Quarterly Report • Oct 19, 2018
Quarterly Report
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| MNOK | Q3 | Q3 | YTD | YTD | Year |
|---|---|---|---|---|---|
| 2018 | 2017 | 2018 | 2017 | 2017 | |
| Revenue | 233,3 | 204,8 | 759,8 | 692,3 | 951,5 |
| EBITDA | 15,2 | 14,1 | 45,0 | 31,6 | 52,4 |
| EBITDA margin | 6,5 % | 6,9 % | 5,9 % | 4,6 % | 5,5 % |
| Operating profit (EBIT) | 6,6 | 6,2 | 17,5 | 7,8 | 19,9 |
| Ordinary profit before tax (EBT) | 4,3 | 4,5 | 20,1 | 3,4 | 14,2 |
| Cash flow from operational activities | 1,2 | -2,2 | 0,9 | 6,1 | 26,8 |
| Disposable funds | 49,5 | 37,8 | 49,5 | 37,8 | 54,3 |
| Earnings per share (NOK) | 0,07 | 0,05 | 0,35 | 0,04 | 0,23 |
StrongPoint develops and markets technology that streamlines and simplifies store operations, as well as delivering leading e-commerce solutions. The company focuses on Retail Technology, CIT (Cash Security) and Labels.
StrongPoint's 3rd quarter operating revenues increased by 14 % compared to last year and amounted to MNOK 233.3 (204.8). Turnover of own technology has increased by 30 %, for the same period. Operating revenues year to date have increased by 10 % compared to last year to a total of MNOK 759.8 (692.3).
Aftermarket revenues consists of installation revenues and monthly services and license fees, which increases in line with the installed base. In the third quarter, these revenues represented 31 % of the total revenue. The company experienced an increase in aftermarket revenues in 2015, 2016 and parts of 2017, due to major upgrade projects in Norway and Sweden. In 2018, aftermarket revenues increased due to the acquisition of Cub.
EBITDA was MNOK 15.2 (14.1) in the third quarter. Several product development projects were completed or were in the final phase, which resulted in somewhat lower development costs in the quarter. Year to date, EBITDA was MNOK 45.0 (31.6). The result included a positive net effect from non-recurring items of MNOK 4.1.
Earnings before tax (EBT) for the Group showed a profit of MNOK 4.3 (4.5) in the third quarter. Year to date, EBT is MNOK 20.1 (3.4).
StrongPoint Cub AB, which was acquired in December 2017, has had a very positive year so far. The company experiences a growing interest for its e-commerce solution (E-Commerce Logistics Suite) from grocery chains in and outside Sweden. It is also a positive sales trend for ShopFlow Logistics, a mobile store logistics system developed by Cub. The turnover in Cub consists of a combination of consultancy revenue related to implementation and operation, annual license income and software. Year to date, the company had a turnover of MNOK 34.6 with an EBITDA of MNOK 5.3, where annual license revenues are expected to increase year over year.
StrongPoint has entered into several important agreements during the third quarter as a supplier of Pricer's electronic shelf labels, including up to 350 Joker stores in NorgesGruppen, as well as a speciality retail
Operating revenue per quarter (MNOK)
chain in Norway.
In the third quarter, StrongPoint received an exclusive contract for 960 CIT cases for Sberbank, Russia's largest bank.
E-commerce is an important focus area for StrongPoint and consists of solutions from both Cub (E-Commerce Logistics Suite) and Click & Collect. During the third quarter, one of Denmark's largest grocery chains chose E-Commerce Logistics Suite as an important component of its e-commerce solution. StrongPoint has received several pilot orders for Click & Collect pickup stations in the European market.
In the third quarter, StrongPoint also entered into an agreement to deliver 85 self-checkout solutions (hardware and software) to a major grocery chain in StrongPoints home market (Norway, Sweden, the Baltics).
EMEA is becoming an increasingly important market for our own technology. In the quarter, more than nine out of ten Cash Management solutions sold, were delivered to countries outside Norway and Sweden. The Cash Management solutions sold in EMEA are typically to smaller chains and independent stores.
StrongPoints E-commerce business have been gathered in a common business area led by Göran Thörn in Cub. This will provide comprehensive solutions and increased expertise within E-commerce. For the first time,
StrongPoint has established a dedicated team, led by SVP Global Partner, Roine Gabrielsson, responsible for increasing sales and distribution of own solutions through partners. The position will take effect from January 2019.
StrongPoint also reorganizes its product development efforts by promoting Julius Stulpinas to SVP Technology. Until 1 January 2019, Julius will continue as SVP for the Baltics. In addition, the company now is establishing a cross-functional group to ensure faster and more accurate product modifications and product launches.
StrongPoint has had a thorough review of its cost base and expect cost savings in the range of MNOK 30 per year, due to reduction of consultants and employees in product development, e-commerce synergies, and general reduction of administrative costs. Parts of this savings will be invested in selected focus areas. Full effect of cost optimization is expected from January 2019.
StrongPoint will focus on selling its e-commerce solutions outside Sweden, strengthening its own distribution network and sales resources in selected European markets, as well as focusing on selling its own solutions through partners by establishing the SVP Global Partner position. In addition, StrongPoint will actively search for acquisition targets and strategic agreements to grow top and bottom lines beyond what organic growth is performing on its own.
Aftermarket revenue trailing 12 months (MNOK) 350
Operating revneue per business area in the third quarter
| Revenue | Q3 | YTD | Year | ||
|---|---|---|---|---|---|
| MNOK | 2018 | 2017 | 2018 | 2017 | 2017 |
| Own Tech | 125,9 | 97,1 | 392,0 | 324,8 | 449,1 |
| 3rd Party | 71,0 | 68,3 | 246,0 | 245,9 | 338,6 |
| Labels | 37,7 | 43,5 | 126,2 | 132,2 | 176,4 |
| Elim / ASA | -1,2 | -4,1 | -4,5 | -10,6 | -12,6 |
| Total | 233,3 | 204,8 | 759,8 | 692,3 | 951,5 |
| EBITDA | Q3 | YTD | Year | ||
|---|---|---|---|---|---|
| MNOK | 2018 | 2017 | 2018 | 2017 | 2017 |
| Own Tech | 5,8 | 4,1 | 17,4 | 11,4 | 20,4 |
| 3rd Party | 7,6 | 4,8 | 27,6 | 16,4 | 27,0 |
| Labels | 6,5 | 8,6 | 17,5 | 16,1 | 24,9 |
| Elim / ASA | -4,7 | -3,3 | -17,5 | -12,3 | -19,9 |
| Total | 15,2 | 14,1 | 45,0 | 31,6 | 52,4 |
5
Q3
10
15
2016 2017 2018
2016 2017 2018
EBITDA trailing 12 months (MNOK)
Proprietary technology solutions that improves store efficiency, e-commerce and simplifies the shopping experience, and IBNS (Intelligent Banknote Neutralization System) technology, which secures ATM and CIT.
E-Commerce Logistics Suite handles and optimizes the entire work flow of web orders - from planning, picking to delivery of goods. The solution is easy to integrate with existing systems.
| AMBIENT | CHILLED | FROZEN | |||
|---|---|---|---|---|---|
| $\mathbf{1}$ m |
$\overline{4}$ | m | 10 | 13 | 16 |
| $\overline{2}$ | 5 | 8 | 11 п |
14 | 17 |
| 3 | 6 | 9 | 12 | 15 | 18 |
Click & Collect makes it possible to shop online and pick up groceries without having to deal with the shop opening hours.
ShopFlow linked to mobile devices simplifies your in-store routines while also making them more efficient. Minimize the time put into stocktaking, take control of shipping, prices, orders and loss of goods.
cash during transportation.
Select & Collect stores and ensures high-value products in store. Our customers reduce waste and inventory management becomes even more efficient.
Self-checkout is especially suitable for retailers with a high number of transactions and having customers with medium-sized shopping carts. Our customers improve customer experience and reduce queues in the cashier area.
Closed cash handling automates, seals and secures the cash at the cash point and in the back office. Our customers reduce costs and achieves increased flexibility, security and customer service.
Innovative retail solutions from leading third-party technology providers, consisting of among others ESL, POS, ERP, consulting services, scales and wrapping machines.
Leading expertise in the design and manufacturing of adhesive labels.
Proprietary technology solutions that improves store efficiency, e-commerce and simplifies the shopping experience, and IBNS (Intelligent Banknote Neutralization System) technology, which secures ATM and CIT.
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2018 | 2017 | 2018 | 2017 | 2017 |
| Product Sales | 73,1 | 51,0 | 224,6 | 177,5 | 249,8 |
| Service | 52,7 | 46,0 | 167,4 | 147,3 | 199,2 |
| Revenue | 125,9 | 97,1 | 392,0 | 324,8 | 449,1 |
| EBITDA | 5,8 | 4,1 | 17,4 | 11,4 | 20,4 |
| EBITDA-margin | 4,6 % | 4,2 % | 4,4 % | 3,5 % | 4,5 % |
| EBT | 1,5 | 0,8 | 5,3 | 2,4 | 7,5 |
Operating revenue trailing 12 months (MNOK)
| Q3 | YTD | Year | ||||
|---|---|---|---|---|---|---|
| MNOK | 2018 | 2017 | 2018 | 2017 | 2017 | |
| Product sales | 9,5 | 3,6 | 20,1 | 31,8 | 45,5 | |
| Service | 18,8 | 18,0 | 54,8 | 60,9 | 79,4 | |
| Revenue | 28,3 | 21,6 | 74,9 | 92,7 | 124,9 |
In the third quarter, Norway's first automated pickup station (Click & Collect) was installed at MENY Strømmen Storsenter.
Plantasjen has chosen Cash Management solutions from StrongPoint. Deliveries started in the third quarter.
The upgrade and replacement project of existing Cash Management solutions, to handle new banknotes in Norway, was completed in the second quarter 2017. There is now a large installed base of modern cash handling solutions in Norwegian stores. This has resulted in a decline in revenue from new systems in 2018.
In the first half, a replacement campaign for Select & Collect (Vensafe) was initiated for the big grocery chains, resulting in 45 solutions sold.
| Q3 | YTD | Year | ||||
|---|---|---|---|---|---|---|
| MNOK | 2018 | 2017 | 2018 | 2017 | 2017 | |
| Product sales | 26,9 | 9,4 | 53,8 | 37,5 | 55,7 | |
| Service | 25,9 | 17,7 | 79,9 | 53,9 | 73,8 | |
| Revenue | 52,8 | 27,2 | 133,7 | 91,3 | 129,5 |
StrongPoint Cub is experiencing an increasing demand for its e-commerce software solution, as well as ShopFlow Logistics (a mobile retail logistics system) from both existing and new customers.
Coop has started picking in stores. Previously, e-commerce orders were picked in their darkstores. The decision of starting to pick in stores has led to an increase in the use of StrongPoint's E-Commerce Logistics Suite.
Based on their good experiences with Click & Collect, a Swedish retail chain ordered another 17 pickup stations. The company already has 44 Click & Collect pickup stations.
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2018 | 2017 | 2018 | 2017 | 2017 |
| Product sales | 0,0 | 0,0 | 0,0 | 7,1 | 22,0 |
| Service | 3,2 | 1,0 | 6,9 | 3,6 | 6,1 |
| Revenue | 3,3 | 1,0 | 7,0 | 10,6 | 28,2 |
During the third quarter, StrongPoint has installed 6 Click & Collect pickup stations at Coop Estonia, as well as pickup stations in Lithuania. This customer also has a pilot installation with StrongPoint Cub's E-Commerce Logistics Suite.
Installations of Click & Collect pickup stations in Russia takes longer time than expected. The reason for this is that the customer, Utkonos, still evaluates the installed pickup stations, as well as challenges related to access to appropriate locations and permissions from public authorities.
StrongPoint has been chosen as an exclusive supplier of 960 CIT cases to Russia's largest bank, Sberbank. The agreement was signed by the parties in the third quarter and will be completed during the year.
| Q3 YTD |
|||||
|---|---|---|---|---|---|
| MNOK | 2018 | 2017 | 2018 | 2017 | 2017 |
| Product sales | 36,7 | 38,0 | 150,6 | 101,2 | 126,6 |
| Service | 4,7 | 9,3 | 25,8 | 28,9 | 39,9 |
| Revenue | 41,5 | 47,3 | 176,4 | 130,1 | 166,5 |
One of Denmark's largest retail chains has chosen StrongPoint's E-Commerce Logistics Suite. The first installations are already in place, with additional installations in 2019
StrongPoint's e-commerce solutions are being presented to the largest chains in Europe, and the company has great expectations for these solutions. In the second quarter, a Click & Collect pilot was installed at COOP in Italy. This pilot will be evaluated by the end of 2018. StrongPoint has received orders for two pilots on Click & Collect in Spain.
The development in the prioritized markets outside Norway, Sweden and the Baltics are very positive. EMEA accounted for more than 9 out of 10 Cash Management solutions delivered in the third quarter.
In 2016, StrongPoint and Alimerka entered into a "cash management as a service" agreement. A total of 725 solutions was installed, which are 225 solutions more than originally planned. The roll out has been a success. After renting the solutions for two years, Alimerka chose to buy the remaining contract period. In the second quarter, MNOK 36.0 was booked as revenue from the sale of the rental agreement. Service Level Agreement (SLA) and software licenses will continue to run throughout the life of the contract.
There is high activity in the Spanish market, and StrongPoint is working to recruit more agents (RoadRunners). These are small selected sales and service companies, which focus on selling Cash Management solutions. This is a well-proven concept, which StrongPoint has developed the last years, and which the company wishes to build on in Spain and in other selected markets.
Based on the success of "cash management as a service" to Alimerka, StrongPoint wants to offer similar solutions to other Spanish customers.
StrongPoint has strengthened its sales team in Germany with a new senior Sales Manager, and are looking for a replacement for the Country Manager. For the second consecutive year, the company has near doubled its revenue from Cash Management solutions in the country. Volumes are still low compared to France and Spain, but the development is very positive
Aramark in Spain has, after running pilots from several suppliers, chosen StrongPoint Cash Management as its main cash management solution for selected Spanish Aramark restaurants.
Early in September 2018, StrongPoint APAC received an order for Cash Management solutions from an airport rail company in Malaysia. The solutions will be installed during the fourth quarter.
Roine Gabrielsson is going to be SVP Global Partners, January 1, 2019 and will be located in Kista. Due to this, StrongPoint is working with a further operational plan for APAC.
Innovative retail solutions from leading third-party technology providers, consisting of among others ESL, POS, ERP, consulting services, scales and wrapping machines.
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2018 | 2017 | 2018 | 2017 | 2017 |
| Product Sales | 50,9 | 47,3 | 180,7 | 173,9 | 243,1 |
| Service | 20,1 | 21,0 | 65,3 | 72,0 | 95,5 |
| Revenue | 71,0 | 68,3 | 246,0 | 245,9 | 338,6 |
| EBITDA | 7,6 | 4,8 | 27,6 | 16,4 | 27,0 |
| EBITDA-margin | 10,7 % | 7,0 % | 11,2 % | 6,7 % | 8,0 % |
| EBT | 5,9 | 3,4 | 21,6 | 11,9 | 19,6 |
The interest in electronic shelf labels is increasing, and an increasing number of our customers see the benefits of the technology. In the third quarter,
NorgesGruppen in Norway chose StrongPoint as a supplier of Pricer electronic shelf labels for up to 350 Joker stores. The agreement has a value of approximately MNOK 60. Deliveries are expected to start this year and will be completed in 2019.
In the third quarter, a speciality retail chain in Norway entered into a framework agreement on electronic shelf labels with an estimated value of MNOK 50.
In the second quarter, Coop Norge prolonged the agreement with StrongPoint, and the company was awarded the contract of electronic shelf labels for an additional 70 Coop Extra stores. The agreement has an estimated value of MNOK 35.
In the second quarter, StrongPoint signed an agreement with a specialty retail chain in the Baltics for deliveries of ERP and POS solutions. The agreement includes software licenses and implementation of Microsoft Dynamics NAV and LS Nav for more than 700 points of sales, as well as 24/7 service level agreement. The project will last over the next three years.
Operating revenue trailing 12 months (MNOK)
EBITDA trailing 12 months
Leading expertise in the design and manufacturing of adhesive labels.
| Q3 | YTD | ||||
|---|---|---|---|---|---|
| MNOK | 2018 | 2017 | 2018 | 2017 | 2017 |
| Revenue | 37,7 | 43,5 | 126,2 | 132,2 | 176,4 |
| EBITDA | 6,5 | 8,6 | 17,5 | 16,1 | 24,9 |
| EBITDA-margin | 17,2 % | 19,8 % | 13,8 % | 12,2 % | 14,1 % |
| EBT | 3,1 | 4,7 | 7,1 | 4,7 | 9,8 |
| EBT-margin | 8,3 % | 10,8 % | 5,6 % | 3,5 % | 5,6 % |
Production of labels is capital intensive and requires significant investments in new technology which is depreciated. This means that EBT is an important measurement parameter. EBT decreased in the quarter to MNOK 3.1 (4.7). Continuous focus on efficient operations and investments in modern and flexible machines in both Norway and Sweden has given results on EBT year to date. In addition, we now see the effect of the investments to co-locate production into one modern and efficient production unit in Sweden, which was carried out in 2016/2017.
The business area is well adapted to today's market situation with efficient work processes, modern technology and new efficient premises.
Operating revenue trailing 12 months (MNOK)
EBITDA trailing 12 months (MNOK)
As an integrated technology company, StrongPoint is dependent on having the best people to deliver results over time. StrongPoint strengthens its management and organization through a variety of actions.
StrongPoint has established an E-commerce unit, led by Göran Thörn from Cub. As of September, both Cub's solutions (E-Commerce Logistics Suite and ShopFlow Logistics) and Click & Collect are part of the E-commerce's unit. The change will provide comprehensive solutions, as well as increased expertise in this business area. Future e-commerce solutions will also be added under the E-commerce unit.
To increase sales and distribution of own solutions through partners, StrongPoint will establish a SVP Global Partner from January 2019. The unit will be led by Roine Gabrielsson, who has a long experience in the company. Sales through partners are currently too low and unstable considering the potential of own products. The establishment of a separate Global Partner unit is expected to significantly increase partner sales.
StrongPoint reorganizes its product development efforts by promoting Julius Stulpinas to SVP Technology. Until 1 January 2019, Julius will continue as SVP for the Baltics. Today's SVP Technology, Evaldas Budvilaitis,
will continue to lead Technology until January 1, 2019. In addition, the company will establish a crossfunctional team ("Retail Technology Product Board") to ensure faster and more accurate product changes and launches. This cross-functional group will be led by SVP Supply Chain, Lars-Åke Köpper.
The group's marketing unit, headed by VP Marketing, Rūta Kairienė, will report directly to the CEO in the future. This is to focus on external marketing of products, solutions and activities in StrongPoint.
Cash Security and Labels are set up as own business areas. From 1 January 2018, a work began to integrate Cash Security in Retail Technology. To ensure focus on each business area, it was announced in the third quarter to reverse this integration work and keep Cash Security as its own business area.
In order to ensure the best recruitment, motivation and development of managers and employees, in the third quarter, it was also decided to start recruiting SVP People & Organizational Development.
* As of January 1, 2019
** Part of Extended Executive Management Team (EMT). Sven Calissendorf in Sweden, and Rimantas Mažulis in the Baltics
Retail Technology
StrongPoint optimizes its cost base and invests in growth areas in the future.
StrongPoint has had a thorough review of its cost base and expect savings in the range of MNOK 30 per year due to the reduction of consultants and employees in product development, e-commerce synergies, and general reduction of administrative costs. The cost optimization is not expected to have negative effect on the company's operations. The savings will partly be used to invest in future growth areas. Full effect of cost optimization is expected from January 2019.
StrongPoint has expectations of selling Cub's e-commerce solution outside Sweden. The sales in Denmark must be called a breakthrough in this way. In addition, it is expected that the value of Cub's e-commerce solution will increase even further as integration of Pricer's electronic shelf labels is in place to streamline pickup. The solution ("pick by light") is now being tested in some of Sweden's largest retail stores. Early test results show a productivity improvement of 15-30 % with "pick by light".
The process of strengthening our own distribution network and sales resources in selected European markets is ongoing. The concept "RoadRunners" - small selected sales and service companies, focusing on
selling cash handling solutions - shows early success in Spain. StrongPoint currently has a approximately 40 agents with approximately 200 sales people spread across Spain as "RoadRunners". In the future, the agents will also explore the possibilities for additional sales through "cash management as a service" to Spanish customers. These agents account for an increasing proportion of the company's Cash Management sales
From 2019, StrongPoint also expects increased sales of all its own solutions by further focusing on sales through partners and the creation of the SVP Global Partner position.
StrongPoint will in the future actively search for acquisition targets and strategic agreements to grow top and bottom line beyond what organic growth is performing on its own.
The company can acquire technology or products that match existing product portfolio, and can effectively be sold in geographies where StrongPoint is present, or seeks companies that will increase presence in selected geographies, which will increase the power to sell existing products and solutions even more effectively. The CEO, together with the CFO and the operational SVPs, will manage this important source of growth.
Cash flow from operational activities in the third quarter was MNOK 1.2 (- 2.2). Year to date cash flow from operational activities was MNOK 0.9 (6.1). Disposable funds were MNOK 49.5 per September 30, 2018. The net interest-bearing debt increased by MNOK 0.8 compared with the end of the last quarter and totalled MNOK 71.8. A dividend of NOK 0.50 per share was paid in May 2018. The Groups holding of own shares amounted to 104,544, which represents 0.2 per cent of the outstanding shares. The Group has a shareholder program for the Group executive management and the employees in Norway and Sweden. Through these programs, employees subscribed for a total of 67,494 shares in 2017 and 109,299 shares so far in 2018.
| Accoun ting year |
General assembley |
Dividend per share |
|
|---|---|---|---|
| 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 |
The board and group CEO have today considered and approved StrongPoint's financial statements for the third quarter and year to date 2018, including comparative consolidated figures for the third quarter and year to date 2017. This report has been prepared in accordance with IAS 34 on interim financial reporting as determined by the European Union, and with supplementary requirements pursuant to the Norwegian Securities Trading Act.
The board and CEO hereby declare, to the best of their knowledge, that the financial statements for the third quarter and year to date 2018 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 September 2018 and 30 September 2017. 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.
Täby 18, October 2018
Morthen Johannessen Chairman
Klaus de Vibe Director
Camilla AC Tepfers Director
Inger Johanne Solhaug Director
Peter Wirén Director
Jacob Tveraabak CEO
| KNOK | Q3 2018 |
Q3 2017 |
Chg. % |
YTD 2018 |
YTD 2017 |
Chg. % |
Year 2017 |
|---|---|---|---|---|---|---|---|
| Operating revenue | 233 214 | 204 717 | 13,9 % | 759 533 | 692 315 | 9,7 % | 951 388 |
| Profit from AC, Service companies | 90 | 50 | 238 | 30 | 90 | ||
| Cost of goods sold | 120 212 | 98 427 | 22,1 % | 372 509 | 344 552 | 8,1 % | 472 003 |
| Payroll | 68 104 | 64 037 | 6,4 % | 244 587 | 223 952 | 9,2 % | 298 916 |
| Other operating expenses | 29 821 | 28 162 | 5,9 % | 97 702 | 92 256 | 5,9 % | 128 112 |
| Total operating expenses | 218 137 | 190 626 | 14,4 % | 714 797 | 660 761 | 8,2 % | 899 032 |
| EBITDA | 15 167 | 14 142 | 7,3 % | 44 974 | 31 584 | 42,4 % | 52 446 |
| Depreciation tangible assets | 4 155 | 4 562 | -8,9 % | 12 687 | 13 221 | -4,0 % | 18 405 |
| Depreciation intangible assets | 4 371 | 3 390 | 28,9 % | 14 743 | 10 538 | 39,9 % | 14 137 |
| EBIT | 6 640 | 6 189 | 7,3 % | 17 544 | 7 825 | 124,2 % | 19 905 |
| Interest expenses | 766 | 751 | 1,9 % | 2 049 | 2 303 | -11,1 % | 2 209 |
| Other financial expenses | 1 590 | 919 | 72,9 % | -4 649 | 2 086 | -322,9 % | 3 465 |
| EBT | 4 285 | 4 519 | -5,2 % | 20 144 | 3 436 | 486,3 % | 14 231 |
| Taxes | 1 000 | 2 177 | -54,1 % | 4 455 | 1 703 | 161,6 % | 4 197 |
| Profit/loss after tax | 3 285 | 2 342 | 40,3 % | 15 689 | 1 733 | 805,2 % | 10 034 |
| 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 | 44 271 496 | 44 271 496 | 44 271 496 | 44 271 496 | 44 271 496 | ||
| Earnings per share | |||||||
| 0,07 | 0,05 | 0,35 | 0,04 | 0,23 | |||
| Diluted earnings per share | 0,07 | 0,05 | 0,35 | 0,04 | 0,23 | ||
| EBITDA per share | 0,34 | 0,32 | 1,02 | 0,71 | 1,18 | ||
| Diluted EBITDA per share | 0,34 | 0,32 | 1,02 | 0,71 | 1,18 | ||
| Total earnings | Q3 2018 | Q3 2017 | Chg. % | YTD 2018 | YTD 2017 | Chg. % | Year 2017 |
| Profit/loss after tax | 3 285 | 2 342 | 40,3 % | 15 689 | 1 733 | 805,2 % | 10 034 |
| Exchange differences on foreign operations |
2 314 | -4 605 | 150,3 % | -26 144 | 8 791 | -397,4 % | 16 405 |
| Total earnings | 5 599 | -2 263 | -347,4 % | -10 455 | 10 524 | -199,3 % | 26 439 |
| KNOK | 30.09.2018 | 30.09.2017 | 30.06.2018 | 31.12.2017 |
|---|---|---|---|---|
| ASSETS | ||||
| Intangible assets | 61 630 | 47 050 | 65 481 | 81 796 |
| Goodwill | 134 884 | 116 088 | 127 605 | 139 213 |
| Tangible assets | 60 017 | 82 298 | 62 969 | 81 341 |
| Long term investments | 1 717 | 1 412 | 1 628 | 1 110 |
| Deferred tax | 16 241 | 29 763 | 17 208 | 20 930 |
| Non-current assets | 274 489 | 276 611 | 274 892 | 324 391 |
| Goods | 141 677 | 113 648 | 136 608 | 131 455 |
| Accounts receivable | 174 434 | 162 355 | 167 416 | 160 027 |
| Prepaid expenses | 13 362 | 11 149 | 18 572 | 14 061 |
| Other receivables | 15 533 | 23 111 | 11 764 | 24 172 |
| Bank deposits | 20 381 | 24 329 | 24 255 | 41 503 |
| Current assets | 365 386 | 334 592 | 358 617 | 371 218 |
| TOTAL ASSETS | 639 875 | 611 203 | 633 508 | 695 609 |
| EQUITY AND LIABILITIES | ||||
| Share capital | 27 513 | 27 513 | 27 513 | 27 513 |
| Holding of own shares | -65 | -65 | -65 | -65 |
| Other equity | 220 974 | 237 650 | 215 375 | 253 564 |
| Total equity | 248 422 | 265 098 | 242 823 | 281 013 |
| Long term interest bearing liabilities | 38 855 | 26 958 | 43 648 | 24 623 |
| Other long term liabilities | 19 596 | 3 668 | 23 575 | 27 422 |
| Total long term liabilities | 58 451 | 30 626 | 67 223 | 52 046 |
| Short term interest bearing liabilities | 53 345 | 66 236 | 51 658 | 68 229 |
| Accounts payable | 76 154 | 81 972 | 67 245 | 93 070 |
| Taxes payable | 493 | - | 970 | 1 852 |
| Other short term liabilities | 203 010 | 167 271 | 203 590 | 199 399 |
| Total short term liabilities | 333 002 | 315 479 | 323 462 | 362 551 |
| TOTAL EQUITY AND LIABILITIES | 639 875 | 611 203 | 633 508 | 695 609 |
| KNOK | Share capital | Treasury shares |
Other paid-in equity |
Translation variances |
Other equity | Total equity |
|---|---|---|---|---|---|---|
| Equity 31.12.2016 | 27 513 | -65 | 351 262 | 35 912 | -93 640 | 320 981 |
| Dividend 2016 | - | - | - | - | -66 407 | -66 407 |
| Profit this year after tax | - | - | - | - | 10 034 | 10 034 |
| Other comprehensive income and expenses |
- | - | - | 16 405 | - | 16 405 |
| Equity 31.12.2017 | 27 513 | -65 | 351 262 | 52 316 | -150 013 | 281 013 |
| Dividend 2017 | - | - | - | - | -22 136 | -22 136 |
| Profit this year after tax | - | - | - | - | 15 689 | 15 689 |
| Other comprehensive income and expenses |
- | - | - | -26 144 | - | -26 144 |
| Equity 30.09.2018 | 27 513 | -65 | 351 262 | 26 172 | -156 459 | 248 422 |
| KNOK | Q3 2018 |
Q3 2017 |
YTD 2018 |
YTD 2017 |
Year 2017 |
|---|---|---|---|---|---|
| Ordinary profit before tax | 4 285 | 4 519 | 20 144 | 3 436 | 14 231 |
| Net interest | 766 | 751 | 2 049 | 2 303 | 2 209 |
| Tax paid | -472 | - | -472 | - | 3 596 |
| Share of profit, associated companies | -90 | -50 | -238 | -30 | -90 |
| Ordinary depreciation | 8 526 | 7 952 | 27 430 | 23 759 | 32 541 |
| Profit / loss on sale of fixed assets | -198 | -42 | -593 | -517 | -390 |
| Change in inventories | -4 622 | -12 957 | -17 530 | -10 039 | -24 508 |
| Change in receivables | -6 574 | -10 988 | -22 048 | 2 021 | 17 861 |
| Change in accounts payable | 8 548 | 12 328 | -12 527 | -22 537 | -22 553 |
| Change in other accrued items | -8 991 | -3 715 | 4 638 | 7 706 | 3 863 |
| Cash flow from operational activities | 1 177 | -2 202 | 853 | 6 102 | 26 760 |
| Payments for fixed assets | -1 327 | -5 099 | -6 942 | -13 220 | -15 446 |
| Payment from sale of fixed assets | 459 | 8 | 36 134 | 2 392 | 2 772 |
| Profit on sale to Alimerka | - | - | -21 299 | - | - |
| Net effect acquisitions | - | - | - | - | -462 |
| Interest income | -17 | -54 | 152 | -16 | 2 131 |
| Cash flow from investment activities | -884 | -5 144 | 8 044 | -10 844 | -11 004 |
| Change in long-term debt | -5 048 | -2 445 | 11 368 | -17 732 | -22 060 |
| Change in overdraft | 1 619 | 5 018 | -14 807 | 47 646 | 49 559 |
| Interest expenses | -749 | -698 | -2 200 | -2 288 | -4 340 |
| Dividend paid | - | - | -22 136 | -66 407 | -66 407 |
| Cash flow from financing activities | -4 178 | 1 875 | -27 776 | -38 781 | -43 249 |
| Net change in liquid assets | -3 885 | -5 471 | -18 879 | -43 522 | -27 493 |
| Cash and cash equivalents at the start of the period | 24 255 | 30 232 | 41 503 | 67 090 | 67 090 |
| Effect of foreign exchange rate fluctuations on foreign currency deposits |
11 | -432 | -2 243 | 761 | 1 905 |
| Cash and cash equivalents at the end of the period | 20 381 | 24 329 | 20 381 | 24 329 | 41 502 |
| KNOK | Q3 2018 |
Q2 2018 |
Q1 2018 |
Q4 2017 |
Q3 2017 |
YTD 2018 |
YTD 2017 |
|---|---|---|---|---|---|---|---|
| Income statement | |||||||
| Operating revenue | 233 304 | 276 401 | 250 066 | 259 133 | 204 767 | 759 771 | 692 345 |
| EBITDA | 15 167 | 18 326 | 11 481 | 20 862 | 14 142 | 44 974 | 31 584 |
| Operating revenue EBIT | 6 640 | 8 965 | 1 938 | 12 080 | 6 189 | 17 544 | 7 825 |
| Ordinary profit before tax (EBT) | 4 285 | 9 425 | 6 434 | 10 795 | 4 519 | 20 144 | 3 436 |
| EBITDA-margin | 6,5 % | 6,6 % | 4,6 % | 8,1 % | 6,9 % | 5,9 % | 4,6 % |
| EBT-margin | 1,8 % | 3,4 % | 2,6 % | 4,2 % | 2,2 % | 2,7 % | 0,5 % |
| Balance sheet | |||||||
| Non-current assets | 274 489 | 274 892 | 301 064 | 324 391 | 276 611 | 274 489 | 276 611 |
| Current assets | 365 386 | 358 617 | 354 503 | 371 218 | 334 592 | 365 386 | 334 592 |
| Total assets | 639 875 | 633 508 | 655 567 | 695 609 | 611 203 | 639 875 | 611 203 |
| Equity | 248 422 | 242 823 | 266 767 | 281 013 | 265 098 | 248 422 | 265 098 |
| Long-term debt | 58 451 | 67 223 | 68 815 | 52 046 | 30 626 | 58 451 | 30 626 |
| Short-term debt | 333 002 | 323 462 | 319 985 | 362 551 | 315 479 | 333 002 | 315 479 |
| Working capital | 239 957 | 236 780 | 225 311 | 198 413 | 194 031 | 239 957 | 194 031 |
| Equity ratio | 38,8 % | 38,3 % | 40,7 % | 40,4 % | 43,4 % | 38,8 % | 43,4 % |
| Liquidity ratio | 109,7 % | 110,9 % | 110,8 % | 102,4 % | 106,1 % | 109,7 % | 106,1 % |
| Net interest bearing debt | 71 819 | 71 050 | 62 298 | 51 350 | 68 865 | 71 819 | 68 865 |
| Cash Flow | |||||||
| Cash flow from operatinal activities | 1 177 | 5 985 | -6 309 | 20 658 | -2 202 | 853 | 6 102 |
| 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 | 44 271 496 | 44 271 496 | 44 271 496 | 44 271 496 | 44 271 496 | 44 271 496 | 44 271 496 |
| EBT per shares | 0,10 | 0,21 | 0,15 | 0,24 | 0,10 | 0,46 | 0,08 |
| Earnings per share | 0,07 | 0,16 | 0,12 | 0,19 | 0,05 | 0,35 | 0,04 |
| Equity per share | 5,6 | 5,5 | 6,0 | 6,3 | 6,0 | 5,6 | 6,0 |
| Dividend per share | - | 0,50 | - | - | - | 0,50 | 1,50 |
| Employees | |||||||
| Number of employees (end of period) | 570 | 564 | 567 | 580 | 573 | 570 | 573 |
| Average numbers of employees | 567 | 566 | 574 | 577 | 573 | 569 | 573 |
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 2017.
The accounting principles for the report are described in the annual financial statements for 2017. The Group financial statements for 2017 were prepared in accordance with the IFRS principals 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 31.12.2017. The quarterly report and the interim financial statements have not been revised by auditor. StrongPoint has conducted an assessment of IFRS 15, and its implementation will not have any significant impact on the Group. See the Annual report 2017, note 2 for further information.
| Q3 2018 | Q3 2017 YTD 2018 |
YTD 2017 | Year 2017 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MNOK | Re venue |
EBITDA | EBT | Re venue |
EBITDA | EBT | Re venue |
EBITDA | EBT | Re venue |
EBITDA | EBT | Re venue |
EBITDA | EBT |
| Own Tech | 125,9 | 5,8 | 1,5 | 97,1 | 4,1 | 0,8 | 392,0 | 17,4 | 5,3 | 324,8 | 11,4 | 2,4 | 449,1 | 20,4 | 7,5 |
| 3rd Party | 71,0 | 7,6 | 5,9 | 68,3 | 4,8 | 3,4 | 246,0 | 27,6 | 21,6 | 245,9 | 16,4 | 11,9 | 338,6 | 27,0 | 19,6 |
| Labels | 37,7 | 6,5 | 3,1 | 43,5 | 8,6 | 4,7 | 126,2 | 17,5 | 7,1 | 132,2 | 16,1 | 4,7 | 176,4 | 24,9 | 9,8 |
| Elim / ASA | -1,2 | -4,7 | -6,2 | -4,1 | -3,3 | -4,4 | -4,5 | -17,5 | -13,8 | -10,6 | -12,3 | -15,5 | -12,6 | -19,9 | -22,7 |
| Total | 233,3 | 15,2 | 4,3 | 204,8 | 14,1 | 4,5 | 759,8 | 45,0 | 20,1 | 692,3 | 31,6 | 3,4 | 951,5 | 52,4 | 14,2 |
| Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | Year 2017 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MNOK | Norway | Sweden | Other | Norway | Sweden | Other | Norway | Sweden | Other | Norway | Sweden | Other | Norway | Sweden | Other |
| Own Tech | 28,3 | 52,8 | 44,7 | 21,6 | 27,2 | 48,3 | 74,9 | 133,7 | 183,4 | 92,7 | 91,3 | 140,7 | 124,9 | 129,5 | 194,7 |
| 3rd Party | 15,3 | 30,6 | 25,0 | 25,7 | 32,4 | 10,2 | 81,0 | 92,6 | 72,4 | 96,4 | 98,4 | 51,0 | 105,5 | 133,7 | 99,4 |
| Labels | 15,0 | 22,8 | 0,0 | 15,1 | 26,9 | 1,4 | 48,7 | 77,5 | 0,0 | 43,7 | 85,3 | 3,2 | 60,8 | 115,7 | 0,0 |
| Elim / ASA | 0,0 | -1,2 | 0,0 | 0,0 | -4,0 | -0,1 | 0,0 | -4,2 | -0,3 | 0,0 | -9,4 | -1,1 | -0,0 | -11,2 | -1,4 |
| Total | 58,6 | 105,0 | 69,7 | 62,5 | 82,5 | 59,8 | 204,6 | 299,6 | 255,5 | 232,8 | 265,6 | 193,9 | 291,1 | 367,6 | 292,7 |
| Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | Year 2017 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| MNOK | New sales |
Service | New sales |
Service | New sales |
Service | New sales |
Service | New sales |
Service |
| Own Tech | 73,1 | 52,7 | 51,0 | 46,0 | 224,6 | 167,4 | 177,5 | 147,3 | 249,8 | 199,2 |
| 3rd Party | 50,9 | 20,1 | 47,3 | 21,0 | 180,7 | 65,3 | 173,9 | 72,0 | 243,1 | 95,5 |
| Labels | 37,7 | 0,0 | 43,5 | 0,0 | 126,2 | 0,0 | 132,2 | 0,0 | 176,4 | 0,0 |
| Elim / ASA | -1,2 | 0,0 | -4,1 | 0,0 | -4,5 | 0,0 | -10,6 | 0,0 | -12,6 | 0,0 |
| Total | 160,5 | 72,8 | 137,8 | 67,0 | 527,1 | 232,7 | 473,1 | 219,2 | 656,8 | 294,7 |
No significant transactions between the Group and related parties had taken place as at 30 September 2018.
| No. | Name | No. of shares | |
|---|---|---|---|
| 1 | STRØMSTANGEN AS | 3 933 092 | 8,9 % |
| 2 | HOLMEN SPESIALFOND | 2 400 000 | 5,4 % |
| 3 | AVANZA BANK AB | 2 037 825 | 4,6 % |
| 4 | HSBC TTEE MARLB EUROPEAN TRUST | 1 976 000 | 4,5 % |
| 5 | PROBITAS HOLDING AS | 1 788 276 | 4,0 % |
| 6 | ZETTERBERG, GEORG (incl. fully owned companies) | 1 623 000 | 3,7 % |
| 7 | NORDNET LIVSFORSIKRING AS | 1 603 686 | 3,6 % |
| 8 | NORDNET BANK AB | 1 563 897 | 3,5 % |
| 9 | V. EIENDOM HOLDING AS | 1 442 610 | 3,3 % |
| 10 | WAALER, JØRGEN (incl. fully owned companies) | 1 030 000 | 2,3 % |
| 11 | VERDADERO AS | 988 308 | 2,2 % |
| 12 | GLAAMENE INDUSTRIER AS | 873 549 | 2,0 % |
| 13 | RING, JAN | 869 372 | 2,0 % |
| 14 | MP PENSJON PK | 777 402 | 1,8 % |
| 15 | GRESSLIEN, ODD ROAR | 660 000 | 1,5 % |
| 16 | SKANDINAVISKA ENSKILDA BANKEN AB | 533 363 | 1,2 % |
| 17 | JOHANSEN, STEIN | 450 000 | 1,0 % |
| 18 | NHO - P665AK | 405 342 | 0,9 % |
| 19 | JACOBSEN, SVEIN (incl. fully owned companies) | 400 000 | 0,9 % |
| 20 | SVENSKA HANDELSBANKEN AB | 391 040 | 0,9 % |
| Sum 20 largest shareholders | 25 746 762 | 58,0 % | |
| Sum 1 798 other shareholders | 18 629 278 | 42,0 % | |
| Sum all 1 818 shareholders | 44 376 040 | 100,0 % |
EBT Profit before tax EBT-margin EBT / operating revenue EBIT Operating profit EBITDA-margin EBITDA / operating revenue Equity ratio Book value equity / total assets Liquidity ratio Current assets / short term debt
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 tangible assets Weighted average basic shares Issued shares adjusted for own shares on average for the year Earnings per share Paid dividend per share throughout the year
26
StrongPoint ASA Slynga 10, 2005 Rælingen strongpoint.com
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