StrongPoint: EBITDA above, but markets remain challenging - ABG

Q3: EBITDA of NOK 12m vs. our NOK 10m, on lower costs
Still relatively low visibility
Estimates likely unchanged


Q3: EBITDA of NOK 12m vs ABGSCe NOK 10m

StrongPoint's Q3 showed promising development, although the market continues to be plagued by long decision cycles and project postponements. Sales increased 7% y-o-y on easy comps, an improvement vs. the -13% y-o-y decline on average the last 4Q. Total revenues came in at NOK 313m, largely in line with our NOK 315m. Revenues from Norway were down 8% while revenues from Sweden were down 25% y-o-y, respectively. GP was +1% vs. our estimate, giving a GM of 42.7% (ABG 42%). EBITDA came in at NOK 12m vs. ABGSCe NOK 10m. The improvement was largely driven by the cost reduction measures implemented in Q2 — good to see that the measures have started to show positive effect. EPS came in at NOK 0.06 vs. ABGSCe NOK -0.07, boosted by better net financials (FX). Cash flow from operations was stronger compared to Q2, at NOK 10.1m vs NOK -9.7m, driven by positive operating result and WC. Net debt came in at NOK 109m vs NOK 105m in Q2.

On outlook: StrongPoint states that, while there has been an uptick in the results, the overall market remains uncertain. The company remains cautious about promising significant short-term improvements, but expects continued positive effects from cost-cuts.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/StrongPoint/Equity-research/2024/10/strongpoint---ebitda-above-but-markets-remain-challenging/