Quarterly Report • Apr 29, 2020
Quarterly Report
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Financial report and status
StrongPoint plays a vital role in providing safe and efficient solutions for the grocery retailers, and our colleagues have gone the extra mile to safeguard uninterrupted supply and services for our customers in this situation. The team effort has been outstanding, but also StrongPoint has been affected by travel restrictions and social distancing measures in various markets. As an example, the normal service program for non-grocery stores in Spain is not possible to maintain in a lockdown situation.
Despite the crisis, StrongPoint delivers growth in two out of three business areas. I am proud of what we have achieved during the quarter and how we continuously strive to meet customers expectations during these difficult times. The company has ensured the necessary credit facilities to cover any short-term financial needs, and I feel confident with the liquidity situation in the company.
The currency fluctuations influenced our cost and margins in various ways. Some positive to StrongPoint, whilst others have been negative – unfortunately, for the quarter, the negative effects outweigh the positive effects by approximately MNOK 4. Dependent on how the demand for our solutions and services have developed in the various markets, we have implemented short-term measures, including executing on temporary lay-offs. The measures are implemented to reflect the recent demand development whilst maintaining the momentum for when the situation gets somewhat more "normal".
The COVID-19 situation has also emphasized the many advantages of our solutions. As a result, we are experiencing an increased interest from major retailers for our entire e-commerce solutions offering, including our picking solution, Pick & Collect, as well as our Click & Collect locker solutions. Being visible to our current and potential new customers in these peculiar times is more important now than ever, and as a consequence we are investing additionally in digital marketing of our e-commerce solutions. As deliveries of our lockers from China commences, we expect the roll-out of such lockers to increase in the months and years to come, in addition to our picking solution.
StrongPoint will continue to be the retailers' trusted in-store technology and e-commerce partner during and after this crisis, leveraging our position at the crossroads of multi-channel retailing: online growth and driving efficiency in brick and mortar retail.
The next months will be challenging and volatile subject to the release of governmental measures in the different markets. The strong market position, the order intake in these last weeks, and the increased interest in our e-commerce solutions provides room for optimism, I believe.
Stay safe and strong!
Jacob Tveraabak CEO of StrongPoint
● Financial and liquidity measures established. Increased credit facilities to ensure solid liquidity capacity
We live in unprecedented times. The world has changed significantly since we announced our long-term ambitions and 2025 strategy in the middle of February. That seems like a long time ago. While our stated ambition and outlook remain firm, our main focus the latest weeks has been to continue to uphold the highest level of safety for our employees, customers and business partners as part of the joint pan-national efforts to protect vulnerable groups. I would like to express my gratitude to the entire StrongPoint team and to our partners for their dedication and hard work to rapidly adapt to a new reality, to mitigate the effects of this pandemic and to help others where we can contribute.
| Q1 | Q1 | Year | |
|---|---|---|---|
| 2020 | 2019 | 2019 | |
| Operating revenue | 279.8 | 288.2 | 1.111.7 |
| EBITDA | 16.5 | 27.7 | 98.2 |
| EBITDA margin | 5,9 % | 9,6 % | 8,8 % |
| Operating profit (EBIT) | 4.5 | 14.1 | 45.4 |
| Ordinary profit before tax (EBT) | 2.0 | 16.8 | 43.1 |
| Cash flow from operational activities | -4.9 | 10.7 | 80.6 |
| Disposable funds | 54.0 | 79.1 | 74.2 |
| Earnings per outstanding shares (NOK) | 0.02 | 0.30 | 0.72 |
| Earnings per share, adjusted * | 0.08 | 0.39 | 1.03 |
*) Earnings per share, adjusted for depreciation of intangible assets, mainly from M&A.
Total revenue declined by 3 % in the quarter compared to last year. This is reflecting a positive growth of 4 % in Retail Technology, and a decline of 40 % in Cash Security. Labels had a stable 2 % growth in the quarter. EBITDA declined from the best Q1 ever last year by MNOK 11.2 to MNOK 16.5. Most of the key markets delivered growth, and focused sales activities have resulted in strong pipeline of leads especially for the proprietary solutions within e-commerce and checkout efficiency. The local management teams have implemented cost initiatives within the segments most affected by lower customer demand. The figures are influenced by the large currency fluctuations, especially negative USD/NOK effect of MNOK 5 on gross profit. Translation currency effect accounted for approximately plus MNOK 10 for revenue, and plus MNOK 1 for EBITDA, resulted in a net negative EBITDA-effect from currency of approximately MNOK 4. Other EBITDA-effects are related to product mix and increased cost.
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.
4
| Revenue | Q1 | Year | |
|---|---|---|---|
| MNOK | 2020 | 2019 | 2019 |
| Retail Technology | 220.4 | 212.6 | 843.5 |
| Cash Security | 21.2 | 35.1 | 123.5 |
| Labels | 44.0 | 43.1 | 163.8 |
| Elim / ASA | -5.8 | -2.6 | -19.1 |
| Total | 279.8 | 288.2 | 1 111.7 |
| EBITDA | Q1 | Year | |
| MNOK | 2020 | 2019 | 2019 |
| Retail Technology | 17.6 | 23.3 | 96.3 |
| Cash Security | 0.0 | 5.8 | 13.5 |
| Labels | 6.0 | 6.1 | 21.9 |
| Elim / ASA | -7.2 | -7.5 | -33.4 |
In the strategy update session on February 12, 2020, StrongPoint for the first time presented the relative share of revenue of each business area and business segment in Retail Technology.
Instore Productivity is still the largest business segment within Retail. The revenue in Q1 2020 is especially influenced by delivery of ESL projects in Norway and Sweden, with increased delivery also in the Baltics.
In addition to service revenue in Norway and Sweden, Spain had a 30 % growth in delivery and service of Cash Management in January and February. March figures for Spain are unfortunately significantly influenced by the lockdown, especially within the hospitality segment, due to COVID-19.
The Chinese manufacturer of C&C Lockers had to close the factory in January and February due to the COVID-19-outbreak in China, and some of the deliveries are postponed to Q2 and Q3. The market shows a high interest for e-commerce products, and during March several new Pick & Collect systems with additional hand-held devices were enrolled to customers in Sweden.
2015 2014 Cash Security Q1 2020
Check-Out Efficiency experienced a slower start in 2020 than last year, due to a large Vensafe Upgrade project both in Sweden and Norway in 2019. The Baltics figures are positively influenced by deliveries of Self Checkouts systems.
Other revenue showed a decline in relative share. COVID-19 social distancing situation and lockdown of non-food businesses had an early effect the POS/ERP business in the Baltics.
Cash Security had lower revenue from sale of Cash-In-Transit cases compared to a strong result in the same quarter last year. The business area had a decline in relative share from 12 % in 2019 to 7 % this quarter.
Labels has had a rather stable sale and production, which was confirmed also in Q1 2020. Labels currently experiences increased demand due to the COVID-19 situation.
Instore Productivity: Electronic Shelf Labels (ESL), ShopFlow logistics, scales & wrapping systems and workforce & task management Payment Solutions: CashGuard, Compact and Unico E-commerce: Pick & Collect, Click & Collect lockers and delivery solutions Check Out Efficiency: Self checkout, self scanning and Vensafe Other retail technology: POS, ERP and other solutions
4) The Nordics and the Baltics
Best-in-class sales, service
and support
Profitable growth, cost control and a solid balance sheet
EBITDA % 13-15 %
StrongPoint Management Team has over the last weeks closely monitored the spread of the COVID-19 virus.
Measures to protect employees and customers were established early. The ambition was to reduce impact on the current business as far as possible, and to assist the escalation of the e-commerce business as a respond to the need of contactless distribution of food and medicines.
The decisive and comprehensive measures undertaken related to the virus are different from country to country. Measures like working from home, increased hygiene requirements, reduced visitors to our production facilities, extensive use of telephone and video conference systems etc. was initiated already from March 11. Critical service/maintenance and operations has been handled with thorough care for the employees and staff at the customer site. E-commerce Software deliveries has been implemented into several new stores, mostly through digital distribution and training.
Financial results are, and will continue to be influenced, dependent on how long this situation will last. Temporary lay-offs have been conducted to reflect changes in business demand in the local markets. Per end of April 2020, 13 % of FTE's are on temporary layoffs, mostly in Spain, Lithuania and Sweden. The manufacturer of Click & Collect lockers in China had a shutdown and caused delayed deliveries in Q1. Production is resumed, and if the current transport situation is maintained the deliveries of the lockers can continue in Q2 and onwards.
The liquidity position has been monitored and protected throughout Q1, and additional credit facilities have been established to strenghten this position for the coming months. Wage increases for the employees and payment of the management bonuses for 2019 have been postponed, and the Board of Directors have postponed the decision of dividend payment, all to further strengthen the financial position of the company. The inventory has increased due to lower product sales than expected as a direct result of the lockdown situation.
StrongPoint feel strongly with all the people influenced by this situation, both with the people whom have been infected and those working within health care. In addition to distributing e-commerce solutions assisting efficient contactless and even contactfree shopping of grocery, employees have made an application for 3D printers for protective gear to hospitals, as contribution to social responsibility measures.
Gisle Elvebakken is hired as new MD and SVP Norway. Gisle comes from the position as Sales Director at Visma Exso, and has a solid background from grocery retail and IT. He will replace Per Haagensen in the management team. Per has decided to retire from July 1, 2020.
Knut Olav Nyhus Olsen is hired as new SVP People and Organization. Knut Olav has extensive HR experience from Telenor Broadcast, Skanska and ISS. He will replace Erik Vaag, who is leaving the company, in the management team.
StrongPoint has during the quarter strengthened multiple parts of the management organization. Five new positions as Key Account and account management to strengthen sale of e-commerce and cash management operations in Spain. A new Supply Chain Manager with broad experience from other large companies like IKEA. And lastly, a new e-commerce- and Reflexis sales director based out of Norway.
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 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 temporary postponed due to lockdown in core markets. The relevance, both hygiene and safety arguments, are stronger than ever. Lastly, StrongPoint's other in-store solutions, such as check-out solutions, has the potential to gain additional relevance from the COVID-19 outbreak.
StrongPoint develops and sells technology solutions that streamline store operations, enable e-commerce, 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), workforce management systems, POS, ERP, consulting services, scales and wrapping machines.
Norway continued the positive trend and increased revenue by 7 % in Q1 2020 compared to same quarter last year. Main drivers were deliveries of ESL and service. One large grocery retailer has benefited from StrongPoint's competence and resources to rebuild the physical POS-area in more than 200 stores, leading to higher service revenue in the quarter. This project has been executed during Q4 2019 and Q1 2020 and will continue in Q2 2020.
Norway experienced higher interest of e-commerce and self checkout solutions due the COVID-19 situation.
The revenue in Sweden had a small decline in the quarter compared to last year. The Vensafe upgrade project in Q1 last year influence the comparison figures, but the business has partly replaced this volume with ESL and e-commerce. e-commerce picked up late in the quarter due to delay in delivery of goods from China, and the orders for Click & Collect lockers announced in Q4 2019 are expected to be delivered during Q2 and Q3.
The Baltic countries delivered some large orders in 2019 witch led to exceptional high revenue in Q1 last year. In addition, the Government of Lithuania closed the non-food businesses and enforced social distancing measures early in March, and this had a negative influence on revenue from software projects in the quarter. The product mix underlines the overall growth ambitions, and both ESL- and e-commerce projects were delivered in the quarter.
EMEA and Partners delivered a 30 % growth in revenue compared to the same period last year. The main reason for the large growth was the delivery of more than half of the announced order of 500 Cash Management systems to partner Bullion in South Africa. The delivery will be installed in local retail facilities in the country as a rental solution from First National Bank. The second part of the delivery is expected in Q2.
The Spanish operations had a good start of the year to mid-March. All business except grocery, pharmacies and tobacco shops had to close from March 14, leading to a revenue decline in the month of March to only 30 % of the trend from the two first months. This situation is expected to last until the Government reduces the social distancing measures especially for the hospitality segment. In line with the rest of Europe, StrongPoint Spain also experiences positive interest of our e-commerce solutions.
Operating revenue per quarter (MNOK) EBITDA per quarter (MNOK)
Retail Technology delivered a positive growth in revenue despite the COVID-19-situation. The growth adds up to 4 %. The influence of COVID-19 and the different measures taken by the local governments varies market by market.
EBITDA in Q1 decreased to 17.6 (23.3). The currency fluctuation, especially in the last part of the quarter,
influenced the figures in two ways – both on cost of goods sold on imported goods and on the translation of international operations. Net currency effect was approx. minus 5 MNOK.
Investments in technology development and sales resources continued in the quarter in order to be well positioned for a more normalized situation.
| Q1 | Year | ||
|---|---|---|---|
| MNOK | 2020 | 2019 | 2019 |
| Product Sales | 140.9 | 138.9 | 547.8 |
| Service | 79.5 | 73.7 | 295.7 |
| Revenue | 220.4 | 212.6 | 843.5 |
| EBITDA | 17.6 | 23.3 | 96.3 |
| EBITDA-margin | 8,0 % | 10,9 % | 11,4 % |
| EBT | 13.1 | 15.0 | 66.1 |
| Q1 | Year | ||
|---|---|---|---|
| MNOK | 2020 | 2019 | 2019 |
| Product Sales | 47.5 | 45.3 | 176.2 |
| Service | 28.5 | 25.7 109.2 | |
| Revenue | 76.0 | 70.9 285.4 |
| Q1 | Year | ||
|---|---|---|---|
| MNOK | 2020 | 2019 | 2019 |
| Product Sales | 33.1 | 35.2 145.8 | |
| Service | 29.9 | 28.3 106.5 | |
| Revenue | 63.0 | 63.5 252.3 |
| Q1 | Year | ||
|---|---|---|---|
| MNOK | 2020 | 2019 | 2019 |
| Product Sales | 19.8 | 29.5 | 107.7 |
| Service | 15.0 | 12.9 | 54.8 |
| Revenue | 34.8 | 42.4 162.5 |
| Q1 | Year | ||
|---|---|---|---|
| MNOK | 2020 | 2019 | 2019 |
| Product Sales | 40.4 | 28.9 118.1 | |
| Service | 6.1 | 6.9 | 25.2 |
| Revenue | 46.5 | 35.8 143.3 |
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.
The business area experienced a decline in revenue of 40 % compared to same quarter last year. The revenue and profit are affected by few, large orders, which leads to variations in a year-on-year comparison.
The EBITDA follows the low revenue and is reduced from 5.8 MNOK last year to 0 this year. The result is positively affected by lower warranty cost and lower production cost as a result of the LEAN-project implemented in 2019.
COVID-19 measures in Cash Security's primary markets have among others led to closed stores,
restaurants and bank facilities. This leads to temporary reduced demand for cash-in-transit services. Due to this demand reduction the business area has implemented temporary layoff of 39 % of the FTE's. This situation is expected to last well into Q2.
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.
| venue | |
|---|---|
| ITDA | |
| ITDA-margin | |
| ιT |
Operating revenue in Q1 2020 increased by 2 % compared to last year. The business area has a stable trend quarter by quarter and delivers results on the same level as last year. StrongPoint Labels has approximately 70 % of its production towards the food, pharmacautical and tobacco industries, and experience increased demand for labels due to the COVID-19 situation.
StrongPoint has accepted an initial offer for compensation from BaneNor of MNOK 55.6 to relocate from its label facility in Norway. The railway construction work was estimated to start 2020/2021. However, BaneNor has communicated a delay to
2021/2022. 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. There will be a continued focus on further streamlining and digitalization of production and administrative processes.
| Q1 | Year | ||
|---|---|---|---|
| MNOK | 2020 | 2019 | 2019 |
| Product Sales | 12.7 | 25.4 | 87.9 |
| Service | 8.5 | 9.7 | 35.6 |
| Revenue | 21.2 | 35.1 | 123.5 |
| EBITDA | 0.0 | 5.8 | 13.5 |
| EBITDA-margin | 0,0 % | 16,5 % | 10,9 % |
| EBT | -2.1 | 4.6 | 7.8 |
| Q1 | Year | ||
|---|---|---|---|
| MNOK | 2020 | 2019 | 2019 |
| Revenue | 44.0 | 43.1 | 163.8 |
| EBITDA | 6.0 | 6.1 | 21.9 |
| EBITDA-margin | 13,6 % | 14,2 % | 13,4 % |
| EBT | 2.1 | 1.5 | 4.2 |
12
The Board and group CEO have today considered and approved StrongPoint's financial statements for the first quarter and year to date 2020, including comparative consolidated figures for the first quarter and year to date 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 first quarter and year to date 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 March 2020 and 31 March 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 28 April 2020
Inger Johanne Solhaug Director
Peter Wirén Director
Jacob Tveraabak CEO
Accounting year
General assembley
Dividend per share
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 first quarter was MNOK -4.9 (10,7). Reduced ordinary profit before tax and increased inventory are the main reasons for the change in cash flow from operations. Payment of Earn Out for 2019 of MNOK 17.4 was done in the period, related to the aqusitions of Cub AB and PYD Seguridad S.L. Disposable funds were MNOK 54.0 per March 31, 2020. The net interest-bearing debt increased by MNOK 24.7 compared with the end of the last quarter and totaled MNOK 127.5.
The Group's holding of own shares amounted to 29,406, which represents 0.1 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 169.180 shares have been subscribed so far in 2020.
The Board decided 19 March 2020 that the decision on dividend for 2019 will not be taken at the Annual General Meeting 29. April 2020, due to the COVID-19- situation. The Board of Directors will consider to call for an extraordinary general meeting later in 2020 to decide on potential dividend in line with the communicated dividend policy.
| 46 747 | 55 4 64 |
|---|---|
| 137929 | 135 742 |
| 32 267 | 30 006 |
| 81 175 | 90 792 |
| 1553 | 984 |
| 5859 | 10 233 |
| 305 530 | 323 220 |
| 138 366 | 127 689 |
| 180 412 | 211 587 |
| 12 7 8 1 | 19988 |
| 13954 | 6 1 5 5 |
| 39 498 | 19 139 |
| 385 011 | 384 557 |
| 690 542 | 707 777 |
| 27 513 | 27 513 |
| $-107$ | -59 |
| 236 498 | 238 110 |
| 263 904 | 265 564 |
| 10 715 | 25 043 |
| 51 131 | 60 161 |
| 3904 | 9 2 8 9 |
| 65 7 51 | 94 4 93 |
| 50 418 | 23 609 |
| 30044 | 30 631 |
| 70799 | 83766 |
| 1091 | 1 100 |
| 208 535 | 208 613 |
| 360 887 | 347 720 |
| 690 542 | 707 777 |
| KNOK | Q1 2020 | Q1 2019 | Chg. % | Year 2019 |
|---|---|---|---|---|
| Operating revenue | 279 794 | 288 240 | -2,9 % | 1 111 767 |
| Profit from AC, Service companies | -17 | -17 | -71 | |
| Cost of goods sold | 148 681 | 149 949 | -0,8 % | 579 457 |
| Payroll | 86 014 | 83 201 | 3,4 % | 324 092 |
| Other operating expenses | 28 612 | 27 388 | 4,5 % | 109 927 |
| Total operating expenses | 263 308 | 260 538 | 1,1 % | 1 013 477 |
| EBITDA | 16 470 | 27 685 | -40,5 % | 98 219 |
| Depreciation tangible assets | 9 509 | 9 521 | -0,1 % | 39 136 |
| Depreciation intangible assets | 2 416 | 4 093 | -41,0 % | 13 700 |
| EBIT | 4 545 | 14 071 | -67,7 % | 45 383 |
| Interest expenses | 1 073 | 858 | 25,1 % | 3 558 |
| Other financial expenses/currency differences | 1 466 | -3 558 | 141,2 % | -1 284 |
| EBT | 2 007 | 16 772 | -88,0 % | 43 108 |
| Taxes | 911 | 3 503 | -74,0 % | 11 238 |
| Profit/loss after tax | 1 096 | 13 269 | -91,7 % | 31 870 |
| Earnings per share | ||||
| Number of shares outstanding | 44 376 040 | 44 376 040 | 44 376 040 | |
| Av. Number of shares - own shares | 44 274 990 | 44 274 385 | 44 231 636 | |
| Earnings per share | 0,02 | 0,30 | 0,72 | |
| Diluted earnings per share | 0,02 | 0,30 | 0,72 | |
| EBITDA per share | 0,37 | 0,63 | 2,22 | |
| Diluted EBITDA per share | 0,37 | 0,63 | 2,22 | |
| Total earnings | ||||
| Profit/loss after tax | 1 096 | 13 269 | -91,7 % | 31 870 |
| Exchange differences on foreign operations | 35 251 | -12 880 | 373,7 % | -8 123 |
| Total earnings | 36 347 | 389 | 9254,5 % | 23 748 |
| KNOK | 31.03.2020 | 31.12.2019 | 31.03.2019 |
|---|---|---|---|
| ASSETS | |||
| Intangible assets | 49 094 | 46 747 | 55 464 |
| Goodwill | 151 981 | 137 929 | 135 742 |
| Tangible assets | 35 736 | 32 267 | 30 006 |
| Right-of-use assets | 86 787 | 81 175 | 90 792 |
| Long term investments | 1 536 | 1 553 | 984 |
| Deferred tax | 4 491 | 5 859 | 10 233 |
| Non-current assets | 329 625 | 305 530 | 323 220 |
| Goods | 183 339 | 138 366 | 127 689 |
| Accounts receivable | 207 628 | 180 412 | 211 587 |
| Prepaid expenses | 31 061 | 12 781 | 19 988 |
| Other receivables | 6 726 | 13 954 | 6 155 |
| Bank deposits | 27 479 | 39 498 | 19 139 |
| Current assets | 456 233 | 385 011 | 384 557 |
| EQUITY AND LIABILITIES | |||
| Share capital | 27 513 | 27 513 | 27 513 |
| Holding of own shares | -18 | -107 | -59 |
| Other equity | 274 500 | 236 498 | 238 110 |
| Total equity | 301 995 | 263 904 | 265 564 |
| Long term interest bearing liabilities | 6 504 | 10 715 | 25 043 |
| Long term lease liabilities | 57 661 | 51 131 | 60 161 |
| Other long term liabilities | 4 303 | 3 904 | 9 289 |
| Total long term liabilities | 68 468 | 65 751 | 94 493 |
| Short term interest bearing liabilities | 61 728 | 50 418 | 23 609 |
| Short term lease liabilities | 29 126 | 30 044 | 30 631 |
| Accounts payable | 114 750 | 70 799 | 83 766 |
| Taxes payable | 689 | 1 091 | 1 100 |
| Other short term liabilities | 209 104 | 208 535 | 208 613 |
| Total short term liabilities | 415 395 | 360 887 | 347 720 |
| TOTAL EQUITY AND LIABILITIES | 785 858 | 690 542 | 707 777 |
| 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 |
| Purchase/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 | - | 89 | - | - | 1 655 | 1 743 |
| Profit this year after tax | - | - | - | - | 1 096 | 1 096 |
| Other comprehensive income and expenses |
- | - | - | 35 251 | - | 35 251 |
| Equity 31.03.2020 | 27 513 | -18 | 351 262 | 72 258 | -149 019 | 301 995 |
| KNOK | Q1 2020 | Q1 2019 | Year 2019 |
|---|---|---|---|
| Ordinary profit before tax | 2 007 | 16 772 | 43 108 |
| Net interest | 1 073 | 858 | 3 558 |
| Tax paid | -477 | -1 359 | 799 |
| Share of profit, associated companies | 17 | 17 | 71 |
| Ordinary depreciation | 11 925 | 13 613 | 52 837 |
| Profit / loss on sale of fixed assets | 7 | - | -298 |
| Change in inventories | -28 386 | -3 538 | -12 384 |
| Change in receivables | -12 104 | -16 653 | 17 024 |
| Change in accounts payable | 36 802 | 4 849 | -9 274 |
| Change in other accrued items | -15 800 | -3 830 | -14 806 |
| Cash flow from operational activities | -4 937 | 10 729 | 80 636 |
| Payments for fixed assets | -3 299 | -2 825 | -14 544 |
| Net payments for long term shares | - | - | -1 000 |
| Payment from sale of fixed assets | 62 | - | 344 |
| Net effect acquisitions | -17 433 | - | - |
| Dividends received from associated companies | - | - | 225 |
| Interest income | -113 | 42 | 43 |
| Cash flow from investment activities | -20 783 | -2 783 | -14 932 |
| Purchase/sale of own shares | 1 743 | 39 | -625 |
| Change in long-term debt | -7 613 | -13 224 | -48 984 |
| Change in overdraft | 17 087 | -505 | 24 875 |
| Interest expenses | -670 | -900 | -3 600 |
| Dividend paid | - | - | -24 355 |
| Cash flow from financing activities | 10 548 | -14 590 | -52 689 |
| Net change in liquid assets | -15 173 | -6 644 | 13 015 |
| Cash and cash equivalents at the start of the period | 39 498 | 26 985 | 26 985 |
| Effect of foreign exchange rate fluctuations on foreign currency deposits |
3 154 | -1 202 | -502 |
| Cash and cash equivalents at the end of the period | 27 479 | 19 139 | 39 498 |
| KNOK | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 | YTD 2020 | YTD 2019 |
|---|---|---|---|---|---|---|---|
| Income statement | |||||||
| Operating revenue | 279 777 | 299 019 | 237 306 | 287 149 | 288 223 | 279 777 | 288 223 |
| EBITDA | 16 470 | 30 609 | 17 820 | 22 105 | 27 685 | 16 470 | 27 685 |
| EBITA | 6 961 | 20 064 | 8 506 | 12 349 | 18 165 | 6 961 | 18 165 |
| Operating profit EBIT | 4 545 | 17 473 | 5 524 | 8 313 | 14 071 | 4 545 | 14 071 |
| Ordinary profit before tax (EBT) | 2 007 | 13 660 | 3 987 | 8 689 | 16 772 | 2 007 | 16 772 |
| Profit/loss after tax | 1 096 | 8 606 | 2 860 | 7 136 | 13 269 | 1 096 | 13 269 |
| EBITDA-margin | 5,9 % | 10,2 % | 7,5 % | 7,7 % | 9,6 % | 5,9 % | 9,6 % |
| EBT-margin | 0,7 % | 4,6 % | 1,7 % | 3,0 % | 5,8 % | 0,7 % | 5,8 % |
| Balance sheet | |||||||
| Non-current assets | 329 625 | 305 530 | 303 655 | 312 364 | 323 220 | 329 625 | 323 220 |
| Current assets | 456 233 | 385 011 | 386 331 | 368 288 | 384 557 | 456 233 | 384 557 |
| Total assets | 785 858 | 690 542 | 689 986 | 680 652 | 707 777 | 785 858 | 707 777 |
| Total equity | 301 995 | 263 904 | 249 288 | 243 348 | 265 564 | 301 995 | 265 564 |
| Total long term liabilities | 90 263 | 87 546 | 96 555 | 107 030 | 117 854 | 90 263 | 117 854 |
| Total short term liabilities | 393 600 | 339 092 | 344 143 | 330 274 | 324 359 | 393 600 | 324 359 |
| Working capital | 276 217 | 247 979 | 228 733 | 228 860 | 255 509 | 276 217 | 255 509 |
| Equity ratio | 38,4 % | 38,2 % | 36,1 % | 35,8 % | 37,5 % | 38,4 % | 37,5 % |
| Liquidity ratio | 115,9 % | 113,5 % | 112,3 % | 111,5 % | 118,6 % | 115,9 % | 118,6 % |
| Net interest bearing debt | 127 539 | 102 810 | 112 162 | 106 527 | 120 306 | 127 539 | 120 306 |
| Net leverage multiples | 1,47 | 1,05 | 1,24 | 1,22 | 1,44 | 1,47 | 1,44 |
| Cash Flow | |||||||
| Cash flow from operational activities | -4 937 | 23 345 | 107 | 46 455 | 10 729 | -4 937 | 10 729 |
| Net change in liquid assets | -15 173 | -10 048 | 24 837 | 4 870 | -6 644 | -15 173 | -6 644 |
| 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 | 44 274 990 44 196 649 44 164 144 44 242 976 44 274 385 44 274 990 44 274 385 | ||||||
| EBT per shares | 0,05 | 0,31 | 0,09 | 0,20 | 0,38 | 0,05 | 0,38 |
| Earnings per share | 0,02 | 0,19 | 0,06 | 0,16 | 0,30 | 0,02 | 0,30 |
| Earnings per share, adjusted * | 0,08 | 0,25 | 0,13 | 0,25 | 0,39 | 0,08 | 0,39 |
| Equity per share | 6,8 | 6,0 | 5,6 | 5,5 | 6,0 | 6,8 | 6,0 |
| Dividend per share | - | - | - | 0,55 | - | - | - |
| Employees | |||||||
| Number of employees (end of period) | 519 | 531 | 519 | 534 | 525 | 519 | 525 |
| Average number of employees | 525 | 525 | 527 | 530 | 532 | 525 | 532 |
*) 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.
| Q1 2020 | Q1 2019 | Year 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| MNOK | Revenue | EBITDA | EBT | Revenue | EBITDA | EBT | Revenue | EBITDA | EBT |
| Retail Technology | 220,4 | 17,6 | 13,1 | 212,6 | 23,3 | 15,0 | 843,5 | 96,3 | 66,1 |
| Cash Security | 21,2 | 0,0 | -2,1 | 35,1 | 5,8 | 4,6 | 123,5 | 13,5 | 7,8 |
| Labels | 44,0 | 6,0 | 2,1 | 43,1 | 6,1 | 1,5 | 163,8 | 21,9 | 4,2 |
| Elim / ASA | -5,8 | -7,2 | -11,1 | -2,6 | -7,5 | -4,3 | -19,1 | -33,4 | -35,0 |
| Total | 279,8 | 16,5 | 2,0 | 288,2 | 27,7 | 16,8 | 1 111,7 | 98,2 | 43,1 |
| Q1 2020 | Q1 2019 | Year 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| MNOK | Norway | Sweden | Other | Norway | Sweden | Other | Norway | Sweden | Other |
| Retail Technology | 76,0 | 63,0 | 81,3 | 70,9 | 63,5 | 78,1 | 285,4 | 252,3 | 305,8 |
| Cash Security | 0,6 | 9,1 | 11,5 | 0,1 | 13,2 | 21,9 | 0,7 | 41,1 | 81,7 |
| Labels | 13,1 | 30,9 | 0,0 | 15,6 | 27,5 | 0,0 | 54,7 | 109,2 | 0,0 |
| Elim / ASA | -0,8 | -5,0 | 0,0 | -0,4 | -2,1 | -0,1 | -2,5 | -16,7 | 0,0 |
| Total | 88,9 | 98,0 | 92,9 | 86,2 | 102,1 | 99,9 | 338,3 | 385,9 | 387,5 |
*) Service and licenses
| Q1 2020 Q1 2019 |
Year 2019 | |||||
|---|---|---|---|---|---|---|
| MNOK | New sales | Service* New sales | Service* New sales | Service* | ||
| Retail Technology | 140,9 | 79,5 | 138,9 | 73,7 | 547,8 | 295,7 |
| Cash Security | 12,7 | 8,5 | 25,4 | 9,7 | 87,9 | 35,6 |
| Labels | 44,0 | 0,0 | 43,1 | 0,0 | 163,8 | 0,0 |
| Elim / ASA | -5,8 | 0,0 | -2,6 | 0,0 | -19,1 | 0,0 |
| Total | 191,8 | 88,0 | 204,8 | 83,4 | 780,5 | 331,2 |
No significant transactions between the Group and related parties had taken place as at 31 March 2020.
| 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 |
| No. | Name | No. of shares | % |
|---|---|---|---|
| 1 | HOLMEN SPESIALFOND | 4 200 000 | 9,5 |
| 2 | STRØMSTANGEN AS | 3 933 092 | 8,9 |
| 3 | AVANZA BANK AB | 2 700 143 | 6,1 |
| 4 | HSBC TTEE MARLB EUROPEAN TRUST | 1 976 000 | 4,5 |
| 5 | V. EIENDOM HOLDING AS | 1 795 009 | 4,0 |
| 6 | PROBITAS HOLDING AS | 1 788 276 | 4,0 |
| 7 | ZETTERBERG, GEORG (incl. fully owned companies) | 1 583 000 | 3,6 |
| 8 | NORDNET BANK AB | 1 517 168 | 3,4 |
| 9 | SOLE ACTIVE AS | 1 151 096 | 2,6 |
| 10 | VERDADERO AS | 1 141 111 | 2,6 |
| 11 | WAALER, JØRGEN (incl. fully owned companies) | 980 000 | 2,2 |
| 12 | RING, JAN | 864 372 | 1,9 |
| 13 | NORDNET LIVSFORSIKRING AS | 786 827 | 1,8 |
| 14 | MP PENSJON PK | 777 402 | 1,8 |
| 15 | HAUSTA INVESTOR AS | 595 960 | 1,3 |
| 16 | EVENSEN, TOR COLKA | 505 437 | 1,1 |
| 17 | JOHANSEN, STEIN | 500 000 | 1,1 |
| 18 | SKANDINAVISKA ENSKILDA BANKEN AB | 494 364 | 1,1 |
| 19 | NORDEA BANK ABP | 437 899 | 1,0 |
| 20 | GRESSLIEN, ODD ROAR | 410 000 | 0,9 |
| Sum 20 largest shareholders | 28 137 156 | 63,4 | |
| Sum 1 647 other shareholders | 16 238 884 | 36,6 | |
| Sum all 1 667 shareholders | 44 376 040 | 100,0 |
StrongPoint ASA Slynga 10, 2005 Rælingen strongpoint.com
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