Quarterly Report • Jul 14, 2020
Quarterly Report
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Financial report and status
This second quarter and most of this first half of 2020 has obviously been turbulent. Whilst our primary objective has been safeguarding employees, customers and business partners, we have in parallel done our upmost to deliver our business critical products and services to our customers. Focusing on serving the resilient grocery retail market, we have both mobilized our work force and served our customers in ways I am proud of. We are stronger positioned than ever to deliver true value to our customers and achieving our 2025 strategy ambitions.
Jacob Tveraabak CEO of StrongPoint
I am tremendously proud of our 512 employees. We have all had to adapt to new ways of working, whether it be from home offices, production facilities with strict sanitary measures or in the stores with customers wearing appropriate protective equipment. I am also proud of the optimism amongst our employees. At one point, we had 18 % of our workforce on temporary layoffs. Now, this is down to 3 % and confined strictly to our Cash Security business. At the same time the engagement amongst our employees has risen throughout this first half of 2020, and we have never had more motivated and engaged employees.
In this choppy quarter, we have had some parts of the business coming to an almost complete stand-still at times, like our Retail Technology operations in Spain and the Cash Security business. At the same time, we have experienced a very high demand for our E-commerce logistics solutions, growing more than 70 % vs. same quarter last year, and constituting 10 % of total revenue this quarter, up from 5 % in the full year 2019. Also, our adhesive labels business grew by more than 20 % vs. same quarter last year. The demand for our in-store solutions and services has mostly been maintained. In total we have managed to uphold our top line and improve our profitability by 3.5 MNOK to 25.6 MNOK this quarter. Our operating cash flow is reduced compared to same quarter last year, however our balance sheet and finances have remained very solid throughout the entire period.
The underlying growth for StrongPoint's Retail Technology business is as strong as ever. Adjusting for the lock-down situation in Spain and for the non-grocery businesses in the Baltics in parts of the quarter, StrongPoint's Retail Technology business would have been able to showcase very solid growth figures. Furthermore, we have experienced an unprecedented interest for our E-commerce logistics and Self-Checkout solutions that we will continue to grow internationally. Some of this interest has already materialized in concrete projects to be delivered in the second half of 2020. With Spain easing its mobility restrictions we expect our business engagements here to increase as we enter the second half of 2020.
The COVID-19 pandemic has marked a shift in shopping behavior, with e-commerce and precautionary in-store solutions booming, both now during the pandemic, but also likely creating lasting customer behavior changes. StrongPoint is very well positioned with its world-class solutions for the grocery retail sector in general. Combined with a very strong customer base, relationships and partners in defined key countries, we have the right starting point for further deepening our service with these customers. With this backdrop I truly believe we have all the reasons to be optimistic about the future as StrongPointers.
Stay safe and strong!
70 % growth in E-commerce logistics revenue
| Q2 | Q2 | YTD | YTD | Year | |
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2019 | |
| Operating revenue | 287.9 | 287.1 | 567.7 | 575.4 | 1.111.7 |
| EBITDA | 25.6 | 22.1 | 42.0 | 49.8 | 98.2 |
| EBITDA margin | 8.9 % | 7.7 % | 7.4 % | 8.7 % | 8.8 % |
| Operating profit (EBIT) | 13.4 | 8.3 | 18.0 | 22.4 | 45.4 |
| Ordinary profit before tax (EBT) | 9.9 | 8.7 | 11.9 | 25.5 | 43.1 |
| Cash flow from operational activities | -11.0 | 46.5 | -15.9 | 57.2 | 80.6 |
| Disposable funds | 97.5 | 84.0 | 97.5 | 84.0 | 74.2 |
| Earnings per outstanding shares (NOK) | 0.17 | 0.16 | 0.19 | 0.46 | 0.72 |
| Earnings per share, adjusted * | 0.23 | 0.25 | 0.31 | 0.64 | 1.03 |
*) Earnings per share, adjusted for depreciation of intangible assets, mainly from M&A.
StrongPoint helps retailers to stand out, sustain growth and spur productivity, leveraging the arising opportunities within e-commerce and in-store technology. The Group consists of three business areas: Retail Technology, Cash Security and Labels.
| Revenue | Q2 | YTD | Year | ||
|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | 2019 |
| Retail Technology | 226.6 | 221.7 | 447.0 | 434.3 | 843.5 |
| Cash Security | 14.5 | 25.5 | 35.7 | 60.6 | 123.5 |
| Labels | 50.7 | 41.8 | 94.8 | 84.8 | 163.8 |
| Elim / ASA | -4.0 | -1.8 | -9.9 | -4.4 | -19.1 |
| Total | 287.9 | 287.1 | 567.7 | 575.4 | 1 111.7 |
| Q2 | |||||
| EBITDA | YTD | Year | |||
| MNOK | 2020 | 2019 | 2020 | 2019 | 2019 |
| Retail Technology | 24.4 | 25.2 | 42.1 | 48.5 | 96.3 |
| Cash Security | -0.5 | 1.5 | -0.5 | 7.3 | 13.5 |
| Labels | 9.0 | 3.9 | 15.0 | 10.0 | 21.9 |
| Elim / ASA | -7.4 | -8.5 | -14.5 | -16.0 | -33.4 |
Total revenue in the quarter was at the same level as last year. The topline reflects a positive growth in Retail Technology of 2 %, a growth in Labels of 21 %, and a decline in Cash Security of 43 %. Aggregated, the grocery markets, pharmacies and food production customers demonstrate a high stability or even increased demand during the pandemic, while areas like non-food, hospitality and cash-in-transit were negatively influenced. The EBITDA increased by 3.5 MNOK to 25.6 MNOK, resulting in an EBITDA margin of 8.9 % (7.7 %). The half year figures show a revenue decline of 1 %, a combination of a positive growth of 3 % in Retail Technology, 12 % growth in Labels and a decline of 41 % in Cash Security. EBITDA for the first half of 2020 declined by 7.8 MNOK to 42.0 MNOK, explained primarily by the reduced turnover in Cash Security. Compensation for temporary layoffs was the only governmental support received during the COVID-19-period and this had a positive effect of approximately 3 MNOK for the quarter. The compensation was received in Sweden and Spain. Lower travel expenses reduced the cost in the period for the company.
EBITDA per quarter (MNOK)
In the strategy update presentation on February 12, 2020, StrongPoint presented for the first time the relative share of revenue of each business areas and business segment in Retail Technology.
In-store Productivity is still the largest business segment within Retail and has at large maintained the relative share during the quarter. The main delivery was related to installation and support of Pricer ESL to grocery retailers.
Service revenue for the Cash Management systems was stable, while new product sales have been influenced by the lock-down especially in Spain. Year to date this still was the second largest segment within Retail Technology.
The previously announced Click & Collect orders to Sweden were partly delivered in Q2, and lockers were also installed in Spain and Italy in same period. The increased online grocery shopping required StrongPoint Pick & Collect software to be implemented in additional grocery stores during Q2. The segment reached 10 % relative share in the quarter, up from 5 % in 2019.
Our new partner PartnerTech Europe received an order for StrongPoint Self-Checkout solutions (SCO) from a large Polish retail chain. The increased volume in this segment stems partly from this order, which again stems from national governmental requirements due to the pandemic. In addition, the Baltic countries delivered a relatively high number of SCO solutions to retail customers during the quarter.
Other retail technology, mainly software projects, was stable during both Q1 and Q2.
Cash Security had lower revenue from production of Cash-In-Transit cases and relative share declined. The revenue in Q2 mainly stems from service and maintenance work on the installed base of CIT-cases.
Producers of food experienced a high demand for smaller packages and the demand for adhesive labels increased substantially following the pandemic.
Operating revenue relative share (%)
StrongPoint | Q2 and 1st half 2020
6
StrongPoint E-commerce logistics includes solutions for efficient picking of goods for online grocery shopping – whether in store or in darkstores – and for different delivery options – like Click & Collect lockers (mobile or stationary) as well as software for optimal delivery route for home deliveries. The COVID-19 has led to an unprecedented increase in online grocery shopping, and a subsequent increased interest for StrongPoint's solutions from both current and new customers.
Pilots are often installed at customers' sites to ensure technical and commercial conditions before a larger roll-out is decided upon. In the quarter, StrongPoint installed new E-commerce logistics pilots in Norway, Sweden, the Baltics, Finland and Cyprus. Furthermore, during Q1 pilots were signed in Italy, Austria and Germany. In total, StrongPoint believes the outlook for its E-commerce logistics solutions is very positive and encouraging.
As online shopping increased, the retail chains rolled out Pick & Collect solution to additional stores. The previously announced orders for Click & Collect in Sweden to Coop and Axfood were installed during the quarter. In total, this led to a more than 70 % growth of e-commerce deliveries compared to same quarter last year. For the first half of 2020, the growth was above 40 %.
In order to continue sales and service to the German customers, StrongPoint signed a partner agreement with PartnerTech Europe to replace the Germany office which was formally closed in Q2, The agreement ensures that all existing and future customers in Germany will be ensured top service and support from one of Europe's leading service & support companies. This agreement works in parallel with the existing partnership that StrongPoint has with Harting Systems for the sale of self-standing and integrated selfcheckout solutions in Germany.
Safe and efficient checkout solutions have also received increased interest from customers as a result of the pandemic situation. PartnerTech Europe sold approximately 100 Self-Checkout solutions to a retail chain in Poland in the quarter.
Despite experiencing a real setback in activity level, our Cash Security business signed an order of up to 357 Cash-in-Transit cases to Sberbank, the largest bank in Russia. The CIT-cases will be delivered during Q3 2020.
All due payables has been paid, and the risk in receivables was on the same level as before the COVID-19. A substantial amount of the receivables stems from large grocery customers in Norway, Sweden and the Baltics. The inventory has been reduced through sale of goods. All in all, the financial position in the group has been stable and solid during the period and first half of 2020.
StrongPoint announced its updated strategy on February 12, 2020. Following the COVID-19 the relevance of the strategic direction appears strengthened, whilst the growth ambitions for 2025 are confirmed.
StrongPoint's strategic direction focuses on the resilient grocery retail sector. Being a key partner for grocery retail companies in a set of geographies – namely Norway, Sweden, the Baltics and Spain – is at the core of the strategic direction. Further to this, with StrongPoint's E-commerce logistics solutions portfolio being world-class, there is significant opportunity to roll-out this proprietary technology in other markets. The plans to roll out cash management solutions are maintained, although postponed due to lock-down in core markets. The relevance, both hygiene and safety arguments, are stronger than ever. Lastly, StrongPoint's other in-store solutions, such as checkout solutions, has the potential to gain additional relevance from the COVID-19 outbreak.
1) Organic growth ambition
2) Norway, Sweden, the Baltics and Spain
3) Cash Management solutions in e.g., Italy and Greece, and E-commerce solutions globally
4) The Nordics and the Baltics
ShopFlow Logistics * Electronic Shelf Labels Scales & Wrapping Systems Task & Labour Management Voice Communication System Sunrise Technology
CashGuard Cash Management *
Self-Checkout * Self-Scanning Vensafe Tobacco Sales Automation *
* Own Technologies
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 Electronic Shelf Labels (ESL), POS, ERP, consulting services, scales and wrapping machines.
| Q2 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | 2019 |
| Product Sales | 151.4 | 148.3 | 292.2 | 287.1 | 547.8 |
| Service | 75.3 | 73.5 | 154.8 | 147.2 | 295.7 |
| Revenue | 226.6 | 221.7 | 447.0 | 434.3 | 843.5 |
| EBITDA | 24,4 | 25,2 | 42,1 | 48,5 | 96,3 |
| EBITDA-margin | 10,8 % | 11,4 % | 9,4 % | 11,2 % | 11,4 % |
| EBT | 14.9 | 16.8 | 28.0 | 31.9 | 66.1 |
Retail Technology delivered a positive revenue growth of 2 % in the quarter and 3 % in the first half 2020. The business area was partially negatively influenced by the COVID-19 measures, especially in Spain and non-food Baltic segments.
Product mix and currency influenced the gross profit negatively, while temporary layoffs and lower travel expenses reduced the cost in the period. This led to a decline in EBITDA in Q2 by 0.8 MNOK to 24.4 MNOK (25.2).
EBITDA for the first half of 2020 was reduced by 6.4 MNOK, whereof 3 MNOK was directly related to the
currency effect reported in Q1 for Norway.
Technology development has continued as planned in the quarter. The development within E-commerce logistics focus mainly on the 3rd generation of picking solution, improved darkstore module and enhanced module for routeoptimization. A more sustainable solution of coolant in the Click & Collect lockers has been implemented. For other segments, improvements have been done on the Self-Checkout solution, our Retail Suite software and note collector for Cash Management.
Operating revenue per quarter (MNOK) EBITDA per quarter (MNOK)
| Q2 YTD Year |
||||||
|---|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | 2019 | |
| Product Sales | 48.8 | 54.5 | 96.3 | 99.7 | 176.2 | |
| Service | 25.6 | 26.3 | 54.1 | 52.0 | 109.2 | |
| Revenue | 74.5 | 80.8 | 150.5 | 151.8 | 285.4 |
The business in Norway has mainly been maintained in Q2. The negative development in revenue in the quarter was solely due to lower product sales where a large Vensafe project was delivered in Q2 2019. YTD figures show an almost flat development compared to last year. Main deliveries in the quarter and first half were ESL and Vensafe products and installation, in addition to the recurring service- and support deliveries. Norway now experiences higher interest of e-commerce logistic solutions.
| Q2 YTD Year |
||||||
|---|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | 2019 | |
| Product Sales | 42.3 | 41.0 | 75.4 | 76.2 | 145.8 | |
| Service | 33.0 | 26.9 | 63.0 | 55.3 | 106.5 | |
| Revenue | 75.4 | 68.0 | 138.4 | 131.5 | 252.3 |
The Swedish organization delivered an 11 % growth in the quarter compared to the same quarter last year. The product sales consists to a large degree of ESL and Click & Collect lockers. The service increased by 23 % in the period – partly explained by an increased roll-out of the E-commerce Pick & Collect to some of the major grocery retail chains in Sweden.
The 5 % growth YTD constitute of a 1 % decline in product sales whilst service revenue has increased by a solid 14 %. Again, the increased use of Pick & Collect software contributes positively to the growth in service revenue.
| Q2 | YTD | |||||
|---|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | 2019 | |
| Product Sales | 32.8 | 25.2 | 52.6 | 54.7 | 107.7 | |
| Service | 13.9 | 14.3 | 28.9 | 27.2 | 54.8 | |
| Revenue | 46.7 | 39.5 | 81.5 | 81.9 | 162.5 |
During the quarter, the social distancing measures were eased in Lithuania. Product and service deliveries to especially the non-grocery customers were low in the start of the quarter but has picked up towards the end. Despite this, the Baltic countries delivered an
18 % growth in the quarter compared to last year, mainly due to increased deliveries of Self-Checkout solutions to major grocery customers. The year to date figures were on par with last year. The product sale is 4 % lower than last year, where a large project in Latvia led to very high growth.
| Q2 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | 2019 |
| Product Sales | 27.4 | 27.6 | 67.9 | 56.5 | 118.1 |
| Service | 2.7 | 5.8 | 8.7 | 12.7 | 25.2 |
| Revenue | 30.1 | 33.4 | 76.6 | 69.2 | 143.3 |
Among StrongPoint's key markets, Spain has been the most impacted by COVID-19. Especially the hospitality segment was shut down for most of the quarter. This had a high influence on StrongPoint's revenue in the country, which in the quarter represented only half of the revenue achieved in the same quarter last year. The revenue in the quarter consists of sale of both Cash Management and Click & Collect lockers. Of the approximately 300 Cash Management rental solutions implemented during 2019, 21 have been returned due to the COVID-19 situation.
Partner sales, however, was very strong. Bullion IT in South Africa delivered the rest of the 500 CashGuard order in the quarter. In addition, the delivery of approximately 50 Self-Chechout solutions to a large retail chain in Poland was a good start on the new partner agreement with PartnerTech.
The revenue grew by 11 % in the first half, mainly due to the deliveries to South Africa.
Cash Security offers solutions for Cash In Transit (CIT). The business area focuses on innovative IBNS (Intelligent Banknote Neutralisation System) technology, which protects cash without the need for weapons or costly armored vehicles.
| Q2 | YTD | ||||
|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | 2019 |
| Product Sales | 3.4 | 16.3 | 16.1 | 41.7 | 87.9 |
| Service | 11.2 | 9.2 | 19.6 | 18.9 | 35.6 |
| Revenue | 14.5 | 25.5 | 35.7 | 60.6 | 123.5 |
| EBITDA | -0.5 | 1.5 | -0.5 | 7.3 | 13.5 |
| EBITDA-margin | -3,2 % | 5,8 % | -1,3 % | 12,0 % | 10,9 % |
| EBT | -1.8 | 0.4 | -3.8 | 5.0 | 7.8 |
The business area experienced another quarter with a decline in revenue above 40 % compared to same quarter last year. The revenue and profit are affected by the COVID-19-situation, with a very low volume of product sale. The service activity has increased in the period, especially in Sweden and Russia. For the first half, the business area had a decline of 41 % compared to last year. The new order of 357 cases to Sberbank, Russia, will improve the situation in Q3.
The EBITDA fell on the back of lower revenue and was reduced by 2 MNOK in the quarter. All employees in the business area was on temporary layoff to some extent during in the quarter, which reduced the payroll cost by 2 MNOK in the period.
It is expected to be zero employees on temporary layoffs from August 2020.
COVID-19 measures in Cash Security's primary markets have among others led to closed stores, restaurants and bank facilities. This has led to temporary reduced demand for cash-in- transit services.
The business area has its own sales and service organization in Sweden, Russia, France, Belgium and Norway, as well as partners in several countries, including Italy, Bosnia, Croatia, Serbia, Cyprus and the UK.
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.
| Q2 | YTD | ||||
|---|---|---|---|---|---|
| MNOK | 2020 | 2019 | 2020 | 2019 | 2019 |
| Revenue | 50.7 | 41.8 | 94.8 | 84.8 | 163.8 |
| EBITDA | 9.0 | 3.9 | 15.0 | 10.0 | 21.9 |
| EBITDA-margin | 17,7 % | 9,3 % | 15,8 % | 11,8 % | 13,4 % |
| EBT | 4.6 | -0.6 | 6.6 | 0.8 | 4.2 |
The COVID-19 pandemic increased the demand for adhesive labels, especially from food producers and producers of health and medical equipment. The high demand stems from the change in production from large to smaller units of food packaging.
Operating revenue in Q2 2020 increased by 21 % compared to last year. The increased demand started already in March 2020, and the figures for the first half show a total revenue growth of 12 % vs YTD 2019.
EBITDA grew by 5.1 MNOK from Q2 2019 to Q2 2020 as a result of the high volume, showing the meaningfull scalability of the label business.
StrongPoint has accepted an initial offer for compensation from BaneNor of 55.6 MNOK to relocate from its label facility in Norway. The political approval of the project is expected in October 2020. The compensation fee and time of payment is subject to BaneNor's Board approval and the finalization of the agreement between the parties.
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 that the paper is produced in a sustainable manner, and that the production meets the regulations for health and safety in the EU.
Cash flow from operational activities in the second quarter was -11.0 MNOK (46.5). The negative cash flow from operations stems primarily from reduced payables of 58 MNOK in the quarter.
Disposable funds were 97.5 MNOK per June 30, 2020. The net interest-bearing debt increased by 14.6 MNOK compared with the end of the last quarter and totaled 142.1 MNOK.
The Group's holding of own shares amounted to 108.729, 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 228.371 shares have been subscribed so far in 2020.
The Board decided 19 March 2020 to postpone the decision on dividend for 2019 due to the COVID-19 situation. The Board of Directors will consider to call for an extraordinary general meeting to pay dividend in line with the dividend policy later in 2020.
The Board and group CEO have today considered and approved StrongPoint's financial statements for the second quarter and first half 2020, including comparative consolidated figures for the second quarter and first half 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 second quarter and first half 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 30 June 2020 and 30 June 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.
Rælingen 13 July 2020
Morthen Johannessen Chairman
Klaus de Vibe Director
Camilla AC Tepfers Director
Peter Wirén Director
Ingeborg Molden Hegstad Director
Jacob Tveraabak CEO
| Accounting year |
General meeting |
Dividend per share |
|
|---|---|---|---|
| 2018 | 26.04.2019 | 0,55 | |
| 2017 | 24.04.2018 | 0,50 | |
| 2016 | 20.04.2017 | 0,50 | |
| 2016 | 05.01.2017 | Extraordinary | 1,00 |
| 2015 | 28.04.2016 | 0,45 | |
| 2014 | 30.04.2015 | 0,35 | |
| 2013 | 25.04.2014 | 0,30 | |
| 2012 | 26.04.2013 | 0,25 | |
| 2011 | 08.05.2012 | 0,25 |
| KNOK | Q2 2020 | Q2 2019 | Chg. % | YTD 2020 | YTD 2019 | Chg. % | Year 2019 |
|---|---|---|---|---|---|---|---|
| Operating revenue | 287 691 | 287 027 | 0,2 % | 567 485 | 575 267 | -1,4 % | 1 111 767 |
| Profit from AC, Service companies | 186 | 122 | 169 | 104 | -71 | ||
| Cost of goods sold | 158 925 | 148 932 | 6,7 % | 307 606 | 298 881 | 2,9 % | 579 457 |
| Payroll | 78 825 | 87 390 | -9,8 % | 164 840 | 170 591 | -3,4 % | 324 092 |
| Other operating expenses | 24 570 | 28 723 | -14,5 % | 53 182 | 56 110 | -5,2 % | 109 927 |
| Total operating expenses | 262 320 | 265 044 | -1,0 % | 525 628 | 525 582 | 0,0 % | 1 013 477 |
| EBITDA | 25 556 | 22 105 | 15,6 % | 42 026 | 49 789 | -15,6 % | 98 219 |
| Depreciation tangible assets | 9 566 | 9 756 | -1,9 % | 19 075 | 19 276 | -1,0 % | 39 136 |
| Depreciation intangible assets | 2 542 | 4 036 | -37,0 % | 4 958 | 8 128 | -39,0 % | 13 700 |
| EBIT | 13 448 | 8 313 | 61,8 % | 17 993 | 22 385 | -19,6 % | 45 383 |
| Interest expenses | 1 047 | 949 | 10,3 % | 2 120 | 1 807 | 17,3 % | 3 558 |
| Other financial expenses/currency | 2 470 | -1 325 | 286,4 % | 3 935 | -4 883 | 180,6 % | -1 284 |
| differences | |||||||
| EBT | 9 931 | 8 689 | 14,3 % | 11 938 | 25 461 | -53,1 % | 43 108 |
| Taxes | 2 429 | 1 553 | 56,4 % | 3 340 | 5 056 | -33,9 % | 11 238 |
| Profit/loss after tax | 7 502 | 7 136 | 5,1 % | 8 598 | 20 405 | -57,9 % | 31 870 |
| Earnings per share | |||||||
| Number of shares outstanding | 44 376 040 | 44 376 040 | 44 376 040 | 44 376 040 | 44 376 040 | ||
| Av. Number of shares - own shares | 44 306 354 | 44 242 976 | 44 290 672 | 44 258 594 | 44 231 636 | ||
| Earnings per share | 0,17 | 0,16 | 0,19 | 0,46 | 0,72 | ||
| Diluted earnings per share | 0,17 | 0,16 | 0,19 | 0,46 | 0,72 | ||
| EBITDA per share | 0,58 | 0,50 | 0,95 | 1,12 | 2,22 | ||
| Diluted EBITDA per share | 0,58 | 0,50 | 0,95 | 1,12 | 2,22 | ||
| Total earnings | |||||||
| Profit/loss after tax | 7 502 | 7 136 | 5,1 % | 8 598 | 20 405 | -57,9 % | 31 870 |
| Exchange differences on foreign | -2 916 | -3 907 | 25,4 % | 32 335 | -16 788 | 292,6 % | -8 123 |
| operations | |||||||
| Total earnings | 4 586 | 3 229 | 42,0 % | 40 933 | 3 617 | 1031,6 % | 23 748 |
| KNOK | 30.06.2020 | 30.06.2019 | 31.03.2020 | 31.12.2019 |
|---|---|---|---|---|
| ASSETS | ||||
| Intangible assets | 46 511 | 50 745 | 49 094 | 46 747 |
| Goodwill | 151 415 | 134 283 | 151 981 | 137 929 |
| Tangible assets | 32 494 | 32 523 | 35 736 | 32 267 |
| Right-of-use assets | 79 235 | 85 111 | 86 787 | 81 175 |
| Long term investments | 1 722 | 1 106 | 1 536 | 1 553 |
| Deferred tax | 227 | 8 596 | 4 491 | 5 859 |
| Non-current assets | 311 604 | 312 364 | 329 625 | 305 530 |
| Goods | 159 885 | 117 124 | 183 339 | 138 366 |
| Accounts receivable | 211 196 | 200 093 | 207 628 | 180 412 |
| Prepaid expenses | 22 861 | 20 270 | 31 061 | 12 781 |
| Other receivables | 12 012 | 6 849 | 6 726 | 13 954 |
| Bank deposits | 31 159 | 23 951 | 27 479 | 39 498 |
| Current assets | 437 114 | 368 288 | 456 233 | 385 011 |
| TOTAL ASSETS | 748 717 | 680 652 | 785 858 | 690 542 |
| EQUITY AND LIABILITIES | ||||
| Share capital | 27 513 | 27 513 | 27 513 | 27 513 |
| Holding of own shares | -67 | -132 | -18 | -107 |
| Other equity | 278 329 | 215 966 | 274 500 | 236 498 |
| Total equity | 305 775 | 243 348 | 301 995 | 263 904 |
| Long term interest bearing liabilities | 22 192 | 19 913 | 6 504 | 10 715 |
| Lease liabilities | 49 931 | 56 145 | 57 661 | 51 131 |
| Other long term liabilities | - | 9 177 | 4 303 | 3 904 |
| Total long term liabilities | 72 123 | 85 235 | 68 468 | 65 751 |
| Short term interest bearing liabilities | 71 872 | 25 454 | 61 728 | 50 418 |
| Short term lease liabilities | 29 304 | 28 966 | 29 126 | 30 044 |
| Accounts payable | 57 023 | 88 358 | 114 750 | 70 799 |
| Taxes payable | 372 | 184 | 689 | 1 091 |
| Other short term liabilities | 212 249 | 209 107 | 209 104 | 208 535 |
| Total short term liabilities | 370 819 | 352 069 | 415 395 | 360 887 |
| TOTAL EQUITY AND LIABILITIES | 748 717 | 680 652 | 785 858 | 690 542 |
| KNOK | Share capital | Treasury shares |
Other paid-in equity |
Translation variances |
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 | - | 39 | - | - | 899 | 938 |
| Profit this year after tax | - | - | - | - | 8 598 | 8 598 |
| Other comprehensive income and expenses |
- | - | - | 32 335 | - | 32 335 |
| Equity 30.06.2020 | 27 513 | -67 | 351 262 | 69 342 | -142 273 | 305 775 |
| KNOK | Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | Year 2019 |
|---|---|---|---|---|---|
| Ordinary profit before tax | 9 931 | 8 689 | 11 938 | 25 461 | 43 108 |
| Net interest | 1 047 | 949 | 2 120 | 1 807 | 3 558 |
| Tax paid | 24 | -857 | -453 | -2 216 | 799 |
| Share of profit, associated companies | -186 | -122 | -169 | -104 | 71 |
| Ordinary depreciation | 12 109 | 13 791 | 24 033 | 27 405 | 52 837 |
| Profit / loss on sale of fixed assets | 80 | - | 88 | - | -298 |
| Change in inventories | 19 483 | 10 059 | -8 904 | 6 521 | -12 384 |
| Change in receivables | -6 384 | 10 600 | -18 488 | -6 053 | 17 024 |
| Change in accounts payable | -56 621 | 4 999 | -19 819 | 9 848 | -9 274 |
| Change in other accrued items | 9 555 | -1 654 | -6 245 | -5 484 | -14 806 |
| Cash flow from operational activities | -10 962 | 46 455 | -15 899 | 57 184 | 80 636 |
| Payments for fixed assets | -1 403 | -5 287 | -4 702 | -8 112 | -14 544 |
| Net payments for long term shares | - | - | - | - | -1 000 |
| Payment from sale of fixed assets | 29 | - | 91 | - | 344 |
| Net effect acquisitions | - | - | -17 433 | - | - |
| Dividends received from associated companies | - | - | - | - | 225 |
| Interest income | 11 | 63 | -102 | 105 | 43 |
| Cash flow from investment activities | -1 363 | -5 224 | -22 146 | -8 007 | -14 932 |
| Purchase/sale of own shares | -805 | -1 091 | 938 | -1 052 | -625 |
| Change in long-term debt | 18 743 | -9 659 | 11 130 | -22 883 | -48 984 |
| Change in overdraft | -337 | -245 | 16 750 | -750 | 24 875 |
| Interest expenses | -793 | -1 012 | -1 463 | -1 912 | -3 600 |
| Dividend paid | - | -24 355 | - | -24 355 | -24 355 |
| Cash flow from financing activities | 16 807 | -36 361 | 27 355 | -50 951 | -52 689 |
| Net change in liquid assets | 4 482 | 4 870 | -10 691 | -1 775 | 13 015 |
| Cash and cash equivalents at the start of the period | 27 479 | 19 139 | 39 498 | 26 985 | 26 985 |
| Effect of foreign exchange rate fluctuations on foreign currency deposits |
-802 | -57 | 2 352 | -1 259 | -502 |
| Cash and cash equivalents at the end of the period | 31 159 | 23 951 | 31 159 | 23 951 | 39 498 |
| KNOK | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | YTD 2020 | YTD 2019 |
|---|---|---|---|---|---|---|---|
| Income statement | |||||||
| Operating revenue | 287 877 | 279 777 | 299 019 | 237 306 | 287 149 | 567 654 | 575 371 |
| EBITDA | 25 556 | 16 470 | 30 609 | 17 820 | 22 105 | 42 026 | 49 789 |
| EBITA | 15 990 | 6 961 | 20 064 | 8 506 | 12 349 | 22 951 | 30 513 |
| Operating profit EBIT | 13 448 | 4 545 | 17 473 | 5 524 | 8 313 | 17 993 | 22 385 |
| Ordinary profit before tax (EBT) | 9 931 | 2 007 | 13 660 | 3 987 | 8 689 | 11 938 | 25 461 |
| Profit/loss after tax | 7 502 | 1 096 | 8 606 | 2 860 | 7 136 | 8 598 | 20 405 |
| EBITDA-margin | 8,9 % | 5,9 % | 10,2 % | 7,5 % | 7,7 % | 7,4 % | 8,7 % |
| EBT-margin | 3,4 % | 0,7 % | 4,6 % | 1,7 % | 3,0 % | 2,1 % | 4,4 % |
| Balance sheet | |||||||
| Non-current assets | 311 604 | 329 625 | 305 530 | 303 655 | 312 364 | 311 604 | 312 364 |
| Current assets | 437 114 | 456 233 | 385 011 | 386 331 | 368 288 | 437 114 | 368 288 |
| Total assets | 748 717 | 785 858 | 690 542 | 689 986 | 680 652 | 748 717 | 680 652 |
| Total equity | 305 775 | 301 995 | 263 904 | 249 288 | 243 348 | 305 775 | 243 348 |
| Total long term liabilities | 72 123 | 68 468 | 65 751 | 67 380 | 85 235 | 72 123 | 85 235 |
| Total short term liabilities | 370 819 | 415 395 | 360 887 | 373 318 | 352 069 | 370 819 | 352 069 |
| Working capital | 314 058 | 276 217 | 247 979 | 228 733 | 228 860 | 314 058 | 228 860 |
| Equity ratio | 40,8 % | 38,4 % | 38,2 % | 36,1 % | 35,8 % | 40,8 % | 35,8 % |
| Liquidity ratio | 117,9 % | 115,9 % | 113,5 % | 112,3 % | 111,5 % | 117,9 % | 111,5 % |
| Net interest bearing debt | 142 139 | 127 539 | 102 810 | 112 162 | 106 527 | 142 139 | 106 527 |
| Net leverage multiples | 1,57 | 1,47 | 1,05 | 1,24 | 1,22 | 1,57 | 1,22 |
| Cash Flow | |||||||
| Cash flow from operational activities | -10 962 | -4 937 | 23 345 | 107 | 46 455 | -15 899 | 57 184 |
| Net change in liquid assets | 4 482 | -15 173 | -10 048 | 24 837 | 4 870 | -10 691 | -1 775 |
| 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 | 44 306 354 | 44 274 990 | 44 196 649 | 44 164 144 | 44 242 976 | 44 290 672 | 44 258 594 |
| EBT per shares | 0,22 | 0,05 | 0,31 | 0,09 | 0,20 | 0,27 | 0,58 |
| Earnings per share | 0,17 | 0,02 | 0,19 | 0,06 | 0,16 | 0,19 | 0,46 |
| Earnings per share, adjusted * | 0,23 | 0,08 | 0,25 | 0,13 | 0,25 | 0,31 | 0,64 |
| Equity per share | 6,9 | 6,8 | 6,0 | 5,6 | 5,5 | 6,9 | 5,5 |
| Dividend per share | - | - | - | - | 0,55 | - | 0,55 |
| Employees | |||||||
| Number of employees (end of period) | 512 | 519 | 531 | 519 | 534 | 512 | 534 |
| Average number of employees | 516 | 525 | 525 | 527 | 530 | 520 | 531 |
| IFRS 16 effects | |||||||
| Reduced OPEX | 5 464 | 5 777 | 6 317 | 5 669 | 5 691 | 11 241 | 11 375 |
| Increased Depreciation | 5 199 | 5 487 | 5 969 | 5 419 | 5 410 | 10 686 | 10 768 |
| Increased interest expenses | 265 | 290 | 348 | 250 | 282 | 555 | 607 |
| EBT | - | - | - | - | - | - | - |
| Cash flow from operational activities | 5 464 | 5 777 | 6 317 | 5 669 | 5 691 | 11 241 | 11 375 |
| Cash flow from financing activities | -5 464 | -5 777 | -6 317 | -5 669 | -5 691 | -11 241 | -11 375 |
*) Earnings per share, adjusted for depreciation of intangible assets, mainly from M&A
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.
| Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | Year 2019 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MNOK | NO | SWE | Other | NO | SWE | Other | NO | SWE | Other | NO | SWE | Other | NO | SWE | Other |
| Retail Tech |
74.5 | 75.4 | 76.8 | 80.8 | 68.0 | 72.9 | 150.5 | 138.4 | 158.1 | 151.8 | 131.5 | 151.1 | 285.4 | 252.3 | 305.8 |
| Cash Security |
0.1 | 7.9 | 6.4 | 0.5 | 7.8 | 17.2 | 0.8 | 17.0 | 18.0 | 0.6 | 21.0 | 39.0 | 0.7 | 41.1 | 81.7 |
| Labels | 21.8 | 28.9 | - | 15.0 | 26.8 | - | 35.0 | 59.8 | - | 30.6 | 54.3 | - | 54.7 | 109.2 | - |
| Elim / ASA | 0.8 | -4.9 | - | -0.3 | -1.5 | - | - | -9.9 | - | -0.7 | -3.6 | -0.1 | -2.5 | -16.7 | - |
| Total | 97.3 | 107.4 | 83.2 | 96.0 | 101.0 | 90.1 | 186.2 | 205.3 | 176.1 | 182.2 | 203.2 | 190.0 | 338.3 | 385.9 | 387.5 |
Elim / ASA -4.0 -7.4 -7.8 -1.8 -8.5 -7.9 -9.9 -14.5 -18.9 -4.4 -16.0 -12.3 -19.1 -33.4 -35.0 Total 287.9 25.6 9.9 287.1 22.1 8.7 567.7 42.0 11.9 575.4 49.8 25.5 1 111.7 98.2 43.1
DA
EBT
| Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | Year 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| MNOK | New sales | Service * | New sales | Service * | New sales | Service * | New sales | Service * | New sales | Service * |
| Retail Tech |
151.4 | 75.3 | 148.3 | 73.5 | 292.2 | 154.8 | 287.1 | 147.2 | 547.8 | 295.7 |
| Cash Security |
3.4 | 11.2 | 16.3 | 9.2 | 16.1 | 19.6 | 41.7 | 18.9 | 87.9 | 35.6 |
| Labels | 50.7 | - | 41.8 | - | 94.8 | - | 84.8 | - | 163.8 | - |
| Elim / ASA | -4.0 | - | -1.8 | - | -9.9 | - | -4.4 | - | -19.1 | - |
| Total | 201.4 | 86.4 | 204.5 | 82.7 | 393.3 | 174.4 | 409.2 | 166.1 | 780.5 | 331.2 |
*) Service and licenses
No significant transactions between the Group and related parties had taken place as at 30 June 2020.
Due to the extraordinary situation the world has had the past months, additional financial information is added to this report to inform of the financial solidity of the company.
The net interest-bearing debt has increased during the period mainly due to changes in working capital and payment of earn-out related to the acquisition of CUB AB in 2017.
The majority of the receivables are not due, and are related to customers within the grocery segment.
| KNOK | 30.06.2020 | 31.12.2019 |
|---|---|---|
| Bank overdraft CashPool | 33 664 | 25 285 |
| Financial leasing | 19 536 | 20 365 |
| Bank Loan | 60 399 | 31 186 |
| Short term debt | - | 5 689 |
| Liabilities leasing IFRS 16 | 59 699 | 59 784 |
| Interest-bearing debt | 173 299 | 142 309 |
| Cash and bank deposits | 31 159 | 39 498 |
| Net interest-bearing debt | 142 139 | 102 810 |
| Total capital adjusted for goodwill | 597 076 | 552 613 |
| Debt ratio | 24 % | 19 % |
| KNOK | 30.06.2020 | 31.12.2019 |
|---|---|---|
| Bank overdraft | 33 664 | 25 285 |
| Due within one year | 67 512 | 55 177 |
| Current interest-bearing liabilities | 101 176 | 80 462 |
| Due after one year | 72 123 | 61 847 |
| Total interest-bearing debts | 173 299 | 142 309 |
| KNOK | 30.06.2020 | 31.12.2019 |
|---|---|---|
| Cash and bank deposits | 31 159 | 39 498 |
| Unused overdraft facilities | 66 336 | 34 715 |
| Disposal funds | 97 495 | 74 213 |
| Aging of accounts receivables (KNOK) | 30.06.2020 | 31.12.2019 |
|---|---|---|
| Not due | 174 837 | 139 478 |
| 0-3 months | 33 539 | 40 413 |
| 3-6 months | 2 821 | 460 |
| 6-12 months | - | 61 |
| Older than 12 months | - | - |
| Total | 211 196 | 180 412 |
| No. | Name | No. of shares | % |
|---|---|---|---|
| 1 | HOLMEN SPESIALFOND | 4 200 000 | 9,5 |
| 2 | STRØMSTANGEN AS | 3 933 092 | 8,9 |
| 3 | MARLBOROUGH EUROPEAN MULTI-CAP FND | 1 976 000 | 4,5 |
| 4 | V. EIENDOM HOLDING AS | 1 795 009 | 4,0 |
| 5 | PROBITAS HOLDING AS | 1 788 276 | 4,0 |
| 6 | ZETTERBERG, GEORG (incl. fully owned companies) | 1 583 000 | 3,6 |
| 7 | AVANZA BANK AB | 1 567 010 | 3,5 |
| 8 | NORDNET BANK AB | 1 481 498 | 3,3 |
| 9 | SOLE ACTIVE AS | 1 459 962 | 3,3 |
| 10 | VERDADERO AS | 1 141 111 | 2,6 |
| 11 | WAALER, JØRGEN (incl. fully owned companies) | 980 000 | 2,2 |
| 12 | RING, JAN | 884 372 | 2,0 |
| 13 | MP PENSJON PK | 777 402 | 1,8 |
| 14 | NORDNET LIVSFORSIKRING AS | 772 487 | 1,7 |
| 15 | HAUSTA INVESTOR AS | 655 215 | 1,5 |
| 16 | EVENSEN, TOR COLKA | 560 000 | 1,3 |
| 17 | JOHANSEN, STEIN | 500 000 | 1,1 |
| 18 | SKANDINAVISKA ENSKILDA BANKEN AB | 495 337 | 1,1 |
| 19 | MORGAN STANLEY & CO. INTERNATIONAL | 436 005 | 1,0 |
| 20 | BANQUE DE LUXEMBOURG S.A. | 413 683 | 0,9 |
| Sum 20 largest shareholders | 27 399 459 | 61,7 | |
| Sum 1 843 other shareholders | 16 976 581 | 38,3 | |
| Sum all 1 863 shareholders | 44 376 040 | 100,0 |
| 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 |
| Operating revenue per employee | Operating revenue / average number of employees |
| Operating cost per employee | Operating cost / average number of employees |
| 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 |
| Weighted average basic shares | Issued shares adjusted for own shares on average for the year |
| 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 |
StrongPoint ASA | Slynga 10, 2005 Rælingen | strongpoint.com
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