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Micro Systemation
Annual Report • Jan 28, 2025
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Annual Report
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Year-end report 2024
Year-end report - 2024 January - December 2024
Summary October - December 2024 Summary January - December 2024
- Net sales amounted to SEK 117.6 (116.9) million, an increase of 0.6 percent compared to the same period last year. Currencyadjusted growth amounted to 0.3 percent.
- Operating profit (EBIT) amounted to SEK 27.5 (4.9) million, corresponding to an operating margin of 23.4 (4.2) percent.
- Profit after tax amounted to SEK 24.4 (0.9) million.
- Earnings per share before/after dilution amounted to SEK 1.32 (0.05).
-
Cash flow from operating activities amounted to SEK 24.4 (27.4) million.
-
Net sales amounted to SEK 404.7 (416.9) million, a decrease of -2.9 percent compared to the same period last year. Currencyadjusted growth amounted to -2.7 percent.
- Operating profit (EBIT) amounted to SEK 46.3 (40.9) million, corresponding to an operating margin of 11.4 (9.8) percent.
- Profit after tax amounted to SEK 37.4 (30.0) million.
- Earnings per share before/after dilution amounted to SEK 2.03 (1.62).
- Cash flow from operating activities amounted to SEK 43.0 (75.0) million.
- The Board of Directors proposes a total dividend of SEK 1.50 (1.50) per share, divided into two payments. The proposed dividend represents 74 percent (92) of the profit for the year.
Significant events during the period
- Tomas Taesler was appointed new Chief Product Officer (CPO) effective January 13th, 2025. He joins MSAB from a role as Director of Product Management at Calabrio Inc, a US contact center solutions company.
- MSAB secured a significant contract worth SEK 19 million from a US government agency. The contract included license renewals for both XRY and XAMN, digital forensics for extraction and analysis.
- Following a decision by the Board of Directors, all 622,000 C shares
in MSAB, which are held in treasury by the company, have been converted into B shares. The conversion increases the number of B shares from 17 550 000 to 18 172 000. The number of B shares held in treasury by MSAB amounts to 703,596 as of October 31st, 2024. A maximum of 637,380 B shares may be allotted to participants in the company's long-term incentive program (LTIP 2024). The share capital, the number of votes and the total number of outstanding shares in MSAB are unchanged by the conversion.
| 117.6 MSEK Net sales, October - December 2024 |
95.4 % Gross margin, |
October - December 2024 | 23.4 % Operating margin (EBIT), October - December 2024 |
|||
|---|---|---|---|---|---|---|
| OCT - DEC 2024 |
OCT - DEC 2023 |
JAN - DEC 2024 |
JAN - DEC 2023 |
|||
| Net sales, MSEK | 117.6 | 116.9 | 404.7 | 416.9 | ||
| EBIT, MSEK | 27.5 | 4.9 | 46.3 | 40.9 | ||
| EBIT-margin, % | 23.4 | 4.2 | 11.4 | 9.8 | ||
| Earnings per share before/ after dilution, SEK | 1.32 | 0.05 | 2.03 | 1.62 | ||
| Cash flow from operating activities, MSEK | 24.4 | 27.4 | 43.0 | 75.0 | ||
| Return on equity 12 months, % | 19.8 | 26.4 | 19.8 | 26.4 | ||
| Return on capital employed 12 months, % | 44.8 | 40.1 | 44.8 | 40.1 | ||
| Cash flow from operations / per share, SEK | 1.32 | 1.48 | 2.33 | 4.06 | ||
| Equity per share, SEK | 7.06 | 6.27 | 7.06 | 6.27 |
CEO comments
In 2024, we laid the foundations for a new and stronger MSAB with a new management team, an updated strategy and several major investments in our products. We are already seeing the positive effects of these changes and will continue to increase investments in new products during 2025.
Net sales for the full year amounted to SEK 405 million, which was lower than for the previous year. Adjusted for a negative accrual effect of SEK 11 million, invoiced sales were in line with 2023. Gross margin increased to 94 (91) percent due to a lower share of hardware in the product mix, which in combination with lower operating expenses increased operating profit to SEK 46 (41) million and profit after tax to SEK 37 (30) million.
In the fourth quarter, net sales amounted to SEK 118 (117) million. We saw positive organic growth in several of our geographic regions. The APAC region continued to show good market development, with significant interest in our Frontline solutions in Australia. In the Americas region, Canada delivered strong sales results where Frontline is also generating high interest from law enforcement agencies.
The year was characterized by increased engagement by federal authorities in the justice and public sectors in USA. Eastern Europe delivered revenues above expectations, and this positive trend is expected to continue. In the rest of EMEA, revenue was lower than expected, mainly due to some major project delays. However, these projects are not lost, and we see an improved situation for 2025. In addition, we saw continued sales growth for our premium extraction tool XRY Pro, indicating market appreciation of the investments we have made.
In 2024, we developed our strategy with the aim of returning to a market-leading position through an improved and broadened product offering. The strategy is based partly on our own analysis of where the market is heading, and partly on in-depth interviews with both existing and potential customers. UNIFY Collaborate, which we launched at the beginning of January 2025, is an example of this.
UNIFY Collaborate is a new solution that meets the needs of growing digital investigations by improving both efficiency and security. The platform enables real-time collaboration allowing multiple investigators to work on the same case simultaneously. By centralizing evidence and securing the chain of custody, it eliminates the potential security issues that can arise when storing evidence on removable media. UNIFY Collaborate is an important complement to our current offering of analysis and data management products.
In February, we launch the next generation of Frontline, MK 4.0, which is the new and improved platform for distributed data collection. The upgrade includes several enhancements that
have been developed based on user interaction and deep customer insights. We see the Frontline platform and its distributed forensic data collection capabilities as groundbreaking for many police forces and other law enforcement agencies. MSAB is the market leader in this area, and we will continue to invest to maintain that position.
In conclusion, 2024 was an eventful year with many important changes. I look forward to the year ahead and am confident that strategic investments and improvements in our product offering will have a positive impact on sales, both in 2025 and in the longer term. As always, a customer-centric approach is a key success factor in achieving and maintaining a strong market position. During the year, we have received very positive feedback from our customers regarding the support and services we offer. This is something I am very proud of and clearly demonstrates MSAB's commitment throughout the customer journey. I look forward to making 2025 a successful year together with the entire MSAB team.
Stockholm, January 2025
Peter Gille CEO MSAB
Financial overview October - December 2024
NET SALES
The Group's net sales for the period amounted to SEK 117.6 (116.9) million, which corresponds to an increase of 0.6 percent and 0.3 percent currency adjusted, compared with the corresponding period last year.
In the EMEA region, sales increased by 6 percent compared with the corresponding period last year. The increase in sales was driven by new business won in Europe, particularly in areas and markets that were previously difficult to penetrate. For the Americas, there was a decrease in revenue of 11 percent during the period. The decrease was mainly due to an accrual effect in recognized revenue, while invoiced sales were in line with the same period last year. The APAC region reported a 37 percent increase in sales, driven by increased private sector sales in India and Malaysia.
New sales accounted for 26 (37) percent of total revenue, while license renewals accounted for 66 (52) percent. The company's extraction software XRY continued to generate the majority of revenue, with sales of the premium product XRY Pro increasing during the period.
OPERATING EXPENSES
Cost of goods sold amounted to SEK 5.4 (10.2) million. The gross margin amounted to 95 (91) percent, driven by a lower proportion of hardware in the products sold. Cost of goods sold was partly affected by currency effects and generally varies with the product mix.
Other external costs amounted to SEK 24.3 (23.5) million. Other administrative expenses continued to decrease compared to the previous year, while consultancy costs increased in the period driven by temporary staff vacancies.
Personnel costs amounted to SEK 56.6 (74.4) million, which is mainly explained by the fact that no restructuring costs were taken as in the corresponding period last year. Almost half of the company's salaries are paid in foreign currency, which marginally affected the cost level in the quarter.
Depreciation amounted to SEK 3.7 (3.8) million.
EBIT
Operating profit for the quarter amounted to SEK 27.5 (4.9) million, corresponding to an operating margin of 23.4 (4.2) percent. The increase in profit was partly due to the absence of restructuring costs, which was the case in the corresponding period last year.
NET FINANCIAL INCOME/EXPENSE
Net financial items amounted to SEK 3.5 (-2.9) million for the quarter. Net financial items consist mainly of revaluation of cash and cash equivalents in foreign currencies, where USD, EUR and GBP are the Group's largest transaction currencies related to the Group's sales, while SEK is the largest currency for the company's costs. A weakening of the SEK contributed to a positive net financial income in the period.
PROFIT/LOSS AFTER TAX
Profit after tax for the quarter amounted to SEK 24.4 (0.9) million.
CASH FLOW
Cash flow from operating activities amounted to SEK 24.4 (27.4) million in the period.
Cash flow before changes in working capital amounted to SEK 33.7 (2.6) million, while the change in working capital amounted to SEK -9.3 (24.8) million.
Total cash flow for the period amounted to SEK 10.1 (14.1) million, including a dividend of SEK 9.2 (9.2) million.
Investments for the period amounted to SEK 2.3 (0.4) million.
EMPLOYEES
On December 31, 2024 the number of employees was 181 (211). The average number of employees during the period was 185 (212).
THE PARENT COMPANY
The parent company's net sales for the period amounted to SEK 90.7 (86.0) million. Operating profit for the period amounted to SEK 24.8 (-0.6) million.
Financial development, quarter
Financial overview January - December 2024
NET SALES
The Group's net sales decreased during the period by 2.9 percent to SEK 404.7 (416.9) million. The currency-adjusted decrease amounted to 2.7 percent.
APAC reported sales growth of 36 percent compared with the previous year, mainly driven by increased sales in the private sector in India and Malaysia. EMEA, which accounted for 52 (56) percent of the company's total sales, recorded a sales decrease of 10 percent compared to the previous year. The decrease was partly due to the postponement of several major deals. Americas showed a decrease of 2 percent but maintained a high share of software sales. For all regions, the increased share of software sales resulted in an improved gross margin of 94 (90) percent, contributing to a higher gross profit than last year.
New sales increased by 13 percent, while license renewals decreased by 4.5 percent. The decrease in license renewals is partly explained by upgrades in existing business, which are reported as new sales. XRY Office continued to account for the largest share of new sales.
OPERATING EXPENSES
The weakening of the Swedish krona against the USD, EUR and GBP had a negative impact on the cost level in Swedish kronor during the period.
Cost of goods sold amounted to SEK 23.3 (40.0) million. The gross margin amounted to 94 percent, compared with 90 percent last year. Cost of goods sold is partly affected by currency effects and varies as a rule with the product mix, which during the period had a lower proportion of hardware compared with the previous year.
Other external costs amounted to SEK 81.9 (75.7) million. The increase is due to increased costs for consultants to cover temporary staff vacancies during the period, while other administrative costs have decreased compared to the same period last year.
Personnel costs amounted to SEK 238.6 (245.2) million. Temporary staff vacancies driven by the restructuring implemented in the first half of the year had a positive impact on costs. Restructuring costs and severance payments in the period amounted to SEK 15 (16) million.
Depreciation amounted to SEK 14.6 (15.2) million.
EBIT
Operating profit for the period amounted to SEK 46.3 (40.9) million, corresponding to an operating margin of 11.4 (9.8) percent.
NET FINANCIAL INCOME/EXPENSE
Net financial income/expense amounted to SEK 1.3 (-2.2) million for the period. Net financial income/expense consists mainly of the revaluation of cash and cash equivalents in foreign currency and has been positively affected by the weakening of the Swedish krona against USD, GBP and EUR, which are the Group's largest transaction currencies.
PROFIT/LOSS AFTER TAX
Profit after tax for the period amounted to SEK 37.4 (30.0) million.
CASH FLOW
Cash flow from operating activities amounted to SEK 43.0 (75.0) million. The change in working capital amounted to SEK -11.1 (32.4) million.
Total cash flow for the period amounted to SEK 0.4 (31.2) million, including a dividend of SEK 27.7 (27.7) million paid during the period.
Investments for the period amounted to SEK 2.8 (0.6) million.
LIQUIDITY AND FINANCIAL POSITION
Cash and cash equivalents at the end of the period amounted to SEK 138.2 (132.9) million.
EMPLOYEES
On December 31, 2024, the number of employees was 181 (211). The average number of employees during the period was 195 (200).
THE PARENT COMPANY
The parent company's net sales for the period amounted to SEK 310.2 (314.6) million. Operating profit for the period amounted to SEK 34.9 (26.2) million. In the second quarter, SEK 40.6 million was distributed to the parent company from its subsidiaries.
Financial development, Q1-Q4
Market comments
MARKNADSKOMMENTARER
Order intake was stable in the fourth quarter for the APAC and Americas regions, with positive market development during the year. In EMEA, sales in the quarter were in line with the previous year, but the full-year result was lower than expected, mainly due to delays in several major projects.
Sales of XRY Pro continued to grow in all regions, with the largest share of sales in EMEA, the company's most mature market, closely followed by the Americas region. This premium extraction product has significant benefits, as demonstrated in several customer field tests in 2024.
License renewal rates were positive during the year and customers continued to show broad product adoption in key markets. The company also saw clear signs of increased interest in the use of Frontline solutions in both APAC and the Americas.
Efforts to expand and strengthen business relationships with resellers in all regions have yielded positive results. The appointment of a new Partner Director to professionalize and standardize operations globally has already contributed to increased sales in several regions.
EMEA
Quarterly revenues were in line with the previous year, but full-year sales in EMEA were lower than expected. This was mainly due to delays in several major projects. In addition, there was a lack of major tenders in 2024, which affected the entire industry, and although the renewal rate was stable, revenue from new sales was lower than the company's expectations.
Sales in Eastern Europe exceeded expectations for the year, mainly resulting from close cooperation with key partners, which has created a solid foundation for future business.
EMEA had the highest adoption rate of XRY Pro, driven by a combination of new sales and upgrades. Sales of training also continued
to grow, as did professional services. Significant work was done during the year to lay the groundwork for increased demand for Frontline sales in the UK in 2025.
AMERICAS
The Americas region continued to see major investments in XRY Pro, both through upgrades of existing XRY implementations and through new sales. A large military organization made an Enterprise purchase for its entire user base, which included XRY, XRY Pro and XAMN Pro, all managed by XEC Director in a cloud environment.
Several Frontline customers expanded their existing XRY Express implementations and added additional XRY Pro licenses for their laboratory users.
Although delays in US congressional budget approval affected several large federal projects in 2024, these are now back on track, providing a solid foundation for procurement of MSAB products in the first half of 2025.
APAC
Order intake for the quarter in APAC was stable and there are signs that this trend will continue. Australia, Japan and Southeast Asia were the strongest performing regions. For the full year, order intake was stable with quarterly growth and inquiries from several new regions.
Several important contracts in the Child Protection sector were secured and in Japan the company received an order for XRY from an established digital forensics company with operations in both Japan and the US.
While much of the APAC region is still developing in terms of digital forensics tools, the adoption of XRY Pro is progressing steadily, with customers reporting significant breakthroughs with this tool in some areas. More mature countries, such as Australia, Japan, Malaysia and South Korea, are seeing the benefits of XRY Pro in handling the most challenging cases, driving increased adoption.
Other comments
ACCOUNTING PRINCIPLES
This interim report in brief for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and the applicable provisions of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act, Interim Report. Disclosures in accordance with IAS 34 are provided both in notes and elsewhere in the interim report. The accounting policies applied for the Group and the Parent Company are consistent with those used in the preparation of the most recent annual report. For short-term financial assets and liabilities, the carrying amount is a reasonable approximation of fair value.
SIGNIFICANT RISKS AND UNCERTAINTY FACTORS
The Group's activities expose it to risks and uncertainties. These risks and uncertainties are the same for the parent company and the group.
Significant risks and uncertainties are described in the 2023 Annual Report on page 40 and in Note 4 on pages 56-58.
SEASONAL EFFECTS
MSAB is not dependent on certain seasons in the usual sense of the term. However, the majority of the Company's customers have a purchasing pattern that follows their budget period. Budget periods differ between countries, but most common in MSAB's largest markets is that they follow the calendar year or end on 30 September. Historically, this is reflected in sales such that the second half-year is stronger than the first.
RELATED PARTY TRANSACTIONS
Related party transactions mainly refer to transactions between the parent company and its subsidiaries. These are described in the Annual Report 2023 on page 65 note 24.
ANNUAL AND SUSTAINABILITY REPORT 2024
MSAB's Annual and Sustainability Report for 2024 is planned to be published on April 23, 2025 on the company's website.
ANNUAL GENERAL MEETING (AGM) 2025
MSAB's Annual General Meeting shall take place on May 14, 2025 at 19.00 at Cirio Advokatbyrå, Biblioteksgatan 9 in Stockholm. Shareholders who wish to have a matter dealt with at the Annual General Meeting must submit a request to this effect, which must be received by the Board of Directors no later than seven weeks before the meeting is to take place.
AUDITOR REVIEW
This interim report has not been reviewed by the auditors.
DIVIDEND
The Board of Directors proposes a total dividend of SEK 1.50 (1.50) per share for 2024, totaling SEK 27,702,606 (27,702,606). The proposed dividend represents 74 percent (92) of the profit for the year. The record date for the dividend will be communicated in connection with the notice to the Annual General Meeting.
SIGNIFICANT EVENTS SINCE THE END OF THE PERIOD
No events of a material nature have occurred after the end of the period.
FINANCIAL CALENDAR
| Annual report 2024 | 2025-04-23 |
|---|---|
| Interim report, Q1 | 2025-04-29 |
| AGM 2025 | 2025-05-14 |
| Half-yearly report, Q2 | 2025-07-18 |
| Interim report, Q3 | 2025-10-28 |
| Year-end report 2025 | 2026-01-27 |
QUARTERLY DATA
| 2024 | 2023 | 2022 | 2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | |
| Net sales, MSEK | 117.5 | 115.2 | 79.1 | 92.8 | 116.9 | 108.0 | 104.7 | 87.4 | 106.6 | 93.7 | 87.1 | 75.6 | 108.5 |
| EBIT, MSEK | 95.4 | 92.7 | 95.5 | 93.7 | 91.2 | 93.0 | 83.8 | 94.0 | 69.8 | 82.5 | 89.9 | 90.2 | 78.6 |
| EBIT-margin, % | 27.5 | 31.0 | -3.5 | -8.7 | 4.9 | 25.1 | 2.7 | 8.2 | 7.7 | 8.7 | 2.7 | -0.2 | 16.2 |
| Earnings after tax, KSEK | 23.4 | 26.9 | -4.4 | -9.4 | 4.2 | 23.2 | 2.6 | 9.3 | 7.2 | 9.2 | 3.1 | -0.3 | 15.0 |
| Earnings per share, SEK | 24.4 | 23.5 | -2.8 | -7.6 | 0.9 | 19.5 | 2.9 | 6.7 | 6.3 | 6.8 | 2.7 | 1.4 | 12.7 |
| Cash flow from operating activities, MSEK | 1.32 | 1.27 | -0.15 | -0.41 | 0.05 | 1.06 | 0.16 | 0.36 | 0.34 | 0.37 | 0.15 | 0.07 | 0.69 |
| Return on equity, % | 24.4 | -1.4 | 1.2 | 18.8 | 27.4 | 1.9 | 21.7 | 24.0 | 43.3 | 0.0 | 1.0 | 5.5 | 10.5 |
| Return on capital employed, % | 19.8 | 19.3 | -2.8 | -6.5 | 0.8 | 16.2 | 2.8 | 6.2 | 6.1 | 7.2 | 3.4 | 1.4 | 14.1 |
| Equity ratio, % | 25.7 | 26.4 | -2.5 | -5.0 | 5.1 | 21.9 | 4.5 | 8.9 | 9.6 | 11.5 | 6.0 | 2.9 | 20.3 |
| Cash flow from operations/per share, SEK | 45.4 | 41.1 | 36.0 | 40.2 | 41.6 | 45.6 | 41.4 | 43.2 | 40.2 | 50.7 | 47.4 | 45.8 | 43.9 |
| Equity per share, SEK | 1.32 | -0.08 | 0.07 | 1.02 | 1.48 | 0.10 | 1.17 | 1.30 | 2.33 | 0.00 | 0.05 | 0.30 | 0.60 |
| Eget kapital per aktie, SEK | 7.06 | 6.14 | 4.95 | 6.07 | 6.27 | 7.02 | 5.99 | 6.65 | 6.29 | 6.02 | 5.41 | 5.02 | 4.90 |
CONSOLIDATED INCOME STATEMENT IN SUMMARY
| MSEK | OCT - DEC 2024 |
OCT - DEC 2023 |
JAN - DEC 2024 |
JAN - DEC 2023 |
|---|---|---|---|---|
| Net sales | 117.6 | 116.9 | 404.7 | 416.9 |
| Operating income | 117.6 | 116.9 | 404.7 | 416.9 |
| Cost of goods sold | -5.4 | -10.2 | -23.3 | -40.0 |
| Other external costs | -24.3 | -23.5 | -81.9 | -75.7 |
| Personnel costs | -56.6 | -74.4 | -238.6 | -245.2 |
| Depreciation of fixed assets | -3.7 | -3.8 | -14.6 | -15.2 |
| Total operating cost | -90.1 | -112.0 | -358.4 | -376.1 |
| Operating profit - EBIT | 27.5 | 4.9 | 46.3 | 40.9 |
| Financial income | 4.1 | 1.0 | 7.5 | 5.6 |
| Financial expenses | -0.6 | -3.9 | -6.2 | -7.9 |
| Profit/loss before tax | 31.0 | 2.0 | 47.7 | 38.7 |
| Tax | -6.7 | -1.1 | -10.2 | -8.7 |
| Net profit/loss after tax | 24.4 | 0.9 | 37.4 | 30.0 |
| Attributable to owners of the Parent Company | 24.4 | 0.9 | 37.4 | 30.0 |
| Earnings per share, SEK | 1.32 | 0.05 | 2.03 | 1.62 |
STATEMENT OF COMPREHENSIVE INCOME
| MSEK | OCT - DEC 2024 |
OCT - DEC 2023 |
JAN - DEC 2024 |
JAN - DEC 2023 |
|---|---|---|---|---|
| Net profit/loss after tax | 24.4 | 0.9 | 37.4 | 30.0 |
| Currency translation differences | 1.8 | -5.4 | 4.8 | -2.5 |
| Total comprehensive income | 26.2 | -4.5 | 42.2 | 27.5 |
| Comprehensive income for the period attributable to the share holders of the parent company |
26.2 | -4.5 | 42.2 | 27.5 |
CONSOLIDATED BALANCE SHEET IN SUMMARY
| MSEK | 31 DEC 2024 | 31 DEC 2023 |
|---|---|---|
| ASSETS | ||
| Intangible assets | 2.3 | - |
| Tangible assets | 0.9 | 1.3 |
| Assets with right to use | 46.4 | 47.6 |
| Total non-current assets | 49.6 | 48.9 |
| Inventories | 8.5 | 9.1 |
| Accounts receivable - trade | 72.8 | 72.9 |
| Other current assets | 17.9 | 14.6 |
| Cash and cash equivalents | 138.2 | 132.9 |
| Total current assets | 237.4 | 229.4 |
| TOTAL ASSETS | 287.0 | 278.3 |
| EQUITY AND LIABILITIES | ||
| Equity | 130.4 | 115.9 |
| Total equity | 130.4 | 115.9 |
| Long term leasing liabilities related to assets with right to use | 33.8 | 32.2 |
| Total long term liabilities | 33.8 | 32.2 |
| Accounts payable - trade | 8.4 | 6.7 |
| Current tax liability | 1.5 | 2.4 |
| Leasing liabilities related to assets with right to use | 11.3 | 13.3 |
| Other current liabilities | 101.6 | 107.7 |
| Total current liabilities | 122.7 | 130.2 |
| TOTAL EQUITY AND LIABILITIES | 287.0 | 278.3 |
CHANGE IN EQUITY IN SUMMARY
| MSEK | 31 DEC 2024 | 31 DEC 2023 |
|---|---|---|
| Opening balance | 115.9 | 116.1 |
| Profit/loss for the period | 42.2 | 27.5 |
| Dividend | -27.7 | -27.7 |
| Equity at the end of the period | 130.4 | 115.9 |
CASH FLOW STATEMENT IN SUMMARY
| MSEK | OCT - DEC 2024 |
OCT - DEC 2023 |
JAN - DEC 2024 |
JAN - DEC 2023 |
|---|---|---|---|---|
| Profit after paid tax and non-cash items | 33.7 | 2.6 | 54.1 | 42.6 |
| Working capital changes | -9.3 | 24.8 | -11.1 | 32.4 |
| Cash flow from operating activities | 24.4 | 27.4 | 43.0 | 75.0 |
| Investments in fixed assets | -2.3 | -0.4 | -2.8 | -0.6 |
| Cash flow from investing activities | -2.3 | -0.4 | -2.8 | -0.6 |
| Dividend paid to shareholders | -9.2 | -9.2 | -27.7 | -27.7 |
| Amortization of leasing liability | -2.7 | -3.7 | -12.1 | -15.4 |
| Cash flow from financing activities | -11.9 | -13.0 | -39.8 | -43.1 |
| CASH FLOW FOR THE PERIOD | 10.1 | 14.1 | 0.4 | 31.2 |
| Cash at the beginning of the period | 126.0 | 124.8 | 132.9 | 104.4 |
| Exchange rate difference in cash | 2.1 | -6.0 | 4.8 | -2.7 |
| Cash at the end of the period | 138.2 | 132.9 | 138.2 | 132.9 |
SEGMENT REPORTING
| OCTOBER - DECEMBER | EMEA AMERICAS |
APAC | TOTAL | |||||
|---|---|---|---|---|---|---|---|---|
| MSEK | OCT - DEC 2024 |
OCT - DEC 2023 |
OCT - DEC 2024 |
OCT - DEC 2023 |
OCT - DEC 2024 |
OCT - DEC 2023 |
OCT - DEC 2024 |
OCT - DEC 2023 |
| Product sales | 57.7 | 53.6 | 43.5 | 44.5 | 7.3 | 5.5 | 108.5 | 103.6 |
| Training & other services | 4.9 | 8.4 | 1.7 | 3.3 | 2.4 | 1.6 | 9.0 | 13.3 |
| Total | 62.6 | 62.0 | 45.2 | 47.8 | 9.7 | 7.1 | 117.6 | 116.9 |
| Recognized at a certain point in time | 56.5 | 52.6 | 40.6 | 42.6 | 8.1 | 5.6 | 105.2 | 100.8 |
| Recognized over time | 6.1 | 9.4 | 4.6 | 5.2 | 1.6 | 1.5 | 12.3 | 16.1 |
| Total | 62.6 | 62.0 | 45.2 | 47.8 | 9.7 | 7.1 | 117.6 | 116.9 |
| JANUARY – DECEMBER | EMEA | AMERICAS | APAC | TOTAL | |||||
|---|---|---|---|---|---|---|---|---|---|
| MSEK | JAN - DEC 2024 |
JAN - DEC 2023 |
JAN - DEC 2024 |
JAN - DEC 2023 |
JAN - DEC 2024 |
JAN - DEC 2023 |
JAN - DEC 2024 |
JAN - DEC 2023 |
|
| Product sales | 196.1 | 210.5 | 134.9 | 125.8 | 47.7 | 33.3 | 378.7 | 369.6 | |
| Training & other services | 15.6 | 30.0 | 5.3 | 11.3 | 5.1 | 6.1 | 26.0 | 47.4 | |
| Total | 211.7 | 240.5 | 140.2 | 137.1 | 52.8 | 39.4 | 404.7 | 416.9 | |
| Recognized at a certain point in time | 180.6 | 204.3 | 120.5 | 116.3 | 46.7 | 33.3 | 347.8 | 353.9 | |
| Recognized over time | 31.1 | 36.2 | 19.7 | 20.8 | 6.1 | 6.1 | 56.9 | 63.1 | |
| Total | 211.7 | 240.5 | 140.2 | 137.1 | 52.8 | 39.4 | 404.7 | 416.9 |
PARENT COMPANY INCOME STATEMENT IN SUMMARY
| MSEK | OCT - DEC 2024 |
OCT - DEC 2023 |
JAN - DEC 2024 |
JAN - DEC 2023 |
|---|---|---|---|---|
| Net sales | 90.7 | 86.0 | 310.2 | 314.6 |
| Operating income | 90.7 | 86.0 | 310.2 | 314.6 |
| Cost of goods sold | -5.4 | -10.2 | -23.3 | -40.0 |
| Other external costs | -17.3 | -15.8 | -63.4 | -50.6 |
| Personnel costs | -40.2 | -57.3 | -176.3 | -184.8 |
| Depreciation of fixed assets | -2.9 | -3.2 | -12.4 | -13.0 |
| Operating cost | -65.8 | -86.6 | -275.4 | -288.5 |
| Operating profit - EBIT | 24.8 | -0.6 | 34.9 | 26.2 |
| Dividends from group companies | - | - | 40.6 | - |
| Net financial items | 3.4 | -3.0 | 0.5 | -2.8 |
| Profit/loss before tax | 28.2 | -3.6 | 75.9 | 23.3 |
| Tax | -5.7 | 0.7 | -7.4 | -5.1 |
| Net profit/loss after tax | 22.5 | -3.0 | 68.6 | 18.3 |
STATEMENT OF COMPREHENSIVE INCOME
| MSEK | OCT - DEC 2024 |
OCT - DEC 2023 |
JAN - DEC 2024 |
JAN - DEC 2023 |
|---|---|---|---|---|
| Net profit/loss after tax | 22.5 | -3.0 | 68.6 | 18.3 |
| Total comprehensive income | 22.5 | -3.0 | 68.6 | 18.3 |
PARENT COMPANY BALANCE SHEET IN SUMMARY
| MSEK | 31 DEC 2024 | 31 DEC 2023 |
|---|---|---|
| ASSETS | ||
| Intangible assets | 2.3 | - |
| Tangible assets | 0.9 | 0.9 |
| Assets with right to use | 32.2 | 44.2 |
| Shares in group companies | 0.4 | 0.4 |
| Total fixed assets | 35.8 | 45.5 |
| Inventories | 8.5 | 9.1 |
| Accounts receivable - trade | 29.6 | 31.6 |
| Other current assets | 33.0 | 37.8 |
| Cash and cash equivalents | 87.5 | 48.2 |
| Total current assets | 158.5 | 126.7 |
| TOTAL ASSETS | 194.3 | 172.1 |
| EQUITY AND LIABILITIES | ||
| Share capital | 3.8 | 3.8 |
| Share premium | 20.3 | 20.3 |
| Restricted equity | 24.1 | 24.1 |
| Statutory reserve | 7.8 | 7.8 |
| Profit brought forward | 69.0 | 27.9 |
| Non-restricted equity | 76.8 | 35.7 |
| Total equity | 100.9 | 59.8 |
| Long term leasing liabilities related to assets with right to use | 19.5 | 30.9 |
| Total long term liabilities | 19.5 | 30.9 |
| Accounts payable - trade | 7.6 | 5.5 |
| Short term leasing liabilities related to assets with right to use | 11.3 | 11.2 |
| Other current liabilities | 55.0 | 64.7 |
| Total current liabilities | 73.9 | 81.4 |
| TOTAL EQUITY AND LIABILITIES | 194.3 | 172.1 |
Definitions
MSAB presents certain financial metrics in the interim report that are not defined under IFRS. The company believes that these metrics provide valuable supplementary information to investors and the company's management as they allow for evaluation of the company's performance. Because not all companies calculate financial measures in the same way, these are not always comparable with metrics used by other companies. These financial metrics should therefore not be regarded as replacements for metrics defined in accordance with IFRS. The table below presents the
alternative key figures that have been deemed relevant. The key figures are based on reports on earnings, financial position, change in equity and cash flow. In cases where the key figures cannot be directly derived from the above reports, the derivation and calculation of these are shown below.
| ALTERNATIVE METRICS | DEFINITIONS AND CALCULATIONS |
|---|---|
| Cash flow from operating activities per share |
Cash flow from operating activities in relation to average outstanding shares before/after dilution. |
| Capital employed / Average capital employed |
Capital employed calculated as total assets less non-interest-bearing liabilities. Average capital employed is calculated as capital employed over a 12 month-period. Capital employed at beginning of period plus capital employed at end of period divided by two. |
| Earnings per share * | Profit/loss after tax in relation to average number of outstanding shares before/after dilution. |
| Equity per share | Equity in relation to outstanding shares at the end of the period. |
| Equity ratio % | Equity in relation to total assets. |
| Net financial items | Net of financial income and expenses. |
| Operating margin (EBIT margin) % | EBIT in relation to net sales. |
| Operating profit (EBIT) | Earnings before interest and taxes. |
| Return on capital employed 12 months % |
EBIT plus financial items in relation to average capital employed. |
| Return on equity 12 months % | Profit/loss after tax in relation to average adjusted equity. Equity at the beginning of the period plus equity at the end of the period divided by two. |
| Revenue growth % | Net sales current period in relation to same period previous year. |
* Defined in accordance with IFRS
RECONCILIATIONS OF MEASUREMENTS THAT ARE NOT DEFINED UNDER IFRS
| 2024 | 2023 | 2022 | 2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MSEK | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 |
| Total assets, MSEK | 287.0 | 275.9 | 254.2 | 325.0 | 278.3 | 284.0 | 267.4 | 284.5 | 288.8 | 219.2 | 210.9 | 202.2 | 206.5 |
| Accounts payables, MSEK | -8.4 | -6.2 | -5.4 | -1.0 | -6.7 | -4.9 | -8.7 | -3.8 | -12.3 | -7.8 | -5.8 | -3.9 | -11.0 |
| Tax liabilities, MSEK | -1.5 | -2.9 | -3.3 | -3.1 | -2.4 | -2.5 | -1.6 | -1.9 | -7.4 | -9.0 | -7.5 | -7.5 | -9.9 |
| Leasing liabilities related to assets with | |||||||||||||
| right to use | -45.1 | -41.2 | -44.3 | -42.7 | -45.6 | -48.5 | -51.9 | -52.2 | -55.5 | -7.9 | -10.8 | -13.3 | -10.0 |
| Other liabilities, MSEK | -101.6 -112.1 -109.8 -166.2 -107.7 | -98.6 | -94.6 | -103.8 | -97.4 | -83.3 | -86.7 | -84.8 | -85.0 | ||||
| Capital employed, MSEK | 130.4 | 113.5 | 91.4 | 112.0 | 115.9 | 129.5 | 110.6 | 122.8 | 116.1 | 111.1 | 100.0 | 75.0 | 90.6 |
| Average capital employed, MSEK | 123.2 | 121.5 | 101.0 | 117.4 | 116.0 | 120.3 | 105.3 | 98.9 | 103.3 | 94.2 | 78.8 | 76.6 | 89.5 |
The information in this report is such that MSAB, Corporate ID number 556244-3050, is required to disclose in accordance with the EU's Market Abuse Regulation. The information in this report was submitted for publication on January 28, 2025 at 08:00. This report is published in Swedish and English versions. In the event of discrepancies between the two reports, the Swedish version shall apply.
This report as well as previous financial reports and press releases are available on the Company's website www.msab.com.
Contact
Peter Gille CEO
Tony Forsgren CFO
Address: Box 17111 SE-104 62 Stockholm Sweden
| Web: | www.msab.com |
|---|---|
| Tel: | +46 8 739 0270 |
| Fax: | +46 8 730 0170 |
| Org nr: | 556244-3050 |
| VAT nr: | SE556244305001 |
MSAB in brief
MSAB is a world leader in forensic technology for extracting and analyzing data from seized mobile devices. The Company develops high-quality and user-friendly software that has become a de facto standard for many authorities and organizations aiming to secure evidence in criminal investigations. Products can be supplemented with tools for administration and reporting, as well as a wide range of training programs with certifications in forensic digital technology. The Company develops innovative solutions that make evidence retrieval faster, easier, and more efficient, thereby creating significant value for law enforcement agencies. MSAB has clear growth strategies combined with a business model that provides scalability and a high degree of recurring revenue through license renewals.
MSAB operates in a rapidly evolving market where law enforcement agencies worldwide face significant challenges. By investing long-term in research and product development, marketing, and sales efforts, MSAB can strengthen its market position. The Company believes that the need for professional tools for reading and analyzing data from mobile devices will continue to grow. MSAB is primarily focused on organic growth but also evaluates acquisitions in certain cases.
With its direct sales and distributors, MSAB is represented in over 100 countries globally.
WHO?
MSAB assists law enforcement agencies such as police, defense, migration authorities, corrections, customs, and others in conducting their investigations and missions. Typical users of MSAB's products include experts in digital forensics, investigators, analysts, and police officers in the field.
WHERE?
MSAB is represented with its own personnel in 16 countries and serves customers on all continents through its own sales offices and distributors.
WHAT?
The Company offers systems that extract and analyze data from mobile devices such as cell phones, tablets, and vehicles, as well as products that manage and monitor the software and its usage.
SUSTAINABILITY
MSAB aims to contribute to sustainable development by actively and responsibly ensuring that its operations are conducted in a manner that upholds the Company's values and respects people, society, and the environment. The Company's most significant impact lies in how it can contribute to reducing crime and enhancing security in society. Since the Company primarily develops software, its environmental impact is limited. MSAB ensures that it complies with environmental requirements in the various markets where it operates.
Together, MSAB's products and services create mobile forensic solutions that enable law enforcement agencies to secure digital evidence from mobile phones in accordance with a legally sound process.
The solutions collaborate to ensure the best possible working practices and results for users, including field police officers, investigators, digital forensic experts in laboratories, analysts, court officials, and others.
Software
