegstad Director
Cathrine Laksfoss Director
Audun Nordtveit Director
Pål Wibe Director
Jacob Tveraabak CEO
| KNOK | Q3 2024 | Q3 2023 | Chg. % YTD 2024 YTD 2023 | Chg. % Year 2023 | |||
|---|---|---|---|---|---|---|---|
| Operating revenue | 313,146 | 292,948 | 6.9 % | 969,282 1,011,506 | -4.2 % 1,342,398 | ||
| Cost of goods sold | 179,328 | 163,650 | 9.6 % | 573,246 | 606,818 | -5.5 % | 805,266 |
| Personnel expenses | 82,283 | 83,226 | -1.1 % | 282,632 | 264,087 | 7.0 % | 366,782 |
| Share based compensation | 998 | 2,005 | -50.2 % | 3,933 | 5,013 -21.5 % | 6,395 | |
| Other operating expenses | 38,297 | 40,281 | -4.9 % | 112,502 | 116,248 | -3.2 % | 165,244 |
| Total operating expenses | 300,906 | 289,163 | 4.1 % | 972,313 | 992,166 | -2.0 % 1,343,687 | |
| EBITDA | 12,240 | 3,785 223.4 % | -3,031 | 19,340 -115.7 % | -1,288 | ||
| Depreciation tangible assets | 6,942 | 6,135 | 13.2 % | 22,015 | 19,572 | 12.5 % | 26,996 |
| Amortization intangible assets | 3,105 | 2,789 | 11.3 % | 9,108 | 8,219 | 10.8 % | 11,163 |
| EBIT | 2,193 | -5,139 142.7 % | -34,154 | -8,451 -304.1 % | -39,448 | ||
| Interest expenses | 3,620 | 2,960 | 22.3 % | 10,652 | 7,406 | 43.8 % | 9,617 |
| Other financial expenses/currency differences | -5,055 | 5,472 -192.4 % | -5,990 | -8,658 | 30.8 % | -3,543 | |
| Profit from associated companies | 201 | 48 315.3 % | 227 | 229 | -0.6 % | 191 | |
| EBT | 3,829 | -13,523 128.3 % | -38,588 | -6,971 -453.6 % | -45,331 | ||
| Taxes | 1,156 | -4,182 127.6 % | -8,725 | -1,879 -364.3 % | -11,132 | ||
| Profit after tax | 2,674 | -9,340 128.6 % | -29,863 | -5,092 -486.5 % | -34,200 | ||
| Earnings per share: | |||||||
| Number of shares outstanding | 44,888,352 44,888,352 | 44,888,352 44,888,352 | 44,888,352 | ||||
| Av. number of shares - own shares | 44,665,465 44,395,379 | 44,612,108 44,365,264 | 44,397,547 | ||||
| Av. number of shares diluted- own shares | 48,785,465 47,986,629 | 48,732,108 47,956,514 | 47,820,047 | ||||
| EPS | 0.06 | -0.21 | -0.67 | -0.11 | -0.77 | ||
| Diluted EPS | 0.05 | -0.19 | -0.61 | -0.11 | -0.72 | ||
| EBITDA per share | 0.27 | 0.09 | -0.07 | 0.44 | -0.03 | ||
| Diluted EBITDA per share | 0.25 | 0.08 | -0.06 | 0.40 | -0.03 | ||
| Total earnings: | |||||||
| Profit/loss after tax | 2,674 | -9,340 128.6 % | -29,863 | -5,092 -486.5 % | -34,200 | ||
| Exchange differences on foreign operations | 15,155 | -13,243 214.4 % | 18,128 | 24,112 -24.8 % | 32,894 | ||
| Total earnings | 17,829 | -22,584 178.9 % | -11,735 | 19,020 -161.7 % | -1,305 | ||
| Of which | |||||||
| Majority interest | 18,174 | -22,435 181.0 % | -10,251 | 19,310 -153.1 % | 606 | ||
| Minority interest | -345 | -149 | -1,484 | -290 | -1,911 |
Consolidated income statement
Consolidated balance sheet
| KNOK | 30.09.2024 | 30.09.2023 | 30.06.2024 | 31.12.2023 |
|---|---|---|---|---|
| ASSETS | ||||
| Intangible assets | 141,185 | 114,758 | 133,408 | 125,327 |
| Goodwill | 180,931 | 167,251 | 174,495 | 174,325 |
| Tangible assets | 30,761 | 27,841 | 30,961 | 30,397 |
| Right-of-use assets | 92,908 | 97,890 | 94,506 | 99,568 |
| Long term investments | 4,781 | 4,892 | 4,580 | 4,854 |
| Other long term receivables | 1,205 | 1,374 | 1,168 | 1,372 |
| Deferred tax | 39,750 | 23,508 | 40,830 | 31,106 |
| Non-current assets | 491,522 | 437,514 | 479,946 | 466,949 |
| Inventories | 181,718 | 245,363 | 211,190 | 230,424 |
| Accounts receivables | 224,313 | 240,274 | 193,024 | 240,790 |
| Prepaid expenses | 18,541 | 27,871 | 27,497 | 22,032 |
| Other receivables | 15,937 | 9,790 | 14,463 | 14,955 |
| Cash and cash equivalents | 34,015 | 37,141 | 25,603 | 39,340 |
| Current assets | 474,525 | 560,438 | 471,779 | 547,541 |
| TOTAL ASSETS | 966,047 | 997,951 | 951,725 | 1,014,490 |
| EQUITY AND LIABILITIES | ||||
| Share capital | 27,839 | 27,831 | 27,838 | 27,831 |
| Holding of own shares | -133 | -302 | -146 | -217 |
| Other equity | 440,037 | 463,915 | 421,960 | 447,238 |
| Total equity | 467,743 | 491,444 | 449,653 | 474,852 |
| Long term interest bearing liabilities | 5,215 | 8,656 | 5,052 | 4,983 |
| Long term lease liabilities | 68,437 | 76,198 | 71,109 | 83,513 |
| Other long term liabilities | 2,290 | 170 | 2,103 | 1,848 |
| Deferred tax liabilities | 18,111 | 20,997 | 18,111 | 18,111 |
| Total long term liabilities | 94,053 | 106,022 | 96,375 | 108,455 |
| Short term interest bearing liabilities | 2,926 | 3,424 | 3,772 | 7,962 |
| Bank overdraft (credit facilities) | 123,071 | 104,495 | 109,938 | 94,153 |
| Short term lease liabilities | 24,472 | 21,692 | 23,397 | 14,316 |
| Accounts payable | 95,246 | 123,606 | 106,797 | 159,690 |
| Taxes payable | -8,332 | -3,919 | -9,762 | -10,603 |
| Other short term liabilities | 166,868 | 151,188 | 171,555 | 165,665 |
| Total short term liabilities | 404,251 | 400,486 | 405,697 | 431,183 |
| TOTAL EQUITY AND LIABILITIES | 966,047 | 997,951 | 951,725 | 1,014,490 |
Overview of changes in the equity
| KNOK | Share capital |
Treasury shares |
Other paid-in equity |
Translation variances |
Share Option Program |
Other equity |
Total equity |
Minority interest |
Total equity |
|---|---|---|---|---|---|---|---|---|---|
| Equity 31.12.2022 | 27,831 | -362 | 351,262 | 32,755 | 11,301 | 84,422 507,207 | - 507,207 | ||
| Sale of own shares | 74 | 2,444 | 2,518 | 2,518 | |||||
| Dividend 2022 | -39,935 | -39,935 | -39,935 | ||||||
| Share Option Program | 4,475 | 4,475 | 4,475 | ||||||
| Acquisition of Hamari paid in shares |
72 | 1,821 | 1,892 | 1,892 | |||||
| Profit this year after tax | -32,231 | -32,231 | -1,968 | -34,200 | |||||
| Other comprehensive income and expenses 1 |
32,837 | 32,837 | 57 | 32,894 | |||||
| Equity 31.12.2023 | 27,831 | -217 | 351,262 | 65,592 | 15,776 | 16,521 476,763 | -1,911 474,852 | ||
| Sale of own shares | 85 | 1,568 | 1,652 | 1,652 | |||||
| Share Option Program | 2,974 | 2,974 | 2,974 | ||||||
| Profit this year after tax | -28,491 | -28,491 | -1,373 | -29,863 | |||||
| Other comprehensive income and expenses 1 |
18,240 | 18,240 | -112 | 18,128 | |||||
| Equity 30.09.2024 | 27,831 | -133 | 351,262 | 83,832 | 18,750 -10,402 471,139 | -3,395 467,743 |
1) The balance sheet is converted with the closing rate at the balance sheet date, while the income statement is converted with the average monthly exchange rate. The net effect of the translation is recognized as translation differences in other comprehensive income and expenses. Due to weaker NOK after 31.12.2023, the value of the balance sheet from our foreign companies has increased significantly and this is booked against the Comprehensive income.
Statement of cash flow
| KNOK | Q3 2024 | Q3 2023 YTD 2024 YTD 2023 Year 2023 | |||
|---|---|---|---|---|---|
| Ordinary profit before tax | 3,829 | -13,523 | -38,588 | -6,971 | -45,331 |
| Net interest | 3,620 | 2,960 | 10,652 | 7,406 | 9,617 |
| Tax paid | 1,878 | -1,306 | 2,771 | -16,991 | -26,047 |
| Share of profit, associated companies | -201 | -48 | -227 | -229 | -191 |
| Ordinary depreciation | 10,048 | 8,924 | 31,123 | 27,791 | 38,159 |
| Profit / loss on sale of fixed assets | -14 | -121 | -126 | -295 | -235 |
| Change in inventories | 36,798 | -3,399 | 56,919 | -2,939 | 17,169 |
| Change in receivables | -23,820 | -17,891 | 26,714 | 48,161 | 52,485 |
| Change in accounts payable | -16,241 | -18,013 | -70,531 | -32,416 | -170 |
| Change in other accrued items | -5,754 | 17,911 | -2,980 | -32,005 | -20,275 |
| Cash flow from operational activities | 10,142 | -24,504 | 15,726 | -8,488 | 25,182 |
| Payments for fixed assets | -2,234 | -382 | -6,385 | -6,798 | -17,643 |
| Payment for intangible assets 1) | -5,934 | -6,914 | -16,972 | -18,456 | -23,425 |
| Payment from sale of fixed assets | 177 | 179 | 464 | 179 | 467 |
| Net effect acquisitions | - | - | - | - | -2,357 |
| Dividends received from associated companies | - | - | 300 | 300 | 300 |
| Interest received | 1,911 | 460 | 2,941 | 1,202 | 1,604 |
| Cash flow from investment activities | -6,080 | -6,657 | -19,651 | -23,573 | -41,054 |
| Purchase/sale of own shares | 212 | 303 | 1,652 | 2,224 | 4,410 |
| Change in long-term debt | -6,200 | -8,826 | -22,405 | -20,881 | -24,555 |
| Change in overdraft | 14,576 | 44,989 | 31,139 | 85,450 | 75,664 |
| Interest paid | -5,531 | -3,420 | -13,593 | -8,608 | -11,221 |
| Dividend paid | - | - | - | -39,935 | -39,935 |
| Cash flow from financing activities | 3,057 | 33,046 | -3,207 | 18,250 | 4,363 |
| Net cash flow in the period | 7,118 | 1,885 | -7,132 | -13,811 | -11,510 |
| Cash and cash equivalents at the start of the period | 25,603 | 37,396 | 39,340 | 47,248 | 47,248 |
| Effect of foreign exchange rate fluctuations on foreign currency deposits |
1,294 | -2,141 | 1,808 | 3,704 | 3,602 |
| Cash and cash equivalents at the end of the period | 34,015 | 37,141 | 34,015 | 37,141 | 39,340 |
Key figures
| KNOK | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 YTD 2024 YTD 2023 | ||
|---|---|---|---|---|---|---|---|
| Income statement | |||||||
| Operating revenue | 313,146 | 297,177 | 358,958 | 330,892 | 292,948 | 969,282 1,011,506 | |
| EBITDA | 12,240 | -9,087 | -6,184 | -20,628 | 3,785 | -3,031 | 19,340 |
| EBITA | 5,298 | -16,536 | -13,808 | -28,053 | -2,350 | -25,046 | -232 |
| Operating profit EBIT | 2,193 | -19,562 | -16,785 | -30,996 | -5,139 | -34,154 | -8,451 |
| Ordinary profit before tax (EBT) | 3,829 | -27,622 | -14,796 | -38,360 | -13,523 | -38,588 | -6,971 |
| Profit/loss after tax | 2,674 | -21,158 | -11,379 | -29,108 | -9,340 | -29,863 | -5,092 |
| EBITDA-margin | 3.9 % | -3.1 % | -1.7 % | -6.2 % | 1.3 % | -0.3 % | 1.9 % |
| EBT-margin | 1.2 % | -9.3 % | -4.1 % | -11.6 % | -4.6 % | -4.0 % | -0.7 % |
| Balance sheet | |||||||
| Non-current assets | 491,522 | 479,946 | 480,638 | 466,949 | 437,514 | 491,522 | 437,514 |
| Current assets | 474,525 | 471,779 | 542,110 | 547,541 | 560,438 | 474,525 | 560,438 |
| Total assets | 966,047 | 951,725 1,022,748 1,014,490 | 997,951 | 966,047 | 997,951 | ||
| Total equity | 467,743 | 449,653 | 473,907 | 474,852 | 491,444 | 467,743 | 491,444 |
| Total long term liabilities | 94,053 | 96,375 | 100,159 | 108,455 | 106,022 | 94,053 | 106,022 |
| Total short term liabilities | 404,251 | 405,697 | 448,682 | 431,183 | 400,486 | 404,251 | 400,486 |
| Working capital | 310,785 | 297,418 | 312,185 | 311,524 | 362,030 | 310,785 | 362,030 |
| Equity ratio | 48.4 % | 47.2 % | 46.3 % | 46.8 % | 49.2 % | 48.4 % | 49.2 % |
| Liquidity ratio | 117.4 % | 116.3 % | 120.8 % | 127.0 % | 139.9 % | 117.4 % | 139.9 % |
| Net interest-bearing debt | 109,294 | 105,068 | 77,001 | 80,760 | 91,541 | 109,294 | 91,541 |
| Net leverage multiples | n.m. | n.m. | n.m. | n.m. | 1.73 | n.m. | 1.73 |
| Cash Flow | |||||||
| Cash flow from operational activities | 10,142 | -9,704 | 15,288 | 33,670 | -24,504 | 15,726 | -8,488 |
| Net change in liquid assets | 7,118 | -1,164 | -13,087 | 2,301 | 1,885 | -7,132 | -13,811 |
| Share information | |||||||
| Number of shares | 44,888,352 44,888,352 44,888,352 44,888,352 44,888,352 44,888,352 44,888,352 | ||||||
| Weighted average shares outstanding | 44,665,465 44,621,692 44,548,581 44,493,344 44,395,379 44,612,108 44,365,264 | ||||||
| EBT per shares | 0.09 | -0.62 | -0.33 | -0.86 | -0.30 | -0.86 | -0.16 |
| Earnings per share | 0.06 | -0.47 | -0.26 | -0.65 | -0.21 | -0.67 | -0.11 |
| Earnings per share, excl. M&A amortization | 0.13 | -0.41 | -0.19 | -0.59 | -0.15 | -0.47 | 0.07 |
| Equity per share | 10.47 | 10.08 | 10.64 | 10.67 | 11.07 | 10.48 | 11.08 |
| Dividend per share | 0.90 | ||||||
| Employees | |||||||
| Number of employees (end of period) | 512 | 516 | 523 | 524 | 523 | 512 | 523 |
| Average number of employees | 514 | 520 | 524 | 524 | 521 | 519 | 517 |
| IFRS 16 effects | |||||||
| Reduced OPEX | 6,422 | 6,733 | 6,888 | 6,909 | 5,772 | 20,043 | 18,285 |
| Increased depreciation | 5,303 | 5,601 | 5,740 | 5,743 | 4,624 | 16,643 | 15,154 |
| Increased interest expenses | 1,119 | 1,132 | 1,148 | 1,167 | 1,148 | 3,399 | 3,130 |
| EBT | - | - | - | - | - | - | - |
| Cash flow from operational activities | 6,422 | 6,733 | 6,888 | 6,909 | 5,772 | 20,043 | 18,285 |
| Cash flow from financing activities | -6,422 | -6,733 | -6,888 | -6,909 | -5,772 | -20,043 | -18,285 |
Note 1 Confirmation of reporting framework
The condensed and consolidated quarterly financial statements are prepared in accordance with IAS 34 Interim Financial Reporting. The quarterly financial statements do not contain all the information required in an annual financial statement and should be read in connection with the Group financial statements for 2023.
Note 2 Key accounting principles
The accounting principles for the report are described in note 2 in the annual financial statements for 2023. The Group financial statements for 2023 were prepared in accordance with the IFRS principles and interpretations thereof, as defined by the EU, as well as other disclosure requirements pursuant to the Norwegian Accounting Act and the Oslo Stock Exchange regulations and rules applicable as at 31.12.2023. The quarterly report and the interim financial statements have not been revised by auditor.
Note 3 Segment information
Reporting segments
Operating revenue by products and services
*) Services and licenses
Note 4 Related parties
No significant transactions between the Group and related parties had taken place per 30 September 2024.
| Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | Year 2023 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MNOK | Revenue EBITDA | EBT Revenue EBITDA | EBT Revenue EBITDA | EBT Revenue EBITDA | EBT Revenue EBITDA | EBT | |||||||||
| Scandinavia | 128.8 | 15.7 14.9 | 119.8 | 11.9 11.3 | 490.8 | 39.5 35.4 | 492.6 | 37.2 | 33.3 | 633.9 | 41.5 35.1 | ||||
| International incl. Product |
184.3 | 1.0 | -8.7 173.2 | 0.4 | -8.1 | 478.5 -21.9 -50.5 | 519.0 | 7.0 -17.7 | 708.5 -10.4 -51.5 | ||||||
| ASA/Elim | - | -4.4 | -2.3 | - | -8.5 -16.7 | - -20.6 -23.5 | - -24.9 -22.6 | - -32.4 -29.0 | |||||||
| Total | 313.1 | 12.2 | 3.8 292.9 | 3.8 -13.5 | 969.3 | -3.0 -38.6 1,011.5 | 19.3 | -7.0 1,342.4 | -1.3 -45.3 |
| Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | Year 2023 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| MNOK | Products Services * Products Services * Products Services * Products Services * Products Services * | |||||||||
| Scandinavia | 63.5 | 65.3 | 57.9 | 61.9 | 289.2 | 201.6 | 308.2 | 184.3 | 385.7 | 248.2 |
| International incl. Product |
85.6 | 98.7 | 51.9 | 121.2 | 190.3 | 288.2 | 192.1 | 326.8 | 276.4 | 432.1 |
| Elim / ASA | - | - | - | - | - | - | - | - | - | - |
| Total | 149.2 | 164.0 | 109.8 | 183.1 | 479.5 | 489.8 | 500.3 | 511.2 | 662.0 | 680.4 |
Note 5 Top 20 shareholders per 30 September 2024
| No. | Name | No. of shares | % |
|---|---|---|---|
| 1 | STRØMSTANGEN AS | 3,933,092 | 8.76 |
| 2 | TOHATT AS | 2,225,000 | 4.96 |
| 3 | SOLE ACTIVE AS | 2,221,717 | 4.95 |
| 4 | BANK PICTET & CIE (EUROPE) AG | 2,131,821 | 4.75 |
| 5 | ZETTERBERG, GEORG (incl. fully owned companies) | 1,545,000 | 3.44 |
| 6 | NORDNET BANK AB | 1,422,316 | 3.17 |
| 7 | AVANZA BANK AB | 1,356,583 | 3.02 |
| 8 | HSBC BANK PLC | 1,303,665 | 2.90 |
| 9 | RING, JAN | 1,243,374 | 2.77 |
| 10 | VERDADERO AS | 1,081,285 | 2.41 |
| 11 | JAHATT AS | 1,080,850 | 2.41 |
| 12 | EVENSEN, TOR COLKA | 805,000 | 1.79 |
| 13 | WAALER AS | 690,000 | 1.54 |
| 14 | BANQUE PICTET & CIE SA | 670,033 | 1.49 |
| 15 | JOHANSEN, STEIN | 600,000 | 1.34 |
| 16 | MP PENSJON PK | 561,402 | 1.25 |
| 17 | SKANDINAVISKA ENSKILDA BANKEN AB | 506,650 | 1.13 |
| 18 | ALS KINGFISHER LIMITED | 506,156 | 1.13 |
| 19 | EUROPEAN RETAIL ENGINEERING LIMITED | 506,156 | 1.13 |
| 20 | BERG, SIVERT | 500,000 | 1.11 |
| Sum 20 largest shareholders | 24,890,100 | 55.45 | |
| Sum 2 289 other shareholders | 19,998,252 | 44.55 | |
| Sum all 2 309 shareholders | 44,888,352 | 100.00 |
Note 6 Share option program
| Total costs and Social Security Provisions | 2020 | 2021 | 2022 | 2023 | 2024 | Total |
|---|---|---|---|---|---|---|
| Total IFRS cost | 440 | 5 441 | 5 420 | 6 827 | 3 933 | 22 061 |
| Total Social security provisions | 36 | 737 | - 341 | - 432 | - | - |
| Granted instruments: | ||||||
| Activity | Number of instruments |
|||||
| Outstanding OB (01.01.2024) | 3,422,500 | |||||
| Granted | 1,230,000 | |||||
| Exercised | - | |||||
| Terminated | -532,500 | |||||
| Outstanding CB (30.09.2024) | 4,120,000 | |||||
| Vested CB | 1,747,500 |
Method of valuation:
The fair value of share options granted is estimated at the date of grant using the Black-Scholes-Merton Option Pricing Model. The model uses the following parameters; the exercise price, the life of the option, the current price of the underlying shares, the expected volatility of the share price, the dividends expected on the shares, and the risk-free interest rate for the life of the option.
Vesting requirements:
The vesting of the options is dependent on the participant still being employed at Strongpoint at the time of the vesting.
Method of settlement:
All StrongPoint ASA options are intended to be settled in equity, but can be fulfilled through a cash-out settlement at the Boards' discretion.
Vesting period
The options will vest over three years, with ¼ vesting after one year, ¼ after two years, and the remaining 2/4 after three years. The split in vesting underpins the retention ambition of the program. Any non-exercised options expire five years after grant.
Definitions
| Working capital | Inventories + accounts receivables – accounts payable |
|---|---|
| Equity per share | Book value equity / number of shares |
| Operating revenue | Sales revenue |
| EBITDA | Operating profit + depreciation fixed assets and intangible assets |
| EBITA | Operating profit + amortization of intangible assets |
| EBIT | Operating profit |
| EBITDA-margin | EBITDA / operating revenue |
| EBT | Profit before tax |
| EBT-margin | EBT / operating revenue |
| Equity ratio | Book value equity / total assets |
| Liquidity ratio | Current assets / short term debt |
| Earnings per share | Profit after tax / number of shares |
| Diluted | Number of shares minus own shares plus shares granted in share option program |
| Earnings per share adjusted | Profit after tax + amortization of intangible assets / number of shares |
| Net leverage multiple | Net Interest Bearing Debt including IFRS 16 / 12 months rolling EBITDA |
| Net change in liquid assets | The total changes in cash flow from operational activities, investment activities and financing activities |
| Minority interest | The minority part of the net profit /equity in companies where StrongPoint owns between 50,1%-99% of the shares. |
StrongPoint ASA | Brynsengveien 10, 0667 Oslo | strongpoint.com