Second Quarter Report 2024
16 July 2024 - 7:45AM
UK Regulatory
Second Quarter Report 2024
SERSTECH GROUP, 1 APRIL – 30 JUNE 2024
- Net sales amounted
to KSEK 21 369 (32 775).
- EBITDA amounted to
KSEK 5 595 (16 064), corresponding to an EBITDA margin of 26%.
- EBIT amounted to
KSEK 3 715 (13 084), corresponding to an EBIT margin of 17%.
- Cash flow from
operating activities amounted to KSEK -1 112 (-8 191).
- Earnings per share
amounted to SEK 0.02 (0.06).
- Earnings per average
number of shares amounted to SEK SEK 0.02 (0.06).
SERSTECH GROUP, 1 JANUARY – 30 JUNE
2024
- Net sales amounted
to KSEK 35 543 (45 111).
- EBITDA amounted to
KSEK 6 963 (17 371), corresponding to an EBITDA margin of 20%.
- EBIT amounted to
KSEK 3 194 (11 444), corresponding to an EBIT margin of 9%.
- Cash flow from
operating activities amounted to KSEK 515 (-9 762).
- Earnings per share
amounted to SEK 0.01 (0.05).
- Earnings per average
number of shares amounted to SEK 0.01 (0.08).
Message From The CEO
Revenue amounted to approximately 36 MSEK for the first six
months of 2024, with profitability in both the second quarter and
the first six months of 2024. Two significant differences in 2024
compared to 2023 are that the sales are coming from more customers
and countries than before and that several are repetitive
orders.
We have two significant orders in Q2 2024 – one from our partner
Proengin Inc and one from the US military. The US military order is
the smaller of the two, but potentially with higher importance. The
US military will evaluate the newly launched Serstech Arx mkII and
its unique capabilities, such as communication over military
networks and identification of biotoxins. The potential with the US
military could be large over the coming years, and the feedback as
of now is positive. The Serstech Arx mkII was launched in May 2024
and the first deliveries were made the following month. Production
is still in its ramp-up phase and when the quarter closed, we had a
backlog of orders to be delivered over the summer. By August, we
expect the current backlog to have been delivered and that the
production capacity will be able to fully meet the demand.
We have been working on securing deliveries of components for
some time and will accelerate the efforts further. We do not
experience any component shortage at the moment, but we see a risk
of shortage being created by ongoing and potential conflicts in
Europe and Asia. We have therefore also started to build an
inventory of components and will continue to source larger volumes
than we would otherwise need. Given the industry we are in, we
expect a further increase in demand if the geopolitical uncertainty
increases. At the same time, we would expect component shortage to
limit our production capacity in such a case, and we therefore are
increasing our inventory of components, despite our somewhat
limited cash balance.
In April, we filled our last open vacancy in the team, and for
the first time in quite a while, we do not have any vacancies at
all. We recreated the team in 2022 and 2023 after the pandemic team
size reduction, and we now expect to be able to maintain a fairly
constant fixed cost level as we continue to solidify and grow the
business. The fixed cost increase in 2024 will solely be from the
effects of new team members joining in the middle of the year in
2023.
We continue to see a strong demand in the market from our main
segments and we do not see any indications that the positive demand
trend should shift downwards the coming years. As mentioned
repeatedly, we do however expect large variations from quarter to
quarter, due to the nature of our tender-driven business. We remain
optimistic about the coming years and are confident in our
long-term growth targets.
Stefan Sandor, CEO
July 2024
For further information, please contact:
Stefan Sandor,
CEO, Serstech AB Phone: +46 739 606 067
Email: ss@serstech.com
or
Thomas Pileby,
Chairman of the Board, Serstech AB Phone: +46 702 072 643
Email: tp@serstech.com
or visit: www.serstech.com
This is information that Serstech AB (publ.) is
obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency
of the contact person set out above at 08:45 CET
on July 16, 2024.
Certified advisor to Serstech is Svensk
Kapitalmarknadsgranskning AB (SKMG).
About Serstech
Serstech delivers solutions for chemical identification and has
customers around the world, mainly in the safety and security
industry. Typical customers are customs, police authorities,
security organizations and first responders. The solutions and
technology are however not limited to security applications and
potentially any industry using chemicals of some kind could be
addressed by Serstech’s solution. Serstech’s head office is in
Sweden and all production is done in Sweden.
Serstech is traded at Nasdaq First North Growth Market and more
information about the company can be found at www.serstech.com