Clavister: Important profitability milestone reached - ABG

Q4 sales SEK 40m vs. ABGSCe 40m, up 10% y-o-y (6% organic)
EBITDA positive in consecutive quarters for first time in 25 years
Management confident about short-term liquidity


Report relatively in line, cash flow up substantially y-o-y

Clavister delivered Q4 sales of SEK 40m, in line with ABGSCe 40m and up 10% y-o-y. The growth was driven by a strong development in the firewall and IAM business. The initial phase of its cost optimisation has been finalised with results better than expected and opex in Q4 was SEK 34m vs. ABGSCe 37m. Because of this, EBITDA turned positive (SEK 0.4m vs. ABGSCe SEK -1.8m). Compared to Q4'21, EBITDA improved by SEK 12m. This, importantly, marked the first time in its history of two consecutive quarters of positive EBITDA. Of SEK -22m in net financials, most of it was currency revaluations, with only SEK -2.8m cash flow related. The free cash flow improved substantially to SEK -3m, which is encouraging. Furthermore, growth is expected to accelerate in coming quarters from both a solid underlying development and the first major deliveries of CV90s to the Dutch military. BAE, which produces the CV90s, is working with several other partners, which could yield more orders for Clavister short-term.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/clavister/Equity-research/2023/2/clavister---important-profitability-milestone-reached/