Quarterly Report • Feb 11, 2021
Quarterly Report
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StrongPoint | Q4 and year 2020
Appropriate COVID-19 measures at StrongPoint have continued to ensure no material impact on either personnel or business. I continue to be impressed by our employees who are delivering on large, high intensityprojects remotely and at customer locations with all the necessary restrictions dictated by the virus affecting us all. Our Retail Technology operations grew its topline with a very strong 34% in Q4 compared to the same quarter in 2019, of which Norway experienced a staggering 69% growth. The demand for our e-commerce logistics solutions continues to be strong across our focus geographies. Whilst our e-commerce team has worked on establishing new exciting customer cases the e-commerce logistics business continues to grow and constituted 9% of StrongPoint's total revenue in Q4, up from 6% as a whole in 2019.
In the fourth quarter, we divested our Cash Security business unit to Cennox. The divestment underpins StrongPoint's strategic focus on being a retail technology provider.
The fourth quarter saw a fourfold increase in EBITDA, driven by paid-out compensation related to our Norwegian Labels production. Retail Technology's EBITDA slightly increased, but in percentage the EBITDA was 8.4 due to the significant losses in Spain Q4 related to low activity levels, strict furlough regulations and a reorganization of the business unit. Without the Spanish negative influence on the figures, the EBITDA in Retail Technology would have been approximately 13%. Although there will always be variations in our business units performance, this fact builds confidence in achieving our 2025 profitability ambitions of 13-15% EBITDA.
Coming out of Q4 we are stronger than ever. We are achieving record financial figures, continuing to invest in our world-class solutions and are recruiting leading industry professionals. StrongPoint's "double opportunity" – delivering in-store efficiency solutions and e-commerce logistics to grocery retailers – is greater today than ever before.
More and more so it becomes evident that the shift of shopping behavior accelerated by the COVID-19 pandemic will provide ample opportunities for StrongPoint going forward. With our broad suite of world-class e-commerce solutions, our in-store technology products and our proven track record of providing outstanding customer service, I continue to believe we have all the reasons to be optimistic about achieving our strategic objectives.
Stay safe and strong!
Jacob Tveraabak CEO of StrongPoint
● The Board of Directors will propose a dividend of NOK 0.70 per share, up from NOK 0.60 last year.
The pandemic's impact on society and the economy continues. Whereas we all would like to see the end of the pandemic, the direct effects of the virus will still last for months in many geographies and sustained changes in customer preferences will impact the retail industry forever. Being a leading provider of retail technology solutions to grocery retailers feels rewarding in these times as we continue to contribute to a safer and more efficient grocery shopping experience, in-store and online. We continue to capitalize on the retail technology opportunities arising within the resilient grocery retail sector and I believe we are on the right track to achieving our 2025 strategic ambitions.
| Q4 2020 2) |
Q4 2019 |
Year 2020 2) |
Year 2019 |
Ex one-time item Q4 2020 3) |
Ex one-time item 2020 3) |
|
|---|---|---|---|---|---|---|
| Revenue continued operations | 394.1 252.3 1.182.9 988.2 | 338.4 | 1.127.2 | |||
| EBITDA continued operations | 81.5 | 19.3 | 152.4 | 84.8 | 28.3 | 99.2 |
| EBITDA margin continued operations | 20.7% 7.6% | 12.9% | 8.6% | 8.4% | 8.8% | |
| Operating profit (EBIT) continued operations | 47.5 | 7.8 | 86.5 | 36.9 | 17.6 | 56.6 |
| Ordinary profit before tax continued operations (EBT) | 42.5 | 7.5 | 77.6 | 38.2 | 12.5 | 47.6 |
| Cash flow from operational activities | 107.2 | 23.3 | 126.7 | 80.6 | 107.2 | 126.7 |
| Disposable funds | 175.0 | 74.2 | 175.0 | 74.2 | 175.0 | 175.0 |
| Earnings per share from continued operations (NOK) | 0.73 0.06 | 1.33 | 0.61 | 0.20 | 0.79 | |
| Earnings per share from continued operations, adjusted 1) | 0.78 | 0.37 | 1.54 | 1.02 | 0.25 | 1.01 |
| Earnings per share included discontinued operations (NOK) | 1.67 | 0.19 | 2.21 | 0.72 |
1) Earnings per share, adjusted for depreciation of intangible assets, mainly from M&A. 2) StrongPoint Cash Security not included. The business area was divested in December 2020. 3) One-time item related to the compensation received for relocation of Label facility in Norway.
StrongPoint Cash Security business area was divested in December 2020. Following IFRS, the financial figures for the business area are reported as "Profit from discontinued operations" below tax in the financial statement and removed from the comparison figures in this table. Furthermore, the compensation related to relocation for the labels business in Norway influence the figures for Labels, affecting the revenue with 55.7 MNOK and EBITDA with 53.2 MNOK.
Total revenue grew by an overall 56% compared to the same quarter last year. Large projects and overall growth in the market explains the high activity level. Overall EBITDA grew fourfold to 81.5 MNOK. Excluding compensation for relocation in Norway the operational EBITDA ended at 28.3 MNOK resulting in an EBITDA margin of 8.4% (7.6%). The Spanish operation continues to be severely impacted by COVID-19 and influence both the revenue and the EBITDA figures negatively. Product mix, some one-off restructuring cost and write down of goods also affected the EBITDA figure.
The 2020 revenue grew operationally by 14% while EBITDA margin from operations only ended at 8.8%, up from 8.6% last year.
StrongPoint makes retail technology part of every shopping experience for a smarter and better life. The Group consists of two business areas: Retail Technology and Labels.
Operating revenue per quarter (MNOK)
600 800 1000 1200 EBITDA per quarter (MNOK) 60 80 100
4
| Revenue | Q4 | Year | |||
|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | |
| Retail Technology | 292.3 | 218.2 | 957.3 | 843.5 | |
| Labels | 104.6 | 38.6 | 241.1 | 163.8 | |
| Elim / ASA | -2.8 | -4.5 | -15.4 | -19.1 | |
| Total | 394.1 | 252.3 | 1 182.9 | 988.2 | |
| Q4 | |||||
| EBITDA | Year | ||||
| MNOK | 2020 | 2019 | 2020 | 2019 | |
| Retail Technology | 24.5 | 21.9 | 95.6 | 96.3 | |
| Labels | 61.6 | 5.8 | 83.6 | 21.9 | |
| Elim / ASA | -4.6 | -8.4 | -26.9 | -33.4 |
Operating revenue relative share (%)
NOTE: Compensation related to relocation for the labels business in Norway affecting the revenue with 55.7 MNOK and EBITDA with 53.2 MNOK.
The Instore Productivity segment grew yet another quarter to a relative share of 42%, highly influenced by the Electronic Shelf Labels project in Norway. Final delivery of the project was done in the quarter so the relative share of the segment is expected to be reduced going forward. Product delivery (mostly hardware sale) represents above 80% of the revenue in the quarter which leads to an overall lower gross margin. For the year 2020, the segment represented 33% of total revenue, compared to 34% relative share last year.
Service revenue for the Cash Management systems is relatively stable quarter by quarter, while new product sales have been low due to the lock-down, especially for the Spanish market and sales partners in other parts of EMEA. For the year 2020 this remained the second largest segment within Retail Technology reaching 19% share of revenue, reduced from 23% last year.
The relative share of revenue for e-commerce was 9% share in the quarter. The revenue for 2020 almost doubled compared to 2019. The increased use of the StrongPoint Pick & Collect software continued in Q4, and installation of Click & Collect lockers continued
especially in Sweden. In total, 148 locker installations were delivered in 2020.
Check Out Efficiency had a small decline in relative share in the quarter, but the nominal figures of the segment ended up 8% compared to Q3. The growth primarily stems from Self Checkout deliveries in the Baltics and through partners. For the year 2020 the segment ended at 12% relative share.
Other retail technology, mainly software projects in the Baltics, grew to 10% relative share in the quarter and 9% for the year, up from 7% in 2019.
In the quarterly reports for the year 2021, the segments will be reported with comparison figures from last year.
Labels business area reduced to a relative share of 15% in the quarter, ending the year at a relative share equal to last year. The relative share figure is calculated excluding the compensation for the relocation of the Norwegian Labels production.
In July 2020, StrongPoint received an order from Norges-Gruppen for Electronic Shelf Labels (ESL) deliveries to 200 stores. The order had a total value of approximately 70 MNOK in hardware for installation in stores around the country. By the end of 2020 the deliveries were completed.
In December, the retail chain Palink (part of Rewe Group) ordered self checkout solutions for more than 3 MEUR to be delivered in 2021. The order continues the chain's expansion of self checkout solutions in its stores.
StrongPoint E-commerce logistics includes solutions for efficient picking of goods for online grocery shopping. Different large retail chains in Sweden has started roll-out programs where the individual stores order lockers directly from StrongPoint. Proof of concept installations continues to new customers in different countries. Existing customers have also continued to increase the number of stores using using our Picking solution.
In December 2020, the business area Cash Security was divested to Cennox Holdings Ltd. The rationale for the divestment was that the Cash Security business differs rather significant from StrongPoint core focus on Retail Technology.
The purchase price for the business was 7.3 MEUR, settled with approximately 2.6 MEUR paid in cash at closing and the remaining in an earn out arrangement tied to Cennox' sales of cash security products in 2021 through 2023. The financial figures for the Cash Security business is in this report removed from all Group figures. The purchase price, less sales cost and risk for earn out, and adjusted for the business area's net profit by end November 2020 were reported with 39.2 MNOK as "Profit after tax from discontinued operations" in the financial statement for Q4.
Product development of the enhanced, 3rd generation picking and delivery software solution continued as planned during the quarter. The solution has been attracting a lot of interest from retailers in our core markets and further afield.
StrongPoint's sales teams and partners started to sell the new solution to new customers. Continued software development is expected going forward.
The financial position of the group continues to be solid, and the net interest bearing debt decreased substantially in the quarter. StrongPoint has announced a growth ambition the next years and will continue to invest in sales- and marketing resources and technology development, which again will require a solid and flexible working capital and financial position. In the strategy 2025 the Board emphasized the ambition of predictable and slightly increasing dividend policy. Based on a total evaluation, the Board of Directors will propose a dividend payment of 0.70 NOK per share at the general meeting 28 April 2021. A A
Labels
1) Outside Europe: USA, Canada, Malaysia, Australia, and South Africa
A
In February 2020 StrongPoint set a strategic goal to achieve NOK 2.5 billion in revenues and EBITDA margins of 13-15% by 2025.
StrongPoint's world class retail technology solutions for increasing in-store efficiency and e-commerce technology for online order picking and last mile solutions have a double opportunity to meet two key global trends affecting grocery retailers. Firstly, the pressure on brick and mortar retailers' margins means that grocery retailers need to find ways to increase in-store productivity to boost profitability. Secondly, the pressure to develop an online presence, grow their market share and reduce costs means they need highly efficient order fulfilment solutions and provide multiple last-mile delivery and pick-up options. These two key industry trends have only been accelerated by the skyrocketing global demand for online groceries during the global Covid-19 pandemic.
To respond to the changes in the industry following the events of 2020, StrongPoint has updated its strategy to achieve its 2025 ambitions.
Picking Picking Solution *
Click & Collect lockers * Drive-through * Pick-up in store * Home delivery Route optimisation
In-store Productivity Pricer Electronic Shelf Labels ShopFlow Logistics * Digi Scales and Wrapping Systems Reflexis Task and Labour Management
Payment Solutions CashGuard Cash Management *
Self-Checkout * Self-Scanning
* Proprietary technologies
NOK 2.5 bn in 2025 EBITDA 13-15%
The announced Pricer ESL project for NorgesGruppen was delivered second half of 2020, whereof a large part of the hardware was installed during Q4. This contributed to a considerably growth compared to the same quarter last year. Large hardware projects reduce the overall gross margin and in addition the project required some use of additional hired personnel. Despite this, Norway contributed substantially to the EBITDA of Retail Technology.
The Swedish organization delivered a significant 21% growth in the quarter compared to the same quarter last year. The product sales consist to a large degree of Pricer ESL and e-commerce Click & Collect lockers. The growth in service revenues were linked to installation fee for the same products. The e-commerce software revenue also increased as existing customers have rolled out the solution to several additional stores in the quarter. For the full year the Swedish operation grew by 16.6%.
The Baltic countries delivered 11.6% growth in the quarter compared to last year, mainly due to increased deliveries of Self-Checkout solutions to large grocery customers. Delivery to Heineman, the order received in Q3, started with the development phase in the quarter. The Baltic countries experienced some negative effects from the pandemic, and in addition to the uplift from the large fiscal project in Latvia in 2019 the growth ended at 4.8% compared to prior year.
Spain and business from partners were on the same level as last year. The Spanish operation suffers severly from the pandemic. Majority of cash management solutions were sold to the hospitality segment, which to a large degree has been closed during the pandemic following the social distancing measures. This resulted in a substantially loss in the Spanish operation with a total of 12.5 MNOK in the quarter. Temporary cost measures are taken locally in order to minimize negative financial effects going forward.
| Q4 | Year | ||||
|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | |
| Product Sales | 99.8 | 46.7 248.8 176.2 | |||
| Service | 32.0 | 31.2 113.3 109.2 | |||
| Revenue | 131.8 | 77.9 362.1 285.4 |
StrongPoint develops and sells technology solutions that streamline store operations, enable E-commerce logistics, and simplify the shopping experience. The Group delivers proprietary solutions within In-store Productivity, E-commerce, Payment Solutions and Check Out Efficiency, as well as tailor-made retail solutions from leading third-party suppliers, including Pricer Electronic Shelf Labels (ESL), POS, ERP, consulting services, Reflexis Workforce Management System (WMS) and Task Management System, and Digi scales and wrapping systems.
The Retail Technology delivered a positive revenue growth of 34% in the quarter. Product sales had a growth of 44%, highly driven by the large ESL project in Norway. The business area was negatively influenced by the COVID-19 effects in Spain.
The EBITDA ended at 24.5 MNOK, up 2.6 MNOK from last year. Product mix due to high share of hardware deliveries influenced the gross profit negatively in addition to some inventory changes. The business area prepares for growth especially within e-commerce, and cost for recruitment, increased number of employees and increased marketing reduced the EBITDA for the period.
For the year 2020, revenue grew by 13.5%, and EBITDA ended on approximately the same level as last year.
StrongPoint has not applied for specific compensation or assistance related to the pandemic. Governments in the different countries where StrongPoint operates gave different types of "general" support arrangements (e.g. lower employers' tax and temporary layoff programmes). In total, StrongPoint booked 3 MNOK as a result of these arrangements in 2020.
Retail Technology business area represented 85% of the total operational revenue (ex. one-time items) for the group in 2020.
| Q4 | Year | |||
|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 |
| Product Sales | 203.3 | 140.8 | 637.9 | 547.8 |
| Service | 89.0 | 77.4 | 319.4 | 295.7 |
| Revenue | 292.3 | 218.2 | 957.3 | 843.5 |
| EBITDA | 24.5 | 21.9 | 95.6 | 96.3 |
| EBITDA-margin | 8.4% | 10.0% | 10.0% | 11.4% |
| EBT | 15.0 | 15.6 | 65.9 | 66.1 |
| Q4 | Year | ||||
|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | |
| Product Sales | 48.0 | 40.8 165.5 145.8 | |||
| Service | 33.2 | 26.4 128.6 106.5 | |||
| Revenue | 81.2 | 67.2 294.1 252.3 |
| Q4 | Year | ||||
|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | |
| Product Sales | 31.6 | 30.9 108.8 107.7 | |||
| Service | 18.1 | 13.7 | 61.5 | 54.8 | |
| Revenue | 49.8 | 44.6 170.3 162.5 |
| Q4 | Year | ||||
|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | |
| Product Sales | 23.9 | 22.5 114.8 118.1 | |||
| Service | 5.7 | 6.0 | 15.9 | 25.2 | |
| Revenue | 29.5 | 28.5 130.8 143.3 |
Labels has leading expertise in the design and production of adhesive labels. The business area is well adapted to today's market situation with efficient work processes, new technology and modern facilities.
Operating revenue in Q4 2020 increased by 27% compared to last year. The growth level shows the continued increased demand following the pandemic. The scale effect led to an increased EBITDA of 2.6 MNOK, which constitutes an EBITDA margin of 17%.
For the full year the business unit delivered an operating growth of 13% and an EBITDA margin on 16%, up from 13% last year.
StrongPoint signed in November the final agreement with BaneNor for compensation of 55.7 MNOK to relocate the label facility in Norway. Payment was done in the quarter.
The financial impact is shown as Other Income. Foreseen events related to move and alternative facilities have been provisioned. EBITDA and EBT was positively affected by 53.2 MNOK and 29.9 MNOK respectively.
The business area is among the largest suppliers of adhesive labels in the Swedish and Norwegian markets. Labels uses FSC-certified material from EU/ EEA/UK in its label production to ensure the paper is produced in a sustainable manner, and the production meets EU health and safety regulations.
| Q4 | Year | |||
|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 |
| Product Sales | 48.9 | 38.6 | 185.4 | 163.8 |
| Other income | 55.7 | - | 55.7 | - |
| Revenue | 104.6 | 38.6 | 241.1 | 163.8 |
| EBITDA | 61.6 | 5.8 | 83.6 | 21.9 |
| EBT | 34.2 | 1.6 | 43.8 | 4.2 |
| 2020 | 2019 |
|---|---|
| $-21044$ | 36 214 |
| $-159$ | -442 |
| 2 3 8 9 | $-10032$ |
| $-18814$ | 25 740 |
| 29 0 52 | 3312 |
| 10 238 | 29052 |
| TNOK | Q4 2020 Q4 2019 | Year 2020 |
Year 2019 |
|
|---|---|---|---|---|
| Operating revenue | 19 967 | 46 750 | 81 607 123 515 | |
| Cost of goods sold | 7 028 | 20 990 | 26 499 | 48 897 |
| Payroll | 7 413 | 11 298 | 35 681 | 43 519 |
| Other operating expenses | 1 743 | 3 137 | 10 005 | 17 631 |
| Total operating expenses | 16 184 | 35 425 | 72 186 110 048 | |
| EBITDA | 3 783 | 11 325 | 9 422 | 13 467 |
| Depreciation tangible assets | 850 | 1 567 | 4 656 | 4 694 |
| Depreciation intangible assets | 34 | 67 | 185 | 289 |
| EBIT | 2 900 | 9 691 | 4 581 | 8 485 |
| Interest expenses | 13 | 198 | 239 | 518 |
| Other financial expenses/currency differences | 340 | 3 371 | 3 717 | 3 044 |
| Profit on sale of discontinued operations | 39 161 | 39 161 | ||
| EBT | 41 707 | 6 123 | 39 786 | 4 922 |
| Taxes | 283 | -42 | 931 | -131 |
| Profit from discontinued operations | 41 424 | 6 165 | 38 855 | 5 053 |
| KNOK | 2020 | 2019 |
|---|---|---|
| Cash flow from operational activities | -21 044 | 36 214 |
| Cash flow from investment activities | -159 | -442 |
| Cash flow from financing activities | 2 389 | -10 032 |
| Net Change in liquid assets | -18 814 | 25 740 |
| Cash and cash equivalents at the start of the period | 29 052 | 3 312 |
| Cash and cash equivalents at the end of the period | 10 238 | 29 052 |
| P&L from discontinued operations | ||
|---|---|---|
| -- | ---------------------------------- | -- |
Operating revenue per quarter (MNOK)
The Board and group CEO have today considered and approved StrongPoint's financial statements for the fourth quarter and the year 2020, including comparative consolidated figures for the fourth quarter and the year 2019. 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 fourth quarter and the year 2020 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 at 31 December 2020 and 31 December 2019. 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.
Morthen Johannessen Chairman
Klaus de Vibe Director
Camilla AC Tepfers Director
Rælingen 10 February 2021
Peter Wirén Director
Ingeborg Molden Hegstad Director
Jacob Tveraabak CEO
Accounting year
General meeting
Dividend per share
28.04.2021 Proposed 0.70 22.10.2020 0.60 26.04.2019 0.55 24.04.2018 0.50 20.04.2017 0.50 05.01.2017 Extraordinary 1.00 28.04.2016 0.45 30.04.2015 0.35 25.04.2014 0.30 26.04.2013 0.25 08.05.2012 0.25
Cash flow from operational activities in the fourth quarter was 112.3 MNOK (23.3). The positive cash flow from operations stems primarily from ordinary profit and one-time items in the quarter.
Disposable funds were 175.0 MNOK per December 31, 2020. The net interest-bearing debt decreased by 79.4 MNOK compared with the end of the last quarter and totaled 34.1 MNOK. The compensation for relocation of the Labels business in Norway and divestment of Cash Security reduced the net debt. The net leverage ended at 0.28 per year end 2020.
The Group's holding of own shares amounted to 83.166, which represents 0.2 per cent of the outstanding shares. The Group has shareholder programs for the board of directors, the Group executive management and the employees. Through these programs a total of 89,706 shares were bought in 2019 and 274.022 shares have been subscribed in 2020. StrongPoint has a long term incentive program implemented in November 2020.
A dividend of NOK 0.60 per share was paid in November 2020. The Board will propose a dividend of NOK 0.70 per share at the Annual General Meeting in April 2021.
| KNOK | Q4 2020 | Q4 2019 | Chg. % Year 2020 Year 2019 | Chg. % Compensa tion effect in Q4 2020 |
|||
|---|---|---|---|---|---|---|---|
| Operating revenue | 338 409 | 252 262 | 34.1% 1 127 101 | 988 252 | 14.0% | ||
| Profit from AC. Service companies | 35 | 6 | 147 | -71 | |||
| Other income | 55 672 | 55 672 | 55 672 | ||||
| Total revenue | 394 116 | 252 269 | 56.2% 1 182 920 | 988 181 | 19.7% | 55 672 | |
| Cost of goods sold | 200 026 | 136 613 | 46.4% | 638 899 | 530 560 | 20.4% | |
| Payroll | 86 120 | 74 210 | 16.0% | 295 681 | 280 573 | 5.4% | |
| Other operating expenses | 26 494 | 22 162 | 19.5% | 95 956 | 92 296 | 4.0% | 2 500 |
| Total operating expenses | 312 639 | 232 984 | 34.2% 1 030 536 | 903 429 | 14.1% | 2 500 | |
| EBITDA | 81 477 | 19 284 | 322.5% | 152 383 | 84 752 | 79.8% | 53 172 |
| Depreciation tangible assets | 28 850 | 8 979 | 221.3% | 53 644 | 34 442 | 55.7% | 20 400 |
| Depreciation intangible assets | 2 274 | 2 523 | -9.9% | 9 358 | 13 412 | -30.2% | |
| Write down tangible assets | 2 841 | - | - | 2 841 | - | - | 2 841 |
| EBIT | 47 512 | 7 782 | 510.5% | 86 540 | 36 898 134.5% | 29 931 | |
| Interest expenses | 951 | 563 | 69.1% | 3 781 | 3 039 | 24.4% | |
| Other financial expenses/currency differences |
4 099 | -318 | 1388.0% | 5 200 | -4 328 220.1% | ||
| EBT | 42 462 | 7 538 | 463.3% | 77 559 | 38 187 103.1% | 29 931 | |
| Taxes | 10 047 | 5 097 | 97.1% | 18 756 | 11 370 | 65.0% | 6 285 |
| Profit from continued operations | 32 414 | 2 441 | 1227.8% | 58 802 | 26 817 119.3% | 23 645 | |
| Profit after tax from discontinued operations |
41 424 | 6 165 | 572.0% | 38 855 | 5 053 668.9% | ||
| Profit/loss after tax | 73 839 | 8 606 | 758.0% | 97 658 | 31 870 206.4% | ||
| Earnings per share (EPS) | |||||||
| Number of shares outstanding | 44 376 040 44 376 040 | 44 376 040 44 376 040 | |||||
| Av. number of shares - own shares | 44 289 092 44 196 649 | 44 286 883 44 231 636 | |||||
| EPS from continued operations | 0.73 | 0.06 | 1.33 | 0.61 | 0.53 | ||
| EPS included discontinued operations | 1.67 | 0.19 | 2.21 | 0.72 | |||
| EBITDA per share from continued operations |
1.84 | 0.44 | 3.44 | 1.92 | 1.20 | ||
| EBITDA per share included discontinued operations |
1.93 | 0.69 | 3.65 | 2.22 | |||
| Total earnings | |||||||
| Profit/loss after tax | 73 839 | 8 606 | 758.0% | 97 658 | 31 870 206.4% | ||
| Exchange differences on foreign operations |
-7 396 | 5 785 | -227.8% | 29 245 | -8 123 460.0% | ||
| Total earnings | 66 443 | 14 391 | 361.7% | 126 903 | 23 748 434.4% |
| KNOK | 31.12.2020 | 31.12.2019 | 30.09.2020 |
|---|---|---|---|
| ASSETS | |||
| Intangible assets | 42 010 | 46 747 | 44 916 |
| Goodwill | 151 566 | 137 929 | 152 926 |
| Tangible assets | 24 030 | 32 267 | 33 826 |
| Right-of-use assets | 67 744 | 81 175 | 73 966 |
| Long term investments | 1 700 | 1 553 | 1 664 |
| Other long term receivables | 23 435 | - | - |
| Deferred tax | 11 560 | 5 859 | - |
| Non-current assets | 322 045 | 305 530 | 307 299 |
| Inventory | 144 973 | 138 366 | 188 304 |
| Accounts receivable | 217 212 | 180 412 | 235 853 |
| Prepaid expenses | 12 129 | 12 781 | 16 662 |
| Other receivables | 14 765 | 13 954 | 15 688 |
| Bank deposits | 75 007 | 39 498 | 27 787 |
| Current assets | 464 087 | 385 011 | 484 295 |
| TOTAL ASSETS | 786 132 | 690 542 | 791 594 |
| EQUITY AND LIABILITIES | |||
| Share capital | 27 513 | 27 513 | 27 513 |
| Holding of own shares | -52 | -107 | -59 |
| Other equity | 338 597 | 236 498 | 298 066 |
| Total equity | 366 059 | 263 904 | 325 520 |
| Long term interest bearing liabilities | 374 | 10 715 | 17 397 |
| Lease liabilities | 39 565 | 51 131 | 45 058 |
| Other long term liabilities | - | 3 904 | - |
| Deferred tax liabilities | 7 547 | - | 3 682 |
| Total long term liabilities | 47 486 | 65 751 | 66 136 |
| Short term interest bearing liabilities | 41 974 | 50 418 | 49 994 |
Short term lease liabilities 27 238 30 044 28 908 Accounts payable 83 141 70 799 114 901 Taxes payable 16 552 1 091 307 Other short term liabilities 203 682 208 535 205 828 Total short term liabilities 372 587 360 887 399 938 TOTAL EQUITY AND LIABILITIES 786 132 690 542 791 594
| KNOK | Share capital |
Treasury shares |
Other paid in equity |
Translation variances |
Share Option Program |
Other equity |
Total equity |
|---|---|---|---|---|---|---|---|
| Equity 31.12.2018 | 27 513 | -65 | 351 262 | 45 130 | - | -158 703 265 137 | |
| Sale of own shares | -42 | -583 | -625 | ||||
| Dividend 2018 | -24 355 -24 355 | ||||||
| Profit this year after tax | 31 870 | 31 870 | |||||
| Other comprehensive income and expenses |
-8 123 | -8 123 | |||||
| Equity 31.12.2019 | 27 513 | -107 | 351 262 | 37 007 | - | -151 770 263 904 | |
| Purchase/sale of own shares | 55 | 1 325 | 1 380 | ||||
| Dividend 2019 | -26 568 -26 568 | ||||||
| Share Option Program | 440 | 440 | |||||
| Profit this year after tax | 97 658 | 97 658 | |||||
| Other comprehensive income and expenses |
29 245 | 29 245 | |||||
| Equity 31.12.2020 | 27 513 | -52 | 351 262 | 66 252 | 440 | -79 355 366 059 |
| KNOK | Q4 2020 | Q4 2019 | Year 2020 | Year 2019 |
|---|---|---|---|---|
| Ordinary profit before tax continued operations | 42 462 | 7 538 | 77 559 | 38 187 |
| Ordinary profit before tax discontinued operations | 41 707 | 6 123 | 39 786 | 4 922 |
| Net interest | 965 | 760 | 4 021 | 3 558 |
| Tax paid | -1 285 | 3 012 | -4 000 | 799 |
| Share of profit, associated companies | -35 | -6 | -147 | 71 |
| Ordinary depreciation | 32 008 | 13 136 | 67 843 | 52 837 |
| Write-downs | 2 841 | - | 2 841 | - |
| Profit / loss on sale of fixed assets | 288 | -298 | 313 | -298 |
| Change in inventories | 39 734 | -10 335 | 3 165 | -12 384 |
| Change in receivables | 15 217 | 4 944 | -26 279 | 17 024 |
| Change in accounts payable | -30 327 | -11 914 | 6 989 | -9 274 |
| Change in other accrued items | -31 271 | 10 387 | -40 294 | -14 806 |
| Cash flow from operational activities | 112 305 | 23 345 | 131 799 | 80 636 |
| Payments for fixed assets | 1 945 | -1 777 | -6 526 | -14 544 |
| Net payments for long term shares | - | -1 000 | - | -1 000 |
| Payment from sale of fixed assets | -1 | 344 | 92 | 344 |
| Net effect acquisitions | - | - | -17 433 | - |
| Net effect divestment | 17 397 | - | 17 397 | - |
| Dividends received from associated companies | - | -77 | - | 225 |
| Interest income | 167 | -91 | 96 | 43 |
| Cash flow from investment activities | 19 509 | -2 602 | -6 374 | -14 932 |
| Purchase/sale of own shares | 224 | 225 | 1 380 | -625 |
| Change in long-term debt | -42 144 | -10 146 | -43 121 | -48 984 |
| Change in overdraft | -12 354 | -20 201 | -16 983 | 24 875 |
| Interest expenses | -1 953 | -669 | -4 117 | -3 600 |
| Dividend paid | -26 568 | - | -26 568 | -24 355 |
| Cash flow from financing activities | -82 795 | -30 791 | -89 409 | -52 689 |
| Net change in liquid assets | 49 018 | -10 048 | 36 016 | 13 015 |
| Cash and cash equivalents at the start of the period | 27 787 | 49 618 | 39 498 | 26 985 |
| Effect of foreign exchange rate fluctuations on foreign currency deposits |
-1 797 | -72 | -507 | -502 |
| Cash and cash equivalents at the end of the period | 75 007 | 39 498 | 75 007 | 39 498 |
| KNOK | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 Year 2020 Year 2019 | ||
|---|---|---|---|---|---|---|---|
| Income statement | |||||||
| Operating revenue continued operations | 394 116 | 256 872 | 273 343 | 258 589 | 252 269 1 182 920 | 988 181 | |
| EBITDA continued operations | 81 477 | 28 411 | 26 026 | 16 469 | 19 284 | 152 383 | 84 752 |
| EBITA continued operations | 49 786 | 20 147 | 17 742 | 8 224 | 10 305 | 95 898 | 50 310 |
| Operating profit EBIT continued operations | 47 512 | 17 921 | 15 251 | 5 857 | 7 782 | 86 540 | 36 898 |
| Profit before tax (EBT) continued operations | 42 462 | 19 330 | 11 682 | 4 086 | 7 538 | 77 559 | 38 187 |
| Profit/loss after tax continued operations | 32 414 | 13 897 | 9 301 | 3 191 | 2 441 | 58 802 | 26 817 |
| EBITDA-margin continued operations | 20.7% | 11.1% | 9.5% | 6.4% | 7.6% | 12.9% | 8.6% |
| EBT-margin continued operations | 10.8% | 7.5% | 4.3% | 1.6% | 3.0% | 6.6% | 3.9% |
| Balance sheet | |||||||
| Non-current assets | 322 045 | 307 299 | 311 604 | 329 625 | 305 530 | 322 045 | 305 530 |
| Current assets | 464 087 | 484 295 | 437 114 | 456 233 | 385 011 | 464 087 | 385 011 |
| Total assets | 786 132 | 791 594 | 748 717 | 785 858 | 690 542 | 786 132 | 690 542 |
| Total equity | 366 059 | 325 520 | 305 775 | 301 995 | 263 904 | 366 059 | 263 904 |
| Total long term liabilities | 47 486 | 66 136 | 72 123 | 68 468 | 65 751 | 47 486 | 65 751 |
| Total short term liabilities | 372 587 | 399 938 | 370 819 | 415 395 | 360 887 | 372 587 | 360 887 |
| Working capital | 279 043 | 309 257 | 314 058 | 276 217 | 247 979 | 279 043 | 247 979 |
| Equity ratio | 46.6% | 41.1% | 40.8% | 38.4% | 38.2% | 46.6% | 38.2% |
| Liquidity ratio | 124.6% | 121.1% | 117.9% | 115.9% | 113.5% | 124.6% | 113.5% |
| Net interest bearing debt | 34 144 | 113 570 | 142 139 | 127 539 | 102 810 | 34 144 | 102 810 |
| Net leverage multiples | 0.28 | 1.06 | 1.57 | 1.47 | 1.05 | 0.28 | 1.05 |
| Cash Flow | |||||||
| Cash flow from operational activities | 112 305 | 35 393 | -10 962 | -4 937 | 23 345 | 131 799 | 80 636 |
| Net change in liquid assets | 49 018 | -2 311 | 4 482 | -15 173 | -10 048 | 36 016 | 13 015 |
| Share information | |||||||
| Number of shares | 44 376 040 44 376 040 44 376 040 44 376 040 44 376 040 44 376 040 44 376 040 | ||||||
| Weighted average shares outstanding | 44 289 092 44 277 179 44 306 354 44 274 990 44 196 649 44 286 883 44 231 636 | ||||||
| EBT per shares continued operations | 0.96 | 0.44 | 0.26 | 0.09 | 0.17 | 1.75 | 0.86 |
| Earnings per share continued operations | 0.73 | 0.31 | 0.21 | 0.07 | 0.06 | 1.33 | 0.61 |
| Earnings per share. adjusted * | 0.78 | 0.36 | 0.27 | 0.13 | 0.11 | 1.54 | 0.91 |
| Equity per share | 8.3 | 7.4 | 6.9 | 6.8 | 6.0 | 8.3 | 6.0 |
| Dividend per share | 0.60 | 0.60 | 0.55 | ||||
| Employees | |||||||
| Number of employees (end of period) | 462 | 521 | 512 | 519 | 531 | 462 | 531 |
| Average number of employees | 492 | 517 | 516 | 525 | 525 | 498 | 528 |
| IFRS 16 effects | |||||||
| Reduced OPEX | 25 564 | 4 744 | 4 353 | 4 696 | 5 034 | 39 358 | 19 467 |
| Increased depreciation | 25 246 | 4 501 | 4 115 | 4 436 | 4 703 | 38 298 | 18 377 |
| Increased interest expenses | 318 | 243 | 238 | 260 | 332 | 1 060 | 1 089 |
| EBT | - | - | - | - | - | - | - |
| Cash flow from operational activities | 25 564 | 5 839 | 5 464 | 5 777 | 6 317 | 39 358 | 19 467 |
| Cash flow from financing activities | -25 564 | -5 839 | -5 464 | -5 777 | -6 317 | -39 358 | -19 467 |
*) Earnings per share, adjusted for depreciation of intangible assets, mainly from M&A
| KNOK | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Cash and bank deposits | 75 007 | 39 498 |
| Unused overdraft facilities | 100 000 | 34 715 |
| Disposal funds | 175 007 | 74 213 |
| Increased disposal funds | 100 794 |
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 2019.
The accounting principles for the report are described in note 2 in the annual financial statements for 2019. The Group financial statements for 2019 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 31.12.2019. The quarterly report and the interim financial statements have not been revised by auditor.
*) Service and licenses
| Q4 2020 | Q4 2019 Year 2020 |
Year 2019 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MNOK | Revenue EBITDA | EBT Revenue EBITDA | EBT Revenue EBITDA | EBT Revenue EBITDA | EBT | |||||||
| Retail Tech | 292.3 | 24.5 | 15.0 | 218.2 | 21.9 | 15.6 | 957.3 | 95.6 | 65.9 | 843.5 | 96.3 | 66.1 |
| Labels | 104.6 | 61.6 | 34.2 | 38.6 | 5.8 | 1.6 | 241.1 | 83.6 | 43.8 | 163.8 | 21.9 | 4.2 |
| Elim / ASA | -2.8 | -4.6 | -4.6 | -4.5 | -8.4 | -9.7 | -15.4 | -26.9 | -32.1 | -19.1 | -33.4 | -32.1 |
| Total | 394.1 | 81.5 | 42.5 | 252.3 | 19.3 | 7.5 1 182.9 | 152.4 | 77.6 | 988.2 | 84.8 | 38.2 |
| Q4 2020 | Q4 2019 Year 2020 |
Year 2019 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MNOK | NO | SWE | Other | NO | SWE | Other | NO | SWE | Other | NO | SWE | Other |
| Retail Tech | 131.8 | 81.2 | 79.3 | 76.2 | 72.7 | 69.3 | 362.1 | 294.1 | 301.0 | 285.4 | 252.3 | 305.8 |
| Labels | 63.4 | 41.2 | - | 12.4 | 26.1 | - | 114.1 | 127.0 | - | 54.7 | 109.2 | - |
| Elim / ASA | - | -2.6 | -0.2 | -1.1 | -3.3 | - | - | -15.2 | -0.2 | -2.5 | -16.7 | - |
| Total | 195.3 | 119.7 | 79.1 | 87.5 | 95.5 | 69.3 | 476.3 | 405.8 | 300.8 | 337.6 | 344.8 | 305.8 |
| Q4 2020 Q4 2019 |
Year 2020 | Year 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| MNOK | New sales | Service * | New sales | Service * | New sales | Service * | New sales | Service * | |
| Retail Tech | 203.3 | 89.0 | 140.8 | 77.4 | 637.9 | 319.4 | 547.8 | 295.7 | |
| Labels | 104.6 | - | 38.6 | - | 241.1 | - | 163.8 | - | |
| Elim / ASA | -2.8 | - | -4.5 | - | -15.4 | - | -19.1 | - | |
| Total | 305.1 | 89.0 | 174.9 | 77.4 | 863.5 | 319.4 | 692.5 | 295.7 |
No significant transactions between the Group and related parties had taken place as at 31 December 2020.
The net interest-bearing debt decreased at the end of 2020 mainly due to changes in working capital, divestment of Cash Security business area and paid compensation for the relocation of Labels production facilities in Norway. The majority of the receivables are not due, and are related to customers within the grocery segment.
| KNOK | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Bank overdraft CashPool | - | 25 285 |
| Financial leasing | 14 965 | 20 365 |
| Repayment loan | 42 348 | 31 186 |
| Short term debt | - | 5 689 |
| Liabilities leasing IFRS 16 | 51 838 | 59 784 |
| Interest-bearing debt | 109 151 | 142 309 |
| Cash and bank deposits | 75 007 | 39 498 |
| Net interest-bearing debt | 34 144 | 102 810 |
| Total capital adjusted for goodwill | 634 566 | 552 613 |
| Debt ratio | 5% | 19% |
| KNOK | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Bank overdraft | - | 25 285 |
| Due within one year | 69 211 | 55 177 |
| Current interest-bearing liabilities | 69 211 | 80 462 |
| Due after one year | 39 939 | 61 847 |
| Total interest-bearing debts | 109 151 | 142 309 |
| Aging of accounts receivables (KNOK) | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Not due | 175 058 | 139 478 |
| 0-3 months | 40 008 | 40 413 |
| 3-6 months | 2 145 | 460 |
| 6-12 months | - | 61 |
| Older than 12 months | - | - |
| Total | 217 212 | 180 412 |
| Working capital | Inventories + accounts receivables – accounts payable |
|---|---|
| Equity per share | Book value equity / number of shares |
| Operating revenue | Sales revenue and profit from AC, Service companies |
| 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 |
| Earnings per share adjusted | Profit after tax + amortization of intangible assets / number of shares |
| Net leverage multiple | Net Debt / 12 months rolling operating revenue |
| Net change in liquid assets | The total changes in cash flow from operational actvities, investment activities and financing activities |
| Discontinued operations | Divested Cash Security business area December 2020. |
| No. | Name | No. of shares | % |
|---|---|---|---|
| 1 | HOLMEN SPESIALFOND | 4 200 000 | 9.46 |
| 2 | STRØMSTANGEN AS | 3 933 092 | 8.86 |
| 3 | HSBC Bank Plc | 1 976 000 | 4.45 |
| 4 | V. EIENDOM HOLDING AS | 1 835 009 | 4.14 |
| 5 | SOLE ACTIVE AS | 1 819 831 | 4.10 |
| 6 | NORDNET BANK AB | 1 349 220 | 3.04 |
| 7 | ZETTERBERG. GEORG (incl. fully owned companies) | 1 320 437 | 2.98 |
| 8 | AVANZA BANK AB | 1 313 553 | 2.96 |
| 9 | VERDADERO AS | 1 136 633 | 2.56 |
| 10 | VERDIPAPIRFONDET DNB SMB | 1 047 452 | 2.36 |
| 11 | RING. JAN | 909 372 | 2.05 |
| 12 | WAALER. JØRGEN (incl. fully owned companies) | 900 000 | 2.03 |
| 13 | MP PENSJON PK | 777 402 | 1.75 |
| 14 | HAUSTA INVESTOR AS | 700 000 | 1.58 |
| 15 | EVENSEN. TOR COLKA | 650 000 | 1.46 |
| 16 | NORDNET LIVSFORSIKRING AS | 545 869 | 1.23 |
| 17 | JOHANSEN. STEIN | 500 000 | 1.13 |
| 18 | MORGAN STANLEY & CO. INTERNATIONAL | 454 928 | 1.03 |
| 19 | NÆRINGSLIVETS HOVEDORGANISASJON | 445 669 | 1.00 |
| 20 | SKANDINAVISKA ENSKILDA BANKEN AB | 423 537 | 0.95 |
| Sum 20 largest shareholders | 26 238 004 | 59.13 | |
| Sum 2 024 other shareholders | 18 138 036 | 40.87 | |
| Sum all 2 044 shareholders | 44 376 040 | 100.00 |
StrongPoint ASA | Slynga 10, 2005 Rælingen | strongpoint.com
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